How Long Will US Taxpayers Own GM? Amtrak Is A Sobering Clue To The Next Economic Train Wreck

We've all heard the soundbytes about the GM bankruptcy but what you DON'T hear, is HOW LONG WILL WE THE TAXPAYERS OWN GM, before we can get out and IF we will ever get the money back.

Just small small facts they choose to omit when the media covers this ;)

But could Amtrak give us the most accurate clue?

Here's a little fact you may not know about...

Back in the 70's when Amtrak was nationalized the current President said for three years it might lose some money and then it will be TOTALLY self sustaining.

Er, we STILL own it and it loses money EVERY year!

Get ready for a LONG haul before we get this GM money off our back, if EVER.

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HSCenterconsole - 6/3/2009 1:56:54 PM

+2 Boost

Politicians will now be (indirectly) running GM. Politicans are succesful when they generate headlines. Business executives are succesful when they earn a profit. This is a big difference.

Great Op-Ed piece from the WSJ that details this:
"Why Government Can't Run a Business: Politicans need headlines. Executives need profits." by John Steele Gordon
http://online.wsj.com/article/SB124277530070436823.html

fred234 - 6/3/2009 3:54:30 PM

+2 Boost

Amtrak is not GM. Passenger railroads worldwide rarely if ever turn a profit, and are run for very different reasons. The vast majority of passenger railroads worldwide are run by government entities. Many would argue they shouldn't be expected to be profitable.

GM, on the other hand, desperately needs to be profitable - the larger question not mentioned in the half-baked analysis of this "news" piece is what will it take for GM to be profitable, since that's the only way government gets out of the car business.

jsitajr - 6/3/2009 4:58:38 PM

+2 Boost

Amtrak took over the unprofitable passenger route of the private railroad corporations - how in the world could anyone expect Amtrak to be profitable. Amtrak provides a valuable service to millions of people each year. Passenger railroads receive government assistance from every nationalized country and nobody complains about the billions of taxpayer dollars spent on "profitable" highways and airports. And the picture of the Amtrak crash was in very poor taste.

LauderdaleDriver - 6/5/2009 1:01:28 PM

+1 Boost

Absolutely!
Amtrack moves millions of passengers a day in the Boston-Washington corridor. Ending Amtrack would require the spending of hundreds of billions to make up for the increased loads on i-95 alone.

I haven't heard any calculations of "profits" generated by any interstate highway.

There is no transit system in the US that works without massive subsidies. The airlines would not function without the FAA or government-funded airports. All the wonderful cars we love operate on taxpayer-supported roads.

thstone - 6/3/2009 5:01:38 PM

-3 Boost

Government Motors is doomed to failure for the single reason that there will be far too many hands in the cookie jar for a sensible and profitable business plan to ever be executed.

First, we had the Government fire Rick Wagoner. And if that hint wasn't strong enough, now its Congress' turn to jump into the fray as we read that some members in Congress are opposing the closure of dealerships without Congress' approval. How much more proof do you need? This ain't ever gonna work.

pushrod27 - 6/3/2009 6:05:35 PM

+2 Boost

Agent, your inflammatory post neglects the facts that
a.) like the guy said earlier, passenger railroads today all over the world are subsidized by their governments for the greater social good and unable to turn a profit.
b.) since gas prices have gotten so high and the airline experience so bad, Amtrak's northeast corridor lines are actually a cash cow these days.
c.) when the US government took over the railroads, they took control of the freight railroads as well as passenger rail. Conrail was run by the government - successfully, turned a profit, and was sold to private investors - for a profit within 20 years.

pushrod27 - 6/3/2009 6:06:52 PM

+2 Boost

... my point being that it is possible for this 'Government Motors' thing to work out in the end.