CEI - Today in the News: General Motors, the Real Cause of the Economic Crisis, and Frankenfish


General Motors


GM has admitted they haven't repaid their government loans, despite their previous claims to the contrary.


CEI has filed a supplement to our earlier FTC complaint against GM. Special Counsel Hans Bader talks about GM's deceptive advertising.


"In its original complaint, CEI urged the FTC to investigate the 2010 GM ad campaign entitled 'GM Repaid Government Loan Ahead of Schedule.' The ad featured GM’s then-Chairman and CEO, Ed Whitacre declaring that 'we have repaid our government loan in full, with interest, five years ahead of the original schedule.' That claim, CEI explained in the May complaint, 'gives the false impression that GM has used its own funds to pay back all the bailout money that it received from the federal government. In fact, GM has only repaid a fraction of those funds—barely ten percent. Moreover, GM apparently repaid its loan by using other federal funds.'"




The Real Cause of the Economic Crisis


Jacob Lew, an Obama nominee for a top White House post, is being lambasted by the media for saying that deregulation didn't cause the economic crisis.


Warren Brooks Fellow Ryan Young explains why deregulation isn't to blame.


"If anything, the recession was caused by misguided regulations. Monetary policy favored a weak dollar for too long. Political pressure to raise homeownership levels beyond what people could afford led directly to the Fannie Mae and Freddie Mac debacle, and a $700 billion bailout program. Today's double-digit unemployment is part of the price of federal misconduct. Wall Street deserves plenty of blame for playing along. But Congress, Presidents Bush and Obama, and regulators set the rules of the game."






The FDA heard arguments yesterday on whether or not to approve the marketing of genetically-engineered fish.


Senior Fellow Gregory Conko argues that the FDA should not be restricting the sale of genetically-engineered organisms. 


"Ultimately, a passionate belief that bioengineered foods must be dangerous because they are not 'natural' cannot be supported by facts or logic.  That said, if consumers want to exercise their superstitions by worshipping Gaia, eating local, and buying only non-GM food, they should be free to do so.  That is, after all, what markets are for:  You can buy the products you like, and I can buy the products I like, assuming there’s someone at the other end of the voluntary exchange who’s willing to offer those goods for sale at a price we’re willing to pay."