From Chapter Seventeen:
How You Funded the Union’s Purchase of GM and Chrysler
. . . and Why Your Wallet Is Still Open
“A government big enough to give you everything you want,
is strong enough to take everything you have.”
—Thomas Jefferson
Third U.S. President & Author of the
Declaration of Independence (1743–1826)
Third U.S. President & Author of the
Declaration of Independence (1743–1826)
"Prior to the end of his second term, George W. Bush approved $25 billion in federal loans to General Motors, GMAC, Chrysler LLC and Chrysler Credit Corp. The money was given up-front on December 29, 2008, with conditions set forth for the companies to receive additional disbursements following transfer of power to the Obama Administration in 2009. Bush’s conditions specified the creation of a viable turnaround plan by the automakers, as well as wage and contract concessions by the UAW.
The UAW never made those concessions before the next round of government disbursements was to be approved. In fact, they didn’t even sit down to talk with GM and Chrysler until two days before Congress was to review the automakers’progress.
"Most of the industry players were elated at the time of Bush’s initial loan approval. Vendors and suppliers got paid. Dealers remained open for business, despite the dark economic climate. And the assembly lines kept rolling. In retrospect however, Bush threw taxpayer funds out the window in an effort to save companies that ultimately went bankrupt anyway. Arguably, more important than even the billions in squandered cash, Bush opened the door to the nationalization of select American businesses and confiscation of the personal property and legal rights of others..."
