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Here is a positive piece from Business Week about the effects of the auto industry's recovery on the economy as a whole:

What's Good for GM Is Good for the Economy

http://www.businessweek.com/articles/2012-05-17/whats-good-for-gm-is-good-for-the-economy

Now for the ripple effect. Government data show that motor-vehicle production contributed half of the first quarter’s annual pace of 2.2 percent economic growth. When an industry is expanding that fast, it lifts the fortunes of thousands of other companies. The auto resurgence—from assembly lines and dealerships to steelmakers, freight lines, and loan providers—signals the U.S. is headed for solid growth
 

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I think this makes a very good argument as to why the so called auto "bailouts" were (and still are) so very important. Now if we could somehow recapture all the other manufacturing that has been sent off-shore, maybe the middle class could recover.

VIN # B0985
 

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It seems like "Government Motors" is dong more for the whole nation than just for General Motors itself. If this is what they call "American Socialism", then it is doing better than Capitalism. More good for the many than for the few.
 

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In retrospect the auto bailout was a huge success. Not sure how many people recognize this but we would be in such a hole had the Bush and Obama Administrations not acted. People think things aren't going well but they just don't understand how bad it could have been. Lots of countries have unemployment rates of 20%. Our 8% rate isn't the best but compared to other industrial countries we're doing quite well. Hopefully this article is right and that will continue.
 

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Raymondjram #3 & DonC #4

Well said to both, even at the risk of drawing some political flak, LOL. Thank you.

I'm no fan of Mike Huckabee, but he said something in the last election cycle that I still remember:

"If you're not drawing any flak, you're probably not over the target."
 

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I worked for a company that received TARP. Without that, 20K employees would be on the street drawing unemployment.

However the government provided short term loans that were paid back with interest, and all 20K kept their jobs.

I totally understand the argument that you are rewarding bad business practices and I agree, however when the potential to flood the streets with unemployed people hits as was the case in 2008,you have to hold your nose and do it because the inevitable will cost much more.
 
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