spoon059 wrote:
NJRVer wrote:
It's pretty simple.
When a company that size goes belly up and the resulting cascade of other businesses and individual people go belly up with it, how much tax money will the gov't collect from them......$Zero.
How much has everyone paid since they were offered the loan.....I'm sure it would now be in the billions when you figure all the employees and subcontractor suppliers.
That is over simplified. You, amongst others here, seem to think that if GM went belly up, its customer base would never buy another vehicle again, hence the domino theory of out of work suppliers and lack of tax collection.
The reality is that GM buyers would have to simply buy a vehicle from one of the numerous other manufacturers, who would collectively absorb GM's share of the market. Those manufacturers would have to increase their purchase of parts, likely providing work and sales to suppliers or else increasing demand of suppliers enough to cause out of work suppliers to be able to find new employment. The workers would pay taxes, the increased sales from other manufacturers would pay the tax burden, etc.
The end result would be knowledge that proper management of your business is the proper way to ensure you stay in business. It would also be a warning to financially insolvent businesses that poor practices will not be supported.
I agree that there would be some downturn in the economy, some laid off employees and some lost benefits to these employees... but nothing in life is guaranteed except death and taxes.
And how many new cars and trucks would unemployed people who would be going into bankruptcy because of no jobs be purchasing from some other company besides GM??......Zero.
