Senate Democrats

ICYMI: FLASHBACK: Republicans Warned That GM Rescue Was ‘Road Toward Socialism,’ ‘Predictable’ Disaster

Today, taxpayers will recover billions of dollars as GM launches the biggest IPO in American history. The GM rescue saved up to 1.4 million American jobs

, and Republicans wanted to stand by and watch GM fail. Senate Republicans should get serious about jobs and work towards real solutions that make our economy stronger.

FLASHBACK: Republicans Warned That GM Rescue Was ‘Road Toward Socialism,’ ‘Predictable’ Disaster

This morning, a rejuvenated General Motors made its initial public offering of stock, hoping raising $23.1 billion. As a result of the offering, which is the largest in the nation’s history, the federal government’s ownership in the auto company was halved “and billions of dollars in bailout money was returned to the federal government.” According to the New York Times, “a complete exit by the government could happen even within the next two years

.”

“Supporting the American auto industry required tough decisions and shared sacrifices, but it helped save jobs, rescue an industry at the heart of America’s manufacturing sector, and make it more competitive for the future

,” said President Obama in a statement today. At the time of the auto company rescue, however, Republicans severely criticized the administration’s effort, warning that keeping the companies from a catastrophic collapse would lead the country down “the road to socialism,” and end in “predictable” disaster:

Rep. John Boehner (R-OH): “Does anyone really believe that politicians and bureaucrats in Washington can successfully steer a multi-national corporation to economic viability?” [6/1/09

]

Sen. Richard Shelby (R-AL): “It’s basically going to be a government-owned, government-run company. …It’s the road toward socialism.” [5/29/09

]

RNC Chairman Michael Steele: “No matter how much the President spins GM’s bankruptcy as good for the economy, it is nothing more than another government grab of a private company and another handout to the union cronies who helped bankroll his presidential campaign.” [6/1/2009

]

Sen. Jim DeMint (R-SC): “Now the government has forced taxpayers to buy these failing companies without any plausible plan for profitability. Does anyone think the same government that plans to double the national debt in five years will turn GM around in the same time?” [6/2/09

]

Rep. Tom Price (R-GA): “Unfortunately, this is just another sad chapter in President Obama’s eager campaign to interject his administration in the private sector’s business dealings.” [6/2/09

]

Rep. Lamar Smith (R-TX): The auto company rescues “have been the leading edge of the Obama administration’s war on capitalism.” [7/22/09

]

Rep. Trent Franks (R-AZ): When government gets involved in a company, “the disaster that follows is predictable.” [7/22/09

]

According to the Center for Automotive Research, “if the government had not invested in the automotive industry, up to 80,000 automotive jobs would have been lost, and General Motors alone would have lost one million units of sales in 2009. Once Chrysler and GM emerged from their ‘orderly’ bankruptcies, the growth of automotive sector employment has been strong, with 52,900 workers added since July 2009. Had GM and Chrysler not successfully emerged, those jobs would have been permanently lost.”

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