Saturday, December 21, 2013

WHEN FOOLS ARE IN CHARGE: Lawless government behavior leads to bad economics  And yet we see this over and over when democrats have the power.  This ignorant choice by the Obama government to intervene in the marketplace means a further drag on the economy's recovery.  Had they allowed the bankruptcy process to proceed, GM (and Chrysler) would have been liquidated.  New owners could then start over and hire workers based on the non-union rates offered in other states that now produce Hondas and other makes at competitive world market rates.  As it is GM has been artificially propped up by the government and therefore will not learn how to compete in a highly competitive marketplace. Sure they will do okay for a while.  The government will demand its fleet acquisitions are GM products.  They will do okay with certain models.  Long term, however, they are toast because they will not be able to match the productivity of their competitors.  Mark it down.