Thursday, January 24, 2008

GM Owes Ontario $235 million

It is widely reported today that General Motors has scrapped plans to build some rear-wheel-drive cars at its giant plant in Oshawa, Ont., a move that could threaten the long-term future of the largest vehicle assembly plant in Canada and thousands of jobs. To see a report here is a Globe article.

GM has received at least $435 million in corporate welfare - $235 million from the government of Ontario and $200 from the feds. The deal was that they would create long-term sustainable jobs with this cash. While GM shouldn't have been given this money in the first place, as they continue to shed jobs, they have violated the deal and should pay back the money.

This is why corporate welfare should end. Cash goes to subsidize over-paid executives and it doesn't create jobs - as this proves.

So, GM, listen up...Give us back our money!!

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