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Thursday, July 16, 2009

The U.S. House of Representatives is currently pushing legislation (H.R. 2743) to require GM and Chrysler to restore all dealers currently scheduled to close. Let the hypocrisy begin.

First, President Obama offered the gem that this legislation risked setting a "dangerous precedent" to "intervene into a closed judicial bankruptcy proceeding on behalf of one particular group at this point." It's difficult to believe the president was able to keep a straight face making this statement. After all, it was his dangerous precedent by intervening in an open judicial bankruptcy proceeding that led to the current situation.

On to the legislation, at least some (perhaps only the Republicans, but some nonetheless) of the bill's cosponsors have argued that closing the dealers constituted unwarranted government interference in the private sector. Without going into any merits of this argument, forcing GM and Chrysler to take certain actions (again, regardless of the merits) through legislation also constitutes government interference in the private sector.

The government caused a problem, and then those supposedly with principles abandoned them in an attempt to solve it.

Posted by Eleutherian

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