November 19, 2010
GM Goes Public with Huge Stock Offering
Government rescue saved hundreds of thousands of jobs
There’s something about a white board that makes even difficult subjects easier to grasp. In this video, Council of Economic Advisers Chair Austan Goolsbee discusses the success of the government’s plan to save the American car industry from liquidation:
“The critics said this would never work, but the critics were wrong. Rather than a collapsing auto industry dealing another crushing blow on the American economy, the American automotive sector is now one of our engines of growth.”
General Motors successful IPO has reduced the public’s stake in the company from 61% to 36% and raised $20 billion for the company. More than money, the turn around at GM is about jobs – hundreds of thousands of jobs, many of them good paying union jobs, that would have disappeared had the company been liquidated.