Wait till health care is treated like GM

Posted by Jason | Posted in Government | Posted on 29-10-2009

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As I’ve explained in previous posts, the free market in order to make the most profit utilizes resources to their highest and best benefit. Efficiency reigns. Government always has the opposite effect. Government intervenes in order to divert resources for political means. What this does is lower our economic output and value, in other words, it lowers our standard of living below what it would other wise be. Here is a perfect example of the government not caring what’s best, but instead they care what is politically best for the politician. So much for self-interest being the purview of the free market.

By NEIL KING JR.

Montana Rep. Denny Rehberg was no fan of the $58 billion federal rescue of General Motors Co., saying he worried taxpayer money would be wasted and the restructuring process would be vulnerable to “political pressure.” Now the lawmaker says it’s his “patriotic duty” to wade into GM’s affairs.

Along with Montana’s two Democratic senators, the Republican congressman is battling to get GM to reinstate a contract with a Montana palladium mine nullified in bankruptcy court. “The simple fact is, when GM took federal dollars, they lost some of their autonomy,” Mr. Rehberg says.

Federal support for companies such as GM, Chrysler Group LLC and Bank of America Corp. has come with baggage: Companies in hock to Washington now have the equivalent of 535 new board members — 100 U.S. senators and 435 House members.

Since the financial crisis broke, Congress has been acting like the board of USA Inc., invoking the infusion of taxpayer money to get banks to modify loans to constituents and to give more help to those in danger of foreclosure. Members have berated CEOs for their business practices and pushed for caps on executive pay. They have also pushed GM and Chrysler to reverse core decisions designed to cut costs, such as closing facilities and shuttering dealerships.

via Politicians Butt In at Bailed-Out GM – WSJ.com.

Wow, can’t wait till these jackasses taking over health care and are making political decisions with our lives.


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Comments (1)

There was an excellent report about this in the WSJ a few months ago…

After GM decided to restructure as part of their takeover and close inefficient warehouses, manufacturing plants, etc… Barney Frank heard one of the affected locations was in Norton, MA. He called up CEO Fritz Henderson and “convinced” him that the facility had “great value” to GM. The result – unsurprisingly the distribution center will remain open.

This is the kind of BS that happens when Gov gets involved in private enterprise. Profit drives efficiency. All gov drives are companies into the ground b/c they have no profit motive (even if they claim they do). All they care about is that their state doesn’t get negatively affected because it then affects their chances at reelection.

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