Why We Shouldn’t Let The Government Invest Our Money

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On November 14, the Detroit News reported that American taxpayers will lose $23.6 billion, up from its previous estimate of $14.33 billion, on the bailout of General Motors.

The article reports:

The Treasury now pegs the cost of the bailout of GM, Chrysler Group LLC and the auto finance companies at $79.6 billion. It no longer includes $5 billion it set aside to guarantee payments to auto suppliers in 2009.

The article goes on the chronicle the losses in the government bailout programs in various sectors of the economy.

The article reports:

The new estimate also hikes the overall cost of the $700 billion Troubled Asset Relief Program costs to taxpayers. TARP is the emergency program approved by Congress in late 2008 at the height of the financial crisis.

In total, the government used $425 billion to bailout banks, insurance companies and automakers, and provided $45 billion in housing program assistance.

The government now expects to lose $57.33 billion, including the full cost of the housing program, up from $36.7 billion. The new estimate means the government doesn’t believe it will make an overall profit on its bailouts.

Again, the problem is that we are spending too much, not that we are taxed too little.

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