One of the true unsung accomplishments of the Obama administration:
When GM was about to liquidate and fire hundreds of thousands in the middle of the worst recession since the 1930s, Obama chose to purchase their stock for $49B. Over the howl of free-market fundamentalists and disingenuous pundits shouting socialism, Obama used the government’s controlling share to force a change in management and let the free market take it’s course. There was no nationalization, there was no subsidization and the the moral-hazard question was resolved by the severe removal of ineffective managers.
Today, GM has, for the first time in a decade, turned a profit. It’s expanding production and hiring new people in addition to the hundreds of thousands it didn’t have to lay off. It’s recent IPO for new shares put’s valuation above 1999 levels and its rise in stock value has turned a profit for the American tax payer as the US Government now willingly divests and returns the shares of the company it helped turn around to individual citizens who are free to make individual profit.
This is how it works in a fantastic piece that I hope inspires more fact-driven, reality-inducing presentations by a real expert in the field.