Over the last three weeks, a fued has erupted on the opinion section of the Vacaville Reporter. The first letter was written to defend the TEA Partiers despite their fallacies, and can be found here. The response to that letter which ran the next week accused anti-state citizens of being wrong about the GM Bailout in light of the recent “loan repayment.” Below is my response, which was published in Saturday’s edition.
I find it amusing that the author of recent letter (“Feds disproving Tea Party,” April 29) could be so off from obviously not reading the second half of the story about GM’s bailout loan.
Yes, GM paid back its $6.7 billion government loan; however, GM received part of the funds to do that because the federal government had given it some $13.4 billion in an escrow account during the bankruptcy, according to www.yaliberty.org. The rest of the funds are only available because GM is collecting a whopping $10.5 billion in taxpayer-backed loans from the Department of Transportation for updating the company to better comply with Corporate Average Fuel Economy standards, according to POLITICO. This money will eventually have to be paid back, but is interest-free.
Don’t forget the 61 percent holdings that the federal government has in GM stock that is still next to worthless, according to CBS News. All in all, the federal government, not including the Department of Transportation funds, has sunk in $49.5 billion in bailout loans, cash and stock, according to Forbes Magazine.
Although it might feel good to think that the situation is over and our money has worked to help the economy, the big picture reveals that GM is still nowhere near paying us back, and probably never will. It also proves that our lawmakers are still guilty of bad decision-making.
I’m a freshman at Dixon High School, and, to paraphrase a saying from TV, the letter-writer is not smarter than a ninth-grader.