The latest prescription for General Motors was released by the Obama administration last Monday.  It is truly shocking in its bald disregard for private capital and private initiative.  Mr. Obama has repeatedly denied that he wants to “nationalize” GM, or banks, or any other private industry that may fall in his sights.  Last Monday we discovered the horrible truth, that this claim to restraint is an outright lie.  The GM plan calls for the federal government to take a 50% equity stake in the company.  The United States of America — you know, the country with that Constitution designed to limit federal control over our lives — would own one-half of the once-proud General Motors.  Well, at least the private sector will still have the other half, right?  Not so fast.  Mr. Obama will have none of that.  The plan calls for 40% of GM to be owned by the United Auto Workers.  Whether this is a curse or a blessing for the UAW is debatable, but one thing is clear:  the UAW has never, not once, shown any concern for the profitability or long-term health of GM or its other two prisoners.  Of course, GM management has been equally to blame for the 35-year slide into oblivion, but the UAW has been the driving force in transforming GM from a powerhouse manufacturer to a miniature version of the former Soviet Union.   Or France, to be charitable.  The company literally became an indulgent nanny for its employees, with total labor costs exceeding $73 per hour including wages, medical plans, retirement, unemployment securities, and other programs that amount to simply being on the dole.  Read the Heritage Foundation’s article to get a glimpse into this dark world.

The plan for GM is a window into the mind of a true leftist like Mr. Obama.  This is what he thinks is an excellent idea:  a company should be 50% owned by the an already bloated and debt-ridden federal government, 40% owned by a whining, thuggish union, with a 10% scrap left for the private sector, i.e. the holders of $27 billion of GM’s unsecured debt, which, by the way, would become essentially worthless.  In exchange, the bondholders would get 10% of the stock in the restructured GM, an exchange which would amount to only pennies on the dollar depending on the value of the restructured stock.

Taxpayer, how does this sound to you?

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