For the Government and the Carmakers, a Risky Path Ahead

As an assertion of government control over a huge swath of the industrial landscape, President Obama’s decision to reshape the automobile industry has few precedents.

In essentially taking command of General Motors and telling Chrysler to merge with a foreign competitor or cease to exist, Mr. Obama was saying that economic conditions were sufficiently dire to justify a new level of government involvement in the management of corporate America.

His message amounted to an inversion of the relationship that had helped define the rise of American manufacturing might in the 20th century; now, Mr. Obama seemed to be saying, what is good for America will have to be good enough for General Motors.

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Posted in * Economics, Politics, Economy, Office of the President, Politics in General, President Barack Obama, The Credit Freeze Crisis of Fall 2008/The Recession of 2007--, The Possibility of a Bailout for the U.S. Auto Industry

14 comments on “For the Government and the Carmakers, a Risky Path Ahead

  1. robroy says:

    We were talking about this today in the OR. The nurse pointed out that when the airline industries were in trouble, they went through chapter 11 and restructuring and came out able to compete with the world. How do people think that the government bureaucrats/managers will do with GM?

  2. Dave B says:

    I was listening to some one on talk radio yesterday and they said what experiance does Obama have at running any thing? When GM fails and 100,000 workers are laid off it will be Obama’s responsiblility, he is making the calls. Their is no end to Obama’s ego. How are his cabinet appointments going? I guess organizing his government isn’t that important, he is running GM! Obama’a last appointment is an old AIG executive!

  3. dawson says:

    I bet that GM wishes they had listened to mark Sanford and told the government to keep their money [and meddling]. They could have then taken their medicine and probably restructured into a profitable PRIVATE company, not a wing of Obama inc.

  4. Pageantmaster Ù† says:

    #1 Dr Dr Rob Roy
    “We were talking about this today in the OR.”
    That fills one with confidence.

  5. Br. Michael says:

    You think that Obama will appoint NPR’s “Car Talk” as his official car repair talk show? Or maybe he should add a car repair area on the Presidential web site.

  6. Katherine says:

    I had chills when I heard the President saying the U.S. government now stands behind car warranties. Some internet page I read said, “If you love the DMV, you’re going to love this car company!”

  7. robroy says:

    Br. Michael, I love click and clack, the car guys! But one question: is Tom or Ray going to be the new GM CEO?

  8. tgs says:

    The important thing here to me is that Obama’s actions are totally unconstitutional yet no one calls him on it. If the President can unilaterally and with no oversight or approval from Congress just announce that the American taxpayer is taking over the warranty costs of automobile manufacturers then quite honestly our Constitutional Republic is dead. Yet there is no mention of this nor any real outrage from Congress or the American people. This is really scary.

  9. Br. Michael says:

    The constitution has been dead for some time.

  10. Jeffersonian says:

    I’m just looking forward to watching Larry Summers change my oil while Tim Geithner rotates my tires.

  11. Dilbertnomore says:

    Elections – General AND Primary – produce consequences. 53% of voters elected Obama and we have them to thank for this grand social/political experiment in which we are the lab rats. Buyer’s remorse anyone?

  12. libraryjim says:

    Not me, I didn’t vote for the clown, and urged everyone I knew to avoid him like the plague. And got called “racist” for my efforts.

  13. Jeffersonian says:

    Don’t feel bad, Jim, [url=http://www.foxnews.com/story/0,2933,511470,00.html]you’re not alone[/url].

  14. tgs says:

    #9 – Br. Michael, sad to say it certainly is dead if all Americans felt as you do. Thankfully, many don’t.