Mark Milke and Milton Friedman beg to differ:
Milton Friedman once said his greatest fear about the 1979 U.S. government bailout of Chrysler was not that it would fail, but that it would succeed. Chrysler's rescue, he said, might lead some to draw the wrong conclusion -that such actions save jobs.
... Industry Minister Christian Paradis on Wednesday: that Chrysler paid back its entire loan from taxpayers ... "in full and ahead of schedule."
Actually, Paradis is widely off the mark. Chrysler repaid just $1.7-billion of the $2.9billion loan from 2009, or just 59%. The remaining $1.2-billion will never come back ... something his colleague, Finance Minister Jim Flaherty, publicly admitted last week. ... Chrysler before bankruptcy reorganization absolved the "new" Chrysler of past debts.
... let's examine the notion that Chrysler's repayment of 59¢ on the dollar is somehow proof positive that government intervention worked. ...
[...] Read the whole column.