Government Buys From GM to Inflate Sales Numbers

In an article from Seton Motley of NewsBusters.org, it goes through one news report after another saying how GM was saved by the US government’s $50 billion in bailout money.  As the months marched forward, the tailspin that was GM’s financial situation suddenly reversed, and sent rocketing upwards.  By the month of June, apparently GM saw a 16% spike in sales.  Well, that’s just wonderful …I suppose those socialist economic policies worked, right?

Not so much.  Actually, Motley goes through these articles in a very sarcastic sense, showing how blind the media has been on the subject.  Even as they report, GM’s June sales up 16%, show broad-based growth, they neglect to inform the American public that they simply lost $30 billion dollars to the United Autoworkers Union.

So, did GM really gain the ability to turn around the company on on $50 billion in taxpayer dollars, despite the fact that the Obama stimulus package was to shell out $30 billion to the union?  This means that they were able to do what they needed for just $20 billion dollars …if my math is any good.

Actually, there’s a different reason for the success.  The National Legal and Policy Center reports:

It looks like General Motors will be throwing everything in but the kitchen sink to help fluff its second quarter earnings numbers. Taxpayers continue to help with the cause as President Obama campaigns on the “success” of GM following the manipulated bankruptcy process that cost taxpayers $50 billion and another $45 billion of tax credits gifted to GM to help protect powerful UAW interests. We now learn that government purchases of GM vehicles rose a whopping 79% in June.”

Motley runs a short, fun little analysis to help us understand.  You may want to have a seat for this.

Meaning Barack Obama is now campaigning on the “success” of – the government buying cars from…the government’s car company.  With our money.

That’s like you setting up a lemonade stand for your kids.  You buy them the lemons, sugar, cups and pitchers – and then buy most of the lemonade yourself.

Except you are President Obama.  Your kids are the United Autoworkers Union.  And the lemonade cost $50 billion.

At least you get to tax your neighbors for the $50 billion.”

Ah, so the socialist economic policies didn’t work.  Well, maybe it did for the Government Motors CEOs and lobbyists who walked away with some fantastic taxpayer cash.  It’s not looking like socialism is working for Obama though.