What's Good for GM

Holstein, William J., Chief Executive (U.S.)

I asked an economist a simple question recently: "Would it make any difference to Hie U.S. economy if General Motors and Ford were to go out of husiAness?" He said, "No." He is an apostle of free market ideology, and judging from President Bush's own statement (see cover story, page 30), this is the prevalent view in the land. This view holds that, because new entrants such as Toyota and Hyundai are building new plants, a job that disappears in Michigan reappears in Alabama. There's no net loss in national economic terms. We shouldn't care that GM and Ford both now have junk bond status.

That argument doesn't work for me. Don't get me wrong-I believe in the power of markets. But …

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Publication information: Article title: What's Good for GM . Contributors: Holstein, William J. - Author. Magazine title: Chief Executive (U.S.). Issue: 209 Publication date: June 2005. Page number: 8. © 1999 Chief Executive Publishing. Provided by ProQuest LLC. All Rights Reserved.

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