David Harsanyi

Confiscating the property of investors for the common good isn't generally conducive to a healthy business environment.

Sean McAlinden of the Center for Automotive Research told NPR that investors may want to ask the new GM: "By the way, the last set of shareholders and bondholders you had, you totally screwed them. So why should I trust you now on nine months' worth of results?"

They may want to also ask why GM is making ideologically motivated money-losers, such as the Volt, a car the middle class won't be able to afford, even with massive subsidies. What happens when taxpayers divest themselves from GM's social engineering projects?

Taxpayers didn't have much of a choice in the matter on the front end. It'll be nice to see GM stand on its own -- until the next time.

But when we undermine the rule of law, ignore property rights, create moral hazards and destroy organic job growth to save a company that was terribly managed long before the recession, no one should brag about success.


David Harsanyi

David Harsanyi is a senior editor at The Federalist and the author of "The People Have Spoken (and They Are Wrong): The Case Against Democracy." Follow him on Twitter @davidharsanyi.