CHICAGO (MarketWatch) — The Treasury Department is resisting General Motors’ push for the government to sell off its stake in the auto maker, The Wall Street Journal reports. Following a $50 billion bailout in 2009, the U.S. taxpayers now own almost 27% of the company. But the newspaper said GM executives are now chafing at that, saying it hurts the company’s reputation and its ability to attract top talent due to pay restrictions. Earlier this year, GM GM -1.62% presented a plan to repurchase 200 million of the 500 million shares the U.S. holds with the balance being sold via a public offering. But officials at the Treasury Department were not interested as selling now would lead to a multibillion dollar loss for the government, the newspaper noted. Money Watch/William Spain
So now the government is worried about a taxpayer “multibillion dollar loss”? They didn’t seem so concerned about it when they loaned the now bankrupt Solyndra all that money. And remember, there were no – NO – guarantees for the taxpayer to be paid back. We ate that loss with Solyndra, as well as other green companies that have since gone belly up.
See, this is what happens when the government nationalizes a corporation. The government controls who you hire, how much you can spend on executives and designers, they control how much you charge for your product. But one thing they can’t control is the purchase power of the American citizen. The government, so far, can’t force Americans to buy a GM car. And it’ll be a cold day in hell before I ever own one.
That might change, however. After all, they’re forcing us, with the blessings of the Supreme Court, to buy health care that we don’t want.