William Thien

Approaching a Fiscal Cliff? Put General Motors on the Market! Part II

Posted on: November 29, 2012

I recently suggested that The US Government put its stake in General Motors on the market in order to help balance the budget after acknowledging that I lobbied early on for a bailout of GM and the auto industry. For a number of reasons I believed the auto industry bailout was a sound idea, and the auto industry bailout has been a dramatic success in a number of ways. (Caveat, my opinions on the banking bailout may not be fit for this forum).

Yet, I believe that if there ever was a time for The United States to divest itself of GM, that time is now, now while the country is approaching a fiscal cliff and is searching for avenues of solvency.

All along contemporary government policy has been driven by the philosophy that the government should run its house as the citizen has to run theirs, often selling off prized possessions (in this circumstance that would be GM) when times are lean, or that the government should run itself more efficiently, like a business. Clearly running such a massive government as that of The United States is unlike that of the finances of a home or even a business, but the government owes some deference to the public in that it runs its affairs in a way which at the very least approximates how the taxpayer runs their affairs.

And that sentiment became more apparent to me recently when I saw someone driving down the street in a brand new, shiny GM automobile. I thought to myself, that’s a nice looking car. Then the thought occurred to me that I’m paying for that person’s new car to a certain extent and I said to myself, it’s time for The US to sell that car company before it’s too late and I own that car, too, yet I don’t get to drive it home, which is exactly what was happening late in the afternoon, November 27, 2012, several years already, several years after The United States purchased a controlling interest in the automaker in order to save it from the brink.

To the US government I say, it’s time to let go of the GM wheel. It’s time to start thinking about selling GM to the highest bidder and paying down the national debt, and I don’t see even an initial discussion of that occurring.

Instead, they want to “reach a compromise” on raising taxes. I would ask that they reach into their own pockets this time.

Copyright © William Thien 2012

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1 Response to "Approaching a Fiscal Cliff? Put General Motors on the Market! Part II"

[…] of GM which has substantial amounts of cash on hand that can be used to buy back its shares. And I don’t think it is right to be paying for that nice shiny new car that the guy in the lane next to me is driving when I have car payments of my […]

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