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Government Business Confusion

Recorded on June 2, 2011

From The Heritage Foundation, I'm Ernest Istook.

The projection is that taxpayers will lose $14-billion—and the White House calls this success. That's how much the Obama Administration now admits is our minimum loss on the bailout of General Motors and Chrysler. And it doesn't even include billions more spent on the cash for clunkers program—another bailout of carmakers.

But that's still small change compared to the $150-billion cost of bailing out mortgage giants Fannie Mae and Freddie Mac.

The line between government and business keeps getting blurrier. The President's choice for Commerce Secretary has a business background—mostly in businesses heavily subsidized by taxpayers. This trend makes companies less likely to object to costly regulations, such as new fuel economy standards that will make each car cost several thousand dollars more. Normally the automakers would scream loudly—but not when they've actually become Government Motors.

From The Heritage Foundation, I'm Ernest Istook.