Senator Richard Shelby Warns of "Socialism" in Bankruptcy Bailout

Senator Richard Shelby (R-AL) expressed his disapproval of the government's bailout plan for General Motors, calling it a step towards "socialism." He stated that the company's bankruptcy would have been easier and less costly six months prior. Shelby also emphasized the importance of allowing companies to compete in the marketplace, rather than relying on government aid.

Key Takeaways:

• Senator Shelby has stated that General Motors' bankruptcy was inevitable, but that the company could have gone through it six months ago, saving money and headache.
• He believes that the government's bailout plan is a step towards "socialism" and that it is not a good sign for America.
• Shelby thinks that General Motors should be sold out of the government's hands and allowed to compete in the marketplace.
• He also stated that he has no confidence in a government-run UAW-influenced company, due to its history of losing hundreds of billions of dollars.
• The senator from Alabama emphasized the importance of allowing companies to innovate and compete in the marketplace.

Statistics:

• The Dow Jones Industrial Average was up 100 points three months in a row as the General Motors bankruptcy was announced.
• The company's stocks were trading at pennies on the dollar, the lowest level in about 80 years.
• Hundreds of billions of dollars have been lost by a government-run UAW-influenced company.

Sources:

• Fox News Channel "Your World" interview with Senator Richard Shelby, May 29, 2009.
• Federal News Service, Ste. 500, 1000 Vermont Avenue NW, Washington, DC 20005 USA.