Defense Paper Edited by Kayla

8/17/2019 Defense Paper Edited by Kayla

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Bordonaro

Jack Bordonaro

Ms. Caruso

UWRT 1103

12 April 2016

Title

The !ailout" o# $eneral Motors Corporation and Chr%sler &roup ''C. has !een

critici(ed in )an% political circles as a !usiness !lunder to sa% the least* !ut this paper is in

no +a% a&reein& +ith the). ,o )uch has !een said o# cron%is) and !ack roo) politics

associated +ith the auto)oti-e !ailout !ut in the end $eneral Motors is !ack in pu!lic

hands* and !e%ond the need #or tapa%er support"/Citation. The GOP likes to believe that

Obama made a mistake and blew President George W. Bush’s thirteen point four !illiondollar

plan into an ei&ht% !illiondollar #iasco. There are three separate na%sa%er &roups o# the

$M !ailout. The #irst thinks that the U.,. &o-ern)ent cannot success#ull% run the

co)pan%. The second !elie-e and dislike that certain &o-ern)ent #ir)s like the UAW

recei-ed !ene#icial treat)ent and the third &roup !elie-es the &o-ern)ent stepped across

constitutional !oundaries. $eneral Motors had placed too )uch ti)e* )one%* and e##ort

since 10 helpin& A)ericans ha-e a car #or e-er% purse and purpose"/Citation for the

company to be thrown down away like yesterday’s news. G owns and represents !hevrolet"

Pontiac" Buick" !adillac" and recentl% deco))issioned 4u))er. This co)pan% has such a

stron& #oothold in the A)erican econo)% in suppl%in& nearl% one hundred thousand

A)erican 5o!s and ha-in& such a stron& senti)ental #ollo+in& in all -ehicle sectors.

$eneral Motors is responsi!le #or national icons like the Che-rolet Cor-ette* the ontiac

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$T7* and the Cadillac 8e-ille and deser-es to sta% a#loat #or %ears to co)e and here is

+h%.

7ddl% enou&h* historical senti)ent +as not +hat led the U.,. Treasur% to hop on the

!ailout +a&on oddl% enou&h. 9t +as the #act that $eneral Motors e)plo%ed t+o hundred

thirt%#i-e thousand people +orld+ide and +as the second lar&est )anu#acturer in the

+orld in earl% April 200/,herk 2. 9# that is not a reason to cross constitutional

!oundaries* 9 do not kno+ +hat +ould !e. The national a-era&e annual salar% #or asse)!l%

line +orkers is rou&hl% thirt%#our thousand dollars )ultiplied !% the nu)!er o# +orkers

in $M alone +ould !e o-er ei&ht !illion dollars/Asse)!l% line Worker 1. The i)pact

)anu#acturer shuttin& do+n +ould chan&e the entire +a% our &lo!al econo)% +ould +ork.

:earl% $M spends #i#t% !illion in outsourced parts alone. That +ould cause )a5or cuts in

an% o# those third part% co)panies. 9n the United ,tates alone* ninet%one thousand

+orkers +ould !e relie-ed o# ser-ice. That statistic is not e-en includin& the +orkers

a##iliated +ith Chr%sler $roup +hich enco)passes Jeep* 8od&e* Chr%sler* Ra)* and ;iat

and %et so)eho+ still &ets o-ershado+ed !% the i))ensit% o# $eneral Motors< #oothold on

our +orld econo)%. 9t )a% !e !ecause Chr%sler +as )er&ed +ith ;iat * a success#ul 9talian

auto)aker* and is no+ out o# the )ulti !illiondollar operatin& de#icit the% +ere #acin& in

200. Without $M our U, econo)% +ould !e le#t +ith a &apin& hole that +ould take %ears

to #ill.

;or those na%sa%ers in the $7 that said that the &o-ern)ent +ould ruin $eneral

Motors i# it !ailed the )anu#acturer out* the co)pan% is co)pletel% sa#e #ro) &o-ern)ent

ta)perin&. The United ,tates took o-er no assets o+ned !% $eneral Motors e-en thou&h

the% could ha-e o-er the &rounds o# e)inent do)ain and nationalis)/Citation. #ccording

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to Todd $ywicki of George ason %niversity" &Ulti)atel%* the parties in-ol-ed conducted the

sales transactions at the center o# the restructurin&s +ith the ut)ost transparenc% and

a##orded all possi!le and a-aila!le due processes to a##ected parties"/=%+icki 3. 9 do not

kno+ +here the idea o# !ackroo) politics or )oral ha(ard ca)e into pla%* !ut $eneral

Motors" as +ell as" Chr%sler $roup is still a pu!licall% o+ned and traded company solel%

operatin& +ithout the o-ersi&ht o# an% &o-ern)ent pro&ra)s and +ill !e pu!lic headed

into the #uture. The U.,. Treasur% operated this !ailout eceptionall% +ell and carried out

all procedures as i# it +ere an% other ordinar%

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7ri&inal Works Cited

Ahle* ,te-en. 4o+ Much 8id the $M Bailout Reall% Cost>" DC Clothesline. 201?. We!. 2

;e!. 2016.

Asse)!l% 'ine Worker* Auto)oti-e ,alar% /United ,tates United ,tates 4o)e Chan&e

Countr% 8on" Chica$otribune)com. 13 Jan. 2016. We!.

2 ;e!. 2016.

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Fe+ Works Cited

4assett* De-in A. G7!a)aHs Auto!ailout ;iction.G AE . A)erican @nterprise 9nstitute* 3

Apr. 2012. We!. 0 Apr. 2016.

,herk* Ja)es* and Todd =%+icki. GAuto Bailout or UAW Bailout> Tapa%er 'osses Ca)e

#ro) ,u!sidi(in& Union Co)pensation.G %he *erita$e +oun!ation. 13 June 2012.

We!. 0 Apr. 2016.

,)olinsk%* Joseph 4. GRetoolin& $eneral Motors 8e#endin& an 9nno-ati-e Use the

Bankruptc% Code to ,a-e A)ericaHs Auto 9ndustr%.G &racticum. We!. Apr. 2016.

=%+icki* Todd. GMercatus Center.G bama-s .nite! Auto Workers 'ailout . $eor&e Mason

Uni-ersit%* 1 June 2012. We!. 0 Apr. 2016.

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Defense Paper Edited by Kayla