Do you think this would be the first time that's happened, that a major
American automobile manufacturer has gone bankrupt? Do you think it would be the last?
This nation has survived many such events. It will survive many more. If a company is so horrendously mismanaged as General Motors was, then it needs to die, for the good of the economy as a whole. Yes, it will hurt, but some illnesses don't have easy, comfortable cures. I had a tooth pulled a few weeks ago. It hurt, but the tooth was sick, it was damaging my health as a whole, and so it had to go. Perhaps the same is true of General Motors.
The answer is not to turn this nation into a clone of the failed Союз Советских Социалистических Республик by putting government in charge of industry. It didn't work for the Союз Советских Социалистических Республик, and it won't work here either.
This is a very strange statement to me, and makes little sense. But I will try to make sense of it.
A company approaches a bank for a loan.
The bank agrees, but has conditions.
The company agrees to the conditions.
The company defaults on the loan, and is subject to the conditions.
This is a very capitalistic viewpoint. The bank would have preferred to have the money paid back, with interest, of course, but will settle to the agreement due to the default.
Banks asked for help from the government, received money, and paid it back, with interest.
General Motors asked for help from the government.
The government agreed, with conditions: Collateral in the form of majority stock in GM.
GM defaulted on the loan, thus giving the Government majority shareholder status.
This is a very capitalist thing to do. The government, of course, does not WANT a car company, but they have one now, and plan to get rid of it in the form of a stock sale in the future. With a little luck, and planning (for nothing is certain) they may even make a profit.
So, since I have made sense of this, I have to ask a question.
Bob, why do you hate capitalism?