New Bill Ends Government-Run Companies

The federal government currently holds various ownership stakes in over 500 private companies. This alarming fact, along with the events of recent days in the auto industry, should serve as a wakeup call for all those concerned about preserving the free market principles upon which our nation was founded. As we have been so rudely reminded, government ownership of private companies threatens the fairness of markets, creates coercive business conditions, and allows government bureaucrats to dictate business decisions.

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Neither the citizens of this republic nor their elected representatives in Washington voted for this degree of government control over private businesses. Instead, what was supposed to be a short-term program to relieve financial institutions of toxic assets morphed into an uncontrolled and unauthorized bureaucracy extending its tentacles into hundreds of private businesses. With no explicit vote of Congressional approval, the federal government is now in the business of running banks, insurance companies, and car manufacturers.

To stop this dangerous course of action, I have introduced the Government Ownership Exit Plan Act. This legislation would put an immediate end to government purchases of additional direct ownership interests of private companies. It would also prohibit government officials from making or influencing business decisions when it comes to the companies in which the government already has an ownership interest.

It is equally important to set an exit strategy for this unprecedented government intrusion. The Government Ownership Exit Plan sets a hard deadline for the final termination of government ownership interests in private companies and puts our economy back on the path to competitiveness and private ownership, not governmental control. The legislation would require the Treasury to sell any ownership stake in a private entity by July 1, 2010. Revenue from the sale of these assets would be used for debt reduction.

If we do not act now, government ownership of these private entities could persist for decades. If we want to once again promote free market principles and the private ownership of business, it is time to act.

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