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Washington, DC – First came Fannie and Freddie, the banks and AIG. Now the federal government will be taking over American car companies, with health care on the horizon. With the recent bankruptcy filing of what was once a great source of American pride; General Motors has become the poster child for what has become a rather disturbing trend: the nationalization of major American financial and industrial players.
Such a deal with GM effectively leaves the U.S. government as the largest shareholder. The Treasury Department’s $60 billion means that 72.5 percent of automakers will be owned by taxpayers. The Obama administration has no credible exit strategy with regard to this latest government intervention in the market. The sweetheart deal that bails out the United Auto Workers at taxpayer expense reeks of political favoritism.
FreedomWorks President Matt Kibbe commented:
“In no way, shape or form should the U.S. government own or operate a major industrial firm. The government's new role in the private sector will have consequences. As The United States embraces European-style capitalism, in which the government becomes more and more intertwined with the private sector, so too will European-sized taxes. It is simple cause and effect. After all, who’s going to pay for such action? Ultimately it is the honest taxpaying families that must bear the burden.”