Liquidate General Motors

[Kevin_Kennedy]

General Motors and the U.S. government have several characteristics in common. Both are unwieldy behemoths which have become debt-laden, wealth-destruction machines. Their workers are overpaid and under-productive (for Federal employees, counterproductive is a more apt description). Foolish creditors have kept these monstrosities afloat and will eventually end up regretting ever having lent these debt addicts a dime. Yet, each one is a public-relations machine preaching to the citizenry that it is indispensable. The Federal government, accordingly, is working with General Motors on a rescue plan which entails exchanging debt and other liabilities for equity. If this exchange offer is successful, President Obama will be hailed, by the mainstream media, as a visionary leader with the good sense to override the impersonal phenomenon known as the free market. Isn’t it true, after all, that what is good for General Motors is good for the country? Not anymore.

What is good for the United States is an unhampered free market. In a free market, successfully anticipating and meeting the needs of consumers are rewarded with profits and wealth creation. Conversely, when a business consistently loses money it must either adjust its business model in order to compete more effectively (before its financial condition becomes too weak), or face liquidation. Failure is not the end of the world as the resources tied up in a failed company can be freed up for entrepreneurs to use in other productive ventures.

Liquidate General Motors by Eric Englund

 

[mash107]

One can only wish that would happen, already.

Why force people out of work to benefit those that can't make a car that we want?