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Tuesday, June 2, 2009

Will General Motors, Chrysler Follow Amtrak's Lead of Government Corporate Takeovers?

As General Motors goes into bankruptcy and the government becomes 60% owner, parallels are being brought up between Amtrak and GM:

Some analysts say the federal government's effort to prop up the nation's largest auto manufacturer is eerily similar to a 40-year effort to revive the nation's ailing railroad system. Billions of taxpayer dollars later, Amtrak still needs the government to survive -- and critics say General Motors appears to be headed down the same track.

"I see no hope whatsoever for the situation," said Wendell Cox, a policy consultant who sat on the government-appointed Amtrak Reform Council a decade ago and draws parallels to the GM intervention today.

Amtrak could be a winner in America today, if the government wasn't doing its usual bang-up job of running things.

Why are we allowing Obama and the government to be the new de facto CEO of GM? Obama hasn't ever been an executive of any businesses, and the government has a horrible track record with such takeovers?

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