Obama Playing the Fear Card About the Car Industry

"We needed to preserve the auto industry and all the jobs related to the industry "

The most common defense Liberals will give for the government bailout / take-over is that "we needed to save the auto industry". They claim thousands of jobs related to the auto industry would have been lost.

Government did not have to bailout the auto industry. Liberals only scare you that they had to. Private investors and venture capitalists would have gladly invested in the auto industry.

Part 1

Part 2

Of course some jobs would have been lost but they would have been rebuilt in a way that was profitable. But the government will not do that. They will cling to jobs that are no longer necessary as if they were clinging to horse and buggy in a generation that demands taxis. They are slow to conform, slow to respond to consumer demands, make political decisions instead of economic decisions.

Chevy Volt Costs Taxpayers $250K per Car

As reported in the National Review, the Chevy volt cost $250K each to make.

Now James Hohman at Michigan’s Mackinac Center has added up the numbers at the supply end and found the public subsidy for the Volt amounts to a $3 billion, putting the public subsidy per car at a whopping $250,000 per car.

$250K per car? That is OUR tax money!

They also state:

GM has estimated they’ve sold 6,000 Volts so far. That would mean each of the 6,000 Volts sold would be subsidized between $50,000 and $250,000, depending on how many government subsidy milestones are realized.  

The money the Government has is the people's money. They are doing us no favor by buying up the auto industry to keep these jobs if they are losing tax payer money at a clip of $250K for every car that they make. Where is all of that money going? To the newly created government bureaucracy, poor management of resources, subsidization of unproductive labor. All that money that is sucked out of the system through taxes could have went into doing something more productive.