Tuesday, April 06, 2010

Here's an illustration of why government participation in private industry is a bad idea:
Transportation Secretary Ray LaHood earlier this week cited the Sept. 29 European warnings in his decision to assess a record $16.4 million fine on the Japanese automaker for failing to alert the U.S. government to its safety problems quickly enough. LaHood on Tuesday said Toyota made a "huge mistake" by not disclosing safety problems with gas pedals on some of its most popular models sooner.
Remember, now, that the very same government owns 60% of General Motors, and Toyota is GM's most potent competitor. The result is one arm of government taking, without any apparent due process or judicial ruling beyond so-called "European warnings," over 16 million dollars from a private enterprise and, by extension, its stockholders.

And the beneficiary of this heavy handed confiscation? Yet another arm of the very same government.


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