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by: Micah McBride

nn Econ

Micah McBride


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dawn elliott
Class Notes
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This 1 page Class Notes was uploaded by Micah McBride on Thursday January 28, 2016. The Class Notes belongs to Econ at a university taught by dawn elliott in Winter 2016. Since its upload, it has received 7 views.


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Date Created: 01/28/16
Micah McBride 11AM Public Finance Extra Credit GM Tragedy of the commons When the government bailed out GM they became 60% stakeholders in the company. With such an incredible stake in the company the government became an extremely influential entity in the company. With no clear owner the executives at GM are forced to be in a business with a remarkable amount of uncertainty and unpredictability. Executives are apprehensive over every major decision in fear that the government will “persuade” them to rethink or reverse their decision, for the best interest of GM, of course. With this in mind GM is more focused on saving money, granting reprieves, and shifting work to other carriers and companies than they are on producing a product. Each entity is behaving in their individual best interest and not in the best interest of the company as a whole.


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