Monday, March 30, 2009
Obama lectures GM, Chrysler for not making tough decisions while still promising to bail them out; how can a president dictate business decisions?
As has become his trait before bailing out entire industries, President Obama today lashed out at automakers GM and Chrysler for not making enough tough decisions in their restructuring plans.
Despite that and asking for GM's chief man to step down, the president still promised that the auto industry would not disappear, signaling his intent to use more of your tax dollars to bail out the unsavable. His administration even told Chrysler to merge with Fiat or else.
How is it that the federal government is now so involved with private industry that it is making decisions for it on staffing and mergers? That is way beyond what any voter wanted last November in putting Obama into office.
Does he really want to be running private enterprise in this nation along with public policy?
Obama did the same with Wall Street, bashing it for its greed then unveiling such a generous bail out of toxic assets last week that the market went on a big rally.
Now the markets have returned to reality and are off almost 300 points today. Coupled with a 150 point drop on Friday, the Bear market rally has given up a majority of its gains.
Bailing out the unsavable ultimately is not good economic policy. Capitalism demands winners and losers. The automakers have lost over years and years of bad decisions and greed. The American auto industry deserves to die. With the exception of Ford, it will if Obama leaves well enough alone.