On Facebook a friend (a relative actually) noted that “work is being done now to transfer ownership of General Motors to the government. ‘Government Motors’, the new GM. scary.”
Why scary?
It’s not as if General Motors has been well managed before now.
The Federal Government will own a majority of GM, it’s true, but the Canadian Government, the United Auto Workers and current bondholders will also have shares. Those organizations may not make it seem any better, but multiple owners makes me feel better. The intent is to sell the stock once it has value.
Uncle Sam will own the majority of the stock, but it will not manage the company day-to-day. Government workers won’t be on the assembly lines or designing the cars.
If, as most of our political leaders determined, we need to sustain GM (and Chrysler) for economic and national security reasons, than it’s better, I think, that we actually get stock for our money and not just loan IOUs.
Is it also scary that the Federal Government manages air traffic control? I’ve not seen any planes falling out of the skies.
Is it also scary that the Federal Government sends checks to more than 100 million people who depend on Social Security every month? I’ve heard complaints of red tape but none that people don’t get their money timely.
Is it also scary that the the Federal Government runs prisons? I haven’t heard of federal prisoners running loose across the land?
And so on. I’m not saying that the Federal Government is perfect — I had 30 years experience within it to learn differently. I am not saying that taking over auto manufacturers is something that we should be pleased was necessary.
I am saying that taking a temporary majority ownership in General Motors isn’t cause for particular alarm.
To borrow a phrase from Facebook: Hugh like this.
To me, what’s scarier is that the government will own a huge chunk of GM and NOT act like the owner by demanding that the place be run for the benefit of the shareholders – we the people.