GM is an important industrial business that is vital to the American economy. During the recent economic woes, it has faced the possibility of bankruptcy. In order to save this ailing automaker, the Obama administration has invested over 20 billion taxpayer dollars into the company. Despite having close to a 70% stake in GM, the president vows that the government is not in the business of running the company.
Unfortunately, that has hardly been the case for GM. Rather than allowing those closest to the company put forth a plan for its reemergence, the government has been the guiding hand in GM’s decisions. From setting deadlines to firing top executives, the Obama administration has hardly stuck to their role as advisors. These are not the capitalist ideals that the Founders intended.
This is not to argue the merits of the GM bailout; it may have been the only act that saved the company. But the U.S. government has been involved with bailouts many times before this recent crisis without controlling the companies. We are wondering why the government is no longer focused on regulation but rather on direct interference. Government is supposed to support those it governs, not control them.
This is not the first time that important American industries have faced bankruptcy and it will not be the last. The GM intervention is a frightening change from hands off support from the government to direct control of the government. We hope this is not a trend subsequent governments repeat. If it is, the capitalist ideals that made this country great may disappear forever.
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