Probably everybody in Michigan knows that the federal government saved General Motors and Chrysler less than five years ago, by pouring $80 billion in cash into them to keep them afloat. Afloat, that is, till both went through cushioned bankruptcies. They were soon reborn as leaner, meaner, and now highly profitable companies, though Chrysler is now part of Fiat.
The so-called government bailout was highly controversial at the time and bitterly opposed by Republicans in the U.S. Senate. Two presidents went around them, however, and it is worth remembering that the bailout was begun by former President George W. Bush, though President Obama continued it.
Well, the bailout turned out long ago to be highly successful, and a lifesaver for the state and regional economies. The folks at the non-profit Center for Automotive Research in Ann Arbor have numbers to prove this; their estimates are that had there been a total collapse and a bankruptcy liquidation of GM and Chrysler, that would have meant the loss of more than 1.3 million jobs in 2009 alone. That never happened.
The bailout was so successful that the government, which at one point was the major owner of GM, is now close to selling off the last of the shares the treasury owns.