President Obama thinks he is going to cash in on the success of the auto bailouts and thereby cruise to reelection. Is he detached from reality? The bailouts were major financial failures and the taxpayers will never get their money back. According to USA Today online,
“The Treasury Department estimates the government will lose more than $23 billion on the auto bailout: GM is trading at $24 a share, well below the $53-per-share mark needed for the government to recoup its investment in the company.”
Of course, the reference to the government losing $23 billion really means the taxpayer, as in you and me. That’s roughly $75 for every man, woman and child in America. I want my money back.
To the left (the ones who profess to care about the little guy who could really use the $75), pumping billions into failed companies that will never repay their debts, which make cars nobody wants, is their definition of success. Nothing succeeds quite like failure. Sad, but true. Ironically, the Bush Administration that started the auto bailouts is not getting “credit” from the President. Pimp your ride, Mr. President, and tool around in some of those electric cars during your campaign instead of those Canadian made buses. I bet Michelle will love that. Hit the road, Jack, and call me if you need an extension cord.
The Congressional Budget Office released their budget and economic outlook for the next ten years and I ran across this juicy, yet revealing, tidbit on their website.
“In part because of the dampening effect of the higher tax rates and curbs on spending scheduled to occur this year and next, CBO expects that the economy will continue to recover slowly, with real GDP growing by 2.0 percent this year and 1.1 percent next year”
Gee, I guess the stimulus package didn’t work after all. Maybe it should have been bigger, then GDP might actually fall to zero.
Take note of three things: First, the higher tax rates referenced are the Bush tax cuts and other ATM tax provisions that are assumed to expire. Second, they are assuming that curbs on federal spending will slow the economy. Give me a break. Don’t they realize that the federal government does not create economic activity and that the federal government is actually a drag on the economy? I guess not. Third, but most important, is that the conclusion is that the economy will actually slow as a result. Am I hallucinating or did a government agency just admit that higher taxes slow the economy? It must have been a Freudian slip on their part.
Keep hope alive. Regime change in 2012!