The end of capitalism
 

It looks like the US bailout of GM has caused the end of capitalism as we know it. GM was only able to eke out a $3.2 billion profit for the first quarter.

Regards,

D-Ray

Yeh, I'm just waiting for the parade of GOP nay-sayers to come forth and admit that they were dead wrong on this one.

So, what's the return on the gov'ts investment?

Pete

It'll be pretty damn high once they sell all their stock and collect tax revenues from GM and their employees. A home run, I'd say (compared to the alternative the GOP proposed (i.e., do nothing)).

Then just imagine all that wonderful tax revenue generated by the bank bailout.

Pete

Maybe 100,000 more taxpayers working. That would equal about $200,000,000 in annual income tax revenue and about $750,000,000 annually in trust fund tax revenue. Of course that's above whatever the actual sale of the stock eventually nets.

EDIT: Oops, it looks like my numbers were way low. It is estimated that the bailout of both GM and Chrysler saved 1,400,000 jobs. The financial effect of that, in terms of save unemployment compensation, tax revenue and trust fund tax revenue is about $27,600,000 in 2009 and 10.

Regards,

D-Ray

That's happening too, though it wasn't the thread's topic (nor will the tax revenue be as high as it should due to our screwy tax laws on the investor class (particularly hedge fund managers)).

Do you expect the GOP to admit it was also wrong with its incessant TARP criticism (nothwithstanding the fact it started under Dubya)?

Bonuses aren't taxed at the same rate? ;)

Pete

Actually there has been an economic report that the deficit would have been half again as much in 2009 without the government intervention and the actions of the fed.

Regards,

D-Ray