Wednesday, June 03, 2009

Government Motors is Inaugurated

God, that was fast! Hardly had David Brooks' words about why the auto bailout will lead to lousy auto companies died away when Congress announces it will interfere in the management of its newly nationalized subsidiaries.

Is this going to be just the first instance? Probably. Certain Brooks thinks so and he is a pretty smart guy. The logic is strong. So here's a prediction. We have not seen the last bailout money. Once the taxpayers own most of GM, it becomes nearly impossible to let it actually die.

Since GM has spent half a century assiduously driving away innovators and risk takers, who exactly is now going to lead the innovation and risk taking that the company needs if it hopes to compete? We now own the equivalent of a manufacturing post office. Good luck to us!

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