Is the Government Overstepping its Boundary?

Hello Everyone,

I have chosen not to list my name on this site for security reasons and will be going by the generalized name of Arnold Palmer (who is also a famous golfer).

I have decided to use my blog as a place to discuss many of my ideas on the political situations occurring, mostly in the United States but occasionally globally as well, at this time.

Today I will discuss the recent decision by President Obama's administration to essentially take over General Motors in an effort to fix the company.

Being familiar with the situation, and from a region in the United States that would allow me to have considerable insight into the situation at hand, I believe I can make knowledgeable statements on this situation.

With the takeover of GM by the government, the company is being forced to put the taxpayer's money to use immediately, and for hopefully beneficial causes. I am very supportive of this move by the government, even though it may seem that the current administration has overstepped its boundaries. I feel that the government has a right, and a duty to make sure that the taxpayer's money is spent correctly. However, I do disagree with such a move for one simple reason. Why did the government move so quickly on GM and Chrysler while they have let companies such as AIG continue to run themselves? AIG received a huge proportion of the bailout bill while the auto industry as a whole didn't receive even close to such an amount. I think that if the government is going to step in and make sure that GM and Chrysler don't create a larger problem for the economy, why hasn't anything been done with AIG? I do understand that there were contracts that had to be fulfilled, and for that reason, a large portion of the bailout AIG received was paid in large bonuses. However, any workers in the auto industry will surely be at risk of lower pay, or even layoffs, even with the government bailout.

I would also have to say that I disagree with any ideas to allow the companies to go bankrupt. The auto industry is a very large industry consisting of numerous aspects, not just GM and Chrysler, but also the suppliers, the communities in which the employees of these companies live, and other citizens that live in these communities. If GM goes through bankruptcy they will probably let go of thousands of more employees. These same employees used to go to lunch at the nearby Coney Island Restaurant, pick up milk on the way home at the local grocery store, and stopped for a beer at the local bar. But, if they get laid off many of these businesses will suffer, and more than likely close. This could lead and entire suburb into a quick collapse. Also, the suppliers that provide GM and Chrysler with the needed parts would have to close, or significantly cut their staff. These same suppliers provide parts for companies such as Ford, Toyota, and Honda. Most automakers share suppliers, and they can only survive as they are now with all of them purchasing their products.

There are many different opinions on this topic and I want to hear yours. Please leave your comments below.