Writing in The New York Times, David Brooks examines the new/old General Motors and sees much worse developments down the road. An excerpt:
Third, the Obama approach reduces the fear that impels change. The U.S. government will own most of G.M. It would be politically suicidal for the Democrats, or whoever is in power, to pull the plug on the company — now or ever. Therefore, the current managers can rest assured that they never need to fear liquidation again. There will always be federal subsidies for their own mediocrity.
[HT: Real Clear Politics]
3 comments:
GM today = Railroad industry in the 20th century. Subsidizing and regulating a once powerful and profitable industry into smithereens. Someone will soon earn a doctorate comparing the two.
Pawnking,
You're right. This one will be studied for years and I suspect it won't be in the category of "Great Successes."
Ouch.
The future is not looking good. How about civil service personnel practices since GM will be predominantly government owned?
Job for life!
Think of all those memorable cars from Russian car makers back in the day.
This kind of think must really hurt you Michael, I suspect, since you are a car aficionado of sorts right?
My condolences. E.
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