Follow up on a Government Owned Auto Company

Back in November, I wrote that there would be a government owned auto company. Although there was some tongue-in-cheek reference here, it seems it is coming true. Obama has ousted the CEO and most of the board, appointed his own, put money in (taxpayer money) and has taken control.

MSNBC.com wrote an article showing how this can be dangerous and how is it moving towards socialism.

U.S. plans key role in naming GM board

I believe is wrong to bail out companies. Banks, auto companies, anyone. They should be allowed to fail because someone always buys the parts that are worth anything. By propping them up, you are just giving the government too much power over business.

Here, if the CEO is the problem, the board should have done the firing. If the board is the problem, then the shareholders should have done the firing. The market does and will always vote for the right action. Why does the government think they can run a car company better?

OAN: I watched the news this weekend and they mentioned that there are people who still did not understand the banking crises. Starting this week, I am going to have a three part series on the banking crises for laymen. Stay tuned.

Advertisement