If there’s a silver lining in the Obama administration’s take over of General Motors it’s that it put the rest of America’s big business on notice. If you throw yourself on the mercy of the federal government, the federal government may just use that mercy as leverage to start running your business for you.
Top officials at Chrysler Financial turned away a $750 million government loan because executives didn’t want to abide by new federal limits on pay, sources familiar with the matter say.
The government had been offering the loan earlier this month as part of its efforts to prop up the ailing auto industry, including Chrysler, which is racing to avoid bankruptcy. Chrysler Financial is a vital lender to Chrysler dealerships and customers.
In forgoing the loan, Chrysler Financial opted to use more expensive financing from private banks, adding to the burdens of the already fragile automaker and its financing company.
Chrysler Financial denied in a statement that its executives had refused to accept new limits on their pay.
The liberals are going to use the executive pay angle to spin this. They’ll say that Chrysler’s leadership is just greedy, and that they should have done the responsible thing and take the big, fat government handout (that, frankly, the government can’t really afford to be giving at this point) and all the hypocritical scolding and sanctimonious regulations on how the business is run that go with it. But really, I’m happy Chrysler did this. Good on them for it.
It’s about time one of these companies quit begging the government for bailouts and stood up on their own two feet. We don’t need to have the federal government any more involved in big business than it already is. The government shouldn’t be giving bailouts to prop these companies up. And even if the government does the wrong thing and gives these companies bailouts, the federal government shouldn’t compound that already bad situation by essentially trying to run these companies itself.
If Chrysler can’t run without government subsidy then Chrysler shouldn’t run. The same goes for every other business in America.