December 16, 2011 | 8 comments
December 15, 2011 | 3 comments
December 15, 2011 | 0 comments
December 14, 2011 | 39 comments
December 14, 2011 | 4 comments
Megan McArdle, looking past the government’s spin, has demonstrated that taxpayers are likely to suffer a huge net loss, in an accounting sense, on the General Motors bailout. The mere fact that GM is alive and turning quarterly profits is utterly meaningless — as McArdle notes, “‘Can the government keep companies operating if it is willing to give them a virtually interest free loan of $50 billion, and a tax-free gift of $20 billion or so?’ I don’t think that this was really in dispute.”
In general, the government can successfully prop up any one company, and even make it profitable. That it has done so, at least for right now, for GM isn’t a surprise or a vindication of the bailout even in the slightest.
No, the real story is that, even with all the advantages over its competitors the government has given it, GM will likely never be able to repay taxpayers their “investment.” And the scandal is that the taxpayers’ “investment” involved the government trampling on the rule of law on their behalf, which is exactly the opposite of what the government exists to do.
We’ll never know the true cost of the auto bailouts, because it’s impossible to know what other automakers would have taken over the market shares of GM and Chrysler, or which investors will now hesitate to make important investments because they can’t be sure the government will honor their contracts.
There are only two reasons that someone would argue that the bailout of GM has been a success: one, because he is invested in the political success of the Obama administration, or two, because he truly does not understand the issues unless they are framed in the terms provided by the Obama administration.
A man of faith in a godless age is hitting Americans where it hurts.
Mr. and Mrs. American Spectator Reader, let P.J. O’Rourke talk sense to your kids.
In Britain, defending your property can get you life.
The debacle of this president’s administration is both a cause and a symptom of the decline of American values. Unless Congress impeaches him, that decline will go on unchecked. An eminent jurist surveys the damage and assesses the chances for the recovery of our culture.
It won’t take long for conservatives to scratch this presidential wannabe off their 2008 scorecard.
The American Christmas, like the songs that celebrate it, makes room for everybody under the rainbow. Is that why so many people seem to be hostile to it?
Was the President done in by the economy, or by the politics of the economy?
H/T to National Review Online