Auto bailouts failed the taxpayers

The federal government in bold letters informed the taxpayers that their money used to bail out General Motors and Chrysler saved 1.5 million jobs in 2009. Further, the taxpayers were able to preserve $105 billion in personal and social insurance tax collections.

The administration lent the auto industry, including General Motors and Chrysler, $80 billion to avoid a collapse that would result in the loss of million of jobs. Sean McAlinden, the center’s chief economist, said in a statement, “This peacetime intervention in the private sector by the U.S. government will be viewed as one of the most successful interventions in the U.S. economic history.”

Since the big investment we have learned that Chrysler now is controlled by Italy’s Fiat, Chrysler is profitable, and to thank the taxpayers they are producing plants in Mexico. General Motors, which received the lion’s share of the bailout, has left the taxpayers with a shortfall of about $10 billion. The taxpayers were forced to bail out the greedy, mismanaged companies while their employees and unions made no concessions.

Chrysler and GM should have followed the lead of a company with a better idea — Ford did not need a bailout and GM and Chrysler should not have received one.

Silvio Pontarelli

Mount Prospect