There is an interesting contrast in two articles from today's China Daily. The first one describes how the Chinese government is pushing to privatize more industries including oil, power generation, and railways to "boost efficiency". The second article describes how the US government will soon be taking a majority ownership stake in GM.
Who would have thought twenty five years ago that China would be privatizing this quickly while the US government took majority stakes in large banks and auto companies. What a change.
I don't have alternative ideas for the Obama administration that I'd like to throw out to solve the GM or banking situations. I do know that they need to have an exit plan just like any investor, and I hope that exit plan has a short horizon. Government ownership of industry has not shown to be a benefit to citizens or economies throughout history.
These sure are interesting times. Here are links to the two articles:
http://www.chinadaily.com.cn/china/2009-05/27/content_7948433.htm
http://www.chinadaily.com.cn/world/2009-05/27/content_7948681.htm
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