If anyone wants to know what the Obama administration is going to be like, the title of this post says it all. My initial reaction was, where is the money coming from? My next thought was despair. If there is one way of making a recession last longer than it needs to, it is by constantly intervening in the markets. Recessions root out inefficiencies and if General Motors, Ford and Chrysler are so inefficient they need a government bail-out, I would suggest they start reorganising their businesses pretty quickly, which they will do if they know they have to. If the government intervenes, they don’t have the incentive to do what they need to do.
One wonders if the majority of the US car market is going to be nationalised. Where will it all end?
– Andrew Allison