Ever wonder where all that money we are forced to pour into Government Motors goes? Much of it finances the absurdly bloated union contracts that GM could have escaped from under a traditional bankruptcy — the ones that have prevented the company from being solvent. Some is flushed down the flaky green boondoggle on wheels known as the Volt. Far too much of it disappears overseas:
GM is spending more and more of its taxpayer-enhanced cash pile to shore up its faltering foreign divisions. In fact, according to an analysis of GM’s SEC filings, the company is likely to incur over $6.5 billion in losses and expenditures overseas in the 2011-2014 period, not counting over $1.6b in foreign potential legal liabilities or several other incalculable expenses that could add up to billions more. Not only are these expenses a challenge to GM’s overall financial health at a time when it also faces billion-dollar expenditures on pensions in the US, it shows the basic problem with national bailouts of global companies. Taxpayers who were told they were saving an American company are now seeing their tax dollars flowing overseas by the billions.
As Dinesh D’Souza has illustrated convincingly, when Obama says he wants to “spread the wealth around,” he doesn’t just mean within America. He means from America.
On a tip from Stormfax.