Posted by
Rich from NW Indiana on Thursday, June 04, 2009 4:50:00 PM
We, the people of the United States of America overwhelmingly oppose the formation of a government run General Motors.
The federal government has NO business trying to run a private business using our tax dollars to support a failing enterprise.
While General Motors was not well run as a private business in recent years, government control will manage to run it even worse!
Building "Politically Correct" Vehicles will not return GM to a profitable status, it will only lead to more losses, and the taxpayer will pay.
GM will never return to private hands no matter how much President Obama says it will. Government never gives back what it has taken, it will not give up power without a fight.
The loss of freedom that will occur due to more government control of private businesses. This isn't just the loss of cars that we want to buy, that Government Motors won't make. Its not just the cars they will make, that we won't want to buy, but will have to pay for anyway. But the loss of free will because of more government intrusion in our lives.
Part 2
The bailout of GM and Chrysler has already failed. Taxpayers have been forced to subsidize both GM and Chrysler to the tune of well over fifty billion dollars (so far). Taxpayers have lost that money forever. They both should have declared bankruptcy much earlier. That's the remedy of a bankrupt business. That is the path that should have been taken. It wasn't taken, due to politics and politics alone.
Now they have been forced into bankruptcy anyway. The "Bailout" was sold to the American people as a remedy against the automakers going into bankruptcy. The "bailout" was opposed by the American people as proposed by former President Bush as much as today's takeover by President Obama. The government officials running this program have NO experience in the automobile business. Not one minute.
Now bankruptcy will fail as well. It has been twisted into something that bankruptcy isn't supposed to be. It really isn't a bankruptcy per say. Some of the players that brought down these companies are now getting a large part of GM. Labor Unions are that group. They will receive about twenty percent of GM. They managed to jump ahead of GM real owners, the stockholders, who will now have about ten percent of the remains of this company.
Allowing the labor unions to control part of GM will make it hard for a future private owner (if there ever will be a private owner again) to reform this company. They will oppose any attempts to fix the financial problems of this company. The financial future, is really the only problem that has to be solved. If that cannot be fixed there will be no General Motors. One can only rob Paul to pay Peter so many times before the house of card falls again.
One of the biggest problem of not reforming the labor unions at GM is this. It will limit the amount of experienced people that will be willing to try to save this company, the voice of the union must be changed from the nonsense that it babbles about today to a more sensible one. If the unions have the final say, we will end up with more of the same, incompetents "running" the head office. The best and brightest will stay away knowing that they will fail no matter what they do.
Part 3
We call for the sale of General Motors back to the private sector. Immediately!
The taxpayers will unfortunately take a huge loss on this deal. GM is worth no where near the money that has been pumped into it. The taxpayers will be lucky to receive two billion for GM in the state it's in. But it will cost us far more to wait.
As it stands today GM is owned 60% by the U.S. federal government, about 12% by the Canadian government, over 20% by labor unions, with private owners with about 10%. How is GM ever going to post a profit (or at least not lose money) with ownership stakes like these?
Part 4
This blog will highlight the many problems that a American government owned automobile company will bring to this nation. This will not be a short thing in spite of what our politicians say it will be. I hope we will not be "celebrating" the tenth, twentieth or God forbid, the 30th anniversary of Government Motors. But if history teaches us anything, its very likely we will.
Government Motors Must Be Stopped.