“It’s not just any company we’re talking about. It’s GM.”
-President Barack Obama, June 1st 2009
Every day I see and hear about more people losing their jobs. I myself have been unemployed since November of 2008. If only I and those like me had not been working for “just any company,” perhaps we would still be working at your expense as well. There is a certain amount of arrogance in every new announcement by the Obama administration that just infuriates me. I am tired of being told what is best for everyone is for me to sacrifice more so that those deemed worthy of the federal government can continue to siphon cash from the treasury. Their latest decree is that GM, a company worthy of the praise of the gods, is more important than your company. Why?
“…so your children and all of our children can grow up in an America that still makes things…”
Apparently, these things America makes happen to only be worthless cars. I would certainly hate for my future children to grow up without the ability to buy an American made clunker. Speaking of which, my wife and I don’t have kids yet. Why? We can’t afford it. We are actually saving to support our children. It’s a novel idea, I know. I’m so glad that President Obama has forced me into being part owner of the new failing GM so that my unborn children will have a secure future. Meanwhile, I am already supporting scores of other people’s children, people who think they have a “basic human right” but not a “basic human responsibility” to be parents.
But enough about my kids I may or may not ever have. Let’s discuss GM. First and foremost, let me just clarify that I would never want the government buying any part of a private company. Now, let’s analyze this as if it were actually a viable solution. Obama has told me that I am now part owner of a 60% stake in the new GM. (Get ready for the avalanche of problems with this plan.) First, I never would have invested a dime in GM when it was a non-government entity. It has long been known to be a floundering has-been corporation with no future. Second, only the most extremely risk-tolerant and savviest investors would dare attempt to buy into any company after it has declared bankruptcy. This means the majority of average investors (and certainly those who never invest in anything) would never go near this company, be it GM or “just any company.” Ok, so where are we at this point? Oh yes, the American taxpayer has now been forced into being part owner in one of the riskiest business deals in history, something even Warren Buffet wouldn’t touch alone. Let’s add some insult to this injury, shall we? Not only are we going to be the majority shareholders, the President has waived our voting rights.
“The federal government will refrain from exercising its rights as a shareholder in all but the most fundamental corporate decisions.”
Who knows what a “fundamental corporate decision” is, but it sounds to me like we have no say in how the company is run. So, now where are we? We are holding a 60% majority stake in a company over which we have no control. The Obama administration has successfully completed its socialization of risk, and with no defined exit strategy, it is certain there will be complete privatization of all reward. Meanwhile, they still fully expect those of us who lost our jobs to continue buying the only things America makes. We foot the bill on both ends, and since I am now part owner of GM, it is a conflict of interest for me to buy anything non-GM, right? If I don’t buy GM, I am risking billions of taxpayer dollars.
On top of all of this, Obama’s grand plan includes a bulk order of fleet cars for the federal government. We invest all of this money and then get in line to be the first customer for the worst cars on the market. I guess on one hand it shows that we’ll eat our own dog food, but who are we trying to entice to join us? Ourselves? We are forced to take ownership, and then we are forced to buy a fleet of unneeded cars, all for the sake of compelling ourselves to buy more from ourselves. Oh, don’t forget, we are also backing our own warranties with taxpayer money.
I’m not sure at what point companies became “too big to fail.” First it was the financials; now it’s the auto industry. What gives these people the right to make mistakes and not get the axe? The government does not exist to keep people employed. I don’t care how many people you work with, as few as ten or as many as tens of thousands, if your company fails, it fails. Look for another job like the rest of us. You have a right to work but not a guarantee. There is a huge difference. If the Obama administration truly believes the American auto industry is viable, they would let the failures fail and the new generation rise. There are plenty of small auto companies just waiting for the chance to penetrate the market but have been held back by years of favoritism toward the giants. Apparently, perpetuating this favoritism is Obama’s version of “change we can believe in.”
