Monday, June 1, 2009

GM Bankruptcy

I've been trying to decide how to write about the stimulus bill, bailouts, etc, etc. It's a lot to get your head around enough to blog. (Or maybe my head is just too small!)

Well, let's start with the bankruptcy of GM.

The most obvious concern is that our federal government took over General Motors with the promise of "fixing" it.

They spent billions of OUR tax dollars (that we pay through taxes--our money!! I can't say this enough) to make it viable.

Yet, GM has failed. Despite huge infusions of money. Despite the oversight of the federal government. GM is now declaring bankruptcy.

Three points we can explore further in future posts:
1) The US government obviously doesn't has the ability and know-how to run a company and save it from failure.
2) The US government, by its takeover of General Motors, has threatened our free enterprise system.
3) What is the US government's constitutional role in private enterprise? Does the government have the right to to do what it did?

Things to ponder. But the question of the day--what does our US government have to say about its FAILURE to fix General Motors? And its squandering of billions of dollars to do nothing?

Because GM could have declared bankruptcy months ago. Without the interference of the government and huge amounts of money (out money, remember?) spent.

Part of this is GM's fault. For being a poorly run company in the first place and for being greedy for federal (OUR) money. And part of this is our government's fault.

But the big problem is that no one is pointing the failure of the whole scheme by our government. The emperor has no clothes.

1 comment:

  1. You are so right!!!

    It does not seem that most Americans are holding this administration to any kind of accountability. I fear that the press and the current administration will continue the policy of the last eight years - blame everything bad on President Bush. I continually hear in press conferences, "... we inherited this ______ (insert whatever they happen to be talking about at the moment)."

    The problems with the banking industry and the housing industry can be squarely put in the laps of the Democrat party, dating back to President Carter's administration. Unfortunately, they are not the ones being blamed, are they?

    The auto industry has been shackled by government mandates and the UAW. It does seem funny that Japanese automakers are perfectly capable of running a profitable business in America, but the American auto companies cannot. What makes the difference? Government restrictions and mandates and the unions!!

    And, why did anybody think that pouring billions of dollars of tax money into these companies would fix anything???

    Thanks for your thoughts!!!!!

    ReplyDelete

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