“In a 2011 working paper, J. Mark Ramseyer of Harvard and Eric Rasmusen of
Mr. Obama crowed yesterday about GM's "highest profits in its 100-year history." We'd be interested to hear how its effective tax rate compares with Warren Buffett's secretary's.”
The article brings up a few good points, not the least is of which is the legal or ethical payoff to a constituency, namely the UAW. What is does not do is point out the success of the one automobile company that did not take a government handout, FORD (FULL DISCLOURE: I own FORD stock). FORD paid a dividend last quarter, the first since the economic collapse. Currently FORD is not posting the highest profits in 100 years and is not “the #1 automobile company in the world”, like GM according to President Obama. Then again how do you compare companies that were given an $18 billion dollar tax break on top of an $81.8 billion bailout that taxpayers surrendered to General Motors and Chrysler with a company like FORD, which is run by family and took no bailout money, but remains successful. The answer is you can’t. I very seldom make predictions, but here is one:
"FORD will be the strongest, most profitable US auto maker in less than 3 years"