Today's Wall Street Journal reports (subscription required) that "Top auto executives, including General Motors Corp. Chief Executive Rick Wagoner, will launch a lobbying push this week for billions in government loans to help beleaguered auto makers and their suppliers."The companies are looking for the previously reported $50 billion in low-cost loans, warning that bankruptcy could be a possibility down the road if they don't get their money.This would be a good time for people like Mr. Wagoner to be reminded that God, and hopefully the federal government, helps people who help themselves. From 2003 through the second quarter of 2008, GM has blown just under $5 billion on dividends which should, theoretically, be paid out to shareholders only after the company has assured that it has adequate cash to fund operations. Here's what Congress should say to Mr. Wagoner before giving GM a nickel: since he, in his capacity as CEO and chairman of the company, is at least partly responsible for the company's precarious financial position, would he consider lending the company the more than $24.5 million he made in the last two years under the same terms he's asking for from taxpayers?Michigan lawmakers will be working overtime to push this one through, but there's no reason taxpayers should be giving money (a loan on special terms is no different than a gift) to a company that is still paying dividends on its common stock and lavishing excessive pay on poorly-performing executives.
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