General Motors is making a huge mistake — despite massive profits, the company is making American workers pay for its own failed vision.
In 2009, GM’s poor business model resulted in bankruptcy, forcing the American people to pull the company back from the brink of financial ruin with a $20 billion bailout. Almost a decade later, despite thriving under President Trump’s booming economy like many other manufacturers, the company is now revising its business model at the expense of its American workforce.
GM has also benefited enormously from President Trump’s Tax Cuts and Jobs Act, but even that wasn’t enough to overcome the company’s deficiencies. On Monday, GM announced that it will lay off 14,000 workers and close five plants in the United States and Canada. The Democrats and their patsies in the mainstream media will be quick to portray GM’s announcement as a sign that President Trump’s economic policies are not working, but that’s nothing more than wishful thinking on their part.
If anything, GM has been a major winner in today’s booming economy, earning billions of dollars in profit. According to the New York Post, the company made healthy $2.5 billion profit in the third quarter of this year alone. The Democrats’ own Senator Sherrod Brown even admitted that “GM received record tax breaks as a result of the GOP’s tax bill last year, and has eliminated jobs instead of using that tax windfall to invest in American workers.”
GM claims that the layoffs and plant closures will free up resources so the company can adapt to “changing market conditions and consumer preferences,” but offers no explanation for why it neglected to do that while it was being propped up by taxpayers.