Wednesday, November 17, 2010
Taxpayers about to be hooked, thanks to "taxpayers on the hook!"
When the government was bailing out GM there were cries everywhere of "taxpayers on the hook." The reality, however, was exactly the opposite: the government injected cash into the economy, saved GM and many workers' jobs and sustained a vital portion of our industrial capacity, which we use every day to produce the goods that Americans and others consume.
This was in no way "hooking" taxpayers.
Now, GM will go public once again and the U.S. government will sell $13 billion worth of the stock that it holds in the company. (See Matt Franko's previous post.)
Ostensibly, this sale of $13 bln worth of stock represents a "payback" to taxpayers (if you go by their "taxpayer on the hook" logic).
But is it?
The government sells its stock to taxpayers, who fork over the dough and that money goes to Treasury...taken out of the economy for good. That's a payback???
The moral of the story is, when you act like you're putting taxpayers on the hook when you're not, you really DO put taxpayers on the hook!!