Wednesday, June 3

The quagmire ahead

David Brooks lays out the gory consequences of the Obama administration's takeover of GM.

Gulp. It's worse than I expected.

Update: It gets even worse. Criminy.

I understand the plight of autoworkers, but their union is dysfunctional, has lead to a dysfunctional company, and due to its political power is now receiving preferential treatment that will lead to even more dysfuction.  The market has determined that GM and the UAW are doomed, but Democrats won't let them die and have arranged for the long, perpetual bailout of taxpayer and union co-ownership of the company, throwing the rules of capitalism and international trade out the window and creating an entity the marketplace will seek to avoid like a toxin.

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