Government Motors Stole $20 Billion from Taxpayers, Spent $18 Million on Lobbyists


Forget making motor vehicles, the real money is there to be made in government.

General Motors and Chrysler — Detroit’s two rescued automakers — have rebuilt their lobby shops and are back spending millions to influence lawmakers on issues that can make or break their bottom line, like taxes and trade policy.

GM spent a combined $17.9 million on lobbying in 2011 and 2012, while Chrysler more than doubled its spending last year to $5.6 million. Even Ford, which did not take federal dollars, increased its spending on lobbying to $6.8 million last year.

“I still think it’s outrageous that General Motors stole some $20 [billion] or $30 billion from taxpayers. I’m sure, to them, that’s chump change,” said Sen. John McCain (R-Ariz.),

The Treasury Department has discretion over when to sell the position the government has in the automakers, but reportedly is looking to get a share price in the mid-$30s. GM’s stock price would have to hit $70 a share for the U.S. to break even on the bailout.

This is what happens when government gets into business. Crony capitalism ends up with the taxpayers footing the bill for insider deals between connected CEOs and unions and their pet politicians. And knowing exactly where the money came from, the companies redouble their lobbying, as Chrysler did, because they know that they’re eventually going to need another dip in the cool green pool of the treasury.

  • JacksonPearson

    IMO, the whole bailout scheme was un Constitutional. Why?
    Because Articles I and II to the Constitution, does NOT give Congress or the Executive branches of government any enumerated powers whatsoever, to redistribute American taxpayers dollars to private enterprise. The United States Constitution was born on the principles of a limited form of government. Presently, we have an out of control, expansive government.

    • Steve

      So does this mean that I can count on a price reduction when I buy my next Chevy?

      • JacksonPearson

        Nope. But it could mean, you'll be sucker punched for somebody else's ObamaCare tab.

    • NAHALKIDES

      True, but the courts have long ago abdicated their responsibility to construe the Constitution correctly. Congress does not have the authority to make loans or loan guarantees, impose insurance mandates, regulate the practice of medicine, etc. but SCOTUS has upheld ObamaCare. We can't depend on the courts any more – we'll either have to win some political battles or start thinking about secession.

  • WilliamJamesWard

    I would not be surprised if all Chevy's read Obama cab on the vin# and a meter goes with
    the purchase for carbon emissions to be paid with tag renewal…………………Obama
    and our corrupt government have pulled off the largest theft in the history of the World, will
    Americans ever get it before there is nothing left?……………………….William