The conservative right is famous for its claim that the Obama administration has turned “General Motors” into “Government Motors“. Hell, there’s even a pithy t-shirt and scathing website (or ten).
Unfortunately for the conservatives, however, GM announced this week that they have paid back the US and Canadian government $5.4 BILLION on Tuesday. Oh and, by the way, it’s WITH INTEREST!
General Motors Co. Chief Executive Officer Ed Whitacre said GM has repaid $5.8 billion in loans to the U.S. and Canada in an opinion piece published on the Wall Street Journal’s Web site.“We’re paying back — in full, with interest, years ahead of schedule — loans made to fund the new GM,” Whitacre wrote.
From the Wall Street Journal editorial:
Today, General Motors is announcing that it has made a payment of $5.8 billion to the U.S. Treasury and Export Development Canada. We’re paying back—in full, with interest, years ahead of schedule—loans made to help fund the new GM.
The biggest myth out there right now appears to be that U.S. taxpayer money was simply given to GM. It was not. These were loans and now the loans are being paid back. Early. VERY early. With interest.
Yes, the US and Canada still hold equity stakes in GM but the Obama administration has publicly said it wishes to divest itself of the remaining stock it holds as quickly as possible.
From this morning’s Michigan Public Radio piece:
The U.S. Treasury converted another 43-billion dollars of GM loans to stock.But just how much of that money taxpayers will get back depends on the value of GM’s stock.
Wolkonowitz says taxpayers could recoup virtually all their investment if the government waits until 2013 or 2014 to sell its stock.
But the Obama administration says it wants to divest the stock as soon as possible.
In the meantime, GM is also announcing that it will pump $120 million into the
Detroit-Hamtramck plant to build Malibu and Volt vehicles. In addition, GM will also be announcing today additional expansion and the addition of new jobs of the Fairfax Assembly plant in Kansas City, Kansas.
Many argued that we should let the automaker die. Many of us argued that this was folly and that jobs, hundreds of thousands of jobs, could be saved if we assisted GM in getting back on its feet. That process is now taking place.
And the ridiculous idea that this was another example of the Obama administration’s biggovernmentsocialistnazicommunotakeover of the country is now being kicked to the curb.
More information in Q&A format available in an excellent article at the Detroit Free Press.
I’m just sayin’…
