$50 Billion for GM
This article about the 31 year old who is in charge of dismantling GM (kinda disturbing that a 31 year old is in charge of it, but oh well) has this little bit in it,
He lives a dual life these days. He starts the day at a desk wedged just outside of Mr. Summers’s office, where he can hear what young members of the economic team have come to know as “the Summers bellow.” From there, he can make it quickly to the press office to help devise explanations for why taxpayers are spending more than $50 billion on what polls show is a very unpopular bailout of the auto industry.
How much would it have cost to pay the GM workers their hourly wage for 8 hours a day for 2 years? Why not give them that and tell them, good luck finding a new job and after 2 years no more money. According to GM’s website they employ 245,000 people around the world. So, even if we sent all of those people a check for $4,000/month we’d be under half of the $50 billion. If we excluded people outside the U.S. we could probably cut it down even more.
This bailout/takeover/abomination sure is a rotten deal for the taxpayer. Clearly, nobody is representing the taxpayer in Washington D.C. these days.
Update: I’m not even sure the $50 billion will be enough. This article indicates that GM has $173 billion in liabilities. I have to wonder if we wont be seeing requests for another $10 billion, just $15 billion more, and so on.