40,000 jobs could be saved tomorrow

We are committing Trillions to these new programs as the middle class is screaming for jobs....our government has the assets and capital to create/save 40,000 to 200,000 jobs tomorrow...please read this Op/Ed letter sent to WSJ &NYT...thanks and join us:

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Wanted: Leadership on jobs…Savingpontiac.org

 

Recently, the NYT used the headline on an editorial “Wanted Leadership on Jobs”. In responding to this challenge we have the intent to focus only on one opportunity for job leadership that is unique because of the economic downturn and is likely a one time opportunity.

 

As a result of the “bail out” funds made available to General Motors, the US Government and the Canadian Government own approximately 75% of General Motors. That can also be read that the American Taxpayers own 75% of the Company. General Motors controls two automobile brands that they have elected to no longer use; Pontiac and Saturn. In addition, the Company controls tens of millions square feet of closed or moth balled manufacturing facilities. Savingpontiac.org was born from these facts and the opportunity they present.

 

In the case of Pontiac, we believe that spinning off the Spring Hill, TN manufacturing facility (to be moth-balled on 11/25/09) and the Pontiac brand to a Government funded entrepreneurial management team could produce/save a significant number of jobs and create a viable American car Company.  Our thesis is that a $4 Billion line of credit from the Government would immediately create/save 5,000 direct jobs and, using the auto industry multiplier of 9, approximately 40,000 indirect jobs. If the $4 Billion was direct investment instead of a loan this is an improvement of 3.5% from the estimate of cost per job for job creation as reported in a May, 2009 study from the President’s Council of Economic Advisors. However, this is a loan to be repaid from an IPO in 5 years.

 

Assuming a per job year wage of $50,000 (Fully Loaded) this is projected to be, over the 5 year term, almost $11 Billion impact to the economy in wages alone from direct and indirect employment.  On the $4 billion loaned by the Government that is a simple average return on investment of over 34%. If the venture limped along for 5 years and then failed, the return of economic benefit would still be approaching 15%. In the case of Saturn, the returns are equivalent but the numbers are much larger as the direct employees, reported recently, is approximately 13,000.

 

All of these benefits are obtained using assets that the Taxpayers already own and require a small fraction of the allocated and unspent TARP funds or any other bail-out appropriation to fund the renaissance of these brands.

 

Leadership on jobs?  Why can’t we use the assets we own with a modest investment and go from there. This solution is far from solving the entire employment problem that exists today but there never will be a silver bullet; it requires multiple solutions that contribute one at a time. The other benefit is this solution could be the underdog that American can root for. The poster child for economic recovery and job creation!

 

Thank you for your time and interest.

 

 

 

Ben Holcomb

Savingpontiac.org