Sen. Lamar Alexander (R) TN, has introduced a bill that would require that within one year of Chrysler and GM emerging from bankruptcy the Administration divvie up its holdings in the two companies among the American taxpayers. This issue is addressed by Smitty in The Other McCain: I'm not sure this was part of the narrative. Not a day has gone by since this whole boondoggle began that I haven’t heard that same idea expressed by one of my friends After all, the taxpayers are the ones on the hook for this entire mess and we should get something out of it besides the undying gratitude of the UAW. Snark. Somehow, that solution just doesn’t feel right to me.
People invested in the car companies to fund their retirement and to provide for their children’s education. This administration kicked those investors to the curb without so much as a second thought. If their shares end up being distributed to the taxpayers isn’t that just another way for the government to re-distribute the wealth? Yes, it is my tax dollars at stake. But I didn’t choose to invest in GM and Chrysler and because I didn’t choose to take that risk I am not sure that I should (potentially) profit from another taxpayer’s risk. The government wrongly stepped in to what should have been a private matter. Accepting stock, which prior to this administration, legally belonged to someone else is also wrong.
Even under Socialism, two wrongs don’t make a right