GM Is Becoming a Royal Debacle

This article is by Jason Edwards

No wonder the king's mediation of 40 years of stalemated labor and business issues in the auto sector isn't going so well. There's a reason royal discretion has long been outmoded as a way to run an economy: Things just work better if a realm's subjects are left to resolve their own disputes and interests through the impersonal mechanism of the markets and the law says Jenkins in the WSJ today. The president should have never took over GM or Chrysler (GM is worst out of the 2). Let them go into bankruptcy! I don't know what else needs to happen for the president to realize that the market and consumers decide what kind of cars they want not the government. This is not the job of the president. GM is just drowning faster and faster while the government stands by their side attempting to help (key word attempting). Go into chapter 11, restructure, and when the market returns so will the auto industry. The problem is that they are not making a profit (GM was number 6 in Forbes 500s). People are still buying cars. The problem is that they are paying billions in health care to retirees (a reason we need to reform health care) and the UAW wages are the highest out all the automakers. In chapter 11 all this can be fixed. There is no need for government intervention.

http://online.wsj.com/article/SB124035637935940943.html