When it was deciding where to build its new compact car, General Motors Corp. made a point of saying it would push politics aside and use strictly commercial criteria.
So Tennessee's three top officials were astonished last month, in a meeting with GM, when they were told the first two criteria were "community impact" and "carbon footprint" -- or how the choice would affect unemployment rates and carbon-dioxide emissions.
I don't even think economics was even a criteria. You see folks, when government takes over a business the business starts behaving like a government bureaucracy that works to please its political masters. Government Motors is no longer a business that is motivated by profit. It does not need to worry about profit. It will be forever subsidized by its owner the government either by direct tax payer money or some other schemes that either pays people who buy its products or punishes its competitors. The people who ran GM have no incentive to invent and innovate. All they need to do is to keep their political masters happy who in return will dole out billions of dollars in tax-payer money to GM. That's exactly why GM, like many other big businesses, became concerned about "community impact" and "carbon footprint". Whatever the ruling political class wants, GM will comply. As I wrote a few days ago, big business is being corrupted by big government.
We witnessed how a government owned / sponsored enterprise operates with Fannie Mae and Freddie Mac. Michelle Malkin has a summary of the report: The Role of Government Affordable Housing Policy in Creating the Global Financial Crisis of 2008. This is a perfect example of how Big Government corrupts. Political masters of Fannie and Freddie are still defending their actions. They actually are working to spread the corruption to a whole lot of other businesses. The people who ran Fannie and Freddie by conspiring with the political masters are rich beyond their dreams. They set for the rest of their lives thanks to pay and bonuses they paid themselves by tax-payer money. Our economy in shambles, Americans lost 50% of their wealth on average and stand to lose their liberties and more of their prosperity because of the actions of politicians who claim to be the best and brightest among us.
The same kind of corruption is being played out with Government Motors (GM and Chrysler) folks. Think about the forcing out the CEOs, sham bankruptcies, forced partnerships with foreign owned companies, government auto task force members that detest cars, new CEOS who publicly announce they know nothing about car business, rejected dealers who may have contributed to wrong political party, Barney Frank's influence in keeping plants open in his district and on and on. This is not the end of it. Don't be surprised to hear one day that the politicians ask the Government Motors to create a car welfare program for the poor and GM happily complying. They will either give away cars they can't sell or follow Fannie and Freddie model and create sub-prime programs for people who cannot and should not get a car loan. No wonder the democRATs are salivating over all these business take-overs. They can buy more votes by funneling tax-payer money through these so-called businesses. What a scam huh! Tax productive Americans and use their money to buy the votes of un-productive Americans who vote to tax the productive Americans more so they can get more hand-outs from their political masters.
The people who are running Government Motors will have no incentive to design and build cars people want. They will have all the incentive to play along with the political masters so they can keep their jobs, pays and bonuses. Political decisions, not business decisions will result in a company that builds cars nobody wants. It will keep losing money. Since the politicians will be so invested in the locations of the plants, employees who work in these plants, cars build on political delusions, they will have no choice but either keep the Government Motors subsidized or punish its competitors and people who do not buy its products.
How long do you think this will last?