U.S. Tax Dollars being Invested to Create Jobs in China

Posted by PITHOCRATES - December 1st, 2012

Week in Review

The U.S. government bailed out GM.  Instead of letting them go through a normal bankruptcy proceeding that would make GM competitive again so they could sell cars in the U.S. again.  Instead, the government gave GM taxpayer money to fund their pension and retiree health care costs.  Which will do nothing to improve their competitiveness.  Or create new jobs in the U.S.  So what will that massive government investment do for GM?  Allow them to expand and create jobs…in China (see GM Chinese venture to build $1 billion plant in Chongqing by Ben Klayman posted 11/28/2012 on Reuters).

General Motors Co (GM.N) and its Chinese joint-venture partners said on Wednesday they plan to build a $1 billion auto assembly plant in the city of Chongqing as the GM group bids to remain the leader in the world’s largest auto market…

Earlier this month, GM and its Chinese partners opened a plant in the southern city of Liuzhou for its low-cost Baojun brand. That plant will also eventually have an annual production capacity of 400,000 vehicles…

In September, GM opened a large vehicle test track west of Shanghai. GM and its partners invested $252 million to build what officials called the country’s largest proving ground.

In addition to Liuzhou, the joint venture currently operates a plant in Qingdao. GM and SAIC, through a different joint venture, also have a plant in Shanghai, and several more in northeast China.

This is not helping the U.S. economy.  Building plants and creating jobs in China.  All this is doing is allowing GM to make money like Wall Street makes money.  By investing money.  And getting a return on their Chinese investments.  Government Motors, I mean, General Motors is doing the very thing the Democrats hammered Mitt Romney for doing during the 2012 election.  Creating jobs in China.  The only difference, of course, is that Romney didn’t use U.S. tax money to create any of his jobs.

So the government bailout of General Motors didn’t help anyone but the UAW whose high costs were making them uncompetitive (the source of all of GM’s problems).  And the Chinese.  It didn’t create any new jobs in America.  And it didn’t help GM become more competitive.  Forcing them to rely on their Chinese job growth because their cost structure just won’t let them sell more cars or add more jobs in the United States.

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