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Tuesday, June 16, 2009
Ed Feulner :: Townhall.com Columnist
Government Motors: A Dead-End Deal
by Ed Feulner
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Meanwhile, the new mayor of Detroit recently spoke with Obama, and told reporters afterward that the president supports keeping GM headquarters in that city. If Obama insists he has “no interest” in running GM, why is he so involved in the day-to-day operations of the company?

Obama also says “The federal government will refrain from exercising its rights as a shareholder in all but the most fundamental corporate decisions.” That’s a tough sell, too. Even before the government owned most of GM and much of Chrysler (the second Big Three automaker Washington recently guided through a special bankruptcy), it was involved in designing cars.

Last month Obama declared that automakers must reach a fleet average 35.5 miles per gallon by 2016. To accomplish that would require a comprehensive makeover of the entire automotive industry -- both domestic and foreign. After all, as USA Today pointed out, only 11 cars manufactured today meet that standard.

But the federal government, as always, has a plan. EPA Administrator Lisa Jackson has declared that, “What this country needs is one single national road map that tells automakers ... what kind of car it is they need to be designing and building.”

In days gone by, that “road map” was the free market -- you and me. Automakers built cars they thought people would want to buy. If they were correct, sales were good. If they were incorrect, they had to cancel product lines and return to the drawing board. It’s why Ford has made Mustangs for decades, but mothballed the Edsel after only three years.

Government ownership has never worked overseas, and it won’t work here. Washington should get out of the automotive business as swiftly as possible.

The recent European elections show the rest of the world is edging away from statism. This is no time for America to lurch left so it can keep company with outcasts like Cuba and Venezuela.

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About The Author
Dr. Edwin Feulner is president of The Heritage Foundation, a Townhall.com Gold Partner, and co-author of Getting America Right: The True Conservative Values Our Nation Needs Today .
 
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Amtrak
Anyone who believes that the government does not want to run GM and Chrysler for any length of time needs to look at the history of Amtrak. It was created in the 1970s and was to be owned by the Feds for ONLY 3 years. Now 40 years later, still in the red for millions and millions of dollars per year, it is STILL owned and operated by the Feds. No one else can enter the marked because they can not compete with the government subsides used to keep the government-backed company running.

The same will happen with GM and Chrysler. The government will mandate that they build cars nobody wants. The Firms will loose millions of dollars and be continually subsidized by the government. The threat to private firms is that they will be forced into bankruptcy because they will not receive government "bailouts" every year.

Ford is doomed unless they can win an anti-trust suit against the UAW. The UAW now owns GM and Chrysler. They compete against Ford but control the workforce that makes Ford cars. What do you think will eventually happen with labor negotiations between Ford and the UAW? Will the UAW let Ford make better cars than GM and Chrysler, thus affecting the UAW cash flow? Or will they strike and shut down the competition. Human nature dictates that the later will eventually occur.

Buy Ford (or an American made Honda or Toyota for that matter.)

The end of the United States
History being made as you watch. Someday our grand children will wonder why we surrendered without a fight. Or will the children be so indoctrinated by our government controlled schools, the kids will wonder why it took so long?
As Goes General Motors, so goes the United States. As we turn over operation of our government to immigrants who want to divide us, we will be the opposite of unified Europe, we will be a bunch of non English speaking communities, at war with each other. It's a wonder this nation survived some 230 years, when the New World Planners have worked on this since 1913. Wonders of wonders were the 1950's with full employment, new home communities, new cars, new families, then the Korean War, the Vietnam war, and spread our money all over the world to try to convert Dictatorships in to Democracies, while our nation floundered, with factories closing, torn down, our children educated that private ownership of anything was immoral.
And all of you sat there watching the Ball Game, and no longer caring if we had Freedoms.
Sad indeed. I've tried to save us, but you still don't see what YOU did wrong.
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