Here’s how the economy works in the United Socialist States of America.
The government gives GM a 50 billion dollar bailout in exchange for making the Chevy Volt cars that it wants the company to make. Chevy Volts cost 89,000 dollars to make. But they can’t be sold at that amount because absolutely no one would buy them. Instead they’re sold at $40,000. Less than half the cost of making them.
Or to put it another way. A Chevy Volt costs GM, the government and you more money… than it costs the idiot who buys one. You may not have a Chevy Volt in your garage, but you already paid for one and you paid 9,000 dollars more than the guy who actually bought one.
(This model repeats itself with virtually every Green energy boondoggle, including solar and wind.)
Still this miserable failure of a car from the miserable failure in the White House doesn’t stop there.
No one wants to buy a Chevy Volt even at 40 thousand dollars. So Government Motors is selling its electric lemons to… the government.
Not only did the government lose 42 billion on the GM bailout, not only is GM in a worse financial position than ever, but the government is now forced to buy its cars that no one wants… at a loss to the government.
The government is buying cars at a loss, whose manufacture is being conducted at a loss. The more cars the government buys, the more it loses at both ends.
Instead of providing protection for Benghazi, the State Department bought Chevy Volts. The military is facing huge budget cuts, but buying Chevy Volts.
Taxpayers paid to save GM. Now taxpayers are paying to keep GM afloat. Taxpayers paid so that Obama and his buddies could play with their very own car company and make their very own cars. They blew that, so now we’re forced to buy their cars.
It’s a pity that Obama learned so little about the Soviet Union before trying to revisit all of its mistakes at the expense of the American economy.