The thing to remember about General Motors, which just announced plans to close three plants in Ohio, Michigan and Ontario, cutting about 14,000 jobs, is that the company doesn’t operate under capitalism. Its statements have to be analyzed politically, not financially.
In capitalism, the government’s role is limited to setting the rules of the road so innocent people aren’t killed in somebody else’s crashes. But in the system in which General Motors operates, the government’s role is to create and maintain a regime of penalties and incentives, taxes and bailouts, enforcement actions and waivers.
Consider the fate of the now-terminated Chevrolet Volt. [READ MORE HERE]
Source: OC Register