> When they badly, badly screw up, they just get bailed out with public funds
replyWhen this happens, I think it's only fair that the bailed-out company becomes publicly owned. If I'm forced to invest in a company with my tax dollars, then I damn well better be treated as an investor. Where are my shares? Where are my dividends?
When the USG bailed out banks via TARP during the 2008 financial crisis, it did so by buying shares in those companies. It later sold those shares for a $30.5 billion profit.
replyIf GMC had been “publically owned” it would have been gutted for profits (kickbacks) by its bureaucracy and politicians and been long dead by at least a decade. Bureaucrats are not good at running companies and private companies should not be providing public services (prisons, toll roads). I don't know why Americans have become so unpragmatic and either all in on “government doing everything” or “private corps doing everything” when life is never ever that simple.
replyGM and Chrysler went bankrupt and were partially bailed out, the CEOs were replaced and the Government took a stake in the companies, which eventually paid off.
replyThere also is the chicken tax which has been protecting US automakers in the pickup truck space which has lead to then leaning much more into that. Together with absurd CAFE rules that benefit huge cars and more beneficial tax write-off rules for vehicles over 3.5t regulation has lead to US automakers focusing on cars that are absurd by international standards.
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