Discussion of nationalizing GM

In the last few days, multiple commentators are starting to explore the idea of nationalizing GM, or setting up a structure with significant government control over it, instead of bailing out its owners with a loan. Some excerpts:

Bob Herbert, NY Times columnist: "This whole matter needs some intensive thought. At the moment, Washington has tremendous leverage over the failing auto industry. The government should craft a rescue plan that is both tough and very, very smart. That means dragging the industry (kicking and screaming, no doubt) into the 21st century by insisting on ironclad commitments to design and develop vehicles that make sense economically and that serve the nation’s long-term energy security requirements."

Jeffrey Sachs, Columbia University economist: "A government-supported restructuring of the auto industry is urgently needed for our economic and energy security....[T]his is an opportunity to embark on a major industry restructuring to position the United States to lead the world in producing cars that get 100 miles or more per gallon."

Dan Bertolet, hugeasscity: "We should nationalize GM. Because we need a revolutionary change in motorized transportation, and we need it now. And because the free market is not up to the task."

35 authors, Soot and Ashes: Reinventing America After the Crash: "Should the United States nationalize or bail out GM, Ford and Chrysler?" Some say yes to nationalization, others no.

Carl Bloice, Rx for 'Ailing' Auto Industry: Take it Over. "So, what is to the done about the ailing auto industry? Here's one answer: nationalize it.... let's face it; radical innovation and planning is the only thing that could get us out of the current mess and lay the base for a healthy economic future. "