Government ownership of GM doesn’t benefit anyone
The government has a plan for General Motors. The government will continue to give GM money, which will benefit GM and its suppliers. Adding money to the economy will benefit the economy.However, as part of the plan, the government will wind up owning about 50% of the company. This ownership does not benefit GM, its suppliers, its employees, its shareholders, its creditors, taxpayers or the economy. The economic value of government ownership is not just zero. It is a strong negative. GM loses because its leaders will have to contend with business-ignorant, government bureaucrats, when making decisions. Suppliers too, will need to deal with arbitrary, politically-inspired rules, that will impact efficiency and creativity. Employees will pay for government ownership through a reduction in salaries and benefits. Shareholders will pay through a dilution of share ownership. Creditors will pay by being cheated out of the money due to them. Taxpayers will not receive any part of the stock; only the government will own it. The economy as a whole will receive no advantage from government ownership. There is, in fact, not one good reason for the federal government to own GM stock, and myriad reasons not to. The mere fact that government bureaucrats want this harmful ownership of GM stock demonstrates the government’s lack of economic and business sense. Rodger Malcolm Mitchell |
budb…
sorry I did not get back earlier, I have been busy most of the day.
I will admit that I jump to being uncivil at times. I feel that to some extent I have been conditioned to be uncivil. Many people are not civil here and after awhile one jumps to being uncivil has a natural response. I am not trying to make excuses for one is responsible for their actions.
Back to the GM stuff. I think that there is room for each side to make valid arguments. The truth being, we will not know for several years if I am correct, if I am wrong then we might know that much earlier.
“GM lose because its leaders will have to contend with business-ignorant, government bureaucrats, when making decisions.”
As opposed to business ignorant auto industry bureaucrats?
When all of our auto industry plants are gone and WWIII breaks out, where will build our artillery? Can national defense be part of the equation?
Now that GM is government owned (like Airbus for example), does anyone think OUR unions are going to complain about OUR government subsidizing OUR company like they have been complaining about other countries subsidizing their businesses?
Skippy
I made the same point when one of the right complained about Obama not having a MBA. I bet all of GM’s top management had a MBA, yet they drove the company into the ground.
I laughed when Rodger complained that this action would take away the companies creativity and efficiency. If they had shown just one of the two they probably would not have been in bankruptcy court on Monday.
Reagan,
No sir, you are wrong. We don’t need UN approval to go to war. We need congressional approval. Next???
llbean,
I am sure Rush is happy that you listen to him so regularly! I don’t, but what the hell, it’s still a free country. How are you going to get your Rush fix when/if fairness doctrine is rammed through??
Bob,
No worries here, we all get emotional on passionate issues. And you are correct, time will tell.
bud-bee…
you sure sound like ‘the lunatic’…
both of you got to get a lot smarter…
just to be stupid.
just to be stupid.
— llbean
8:55 am June 3rd, 2009
A perfect description of yourself, huh?
“Ronnie, how come your folks in DC haven’t stopped the illegal war then? They had the purse strings for two years and now they have the whole shebang. They can stop it tomorrow even though a great many of them gave the ok for it in the first place.”
— Amazedbythelunacy
1:32 pm June 2nd, 2009
Don’t you people go to school?! I learned how government works, what, were you looking at your WWF magazines in your civics class ‘Amazed-by-your-own-lunacy’ or what?
Your little line about “They had the purse strings for two years…” betrays your ignorance on this. The fact is they only had a majority –a ‘super majority’ is needed in many cases, (anything of significance requires a super-majority) i.e.; a two-thirds majority. So blame goes pretty squarely at the feet of the Republican party.
And to think that you have the right to vote, Amazed-by-your-own-lunacy…