Friday, June 06, 2014

Government Should Stay Out Of Business Bankruptcies

Almost everyday there is a new revelation about poor business decisions that were made at General Motors (GM). Yesterday, it was announced that the company had fired a handful of people who they say did not do the right thing when it comes to recalling customers vehicles. Of course, the people at the very top of the company spared themselves from any liability or blame. Whether people like it or not, the United States of America is based on principles of capitalism. Under that system, businesses who do not do the right thing – eventually end up broke and filing for bankruptcy. However, that did not happen at GM. Instead, the company was bailed out by U.S. taxpayers – simply because of political reasons which were all related to saving jobs and getting re-elected. Every time politicians try to change the rules of capitalism, more people end up getting hurt down the road - when bad business practices are not changed.

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