What’s Next For GM? Cabinet Members On The Board Of Directors?

Bizarre things continue to happen with regards to the economy and these unprecedented times. On Monday, Rick Wagoner, the Chairman and CEO of General Motors (GM) or GM, was asked to step down by the Obama administration. This blatant move by Obama is unheard of, as the government does not usually tend to force business leaders to quit or resign.

When questioned, The White House confirmed Wagoner was leaving at the government’s behest after The Associated Press report. His immediate departure, was not backed up by any concrete reasons.

The Politico reports that on Monday, President Barack Obama is to unveil his plans for the auto industry, including a response to a request for additional funds by GM and Chrysler. The plan is based on recommendations from the Presidential Task Force on the Auto Industry, headed by the Treasury Department.

Obama, who has described General Motors as an American icon, nevertheless gave GM and Chrysler a little more time and money to wring further concessions from workers, creditors and other stakeholders.

General Motors issued an extremely vague statement Sunday night that stopped short of confirming the departure of Rick Wagoner, a GM employee of over 30 years.

“We are anticipating an announcement soon from the Administration regarding the restructuring of the U.S. auto industry. We continue to work closely with members of the Task Force and it would not be appropriate for us to speculate on the content of any announcement,” the company said.

The surprise announcement about General Motors or GM, the iconic American corporation is perhaps the most vivid sign yet of the tectonic change in the relationship between business and government in this era of subsidies and bailouts. What is next? Is there going to have to be a cabinet member required on the board of directors for every major company?

I find it very troubling whenever there is a power grab by our government with regards to the free market system. The conservative talking heads on TV have been ranting and raving about “Socialism” being around the corner if we continue to progress in this direction. After the recent developments with GM, I am actually starting to develop a sincere concern about the government intervention that tends to be so rampant.

Let’s be perfectly clear, I am not saying that Rick Wagoner should not be fired from General Motors. I just think that there should be a line drawn in the sand, with business on one side, and government on the other. This arrangement serves as a natural form of checks and balances that prevents anyone from having too much control over the economy.

By the way…..are you ready for the next breaking media scandal involving GM? Rick Wagoner is set to receive nearly 20 million dollars as a result of leaving General Motors. Before you have a panic attack, please remember that he has been there for over 30 years in an executive role. If this catches fire, not many news outlets will report this fact. They will make it sound like it is something that just transpired overnight.

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