Had it been allowed to fail naturally, the profitable pieces of GM would have
been bought up and put to good use by now.
The laid off employees would likely have found new jobs and all that capital
would be in private hands, reinvested in companies that produce products
demanded by consumers.
Instead, we are all poorer now.
Political pressure, rather than the rule of law, is deciding how to divide up
the remains of GM.
The bondholders had billions in retirement savings invested in the company, and
though they were entitled to nearly three times as much as the United Auto
Workers, the bondholders were left with just a 10 percent stake compared to the
union’s 17.5 percent stake.
For their 60 percent stake, taxpayers have a future of constant bailouts to look
Comingling public control of private business is known as fascism.
While today’s politicians may feel emboldened with all their new power, history
will only repeat itself as all this collapses on itself.
It is the height of hubris for bureaucrats and politicians to attempt to control
the market and the freewill of the American people.
In the end, the market always wins out.
Maybe one day future generations will wise up and allow free markets to function
and thrive without the albatross of government around its neck.
For now, it looks like those in charge have not learned the lessons of the past,
and have doomed us to repeat those mistakes once again.