Ford Motor Company’s New Competition: U.S. Government

Ford Motor Company did something much better than its two U.S. competitors, GM and Chrysler.  Ford actually managed their company well enough to begin to survive a major U.S. recession without standing at the watering trough of Federal government bailouts.  Congratulations are in order for Ford, but it turns out the greatest danger is ahead, and Ford will be punished for their wisdom.

GM and Chrysler are in line to receive $62 billion dollars from the U.S. government, and with that money comes ownership and control.  In addition, GMAC, the lending arm for both GM and Chrysler, has already received billions from the feds, and we are far from finished with this expanding federal line of control.  If you want to know what is going on or where the control is,  as they say, “Follow the money.”

What chance does Ford stand against a competitor that has unlimited funds and unlimited regulatory control over the same industry?  The management of Ford and the shareholders of Ford stock are about to be severely punished for their intelligent management.  The great problem, of course, is that Ford cannot compete with a competitor that can legally print money.

While many have been applauding President Obama’s massive government bailout program, which many are speculating without proof will save the nation’s economy, there is a horrendous downside to such a risky and untested proposition.  The more of the private sector the U.S. government owns and controls, the more free enterprise and the positive economic power it creates will continue to diminish.  There are many consequences to this major economic trend, and many of these consequences will continue to unfold for decades to come.

Is it not an extraordinary irony that the very cause of our national recession–credit and more credit–are the very means by which the U.S. government now proposes to solve the credit problem!  Are Americans so complacent or ignorant of fundamental economic principles that they cannot see the danger?

Not only are companies like Ford Motor Company being punished and disadvantaged for their careful financial management, but they will find themselves competing against the unlimited power of a federal government.  Does anyone doubt the outcome?  Does anyone think the U.S. government cannot win this battle against Ford?

Whatever a person’s political persuasion (liberal or conservative), what is important is what is actually happening and the implications for our future.

The federal government’s foray into the private sector by buying up billions of dollars of ownership and control is unheard of in the history of the world.  This is not a proven model for financial prosperity, and it is fraught with great danger for American citizens and for our children and grandchildren.  Government control by bureaucrats has an International history of great danger for the citizenry.  It has been said that the greatest form of government would be a benevolent dictator, if the dictator were a perfectly wise and generous.  The world has never seen such a man in office, nor has the world seen a political cabinet or congress without selfish and often corrupt motivations.

Make no mistake about ownership.  When the federal government controls a company, it owns that company, no matter who has their name on the stock certificates.

Some think that Obama’s programs will save corporate America, and then the federal government will give back all that it has taken in terms of control and ownership.  Since when does government ever give back anything that it takes or controls?  It does not friends.  It does not.   It never has. Once a right has been given up to any federal government on the face of the globe, that right is never returned to the people.

Ford Motor Company is one of hundreds and thousands of companies that will suffer the consequences of a federal government that owns the private sector.  The Obama administration and the democratic congress are on a determined course.  Like the giant meteor in the Bruce Willis movie, Armageddon, we are on a collision course with life threatening consequences for the future of this country.  And like the unique and untried solution to saving the earth from the meteor in the movie (sending men to drill holes in the meteor in which to insert and ignite atomic bombs), an Illinois Senator now in the White house, is drilling holes and planting economic time bombs in the greatest economic power on earth.  Will we survive?  We are not in a movie this time, so the question is real.  Will we survive?

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