Monday, March 30, 2009

Government Nationalizes General Motors

The Obama administration's announcement Sunday that it had sacked much of GM's board of directors and forced the resignation of CEO Rick Wagoner sends chills down my spine. Here we see the first clear evidence that this regime intends to directly control private companies as a condition of taxpayer aid. Indeed, the worst fears of all who identified Obama's agenda as uncompromisingly socialist have been proven true.

Wagoner may or may not have deserved his fate. In any case, though, the national government has no business inserting itself into the daily operations of a private company. To do so stinks of authoritarian despotism. The government had no business lavishing GM with public funds to begin with, but has even less justification in its belief that Obama's team of political hacks actually knows better how to run an automobile manufacturing company than the private citizens they have sent packing. The record of state business enterprises around the world and throughout time has been one of static inefficiency, and argues against this foolhardy scheme.

Of course, General Motors and other companies taking taxpayer money invited this upon themselves. Instant government cash infusions allow these companies to forestall the most difficult decisions, including closing plants and divisions, and laying off workers. But like a poweful narcotic, the cash also keeps these corporate junkies dependent upon and submissive to their government pushers.

With Obama and his henchmen now making personnel decisions at global corporations, how much longer will it be until they dispose of pretense and declare the whole world their exclusive domain?

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