You thought the auto industry was in trouble. Just wait until GM becomes Government Motors. Robert Farago provides helpful insight into the running of GM in an editorial today in the Wall Street Journal.
There is an old adage that “power corrupts and absolute power corrupts absolutely.” This adage has typically been reserved for its application to government. There is nowhere where power and corruption can do so much damage as in the government. Government has the power of the sword and the power to imprison. No other institution on earth has been given this extreme power. Therefore, government must be limited in the exercise of its power. Only when tightly constrained to limits of executing minimum justice can government’s propensity to tyranny be constrained.
We have lost the sense of this warning in our culture. In our culture, government has become god, righting every wrong and capable of managing everything. Government Motors, as shown by Mr. Farago, reminds us that this is a flawed perspective. Remember, what government grants, government can take away.
There are two reasons why Government Motors will be more corrupt than General Motors. First, Government Motors will have more power than General Motors. In the hands of private industry, if General Motors commits a crime, a limited government has the ability to correct that crime. If Government Motors commits a crime, there is no earthly institution over Government Motors to correct that crime. Second, General Motors, in the hands of private industry is motivated by profit. This is a legitimate goal for a business. However, Government Motors will be motivated by competing desires for reelection as Mr. Farago has pointed out. Decisions are no longer made by what is most profitable or in the best economic interest of the business and the market but on which political campaign will receive the biggest boost.
This has serious implications for our economy. Just wait until government takes over all control of our health care.
There is an old adage that “power corrupts and absolute power corrupts absolutely.” This adage has typically been reserved for its application to government. There is nowhere where power and corruption can do so much damage as in the government. Government has the power of the sword and the power to imprison. No other institution on earth has been given this extreme power. Therefore, government must be limited in the exercise of its power. Only when tightly constrained to limits of executing minimum justice can government’s propensity to tyranny be constrained.
We have lost the sense of this warning in our culture. In our culture, government has become god, righting every wrong and capable of managing everything. Government Motors, as shown by Mr. Farago, reminds us that this is a flawed perspective. Remember, what government grants, government can take away.
There are two reasons why Government Motors will be more corrupt than General Motors. First, Government Motors will have more power than General Motors. In the hands of private industry, if General Motors commits a crime, a limited government has the ability to correct that crime. If Government Motors commits a crime, there is no earthly institution over Government Motors to correct that crime. Second, General Motors, in the hands of private industry is motivated by profit. This is a legitimate goal for a business. However, Government Motors will be motivated by competing desires for reelection as Mr. Farago has pointed out. Decisions are no longer made by what is most profitable or in the best economic interest of the business and the market but on which political campaign will receive the biggest boost.
This has serious implications for our economy. Just wait until government takes over all control of our health care.
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