The Spinosa Factor

I was initially hesitant to post about my feelings on this subject as there as so many points of knowledge that it’s truly impossible to have a perfect grasp on what’s the best path for GM moving forward. Anyone that knows me has a full grasp at the extreme nature in which I resist any type of bailout to private sector whether for a financial institution, insurance company, or vehicle manufacturer. It’s not that I’m unaware how many people these “money moguls” employ, but if the business model wasn’t sustainable (in the case of GM) and ethical actions become the cornerstone for federal investigation… are these really the businesses we want to help continue on?

I think it’s fair that we need to start by resetting what we know back to the truth of the matter.

1. Money Isn’t Free. Never has been and never will be. Those bailout dollars used to stimulate the economy are to be invoiced to… YOU. Everyone usually responds with “Yeah, I know.” but they’re not really seeing it on their paycheck yet. This additional debt will be monetized in the form of increased federal taxes and taken out of your check. Small businesses will also be punished limiting the ability for new opportunities and positions to become available.
2. The Federal Government Has Never Run a Successful Business. During the Nixon Administration Amtrak was nationalized and taken over by the federal government. The official statement went like this, “We only intend to be involved with Amtrak for the next 3 years so we can restore it to a profitable state before turning it back over.” HOLY CRAP, HUGE SURPRISE, TOTAL FAILURE. Here we are and not only is Amtrak not profitable it’s a horrible anchor around the neck of every American citizen.
3. The Federal Government Is You and I. I can tell you what it’s not… This all knowing, all being entity. Think about how many people you know that work for the federal government. Are they motivated and driven individuals? Do they understand if they don’t perform they’ll no longer be employed? The answer is “No”. They’re on average, individuals more concerned about there vacation days if they’ll have to work when a single snowflake falls from the sky. Why? Because it’s an environment not built to encourage excellence. It’s sole purpose is to maintain the mediocre status quo.

GM A federally funded company.

If General Motors becomes owned by our Federal Government they simply can’t maintain or streamline the infrastructure. Successful business isn’t run by adding 400 more positions to address checks/balances along with unenforcable policy and procedure. Amtrak gauges progress by how many people they employ to create the largest administrative structures focused around quality control for a demand that barely exists.

They should have focused to a freight focused or technology driven model long ago creating trains like the ones used everywhere else in the world. How does this relate to GM? GM needs to innovate right now, they need to re-invent the company from the ground up. New ideas, new personnel, and a cultural adjustment on what’s fair compensation for certain roles. In my opinion this industy giant should have failed. I believe that the millions and millions impacted financially would be freed to pursue new opportunities instead of praying to god that GM will mail the check this month. I sincerely believe in personal accountability and the resillience of the American people. If GM is to be fully managed and financed by the federal government we resign a free market and sacrifice our libery for temporary safety. A wise man once wrote…

Any society that would give up a little liberty to gain a little security will deserve neither and lose both. – Benjamin Franklin

The thing about a simple quote that presents plain truth is that it can’t be dismantled in details. Easy and Right rarely work in the same sentence especially when your talking about the future of the country, the employment (direct/inderect) of millions, and the management of business. I say let this ship sink so the American people don’t get hung for 30 years…. just like Amtrak.