Socialist General Motors Took Mass US Govt Bailouts, Now Backstabing America By Outsourcing Jobs

President Trump made his frustration with GM abundantly clear on Tuesday when he threatened to cut all EV subsidies to the Detroit carmaker. But on Wednesday both the president, this time joined by Treasury Secretary Steven Mnuchin, took the administration's attacks on GM to their next logical endpoint: Demanding that the federal bailout recipient return the $11.2 billion loss eaten by taxpayers from the federal bailout that the company received during the depths of the financial crisis.

"If GM doesn't want to keep their jobs in the United States, they should pay back the $11.2 billion bailout that was funded by the American taxpayer," read a tweet from a Trump fan account that the president and Mnuchin retweeted. Trump also retweeted two tweets about illegal immigration.

GM shares slid after Trump's tweets Tuesday afternoon, but GM stock futures showed little immediate reaction to Trump's threat. GM received billions in bailout money to shore up its troubled financial arm GMAC in 2008. After spinning off the subsidiary (which now trades as Ally Financial), GM saddled the Treasury with a more than $11 billion loss.

After meeting with GM CEO Mary Barra, Larry Kudlow told reporters on Tuesday that he had conveyed the president's anger to Barra, and explained that Trump feels betrayed by GM, and that he believes the carmaker "turned their back on him" by announcing the layoffs and plant closures, particularly after the Trump tax cuts handed billions of dollars back to corporations and allowed them to repatriate overseas cash.

Politicians on both sides of the US-Canada border were outraged by GM's Monday announcement that it would close 5 North American plants (and two foreign plants) and fire nearly 15,000 workers in the US alone. Trump blasted the company for opting for layoffs and closures in the US while plants in Mexico and China remained open.

While we await a response from GM management, shareholders are a little nervous.

web.archive.org/save/https://www.zerohedge.com/news/2018-11-28/trump-mnuchin-call-gm-pay-back-federal-bailout
web.archive.org/web/20181128202605/https://www.zerohedge.com/news/2018-11-28/trump-mnuchin-call-gm-pay-back-federal-bailout

“Let Detroit go bankrupt,” former presidential candidate Mitt Romney wrote in 2008, arguing that the federal government should not bail out the failing domestic auto industry for their poor management decisions. Vilified for turning his back on America’s autoworkers, Romney lost the argument, Barack Obama won the election, General Motors got its way, and U.S. taxpayers got stuck with an $11.2 billion bill to keep the company alive.

Today’s announcement from General Motors that it will close two plants in Metro Detroit and lay off 14,700 workers helps prove Romney right, albeit ten years later. Romney wrote that with a bailout, the American automotive industry’s demise “will be virtually guaranteed” because it would not be forced to undergo radical restructuring to be competitive in the marketplace. By subsidizing failure, the federal government would be gambling with taxpayer dollars and forestalling the inevitable.

dcclothesline.com/2013/06/29/if-you-werent-outraged-by-gm-bailout-you-will-be-now/
indefenseofliberty.blog/2018/11/26/romney-was-right-the-gm-bailout-goes-bust-and-taxpayers-pay-the-price/

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They got bailouts during the Obama years. Remember us griping over this? They should have gone bankrupt and allowed the free market to do its thing. Instead, they created an INSOLVENT company, which is now collapsing and backstabbing their workers trying to flee to another country in hopes of avoiding bankruptcy.

Lessons learned? Bailouts DO NOT work.

Trump needs to say these two things: no more bailouts, no more subsidizes! If you are insolvent, file bankruptcy! Then he needs to pressure the US govt to stand down and allow the free market to do what it does best: recover by its own. New solvent companies will pop up to replace GM in a few years and we can finally start making good cars in America once again.

trump just finished launching tarriffs against all his allies. doesn't sound like a very free market to me. in fact it sounds kind of communist

This is just globalists throwing a hissy fit now that the gravy train is coming to an end.

I think your mistaking sanctions with tariffs, to which I'd agree with. However tariffs are normal, they are not really "trade war", its just normal taxation (which every country engages in). The US has been more than generous paying massive amounts in tariffs, yet we didn't impose it on other countries? Why not!?

If you want a more far trade system, all countries should get rid of tariffs and we should get rid of govt subsidies as well. This would be super Capitalistic.

free market
did america make their economy a planned system because the commies did? why the fuck should you shoot yourself in the foot because someone else did fucknuts

Your ignorant. The US did have tariffs for many many years until trade deals like "NAFTA" were signed into law. Because of bad trade deals we allowed other countries to tariff our goods, but we got rid of our tariffs. How is that fair to us? If you want a fare system, things should be equalized among trade, reciprocal.

FREE MARKET AT WORK

...

I know lets tax companies i want to stay in my country! hey why are you leaving! MAGA MAGA!

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Are you retarded? Tariffs tax things coming into the country. It doesn't tax things leaving the country.

Economically illiterate communists detected.

Do you even know what tariffs are? They are taxes on foreign goods coming INTO the country. Having tariffs - as the USA did back in the good 'ol days - helped incentivize businesses to enter the US so they can make and sell products domestically to avoid tariffs.

Do you IDIOTS know GM was bailed out by US taxpayer money (corporate welfare) under Obama? Now they are throwing a fit because Trump refuses to bail their insolvent asses out! You fucking libtards know NOTHING about Capitalism!

The socialist corporation that is not tied to the government and so freely outsources to other countries for it's shareholders profit.

Its taking govt money, therefore its being subsidized by the government.

What are they going to do? Turn down free money?
Apparently it came with no strings attached.

Show some corporate responsibility, sort themselves out and pay it back. Fucking Chrysler managed it for god sakes and that company is stuck in the god damned 60's. In fact, ideally they'd have been more like Ford and weathered the storm without the need for bailouts - some of the measures they took included the board of directors foregoing their salaries for a year so that the company could function without their overhead costs.

That's fucking capitalism - it's playing the long game and realizing it's about more people than just you.

tariffs tax goods coming in. why is that bad? okay, because then manufacturers' costs go up, like the cost of steel. You can't save money on cheap steel anymore so where do you save money? labor. and there you have GMs story. yeah, they suck because they got bailed out, but don't kid yourselves. trump's brilliant plan of putting tariffs on everything coming into the US is just raising costs for american manufacturers, so they have to move their businesses to places with cheaper labor. (same thing happened with harley davidson saying they had to move out of US)
of course people warned trump of this, but that's trumps MO. just ignore all the experts around you and do whatever you "feel" is the right thing.
MAGA!

We have been outsourcing since the 80s, nothing new. Tariffs are not new either, however *global Capitalism is something that is new within the last century. We now have competing superpowers that never existed as superpowers before. We now have technological waves of progress we never experienced or know how to deal with. We have the Fed creating unlimited debt, issuing unlimited debts and now have other superpowers challenging our reserve currency status over it. A lot has changed, we are in some other playing field and it ain't exactly on our turf anymore.

This! Also I think Trump's attack on GM is deranged; of course they are going to produce overseas if its cheaper. He has no grounds unless the bailout came with strings attached.

The real war we lost was not just manufacturing, but mining our own resources. If we dominated the mining industries (like we used to in the late 1800s and early 1900s) we would have all we need to manufacture just about anything for dirt cheap. Other countries could say "hey, we'll only slap 5% tariffs on you if you goys buy our resources" and we would respond: "nah, we have what we need but thanks anyway."

The big killer? What happened to our mining industries?

AMERICA FIRST

Outsourcing jobs and slapping tariffs on the products and services is like handing over your gun to someone and then telling him to "stand and deliver".

Bailouts don't work. Bankruptcy is an inconvenient necessity of capitalism, an unfortunate consequence if you desire a true free market system. We should learn from many previous collapses, where there are busts there will be booms as well. Increasing debt insolvency is never a solution.

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Thats a good way of looking at it, fortunately the US has a lot of land with a lot of resources. The big question is will we utilize what we have in order to recover economically? It is possible, but certain powerful special interests may not be so keen to seeing that happen.

It will certainly be harder to make use of resources in the US when the same products can be made abroad now that US companies have funded the infrastructure and manufacturing for them at the cost of US citizens who unwittingly bought the cheap Made in China instead of American products.
It is very understandable though, of course everyone wants as much value from their money as possible. Very damaging in the long run though.

The wages for extracting, moving and refining resources are lower abroad. And since they have the entire production chains, there might not be any need for US imports.
At the worst case I fear that this will take a huge toll on the living standard in the US, as it will go up in other countries.

I am absolutely not actually knowledgeable on this though, so it is only speculation on my part. Maybe someone who knows more will have a more uplifting prediction?

rational factional news bump

We should have never allowed outsourcing to happen to begin with. Companies that decided to outsource should have been immediately slapped with extreme tariffs if they wanted to import products into the US. This would have slowed outsourcing to a halt as those greedy fuckers would know it would have costed them big time.

Trump is 40 years too late. He's trying to do good but its like putting a band-aid over a gunshot wound. The US is basically bleeding out and the only thing these stupid economically-illiterate bureaucrats can think of is "more bailouts, more subsidies, more regulations, more taxes!" It won't work. I think this is one reason they are trying to flood the US with third world labor, because they are getting us all ready to live in the third world when our economy crashes.

No, they're doing what every company who wants to survive now is doing.
Going high tech with self driving and electric.

It's called capitalism.
Trump is a closet socialist.Sink or swim.
Coal…..fucking coal?
Join the niggers on welfare and let the educated like me pay for it with our tech jobs

What your not told is that many people don't want "high tech" self-driving cars! And we don't want these companies bailed out with our tax dollars because they suck on the tits of Big Tech (which we don't really like either).

This is why I will continue to buy older mechanical trucks from the late 80s and early 90s and work to maintain them.

Self driving cars are for people who have no intrest in driving. And such people should be forced onto busses.

And what little they do trying to appeal to people who don't want a car, the rest of it gets fucked over by the goverment with safety standards and gas mileage standards. And all the work done to meet those standards have driven the price of even the little tin can car to absurd levels.

The truth is its not. In capitalism, companies like GM (including the insolvent banks) would have never been bailed out with taxpayer money, or subsidized. Once the government starts picking and choosing what companies/banks are privileged or "too big to fail" is when the free market ceases to exist or function as intended.

You see, in capitalism insolvent entities do not get bailouts. They are not subsidized either. They have to compete, and if they become insolvent then they go under and are forced into bankruptcy and face asset liquidation. This is normal free market functions. Some win, some lose. But in the free market, no one is privileged or immune from consequences of failure.

We had free market capitalism back in the day. Not anymore.

I remember Bush Jr bailing out GM not Obama…

Yep it was Bush.

newyorker.com/news/john-cassidy/an-inconvenient-truth-it-was-george-w-bush-who-bailed-out-the-automakers

OK, still a bad idea and should not have occurred. When companies become insolvent we should expect them to go bankrupt. New companies would eventually start up and replace the old ones, thats how the free market system works.

Lol you don't know shit about capitalism or how business organizations function. This is in fact the definition of late stage capitalism. Companies exist to make money AND to perpetuate themselves. They have no obligation to anyone else or anything else much less any government or nation. So if they can use lobbyists and paid off politics to get a bailout they will. If they can manipulate the government to their advantage, THEY WILL. Competition does not stop at some arbitrary boundary under capitalism. It goes as far as the people will allow it. In the case of GM and the USA the people decided that being bootlicking cowards was the way to go. Now they get a front row seat to watching rootless cosmopolitan elites raid the last bit of wealth from their nation before disappearing and leaving behind a collapsing empire.

Good. Fuck GM, they've been making shitty decisions since the 80's, time for them and their plastic cars to go.

Name one.
Name one thing each has done specifically for the US?
Name one thing each has done specifically for US citizens?
Please note for the above two questions make sure your answers are things that they don't do for others.

I love how the Goldwater throws the words socialist and statist around as pejorative even though this site probably has more tankies than lolbergs

Holy shit your retardation knows no bounds.

just another example of why zerohedge is fake news, shilling for the alt-right. they "expertly" framed this paragraph as though it was obama's fault that GM got bailed out, without actually saying that, so they can deny, but they know that people (particularly trump voters) are stupid and they'll just eat it up and read it that way.
you can't trust "news" articles written by "Tyler Durden" (fictional character from Fight Club, for those who don't know)

If we shall live with socialism, then let us have our bailouts and subsidies. But for the rich? Hahah, you fucking idiot.

No, for the small-business. What is a small business? Less than 20 people, obviously. What sort of fool can look at a large, working, profitable business that has ANY amount of popularity to it, and say, "They are the ones who need help."

If you know the name of the business, be it McDonalds, GM, Google, Sears, Costco, or whatever else is known, but pure shit, then of course they could just fix themselves and use their popularity to right themselves. They do not need government help. If anything, they need to be destroyed by the government, to make way for proper small businesses, "of the village people."

It is small less-than twenty employee businesses that make our towns friendly and our community sociable. And it's those businesses that need financial help.

But that's assuming we are socialist. I am already bending my principles to even suggest that the government interfere with economics and business anyways. In my opinion? Let the ones who are in debt millions starve. Let the fools who cannot manage their debts and their service-wage jobs starve. Let them all starve. This world is not for the weak.

Let the fools starve.

not the one you're replying to, but I'll jump in
Canada

provided power to the east coast states, biggest trading partner, provides most of US oil so you can run your economy, fought side by side in WW2, korea and afghanistan. basically you wouldn't have the economy and freedoms you enjoy without Canada's help and resources.

routinely fly over Canadian firefighter and paramedic volunteers in times of disaster like wildfires, hurricanes, etc. to help rescue efforts, donating emergency supplies gathered from Canadians for americans, etc.
Canadian citizens literally took americans into their homes when their planes were grounded in Canadian cities on 9/11.


Naturally, most of those things are what Canadians have done especially for americans.

The fact that you don't know this, only enforces the stereotype that americans don't know shit about anything outside their borders (or even within their own borders, in the case of helping rescue efforts) the fact that trump put tariffs on Canadian steel on "security grounds" shows what a fucking idiot trump is, that he would classify his greatest economic and loyal military ally as some kind of security threat. Fuck him and fuck you, you ungrateful bitches.

has no reply to

He killed himself out of shame.

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Reminder that American anons are the most ignorant in the world. And Trump is the number 1 ignoramus. He doesn't realize that tariffs are a tax on AMERICAN companies, not on the countries he's targeting. It's no wonder that they leave for other business-friendly countries.