Wednesday, June 10, 2009

Boycott Chrysler and GM?


I will argue that the unprecedented action by the current administration in manipulating the bankruptcies of Chrysler and GM, and in effect nationalizing the companies, is egregiously unethical by...major ethical perspectives. For this reason, I believe that this action makes it morally imperative for Americans to boycott these socialized companies...Rather than let the free market and the legal system...handle the reorganization of the failing auto makers in the normal way, the...administration spent tens of billions in taxpayers' dollars to take control of the companies and force the outcome it wanted. Obama, who received millions in contributions from the United Auto Workers Union, has forced a settlement that will give UAW far more equity in the companies when they come out of bankruptcy than it was due compared to the secured debt holders....The Ethical Case for Boycotting Chrysler and GM, Gary Jason, American Thinker, 6/10/2009

Gary Jason's argument is an important one, and you ought to go to the link and read the entire piece. The market itself may boycott Chrysler and GM as essentially political manufacturing companies, not auto companies. Already, courts have ruled against plaintiffs bringing torts suits against Chrysler and will probably do the same for GM. This means if you buy a defective Chevy or Dodge, the government's ownership will preclude the Lemon Law (see post below on this). And, to be honest, it's hard for this writer to imagine buying anything designed by a U.S. Representative, U.S. Senator, or a team of their staff.

And, this is just the beginning. From all obvious signs in their first five months in office, this administration will further emulate Hugo Chavez, going around the market with impossible demands on the surviving private auto companies, and with subsidies so vast that they'll make the complaints from Boeing about Airbus (or the E.U. about Intel) seem rather tame. They will not take umbrage at this accusation. Why? Because it's perfectly clear that this is the very heart and soul of this administration's perception of property, capitalism, and the law.

Luther

1 comment:

Jack Reylan said...

FIAT = "Fix It Again, Tony!"