| | Every day people vote for what products are valuable to them. They do so by buying them.
GM's bankruptcy, accordingly, is a reflection of their inability to create a product with enough value worth "voting" for. Whether that's the fault of greedy execs, greedy unions, or a combination of both (the most likely cause), the American People have voted that GM's products are not worth their sticker price.
When a government subsidizes any product - whether it be corn for ethanol, housing, transit or whatever - it defies the will of us voters by diverting our money towards products we did not choose.
In the case of the automakers, government has decided that they will make us pay for GM's operations whether we want a GM vehicle or not.
"But what about the potential job-loss?" Whoever believes the idea that bankruptcy means the end of the company has no knowledge of the business world. Fears regarding this were completely manufactured by idiot politicians, propagated by the media, and unquestionably consumed by the public.
Consider: Just because GM would have filed bankruptcy would demand for cars decrease? No, we still need cars just as badly as we did before, so somehow or another, those vehicles would still need to be made. Whether by GM under Ch. 11 bankruptcy, or by competitors who purchase off GM's brands, the original manufacturing locations could not stay inactive for long before cars started becoming scarce. Certainly there would have been *some* downsizing/consolidation, but hardly the catastrophe it was hyped to be.
Instead, we blindly believed our elected officials and let them throw $17B away in a futile attempt to keep GM & Chrysler afloat... and we're going to throw away countless billions more while these new leeches quietly suck away at the tax revenues of millions of hard-working individuals. This will go on indefinitely because GM no longer has any incentive to be a self-sufficient entity.
So my plan would be to pull government out of micromanaging business affairs so that our votes in the consumer market will be counted once again. Businesses that aren’t valuable enough to remain in operation should be allowed to fail. To redirect the public’s money to sustain inefficient business is literally government-funded consumer exploitation.
By the way, I'm also announcing my candidacy for Governor in 2010. I'd appreciate your vote.
-Clive |
| | Posted 6/2/2009 7:07 PM - 6 Views - 0 eProps - 0 comments
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