Taxpayer Logo

Official site of the
CANADIAN TAXPAYERS FEDERATION
a citizens advocacy group dedicated to lower taxes,
less waste and accountable government.

[$description:substr(start="0",length="10")]
[$description:striptags():escape():substr(start='0',length='150')]
[$description:striptags():escape():substr(start="0",length="150")]

GM / Chrysler Bailout Cost Canadian Taxpayers $3.7 Billion

November 30, 2015
GM / Chrysler Bailout Cost Canadian Taxpayers $3.7 Billion
  • New CTF analysis reveals American taxpayers also lost US $16.6 billion on 2009 auto bailout

OTTAWA, ON: The Canadian Taxpayers Federation (CTF) today released an analysis of the 2009 government bailouts of GM and Chrysler, finding that once the sale of stock and repayments are accounted for, the final cost to Ontario and federal taxpayers was approximately $3.7 billion.

The analysis, written by Dr. Mark Milke, who has authored multiple reports on corporate welfare, also notes the relative lack of transparency mechanisms for the Canadian component of the bailout, relative to requirements imposed by the American government.

“Claims that the 2009 auto bailout was a sound investment of taxpayer dollars defy the facts,” said CTF Federal Director Aaron Wudrick. “No matter your political leanings, surely we can all agree there are far more pressing uses of $3.7 billion than lining the pockets of unprofitable corporations.”

Wudrick suggested that the auto bailout should serve as a cautionary tale to the new Trudeau government, who have pledged a change in approach.

“Corporate welfare may be politically appealing in the short term, but it is extremely wasteful and does more harm than good,” said Wudrick. “Taxpayers subsidizing private sector jobs does not ‘protect’ jobs any more than a parent doing their child’s homework helps a child learn. Every dollar spent ‘protecting’ a job is a dollar that is taken away from other uses, including the creation of new jobs in other industries – ones that don’t require government subsidies to exist.”

The full analysis “How Much Did the 2009 Automotive Bailout Cost Taxpayers?” is available on the CTF’s website by clicking here.

By Mike DuBois
on November 30, 2015
Mark in his detailed report failed to add up the benifits of the bailout which would need to be summarized. With the closure of both GM and Chrysler, what would the cost of carrying some 120,000 unemployable people have been since 2008 I wonder. I would say it would have pretty well equated to the 3.7 billion said to have "cost" us. Please note that did not favor a bail out as both these firms were run inappropriately. Ford through good management weathered through. What I would like the Canadian taxpayer federation is to report a complete story, facts and not belittle itself by giving us half truths, the very tactics that our governments are using on the public to dupe them.

You have successfully posted your comment. Please allow 24 hours for your comment to be reviewed before being published to the site.

LEAVE A COMMENT

You have successfully posted your comment. Please allow 24 hours for your comment to be reviewed before being published to the site.

Sign in to leave a comment

You have successfully posted your comment. Please allow 24 hours for your comment to be reviewed before being published to the site.

You have the power to change who influences politics in our country: big unions, big corporations and government-funded special interest groups can be challenged by the contributions of thousands of individual taxpayers who care to make a difference.

FEATURED PETITIONS

JOIN US

Join over 81,000 Canadian Taxpayers receiving our Action Update newsletter. I understand that I may unsubscribe at any time.

RECEIVE THE TAXPAYER MAGAZINE!

“False Alarms”“Message Delivered”
The Taxpayer