Politicians are not business experts
It begins. In exchange for bailout money, the federal government foolishly demanded 60% ownership of GM, which automatically gives Congress and the President the expertise to run car companies. Senate Commerce Committee Chairman John Rockefeller said, “I honestly don’t believe that companies should be allowed to take taxpayer funds for a bailout and then leave it to local dealers and their customers to fend for themselves.”
He should have said, “You executives are automobile industry experts. You have the authority and the responsibility. So, devote your lives to building GM the best way you know how.” Instead, he implied that he and his Congressional cronies know how to build GM in their spare time.
There will be more. President Obama already has told the car companies what kinds of cars to build (high gas mileage, low emissions), whether or not the public wants to buy them. We already have heard from Congresspersons who object to the closing of specific production plants and auto dealerships, regardless of the business impact on GM. And you can bet there will be an endless series of time-wasting, costly Congressional hearings, with politicians posturing and pointing and putting forth populist pronouncements.
Remember, this is the same gang that spent more than $12 billion on the cancelled Superconducting Supercollider, and repeatedly causes massive cost overruns on virtually every military project they touch, many of which are cancelled mid-stream. Now they want to run the car business?
Our leaders, who profess to hate communism, now want communist-style, government ownership and central planning – the worst possible approach to saving this industry. It’s frightening, to say the least.
These politicians should return to what they do best – running for reelection – and leave business to the business people. With all due respect, Congress and Mr. President, you can be most helpful if you get the hell out of the car business.
Rodger Malcolm Mitchell
Wilmette
Rodger, I didn’t even bother to read your latest offering, quite honestly. You were wrong last week and you still are. If the dolts who ran GM into the ground are allowed to stay, how are things going to get better.
For years many like myself have been asking; why don’t our domestic auto makers just do their best to copy a Camry or Accord? Ignorance or arrogance?
Rodger
I am not expecting miracles from the GM bailout. There will be infighting to save plants in congressional districts, etc.
However, have not the business people been running GM prior to the bailout? If not who was? You said John Rockefellar should have said You executives are automobile industry experts. You have the authority and the responsibility. So, devote your lives to building GM the best way you know how.”. Are you saying prior to this they were not trying to build GM the best way? Or are you saying they do not know how to?
Perhaps this will not work, but you seem to be saying let’s continue with the same people, planning the same way, and doing the same thing. Yet let us expect different results from these experts. Sounds like do the same old thing and expect different results.
Rodger
Hopefully in the next few days, the SCOTUS will be putting a stop to this illegal and unconstitutional, government take over of the auto companies. They have agreed to take the lawsuit that the State of Indiana brought against the government.
We will find out if the Supreme Court will uphold our constitution, or let “The Messiah” continue the trashing of it, and continue his march to socialism.
“We will find out if the Supreme Court will uphold our constitution, or let “The Messiah” continue the trashing of it, and continue his march to socialism.”
Magnum, do you think if you say it enough times, it becomes true?
http://www.breitbart.com/article.php?id=D98MNNP81&show_article=1
Mr. Mitchell,
Respectfully, you should consider re-reading your submissions before sending them in. The federal government didn’t demand anything from the car companies–the companies essentially “sold stock” to the government in exchange for the funding, in the case of GM, about 60% of the company’s assets. Later, you state “President Obama already has told the car companies what kinds of cars to build (high gas mileage, low emissions)…” The public has been telling the car companies to build these types of cars for twenty years. Had the car companies listened, perhaps they wouldn’t be in their current condition. If anyone in government can convince the auto “experts” not to design the next Pinto, Gremlin, Aztec, or LeBaron, I’m all for it.
“The public has been telling the car companies to build these types of cars for twenty years.”
How so?
It seems people like buying bigger, safer, more powerful, more comfortable vehicles. The only time the public wants smaller fuel efficient, underpowered, uncomfortable cars are when gas prices sky rocket. So it seems the only way the President can make Government Motors successful is to inflate gas prices to the point where people give up the cars they WANT for cars they dont want.
magnum:
“We will find out if the Supreme Court will uphold our constitution, or let “The Messiah” continue the trashing of it, and continue his march to socialism.”
It’s obvious you did not attend Harvard Law School or edit the Harvard Law Review. Unsecured creditors are always allowed to plunder the spoils of bankruptcies so be prepared for China to get the shaft for their worthless bonds when Obama awards ownership of the failing USA to SEIU. The Chinks won’t know what hit them.
Reminder for those rushpublikans who have short memories”: it was BUSH who started us down the road to socialism with his bailout of the banks and Wall Street brokerages. It was also Bush who gave Chrysler/Gm the initial bailout of 15 billion.Btw..lots of Americans like smaller cars,especially the younger generation.
Im all for screwing the Communist Chinese.