It sounds like a joke: GM is in such bad shape that not even the UAW wants it. But you, the taxpayer, are stepping up to the plate. The Wall Street Journal reports the U.S. government is taking a 70% stake. The president claims he doesn’t want to run a car company? He is. This is nationalization, plain and simple.
The UAW was going to take a 39% stake but decided on a small share plus some preferred shares instead. The Journal quotes someone in the talks: “The fear at the UAW was that ownership in GM could eventually be worth very little.” The government has no such fear.
Bailouts and creeping statism make Americans uncomfortable. In fact, they represent the least popular aspect of the president’s agenda. After the hoopla over Sotomayor is over, people may find out they own a failing car company. And they might not like it.