Quote:
Originally Posted by dkb
DR ... the graft and waste and sheer incompetence of government so outstrips what any private businesses are capable of most people don't even see it. It's so big you can't get back far enough away to put it in perspective.
The same people who are right now telling Chrysler and GM how to NOT lose billions are in the very next room losing trillions.
All the problems with these big corporations can be traced back directly to government regulations and interventions.
-the government encouraged banks to make more home loans to low income folks through Fannie and Freddie ... next step disaster
-the government wants gas prices high to force us all into small cars ... next step auto company collapse
-the government forces ethanol use ... next step food price increases, famine and rioting in the third world
Everywhere the market isn't working you'll find the heavy hand of politicians in the background trying to force us all into behavior that they prefer.
Government Motors will not be building a muscle car with 400 hp for much longer ... that's what we want to drive but its not what the government wants us to drive ....
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Quote:
Originally Posted by MrIcky
OK, I realize there is a lot of anger out there right now. But you all need to realize a few basic things about politicians.
First off, every politician I've ever met (and I've met a lot in my job) STARTS with the idea that they are going to make the America (or the world) a better place. Whether that is by saving baby seals or preparing America for the Communist scourge. This is a big reason why so much in Gov't gets backassward. You are likely to have people on this steering committee who are far more concerned about baby seals or Hugo Chavez then they are about GM. In this case, those concerns coincide. Most politicians are individually pretty competent (even though their worldview differs so much), but then you put them on these committees and you end up with garbage.
DKB pointed out:
"-the government encouraged banks to make more home loans to low income folks through Fannie and Freddie ... next step disaster
-the government wants gas prices high to force us all into small cars ... next step auto company collapse"
Point 1 is clearly true, and I am a huge critic of Barney Frank and Freddie Mac. However it wasn't done out of evil. He honestly thought he was trying to make America better.
Point 2 is sort of true in that some members of congress want that to happen- however, part 2 of that sentence isn't clearly answered yet. In fact if the first half happens (artificially inflating gas prices) Ford's CEO has said that would help them as a company. If congress does push GM to make more fuel efficient vehicles through their interjection, then it could make GM wildly profitable.
It is absolutely clear that you have politicians who see their role in history as "saving the planet". It is also clear that those politicians have a strong voice in congress and the political will to make some changes. It has been proven over and over that a true believer will allow their ideology to trump best business practices (Barney Frank and Freddie Mac as an example - I can give examples of the Right Wing making bad business decisions for nearly paranoid Cold War beliefs).
I honestly don't think Government intervention would destroy GM. It would be a step toward a more European-like economy. I'd prefer not to have a European economy, it's got more issues than a traditional American economy but it's not the end of the world. I think the real short term issue would be aesthetic: would I rather look at Volts or V8 Camaros? I think I know the answer of people on this board. And I don't think V8 Camaros would necessarily go away, but they'd be a luxury item that costs more. I think the people on this board may be surprised at the answer if you did a high quality poll of 'normal' people (i.e. not Car Nutz).
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I'm a youngster, politically, and have to say that I'm learning a lot from this thread. I'm glad it hasn't had to be closed yet. I guess it's a good thing there is more than one party so there's a chance a good balance can be struck. I'm no enviornmentalist, but can appreciate our planet. I think it's a good thing there's more than one side.