G.M. FAILURE – GOVERNMENT SUBSIDIES, NOT FREE MARKETS

 TRAGEDY MIGHT HAVE BEEN AVOIDED IF GM HAD LISTENED to the MARKET, RATHER THAN GOVERNMENT.

CEO BARRA BET the COMPANY’s FUTURE ON ELECTRIC CARS and OTHER LESS-POPULAR OFFERINGS, INSTEAD of WHAT PEOPLE WANT.

GM GAMBLED ON ELECTRIC CARS

EVEN WITH A $7,500 SUBSIDY, THEY DON’T SELL FAST ENOUGH.  

GOVERNMENT SHOULDN’T PICK WINNERS and LOSERS 

SUBSIDIES are the GOVERNMENT SUBSTITUTING ITS JUDGMENT FOR THAT of the MARKET PLACE.  

BY IGNORING the SUPPLY-and-DEMAND SIGNALS of the MARKETPLACE, IT ONLY MADE GM’s PROBLEMS WORSE.

IT LED to GM COMMITTING ITSELF to the UNPROFITABLE ELECTRIC CAR MARKET, ONE of PRESIDENT OBAMA’s PET PROJECTS.

INSTEAD of PLEASing ACTUAL CUSTOMERS, GOVERNMENT SOUGHT COMPEL PEOPLE, EITHER BY HUGE SUBSIDIES OR REGULATION, to BUY THEIR PRODUCT.

SADLY, GM is JUST ANOTHER ONCE-GREAT AMERICAN COMPANY that WENT WRONG TRYING PLEASE a GOVERNMENT MASTER, and NOT the CUSTOMER.

CAN COMPANIES WILL LEARN FROM GM’s ERROR?