Obama’s Failed Economic--- Waaaiiit a Minute!

Mitt Romney has shut up about this issue specifically in recent weeks, and wisely so, though he still bashes the stimulus as a whole. The bailout of the American auto industry was at best an incredibly risky maneuver, and if it hadn’t have worked even a little bit, you can believe that conservatives would have crucified the President on this one. The fact that even the spin machines have gone silent about it, though, shows pretty clearly just how successful it was. Let’s break this down by company.

• Ford: If you’re a George R.R. Martin fan, you could go so far as to call this automaker Dorn; they are the only of the Big Three to remain Unbent, Unbowed, Unbroken. For those of you unfamiliar with A Song of Ice and Fire, this means that they are the only of the major American automakers that were able to survive the economic crisis without a government bailout. Their brand is down across the world but it’s rising in the States, enough so to offset the other losses. They earned just over 20 billion in 2011, cutting their debt from the past year by about 6 billion dollars and eliminating a tax allowance they’d been given to help them out back in 2006. (Why is a special tax reduction not considered a bailout? Not sure.)
• Chrysler: Uncle Sam shelled out 12.5 billion dollars to keep Chrysler afloat, and of that money, 11.2 billion had been repaid as of July 2011. We’re still out 1.3 billion, but that’s because the automaker actually did too well. Apparently, the government expected them to take until 2017 to pay everything back, and so they set up an interest schedule to match that expectation. Because Chrysler paid the people back too soon, they saved themselves interest payments later on. They just went on to quadruple their quarterly profits over last year’s quarter, putting up a whopping $437 million dollars in the bank- their best quarter in over a decade. They’re on track to post 1.5 billion dollars in profit over the course of the fiscal year, which will be up from 183 million last year. For those of you following along at home, that’s about 8.2 times what they made last year. That’s kind of a big deal. If it means that Chrysler is doing that well, especially considering that during times of $4.00+ gasoline its most popular model is a fucking truck.
• General Motors: GM appears to have had the slowest recovery of the Three. (Their information is also hardest to find). Their increase in stock prices has helped evaporate another 2 billion of the government’s bailout losses, but apparently they’d have to double their worth from this point to completely clear what the American people are out.

The politics of money are always tricky, because you can’t have two side-by-side economies to study in which one gets the bailout and the other one doesn’t. Because of this, economic policy might be one of the most spin-prone areas in the national discussion, as one side can say “The recovery would have been twice as bad without the bailout!” while the other one screams “It would have been twice as good without it!”. Both provide legitimate-sounding statistics from both biased and impartial-sounding sources (if they cite their sources at all, but that’s another rant).