Congratulations, taxpayers, said the Los Angeles Times in an editorial. It looks like General Motors will be declaring bankruptcy, maybe Monday, and "you're poised to acquire more than half of what used to be the world's most popular automaker." Now that GM is being added to taxpayers' portfolio of troubled companies, the best thing the government can do is sell it as soon as GM gets restructured and back on its feet.
Spending some taxpayer money to keep GM afloat was probably a good idea, said Richard A. Posner in The Atlantic. But in addition to acquiring 50 percent of the company's stock, the federal government will invest $30 billion in the new automaking company—bringing the GM bailout cost to $50 billion. The danger is that—if GM's troubles continue—we'll throw good money after bad and GM will become an "economic Vietnam."
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
