The federal bailout of the auto industry continues to stir strong feelings, but as time evolves the strength of the Obama policy has muted many of the political critics of the federal intervention. And what has happened since the federal intervention?
The administration says that the bailout and restructuring of the companies has put the entire industry on better footing than it has been in years. In the first quarter of 2010, GM earned a quarterly profit of $865 million, its first since 2007. Chrysler reported an operating profit of $143 million over the same period.
Preliminary figures suggest that auto industry employment in the United States may reverse a decade of decline.
General Motors is now having tremendous success in selling its autos in China, helping us to repatriate some of the trillions in dollar reserves China is sitting on. Even harsh critics appear to be satisfied that the investment might have been worth it.
The success of the program has earned acknowledgment from people like Corker, who says that without the auto industry bailout, “Who knows what would have happened?” He adds that, “I’m genuinely pleased that people across this country that are involved in the auto industry are seeing it come back and that Americans are being employed as a result.”
Many of our worldwide competitors have directly financed home industries, much to the detriment of American workers. The President appears to have gotten this one right. Jobs have never been more important, and just flushing these companies was never the right thing to do.
Read the Washington Post story here.