Now that the federal government has emerged from the GM bailout owning 60% of the company, taxpayers will have to foot the bill. In a Fox News article, the Director of Entitlement and Budget Policy Peter Ferrara explains,
“The new GM will be run by the politics of the Obama Administration, not economics. That means it will be run to serve the interests of the United Auto Workers and the environmentalist groups that are major players in Obama’s political coalition, not consumers. The new politically driven GM will never return to profitability, and will stay alive only with a permanent taxpayer pipeline.”