GM is about to become UAWUSA Motors. The UAW will own 39% of the shares and the USA will own 50%. I’ll bet you, as a taxpayer, never dreamed you would partner up with the UAW to own a big corporation.
Two organizations brimming with business acumen. Many think the UAW caused a lot of the problems for GM. And, we know how good our government does when it comes to running businesses.
This certainly begs a lot of questions. First, since the government sets mileage and emission standards will they force UAWUSA to make cars that exceed those standards? Then, who will buy those cars? Next, how does the government bargain with a union that put a lot of them of them in office? Do you trust the government to bargain in your interests or theirs?
I would never buy a car made by my government. Never. I don’t know how many other Americans feel that way, but I’m sure a good many do.
How does the government, with unlimited resources, keep the marketplace level for companies that aren’t owned by the government, like Ford?
Are you going to buy insurance from a company owned 60% by you, AIG? Will the government offer to provide insurance to UAWUSA car buyers at bargain prices? No, that would make too much sense.
Will the government finance UAWUSA cars through one of the many banks the government will soon own?
Here’s a positive way to look at all this. The government, through easy credit and no guidance of Freddie and Fannie, two other companies they ran, made most of your 401K’s go away. Now, they are replacing those lost investments with your ownership of big chunks of corporate America. To get you back to where you were, all they have to do is to run all of these companies well and your shares of the companies represented by your tax dollars will go up. They can give you a dividend in the form of future tax breaks when they sell these shares back to you at a big profit.
Of course, the flip side of that would be if they don’t run them well. Then, you will have to pony up some more taxes to make up the deficit. You, know, no risk, no reward.
Be sure to get tickets to the 2010 Auto Show near you to see the new line of UAWUSA cars to be introduced next year.
Dealers might be hard to find and service at the dealership might be like going to the post office.
But, you will be a true a patriot and actually be helping yourself if you buy a 2010 UAWUSA. Put in an order now, they will be hard to find.
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