Monday's Chapter 11 bankruptcy filing by General Motors represents the latest troubling intrusion by the federal government into the realm of private business. When all is said and done, taxpayers will own 60 percent of GM, putting all Americans in the auto business, and giving us all a significant stake in the fortunes of a business that has struggled mightily in r
ecent years. The idea of saving vast numbers of GM's 234,000 jobs is a noble goal at any time, but especially during an economic recession that has put millions of Americans out of work. But a better course would have been a traditional Chapter 11 reorganization rather than this faster, government-funded reorganization that will result in at least temporary nationalization of a capitalist icon.With $82.3 billion in assets and a whopping $172.8 billion in debt, there is plenty of reason to doubt GM's troubles are completely due to the recession and more due to repeated failures by company leadership to stave off ever-increasing labor and benefit costs that hindered GM's ability to compete in the global economy. Given that, this government intervention is a bitter pill to swallow. Furthermore, the government's track record on auto bailouts is checkered. Its $1.5 billion bailout of Chrysler in 1979, for example, resulted in little change that ultimately led down the same road to that company's bankruptcy filing earlier this year. General Motors — and any private business — needs to be run independent of any political agenda.
ecent years. The idea of saving vast numbers of GM's 234,000 jobs is a noble goal at any time, but especially during an economic recession that has put millions of Americans out of work. But a better course would have been a traditional Chapter 11 reorganization rather than this faster, government-funded reorganization that will result in at least temporary nationalization of a capitalist icon.With $82.3 billion in assets and a whopping $172.8 billion in debt, there is plenty of reason to doubt GM's troubles are completely due to the recession and more due to repeated failures by company leadership to stave off ever-increasing labor and benefit costs that hindered GM's ability to compete in the global economy. Given that, this government intervention is a bitter pill to swallow. Furthermore, the government's track record on auto bailouts is checkered. Its $1.5 billion bailout of Chrysler in 1979, for example, resulted in little change that ultimately led down the same road to that company's bankruptcy filing earlier this year. General Motors — and any private business — needs to be run independent of any political agenda.For further details visit at :www.greenvilleonline.com/article/20090606/OPINION/906060303/1004/NEWS01/Greenville+News+Editorial++Ge
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