Wednesday, November 10, 2010

Government Bailout of GM is Success

GM reported a $2 billion profit for Q3. This was its largest quarterly profit in 11 years. Revenues were up 27% in Q3 versus previous year Q3 to $31.5 billion. Prior to reorganization GM needed to sell 4 million cars to break even. Today it can make a profit on half the number of vehicle sales.

If we had let GM fail thousands of jobs would have been lost and it would have had a devastating impact on the economy. Today it is a $120 billion firm that contributes greatly to the economy.

Libertarians, such as Tea Party members, opposed the bailout when the Obama administration proposed the rescue. It looks like the administration made the right decision. We should be glad that the administration ignored the opponents of the rescue.

No comments:

Post a Comment