Tuesday, September 15, 2009

How Government Mismanages Business

Leftists always insist that governments do a better job than corrupt “capitalists.” Here is just one recent example of how government manages because politicians then get involved.

General Motors decided to close some dealerships after the government takeover. Dealers being closed contacted their congressmen and senators and before long there was enough pressure to stop original orders. Corrections were made to suit the demand brought on by that pressure.

So valid business decisions become arbitrary political decisions. The exact opposite the Obama administration promised would never happen, when it first took over GM control.

In essence, politicians need voters, To get them they must resort to voter pressures. That means employees lose real jobs over time. Not pick and shovel jobs. Not sit-on-chair- and move-paper-around political jobs.

Business people need profits and do what they must to get them, or they go bankrupt. When they do go bankrupt, the problems are remedied immediately. Problems do not fester for years at taxpayer cost because they are never truly corrected.

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