Will General Motors ever be profitable

In the lastest bankruptcy agreements the United Auto Workers took some reductions but gained ownership and some funding for their pensions. But, will GM ever be profitable again?

There is no need for GM to be profitable. The taxpayers will be GM's source of capital, not profits. Capital in a free market follows profits.

People look after their self interest. The UAW will have a member on the board. They will continue to look after their self interest, not the interest of the corporation.

The officers and the board are supposed to be the executors, the power of attorney, and the caretaker of the corporation, which cannot speak for itself. The corporation is like a handicapped person that needs care. The officers are also looking out for their self interest, which often comes before the care of the corporation.

The government will certainly look out for its 60% interest instead of the corporation. President Obama and the Democratic Party will also look out for their political careers. It is ludicrous to suggest the government will not be involved in the management of the new GM. The government has already fired one CEO and repositioned the creditors below others in a bankruptcy, the same bankruptcy laws the government wrote. The government has said certain cars must be made in the U.S. No free trade will exist and the customer, the forgotten man, will be hurt. The government operates only on power and force. It will offer tax credits to any customer who purchases one of their GM "Green" products. With the force and power of the government, GM will show a profit. It will have to for President Obama's reelection and his legacy.

The 100 billion allotted to GM from Canada, Germany and the U.S. equals $200,000 each for 500,000 active and retired GM employees.

GM was "too big to fail"? Not true then, and certainly not true now.

"The planner is a potential dictator who wants to deprive all other people of the power to plan and act according to their own plans. He aims at one thing only: the exclusive absolute preeminence of his own plan." Ludwig von Mises

Charles Tolleson