GM CEO resigns at Obama’s behest

Posted on March 30, 2009

0


Here’s the key aspect to the announcement:

The White House confirmed Wagoner [Richard Wagoner, GM CEO] was leaving at the government’s behest after The Associated Press reported his immediate departure, without giving a reason.

Why does the Obama administration feel it’s in a better position to make managerial decisions about an individual company than the board of directors or shareholders of that company?  What sort of strings are coming attached with the bailout money going to GM?

It’s interesting to examine raw definitions of government-controlled economic systems such as fascism, socialism, and communism.

From this informative video – “Americanism: Free Enterprise VS Central Planning” – fascism is when “the government decided for companies who to hire, who to fire, what to produce, when to produce, and what price to charge.”  Shopkeepers maintained “ownership” of their business, but government controlled the business through taxation and regulations imposed on the owners.”

Sound familiar? Not that anyone should believe that the Obama administration plans to create a government that parallels that of Mussolini’s Italy, but the actions are inherently the same.

Obama has been very clear about it’s desire to push “green” cars and technology, regardless of their economic viability.  Taking control of a major auto manufacturer and clearly influencing strategic decisions means that the government will be dictating production, instead of allowing the market to dictate product supply.  Additionally, the strong coincidence of the auto industry’s labor unions and the government’s plans on protecting jobs opens conjecture about what this will ultimately mean in terms of jobs, protectionism and a lack of choice for the consumer.

Here’s a link to the full article on CNN.com:

GM CEO resigns at Obama’s behest – Mike Allen and Josh Gerstein – POLITICO.com.

Posted in: Labor Market