On June 1, 2009, it is highly likely GM will file for bankruptcy, resulting in the
US government owning over 70% of the new automobile company. While the government denies that they will be running the auto company, I can't help but to
speculate what a US government run car company might do. Here are some possibilities:
Of course, the Obama administration could present the changes with the spin of, "What's worked for financial institutions should work for the automobile companies." :-)
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This is not financial advice. Please consult a professional advisor.Copyright © 2009 Achievement Catalyst, LLC
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4 comments:
Shame on you everyone knows the Obamamoble will be solar powered and will only go about 30 miles before having to be recharged.
Or, we could be negative and offer no positive suggestions, continue to obstruct measures that would make car companies more competitive and more green, call it a free market as we pad the wallets of auto and oil execs, and pay for all of this with special interest tax breaks and earmarks, all-the-while pretending to be against big government.
I know someone on TV already said this, but maybe we should have the oil companies bail out the car companies, instead of having taxpayers do it.
Oh wait, I forgot. Our capitalist strategy is to privatize corporate profits and socialize corporate losses...
@ Anonymous,
I guess I could be positive, but it was more entertaining to write a piece of satire about the situation. Anyway, I offer the folowing to address your points.
First, I believe it's the government's strategy to privatize corporate profits and socialize corporate losses. A capitalist strategy would have let GM and Chrysler fail and allowed Ford to succeed.
Second, it seems reasonable to also include UAW workers in the list of beneficiaries of obstructive measures, calling it free market, tax breaks and earmarks. I wouldn't want execs to get all the benefits :-)
Finally, on a positive note, one option for a better outcome would have been to use the bailout moneys for GM and Chrysler to fund a comprehensive efficient public transportation strategy. I lived several years in a country with an excellent national public transportation system and chose not to own a car during that time.
@ Brian,
You're right, it should be solar powered. But since the Obamamobile is all things to all people, I chose to make mine nuclear powered :-)
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