The Corporate Law Group

The Cronies

GM is now closing plants and firing 14,000 people right before Christmas. Please get the government out of commerce. As quickly as possible. Government screws up everything it touches and it protects the elites. They used $50,000,000,000 of YOUR money to protect a failing car company, which then lied about failures with its cars, and lost over $11,000,000,000 of that money.

And all this after the market said, “Meh; your cars aren’t that good.” Creditors got scraped off; a much needed reorganization was avoided, and politicians bragged about GM still being alive. I don’t care if the problems were union contracts, tax cuts, tariffs on foreign steel, tax increases, or whatever. GM has hundreds of very highly paid people to deal with those kinds of issues. GM still blew it. All of them blew it. Why reward that?

What would have happened had GM gone into bankruptcy where it belonged, since it couldn’t keep the promises it had made? Who knows? That wasn’t allowed to happen.

But one thing is for sure. The assets would not have disappeared. Billions of dollars in factories, parts, inventory, property, cars, fixtures, furniture, intellectual property, etc. would have continued to exist. But they would have been managed by people who did not break the promises they had made. Managed by people, possibly very creative people, who may have tried interesting new things. Maybe some would have succeeded, changing the landscape and bettering our lives.

We might have had a dozen different car companies rise from the GM ashes like a phoenix on wheels. We might have had more flying cars like the ICON or half lane wide cars like the TANGO. Maybe those are dumb ideas. We don’t know. We’re not automotive engineers. What we do know is that when failure is not protected we are unceasingly ingenious and innovative and we think of and try a lot of cool stuff.

There might have been ten new car companies sitting where GM used to warm a seat. Maybe some cars would run on natural gas, static electricity, garbage, or chipmunks. Cars might be communicating more with each other. Windshield displays might be more prevalent. Self driving technology might be further along than it is now. But those poorly managed GM assets would have been entrusted to new folk who wanted to try something different.

Unfortunately all that creative destruction was smothered in the crib by politicians, using your money to keep their friends out of hot water. And now those cronies are rewarding your tax money by firing 14,000 people. Haven’t we had enough of that?