Boudreaux on GM Execs Arrogant Stupidity


Dear Editor:

Detroit auto executives advocate “government getting a stake in the auto companies that would allow taxpayers to share in future gains if they recover” (”GM exec: bankruptcy not an option for industry,” December 3).

I remind these executives that each American is already perfectly free and able, with no action from government, to “get a stake” in these companies.  Of course, few Americans now choose to do so – a fact that reflects the considered judgment of millions of people that these companies are unworthy recipients of investment funds.  If millions of investors, spending their own money, refuse to invest in GM, Ford, and Chrysler, why should Congress force them to make such investments?  Why should we trust that Congress will make wiser investment decisions with other people’s money than these people themselves make with their own money?

Sincerely,
Donald J. Boudreaux
Chairman, Department of Economics
George Mason University

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One thought on “Boudreaux on GM Execs Arrogant Stupidity

  1. I tend to agree with Professor Boudreaux’s views about this situation.

    I would go a lot further; that is to say that the relentless quest of the country’s powerful to try to maintain illegitimate self-entitlement to wealth, power & prestige comes at the expense of the “plebes.” All the while the media and government, in service to big business, promote the delusion of “dire economic necessity and palpable threat of losing one’s security.”

    Of course, in the process, the “plebes” are relegated to the status of diminished bystanders rather than fully-engaged participants in making decisions about whether or how their money will be invested. As is said, what we always end-up with is “free-market profits and socialized losses.” Same as it ever was…

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