Meanwhile, in Central Asia a bailout costs…

Compared to the $25 billion that GM wants, this sounds cheap:

The Pakistani rupee [their currency, whose value has been falling leading to inflation in Pakistan] ended flat on Friday, steadied by expectations that the first tranche of a $7.6 billion loan will be released by the International Monetary Fund (IMF) next week.

You read that right, the IMF is offering $7.6 billion to “bailout” Pakistan.

General Motors wants $25 billion from the government for their bailout. $25 billion!

Out of all the world’s countries, Pakistan has the 28th largest GDP — so it’s a decent sized economy. But many American corporations have budgets larger than many country’s GDPs, so let’s look at the hard numbers (as of 2007):

Pakistan: GDP almost $412 billion
GM: Total revenue of $181 billion

While GM’s total revenues beat out the GDPs of Morocco and Kuwait, it doesn’t come close to Pakistan’s GDP. Yet GM demands a $25 billion bailout and Pakistan doesn’t even need $10 billion.

Some might see these facts as one sided, and surely they’ll point to GM’s $38 billion profit loss last year, but I still find it curious that a company, whose economy is a quarter the size of Pakistan, needs such a huge bailout — especially when compared with the $7.6 billion Pakistan needs. Either a lot of that money is going into the pockets of corporate executives (the salary of GM’s CEO, for example, is $3.36 million a year), or there’s been some gross mismanagement at GM. I suspect both — in metric fuckton quantities.

And our economy rests on the shoulders of these business school rejects. Sure makes me feel all warm and snuggly.

2 Responses to “Meanwhile, in Central Asia a bailout costs…”

  1. Paul says:

    Well, the $25 billion carmaker bailout will cover private jets and executive pay. I don’t think many Pakistanis fly private jets.

  2. tas says:

    Why not? Let’s petition the IMF to give Pakistan $15 billion more so they can start flying really first class!

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