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The Big Three get big subsidies but still do big layoffs

Corporate handouts ensure short-term political gain, not long-term economic growth

The ink is barely dry on the Big Three automakers’ generous new union contracts, but it’s already clear that the companies are in financial trouble.

In recent weeks, General Motors and Stellantis have announced layoffs, while Ford has scaled back hiring plans at a forthcoming battery factory. The threat of more job losses will likely spur politicians to throw money at the companies, but taxpayers deserve to know that job losses will likely continue no matter what promises the companies and politicians make.

Taxpayer subsidies for the Big Three are all but guaranteed. In August, before the United Auto Workers strike, the Biden administration announced $15.5 billion in funding and loans to help car manufacturers redesign their factories for electric vehicle production.

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