GM Goes Under

With many American auto companies losing enourmous amounts of money, the government has been stepping in order to save these dying companies. In a new development with GM, they are forcing the company to declare bankruptcy and afterwards will own 60% of the company. Afterwards, the once large company will consist only of 4 of the brands that make it up, and will drop 21, 000 employees and 2600 dealerships.

This story is both interesting to me and scary in two ways. For one, I don't like the governent getting this involved in private businesses, and the fact a company as large as GM is going bankrupt makes me wonder about the future of our economy. The government buying and running a company such as GM seems a lot like socialism to me. One of the downsides to the capitalist economy is that unfortunately companies will have to lose money and dissapear, but because of capitalism another company will eventually appear just as big. The government is meddling with a company it shouldn't be if we're to keep our American economic system, and the taxpayers are losing as billions are being used. It also scares me that GM, one of the bigger companies in our economy is going bankrupt. This is the largest bankruptcy in US, and it shows that as a nation we aren't doing that great. Knowing that our place as the most prosperous nation in the world is at stake, this incident makes the future look a little less promising.