Saturday, November 15, 2008
Pulling Plug On GM Would Help Both Auto Industry And Michigan
I strongly believe that politicians put their own expedient needs above the lessons of history.
As a result, bad decisions are repeated, and the citizens suffer the consequences...
As a result, bad decisions are repeated, and the citizens suffer the consequences...
At Investors Business Daily, John Tammy's opinion column discusses General Motors:
"Worse, business history, from ships to farming to mining, shows that sectors reliant on government help are invariably weakened as opposed to strengthened.
The above is the case because businesses rarely fail due to a lack of money. Instead, poorly run businesses find it hard to raise money in the capital markets. Government money allows the architects of bad decisions to continue making mistakes that cause a company to be capital-deficient to begin with.
This distinction is important, considering the efforts of GM's present management to secure more funds on top of the low-interest loans that Congress recently approved. Were GM a well-managed company, it would have no need to run to the federal government. But because its management has proved time and again that it lacks ability, capital is correctly searching for better opportunities."
