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Politics : View from the Center and Left -- Ignore unavailable to you. Want to Upgrade?

To: Wharf Rat who wrote (150591)	11/18/2010 7:22:29 PM
From: Wharf Rat	Respond to of 543162

Study says auto bailout saved 1.4 million jobs By Ed Brayton 11/18/10 7:15 AM A new study by the Center for Automotive Research in Ann Arbor concludes that the bailout of General Motors and Chrysler in 2009, with $85 billion in taxpayer money going to the two companies to help them survive the restructuring process of managed bankruptcies, saved 1.4 million jobs. The Detroit News reports: Most of the jobs — 1.14 million — were saved in 2009, during the low-point of the industry’s severe downturn. But another 314,400 were saved in 2010, the Center said Wednesday. “The government intervention prevented additional personal income losses totaling $71.9 billion for 2009 and $24.6 billion for 2010,” the center said in a statement. “The net impact to the federal government—in terms of changes in transfer payments, social security receipts and personal income taxes—was $21.6 billion in 2009 and $7 billion in 2010.” But that is merely the tip of the iceberg. The cost to state and local governments for the sudden increase in Medicaid, unemployment benefits, loss of property taxes and other consequences of allowing the two companies to fail would have been even higher. Add in the $29 billion cost of taking over the pensions of the two companies by the federal Pension Benefit Guaranty Corporation and the effect of another wave of foreclosures that would have been triggered and the bailout was a bargain. michiganmessenger.com