Playing Politics9 Dec 2009 / Paul Epps
The [General Motors] takeover started with this promise from the President:
GM will be run by a private board of directors and management team…They — and not the government — will call the shots and make the decisions about how to turn this company around.
Within one month, powerful lawmakers had successfully “encouraged” General Motors to retool factories in their home states, and Senator Jay Rockefeller had prevented the closing of a dealership owned by one of his wealthy constituents.
Or recall what happened with Fannie Mae and Freddie Mac, who succumbed to so many political pressure [sic] that–well, you already know the rest of that story.
When you politicize an industry, be it cars, mortgage lending or health insurance, you invite interventions on behalf of the rich and powerful. The less rich and the less powerful foot the bill.