View Single Post
  #11  
Old Aug 27th 2009, 02:37 PM
Michael's Avatar
Michael Michael is offline
Administrator
Herder of Cats
 
Join Date: Oct 2008
Location: Toronto
Posts: 14,835
Default Re: GM still out to lunch

Quote:
Originally Posted by Americano View Post
Has anyone bothered to see if tax revenue from the sale of those cars and the economic flow-through will cover the public subsidy? Or is it just another attempt to contain lagging GDP growth?
My quick 'back of the envelope' calculations based entirely on the 1350 jobs GM said they were restoring suggests that the payroll & income taxes on those jobs will cover the cost of the program (easily) within one year (if those 1350 jobs stay alive for 12 months).

This of course ignores the fact that auto-manufacturing jobs have one of the highest possible job multiples in the US economy - meaning that for every job in auto-manufacturing, there are three support jobs. Thus, the restoration of those 1350 GM jobs means some 4000 other supplier jobs as well (and they pay taxes too).
Reply With Quote