Government Motors: Exit Strategy Needed

Conn Carroll / May 29, 2009

Heritage fellow James Gattuso:

Congratulations: If you are a U.S. taxpayer, you will soon be a part owner of a car company.

Under the latest reorganization plan for General Motors, Uncle Sam would take ownership of 72.5 percent of the troubled automaker while providing an additional $30 billion in funds to the company.

The proposed deal would give Washington controlling ownership of a major industrial corporation for the first time since Conrail railroad was sold in 1986. And, along with the pending acquisition of a minority stake in Chrysler, it would represent the first time the U.S. has ever owned an automaker–joining China and several European governments in that club. It is a road less traveled, for good reason, and one America needs to exit.
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