Friday, December 5, 2008

Consolidation is Just a First Step

Some politicians are calling for a consolidation of the Big-3 U.S. auto companies. Perhaps a merger between GM and Chrysler. Maybe later, a merger with Ford, producing one, hopefully viable, competitive, domestically-based automobile company.

Federal support for the financial sector has already resulted in several large mergers. Wells Fargo has taken over Washington Mutual and Bank of America has acquired Wachovia. Down the road, there are likely to be more mergers, shrinking the number of large banks.

Delta has merged with Northwest. United and American airlines are possible candidates for mergers with other domestic or foreign airlines.

National health insurance may be just an Obama administration away.

For good measure throw in federal financing of new homes.

How about more federal control over education?

Each a small step toward a “mixed” public-private partnership” economy; together a giant step toward central planning.

It can’t happen here! Think about it.

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