GM IPO Benefit to Taxpayers Falsely Reported

In April, 2010 General Motors announced that it suffered a $4.3 billion loss in the first 6 months after declaring bankruptcy. Then, Ed Whitacre, head of General Motors, proudly strutted through a GM plant claiming that GM had paid back the $8.1 billion owed to the federal government, ahead of schedule, plus interest. Members of the Obama administration then touted this great accomplishment. Yet the truth was that the TARP (taxpayer) bail-out money that was borrowed, had NOT been paid back with GM money, but with additional TARP (taxpayer) bail-out money, out of an escrow account (taxpayer money) in the US Treasury. This claim of pay back was an insult to the intelligence of the American people, and an outrage.


Now, in typical false propaganda fashion, the claim by the media is that with a GM IPO the taxpayers will be fully paid back. Nothing could be further from the truth. First, the impression that is being given is that GM is now fully profitable and successful. This is false. Secondly, and very importantly, NONE of the money received from the IPO will benefit taxpayers. The national debt will not be paid down, the money will not go into the US Treasury, and not even a smidgen of the money will be used to ease the burden on taxpayers. There is an attempt to pacify the American people by implying that "taxpayers" will be paid back. Most probably the money will be squandered and used for political purposes under some claim of helping Americans and the economy that will NEVER be realized, much like the original "stimulus" money.

What the American people need is factual and truthful information, not propaganda that only serves to further take down our country.