Forbes put together a nice article on the corruption of the GM bailout that is especially highlighted because of the bankruptcy by American Airlines.
In summary, they put it like this "Obama did not save GM jobs, he saved UAW pay scales and pensions."
- United Auto Workers union donated 4 million to Obama and the Democratic party.
- If GM went through a regular bankruptcy, the UAW would have had to renegotiate pay scales, revised work rules, and loss of pensions.
- A normal bankruptcy would have saved Detroit better than Obama because union wages and benefits would have been reset.
- $55 per hour labor union labor contracts not renegotiated
- UAW pension fund received 17.5% of new GM, shareholders wiped out
- Taxpayers lost $15 billion
- UAW’s share of the new GM worth $7 billion.
Obama did not want GM to go through a bankruptcy like any other company would have had to do so that he could protect his union buddies and ensure himself a nice hefty donation coming his way for the 2012 election.