Will Government Motors be a Partisan Operation?
With the federal government taking control over Chrysler and GM, ill-conceived ideas are sure to ensue. The planned restructuring of GM (soon be renamed Government Motors?) is one – heavily favoring the UAW, and giving bondholders a fraction of the ownership, despite the fact they are owed more. And I have been extremely puzzled by the plan to close down dealers based on the idea that these car companies are selling too many cars.
But I was looking at it from an economic perspective, not as a cynic would. Details are now emerging that the plan to close Chrysler dealers came directly from the White House, not Chrysler managment, and those being shuttered were largely Republican donors. The DC Examiner has a column on this, and blogs Bucks Right and Director Blue have crunched some of the numbers. Ah, the world makes sense again.