It’s already happening. Yesterday the Senate held hearings on the auto bailout. Go to about the one hour twenty minute point, and you’ll see a bipartisan parade of Senators demonstrating their reluctance to run a car company. You can see Herb Kohl (D-WI) snarl about the closing of a factory in his state, and Kay Bailey Hutchinson (R-TX) repeat the question that pretty much every Senator asked – how can you close the following profitable dealers (i.e., significant campaign contributors) in my state? On this topic, you’ll get treated to Senator Robert Bennett (R-UT) explaining how the restructuring plan will leave “no Chrysler dealers between Provo and Las Vegas”.
At one level, their logic is impeccable. The taxpayers have invested $50 billion to purchase majority ownership of GM for at least partially public purposes, so they are doing what legislators do: fight for their slice of the cake. But it’s a heck of a way to run a railroad.