Leave it to politicians... hypocrite is synonymous with politician, right?
Unfortunately for Detroit, they can't print money, raid the employee retirement fund, raid the employee insurance fund, take a portion of their employees' income, take a percentage of their employees' personal spending, and take a profit off anything any other company sells their employees so they can artificially inflate their own prices.
Yeah, it is a good thing corporations can't do what the government does.
So, let's compare apples to apples here. For fun, let's compare the budgets of the Federal Government with GM (I added Toyota to show how a well functioning company's numbers would look). Who would you trust with your money? (numbers are in $millions)
| | % | GMC | % | | % | |
| Gross Income | $2,699,900 | 100.00% | $181,120 | 100.00% | $232,400 | 100.00% |
| | | | | | | |
| Executive Compensation | $29,400 | 1.09% | $39 | 0.02% | $20 | 0.01% |
| General & Admin Expenses | $293,600 | 10.87% | $14,371 | 7.93% | $18,797 | 8.09% |
| Cost of Goods Sold | $2,156,700 | 79.88% | $154,320 | 85.20% | $177,060 | 76.19% |
| Miscellaneous Income/Cost | ($289,400) | -10.72% | ($2,780) | -1.53% | $11,937 | 5.14% |
| Health Care | $429,700 | 15.92% | $4,840 | 2.67% | $3,293 | 1.42% |
| Interest on Debt | $487,300 | 18.05% | $2,930 | 1.62% | $423 | 0.18% |
| Total Costs | $3,107,300 | 115.09% | $173,720 | 95.91% | $211,530 | 91.02% |
| | | | | | | |
| Earnings | ($407,400) | -15.09% | $7,400 | 4.09% | $20,870 | 8.98% |
| | | | | | | |
| Depreciation & Amortization | $0 | 0.00% | $9,510 | 5.25% | $13,180 | 5.67% |
| Earnings Before Taxes | ($407,400) | -15.09% | ($2,110) | -1.16% | $7,690 | 3.31% |
1 comment:
Some interesting points about those numbers:
1. The executive compensation for the US Gov is for the White House, Congress, and the Judiciary branch for a total of $29.4b spread among 561 positions of leadership (17-WH, 535-C, 9-J), plus their residences, offices, and staff. GM, on the other hand, has $39m in salaries for their 5 execs (they do a good job of hiding their additional benefits in other accounts). Toyota puts them all to shame with $20m spread among their 32 executives (all of whom make less than $1m per year, including the CEO).
2. The healthcare number for the federal government is ONLY for the healthcare of government employees (about 1.8m people, plus retired people).
3. The CoGS for the U.S. government was all the services the government provides to citizens (defense, healthcare, welfare, social security, highways, etc).
4. General & Administrative costs for the Fed are the costs associated with managing the programs and the IRS (like an Accounts Receivable department).
5. GM has to cut their CoGS... WAY too high!
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