In other words, taxpayers are not going to get their money back. Yes, we the people will be left holding the bag for the mistakes of GM’s management and labor leaders over the last four decades.
And with CAFE mileage-standards ratcheting up -- all while GM is going down -- Team Obama’s green vision for the economy will soon be crystal clear. With President Obama in the driver’s seat, we’re going to get little green two-door cars that most folks won’t want to buy.
Even worse, UAW chief Ron Gettelfinger has made it plain that his powerful union won’t let these cars be manufactured in low-cost non-union plants overseas. The result? Obama’s little green cars are going to be unprofitable as well.
But it’s the bigger picture that has me most concerned. What does Government Motors say about the direction of the United States? Historically, we don’t own car companies --or banks or insurance firms. But we do now. Tick them off on your fingers: GM, Citi, AIG. Oh, and let’s not forget Fannie and Freddie, those, big quasi-government, taxpayer-owned housing agencies.
California is broke and likely headed to bankruptcy. Will we the taxpayers own that, too?Altogether, we’re talking about hundreds of billions of taxpayer dollars that will never be repaid. This is the stuff the Italians used to do, and the Brits before Thatcher, and the Soviets a long time ago. But it’s something very new and very different for America.
Is this onslaught of government ownership an attack on free-market capitalism? Yes it is. Call it Bailout Nation or Ownership Nation, it’s an unprecedented degree of government command, control, and planning, all in the name of a tough economic downturn.
I don’t pretend to know all the answers to GM’s problems. Neither do I know all the miscues of the banks and insurance companies. But I do know this: The present level of government control over the economy does not bode well for this great country.
To which I ask: Larry, have you ever heard the words secession, tax payer revolt, consumer revolt, storming the Congressional Bastille? Somehow, we can not let this madness continue indefinitely. We must not; we can not.