Friday, 17 July 2009

Government motors

Reason’s Ron Bailey writes
Back in April, even as the federal government was bailing out General Motors and Chrysler to the tune of tens of billions of dollars, Obama flatly stated, "I don't want to run auto companies...." In June, the president reiterated his stance when he declared, "What I have no interest in doing is running GM...."
And now this from the Washington Post:
Now that the Obama administration has spent billions of dollars on the bailouts of General Motors and Chrysler, Congress is considering making its first major management decision at the automakers.

Under legislation that has rapidly gained support, GM and Chrysler would have to reinstate more than 2,000 dealerships that the companies had slated for closure.
Since federal money has been used to sustain the automakers, they [the dealerships] say Congress has an obligation to intervene.
And you can bet this won’t be the last time you see Congress intervening in GM's management decisions.


Peter Salmon said...

Which is why it was a huge mistake

Paul Walker said...

Yes, and one the US taxpayer will be paying for, for along time to come.