General Motors, the icon of American capitalism, has filed for bankruptcy. The U.S. government will be providing the company with billions of tax dollar aid in exchange for significant ownership of the company. President Obama remarked that this will be a good chance for the company to reorganize itself and rebound from the financial hurdles.

Now, some are worried that the billions in tax dollars to save the American giant might be a path to socialism. The problem with such objection is that these individuals do not know what socialism is. Sure, using billions of government money to save a private company might be excessive government intervention in the free market, but that is not the same thing as socialism. If one even cares to do some Marx reading, then one would have to see the minimal condition of abolishment of private property to even set the stage for a socialist revolution. What is happening now is not about abolishing private property but instead a government intervention to save the free market machinery from failing. People who accuse the current government’s role in GM as the path to socialism are either ignorant in their thinking or cunning in terms of using the current development as their political ends.

That being said, I am nevertheless concerned about the amount of government investment on GM and other giant American corporations, because  calls into question on why the government is not so hesitant on investing billions in the giant corporations while nobody really knows the future trajectory of the current state of the economy. Sure, we can use several economic models to project a possible course for the economy, but I am still bothered by the cloud of uncertainty. I also do not have to remind everyone about the frustration that has generated over the seemingly slow pace of progress.

In any case, I still think I am not informed enough to see the full picture here, so I guess I will be reading more expert opinions on this subject matter. I hope GM can rise again.