29 March, 2009

The Private Sector

As I'm sure we all saw in the news today, GM's CEO Rick Wagoner has resigned at the request of the Obama administration. I am by no means among the informed on issues of this sort, but it seems this could be construed as a serious overstepping of bounds on the part of the government with regard to business. Alternatively, it could certainly also be construed as a reasonable part of a deal struck between Washington/the taxpayers and car companies. Is the media blowing Obama's request out of proportion by saying he is "forcing" Wagoner out?

GM. Discuss.

1 comment:

spencer said...

Ordinarily, I'd agree. But GM has basically said that they can't operate without massive government subsidies, i.e. a bailout. If the government is going to be funding the car industry, they should at least have the ability to call for new management. (Of course, I'd rather that Obama just let GM wither away.)