Even if taxpayers recouped all of their money from the bailout, there are a slew of economic arguments against rescuing failing industries. But the more immediate problem is that we will never get our money back, anyway.
GM’s labor costs, estimated at $56 an hour, still are higher than any of its competitors. Since the Obama administration cajoled the normal bankruptcy hearings and eradicated the pensions of nonunion workers to ensure union success, employees, like the ones at Delphi, the auto parts manufacturer and one-time GM subsidiary, took it on the chin while $26 billion of taxpayer funds were used to keep United Auto Workers in a secure position.
The Treasury Department has just revised its estimate upward to $25 billion in losses, and it will probably be more than that when it’s all said and done. Taxpayers also suffered a $2.9 billion loss in Chrysler (the carmaker had received $12.5 billion through TARP programs) in 2011.