General Motors has received $50 billion in taxpayer assistance, yet even as the company cuts thousands of jobs at U.S. locations, it is considering investing billions of those taxpayer dollars on overseas operations. GM maintains that only through a strong international presence can it remain competitive and profitable, but critics say that the taxpayer money was meant to preserve U.S. jobs.
The U.S. federal government possesses the largest stockpile of gold in the world, but even with record high prices, it isn’t likely to be selling any. In fact, other countries and global central banks are building up their gold reserves as the dollar’s value plummets.
The federal deficit for October reached a record-setting level for that month: $176 billion. The Treasury Department made the announcement on November 13, saying the shortfall occurred as income of $135 billion was exceeded by $311 billion in spending.
Many small banks are turning down federal money from the Troubled Asset Relief Program (TARP) because they recognize that it comes with too many strings attached. Additionally, the small businesses they primarily cater to “need lines of customers, not lines of credit,” as ABC News put it on November 9.
The unemployment rate shot from 9.8 percent in September to 10.2 percent in October, the highest it has been since 1983, the Labor Department reported on November 6. In response, the Obama administration is set to sign a $24-billion economic stimulus bill.