Friday, October 31, 2008

GM/Chrysler

With all the clamoring going on this election about the democrats leading us down the path of socialism, why haven't we heard more objections to government bailouts? Apparently because we are already a quasi-socialist society. Corporations have become so big that we can't afford to let them fail as a fully capitalistic society would. Look at the latest General Motors/Chrysler merger talks. In order for General Motors to acquire Chrysler they need 5 to 10 billion dollars from Uncle Sam. Why not just give the money directly to Chrysler and eliminate the middle man? It's not like General Motors is a better managed company than Chrysler. Neither one is a proven winner at this point. By keeping them separate there is a chance one of them will be successful with their future alternate fuel vehicles and become the "job producing engine" that the country needs. By merging them we are betting that General Motors will make the right choice on which of their separate alternative fuel programs will be more successful. A decision that will be influenced by their bias towards their own "Volt" program which is a thinly veiled attempt at keeping its dealers' engine service business alive. What this country needs are new ideas, new companies and new jobs and not bigger companies trying to stay alive by buying market share with the taxpayers' money.

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