In 1953, General Motors President Charles Wilson told a Senate committee, "For years, I thought what was good for our country was good for General Motors and vice versa. The difference did not exist. Our company is too big. It goes with the welfare of the country."

Does the public believe that today? No. In a CNN poll taken this month by Opinion Research, more than three-quarters of Americans said that if GM and Chrysler need more government money, Washington should rebuff them. In other words, let 'em go bankrupt. That is the same thing most of the public is saying about banks and financial institutions: No more bailouts.

GM Chief Executive Fritz Henderson, who replaced ousted CEO Rick Wagoner, is thought to be more open to a possible bankruptcy filing. "By no later than June 1," Henderson said, "if we're not able to accomplish this -[restructuring] outside of bankruptcy, then we'd be in bankruptcy. We don't need any more time in order to get this done."

Do Americans think that if automobile companies went bankrupt it would cause a crisis or major problems for the economy? In December, two-thirds thought that it would. Now, not so many: 47 percent feel that it would cause a crisis or major problems, while 53 percent say it would cause minor problems or no problems at all.

As former business executive and Republican presidential candidate Mitt Romney pointed out, "A number of us said that bankruptcy or a bankruptcy-like process was something that was needed to get GM and Chrysler on their feet again."

But would Americans buy a car from a company in bankruptcy? Only 37 percent said they would. Enter Mr. Goodwrench. Make that, President Goodwrench. "If you buy a car from Chrysler or General Motors, you will be able to get your car serviced and repaired, just like always," President Obama announced on March 30. "Starting today, the United States government will stand behind your warranty."

Most people say if automakers need more money, Washington should say no.

Will that make a difference? You bet. In the CNN poll, 57 percent said they would consider buying a new car from a bankrupt company if the federal government stood behind the warranty.

When the Obama administration pressed for the resignation of GM's Wagoner, it faced criticism that the government was going too far. As management consultant Vince Crew, author of Everyday Ethics, Everlasting Consequences, put it, "When it comes to dismissing a CEO, that's the job of a company board, not the president of the United States." Obama tried to sound cautious. He reassured the public that "the United States government has no interest in running GM, and we have no intention of running GM."

Washington is now subjecting 19 large banks that have received federal loans to stress tests to determine whether they could survive a deeper economic downturn. The results will be announced within the next three weeks. Bank executives are worried that the Obama administration will insist on changes in management and strategy, such as limits on executive pay, merger demands, debt-reduction requirements, and restrictions on hiring foreigners. Some banks are paying back bailout funds to escape the restrictions.

Does the public think that Obama has gone too far in getting the federal government involved in the way businesses are run? Only 35 percent say that he has. -Instead, most Americans feel that the -president's actions have been about right (42 percent) or have not gone far enough (23 percent).

The criticism appears to reflect ideology. Seventy percent of Republicans think that Obama has gone too far in regulating business. Only 9 percent of Democrats agree. Democrats are more likely than Republicans to say that if the auto companies went bankrupt, it would create major problems for the economy. Republicans are supposed to be the -pro-business party, but Democrats have fewer inhibitions about letting the federal government bail out troubled -corporations.

Republicans are more likely than Democrats to complain about Big Government. But right now, public anger is focused more on the abuses of Big Business. Actually, the people don't trust either Big Government or Big Business. That's why Americans don't like the idea of bailouts: They are viewed as Big Government colluding with Big Business.

This article appeared in the Saturday, April 18, 2009 edition of National Journal.

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