Wall Street Journal Auto Writer: "The Detroit Bailout Was The Right Thing To Do"
Blog ››› ››› ERIC BOEHLERT
We don't hear much anymore from far-right pundits who in 2009 were so passionately opposed to bailing out U.S. automakers. If you'll recall, the right-wing media rained down doomsday scenarios about how the over-reaching federal government was killing capitalism, conspiring against Toyota, and taking over private companies like dirty mobsters.
Or, in the memorable words of Rush Limbaugh, GM and Chrysler "bent over and grabbed the ankles." The union-hating, right-wing media did not want GM, Chrysler and their thousands of jobs saved. They wanted them buried.
Fast-forward two years and the bailout is seen in most quarters as an unequivocal success. Even the conservative Wall Street Journal agrees.
From its auto writer Dan Neil [emphasis added]:
The Detroit bailout was the right thing to do: Grit your teeth if you must. Two years later, GM is profitable, right-sized, globally competitive and an engine of automotive change—as evidenced by the Chevrolet Volt extended-range electric vehicle, named the North American Car of the Year. The government's stake in "Government Motors" is down to 25%. When GM's stock reaches the low $50s range, analysts expect the Treasury will likely sell the remaining stake and actually make money on the deal. That's about as good an outcome as could reasonably be hoped.