The U.S. government lost $11.2 billion on its bailout of General Motors Co (GM.N), more than the $10.3 billion the Treasury Department estimated when it sold its remaining GM shares in December, according to a government report released on Wednesday.$11.2 billion dollar loss. Let me bust out my calculator here. Assuming a yearly salary of $50,000, that means the loss alone could have paid the salaries of 224,000 people. According to General Motors, they has 212,000 employees.
The $11.2 billion loss includes a write-off in March of the government's remaining $826 million investment in "old" GM, the quarterly report by a Treasury watchdog said.
So, basically, we would have SAVED money if the federal government had simply written a check for $50K to every single GM employee and then shuttered the damn buildings. If you factor in the $50 billion that was spent to save GM, we could have cut everyone a check for $200K - or paid them $50K a year for four years. Any of which would have been a gross misuse of taxpayer funds, mind you.
"But Jay!" you shriek. "GM was too big to fail!" You know something? If you need $50 billion from the government just to stay afloat - and you still can't handle a simple recall? Maybe we're thwarting natural selection by allowing your company to continue to exist? Ah, but then how would the union thugs get their kickback if the company had been allowed to expire?
I take it back - even if I did hit the lottery, I won't buy anything from GM...
That is all.
Another dispatch from...
(image courtesy of Robb Allen)