First we give GM several billion dollars.
Then we hint on letting them go bankrupt. That would make the U.S. Government one of the largest creditors affecting influence over the bankruptcy process.
How would such political influence affect the process? Would other creditor’s rights be subservient to the union interests?
The pres said the GM proposal was too little too late. If they had closed mills years ago when they should have, would we have been critical of that effort at that time? State laws protected dealers at great expense to GM. If GM had disposed of thousands of dealers years ago as they should have would they have received any support from the federal government then? If GM had bargained hard to constrain union pay and benefits how would the politicos that now propose to force unions down our throat have reacted?
Perhaps GM’s management was just weak and arrogant and could never envision themselves in bankrupcty court; or perhaps GM was just an earlier version of political capitalism- a company subverting its own economic self interest, and the interests of its shareholders to satisfy political interests.
By the time the government sees fit to bail out a business, it is probabaly too late. And they likely would have fought any of the steps that would have prevented it.