Welcome to the new America, Comrade!

This morning we woke to what I see as a rather scary news item – the United States government essentially firing the head of a private corporation.  News leaked out late yesterday that the Obama administration was requiring that General Motors fire CEO Rick Wagoner after the government did not accept GM’s turnaround plan.  The headline on Drudge this morning reads, “GM:  Government Motors”  and that is sadly true.  This is the first time in American history that the President of the United States was directly responsible for the removal of a private company’s leadership. 

There is no doubt that GM and Chrysler are disasters and the reasons are numerous – from a most basic failure to create good quality cars Americans want to management issues to labor issues.  No one man is responsible and it could be argued that Wagoner actually has done more to help his company that any other CEO of a failing institution.  What about labor?  The United Auto Workers (UAW) union has done more than its share to bring about the downfall of these companies with their ridiculous pay and benefit demands.  Is the government going to require that Ron Gettelfinger get the axe?  That of course will never happen as the Democrats can’t bite the union hand that feeds them. 

In recent weeks we have seen Democrats in the House of Representatives pass a bill taxing a small group of private citizens at a 90% rate.  The AIG employees that received bonuses did so only after Congress and the president signed laws that allowed them to be paid in the first place.  It was only after a public uproar did anyone take the time to actually read the law they had passed. 

The fact of the matter is that GM and Chrysler should never have been given bailout funds to begin with.  An organized bankruptcy would have allowed them to restructure the crippling debt they now have including that union monkey on their back.  Virtually every major airline declared bankruptcy in recent years and has emerged stronger for it. 

Is there anyone who truly is ignorant enough to think that the government can manage a car company?  The government can’t even manage itself properly.  I am reminded of one of Ronald Reagan’s most famous quotes:  “The nine most terrifying words in the English language are: ‘I’m from the government and I’m here to help.’”

Recent events represent an extraordinary intervention into private industry and against private citizens that sets a scary precedent.  I could certainly throw out the ‘socialism’ card but that would be pretty obvious as by definition it is, “advocating collective or governmental ownership and administration of the means of production and distribution of goods.”  Sounds pretty much like what we are heading toward doesn’t it? 

Welcome to the new America, Comrade!