Govt Motors

A clever but already tired phrase to describe the U.S. govt's grand intervention into matters automobilic...

Of course, there's been frequent if more modest interventions in the past: most famously, the Chrysler bail-out-- but less famous yet more harmful, various forms of protectionism for the auto industry over the years.

The title of the WSJ's article on this is appropriate, dramatic, and pathetic: "GM Collapses into Government's Arms".

What do I think about all this?

Well, it's unconstitutional, immoral, and impractical.

Other than that, it's a glorious idea!

One thought on the practical: in addition to the absurdity of the entire idea-- and the improbability of its success, the govt's actions may risk the healthiest of the Big Three, Ford. And many consumers will now discriminate against GM because of the growing uncertainty and because GM is now tainted with big govt. This will make it even more difficult for GM to survive.

Some people have been worked up about a 31-year old without any auto experience running Obama's auto policy. This misses the far larger issue: beyond ignorance and unseemly motives, this is simply not the sort of thing one would expect the govt to achieve success with-- even if it took over a company in decent health.