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After reading an article in today’s edition of The Moscow Times (see graphic at right), I came up with three good reasons why at least one of the “Big Three” automakers — General Motors — should NOT receive any portion of a proposed $50 billion bailout from the federal government:
- Reason #1: GM is, according to a recent CNN article, pouring some $300 million into the plant near St. Petersburg, Russia. Coming from a company that reported 2007 pre-tax earnings of $55 million on revenue of $37.4 billion (details here), that seems to prove GM capable of making money. So let them make it the old-fashioned way. Let them earn it.
- Reason #2: GM Headquarters is located in Detroit, a city The Wall Street Journal‘s Paul Ingrassia writes is comparable to the world’s trouble spots (i.e., Iran, Iraq, North Korea, etc.). If, indeed, the Motor City is a war zone, members of the Democrat-controlled Congress should, as a matter of principle, balk at sending taxpayer dollars there.
- Reason #3: GM executives should know better than to invest $300 million into a country run — or, more accurately, being run down — by President Dmitry Medvedev and Prime Minister Vladimir Putin. Why? Because, if the venture proves it can make money, the Cold War Era-loving duo in charge of the former Soviet state will nationalize it, leaving GM stockholders around the world “high and dry.” And that’s never a good thing.
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See also: Is Big Three Bailout Plan Another ‘Ponzi’ Scheme? (12/15/08)
4 responses so far ↓
1 DENNIS DODD // Nov 10, 2008 at 12:48 pm
I agree 100% that we should NOT bail out General Motors or any other businesses in this country. I was totally against the bail out of AIG. If they deserve a bail out, then all businesses deserve to be bailed out when they start to fail. That spells socialism. Are we becoming a socialistic society? It’s been proven that communism doesn’t work. Would that prove to be the same for socialism? Why work for a living? Our great country was founded on religion and capitalism, an we are putting them both on the back burner. I predict that we are going to have a monsterous tea party.
2 hotoffthepress2 // Nov 10, 2008 at 12:57 pm
Dennis — I would prefer some honesTy.
3 Luke // Nov 16, 2008 at 3:27 pm
this is not socialism bailingout companies is not socialism its called facism the state is buying private companies which will retain there ownership but adhere to the states policies this is a mild form of facism and its accompanied by mild world war (war in africa, george/russia, iran, afganistan) communism is a theory and it hasnt worked because its never been tested in its true form. I am a classical capitalist, and I believe that the Executives at GM are tring to get there hands on money they dont care for their workers or our economy they are trying to take cheese from a mouse trap just like all neo-capitalists.
4 george wasielewski // Nov 16, 2008 at 3:51 pm
durin the regan era the soviet government said that the only way the us and the soviets could cooperate was for the us to become more like them. shades of socialism.
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