If the federal government becomes the majority owner of General Motors and Chrysler, most Americans (57%) believe it’s likely the government will pass laws and regulations giving those firms an unfair advantage over other car companies. That figure includes 37% who consider such preferential treatment Very Likely.

The latest Rasmussen Reports national telephone survey found that just seven percent (7%) say it’s Not at All Likely that the government would change the rules to give itself an unfair advantage. Another 23% say it’s Not Very Likely.

The notion that the government would give its own company an unfair advantage is consistent with the view—held by 70% of voters nationwide-- that big business and big government are generally on the same team working against the interests of consumers and investors.

Under proposals currently in play, the federal government and the United Auto Workers union could end up as majority owners of the two auto giants. Just 18% of Americans believe that ownership team would do a good job running the companies. Seventy percent (70%) continue to oppose any additional bailout funding for GM and Chrysler.

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Sixty-nine percent (69%) of Republicans say that, after taking over, the federal government would give its own auto companies an unfair advantage over others. That view is shared by 49% of Democrats and 54% of those not affiliated with either major political party.

Sixty-six percent (66%) of entrepreneurs believe that the auto companies are likely to receive unfair advantages. Voters overwhelmingly believe that small businesses are hurt more by regulations than big business.

Bankruptcy lawyer Tom Lauria recently alleged that the government has already engaged in unfair practices. He claims that while negotiating the fate of Chrysler and its obligations, one of his clients "was directly threatened by the White House … under threat that the full force of the White House press corps would destroy its reputation if it continued to fight." The White House denies the allegation.

“The potential for favoritism and preferential treatment helps explain why only 53% of Americans prefer capitalism over socialism but 77% prefer a free market economy over a government managed economy,” according to Scott Rasmussen, founder and publisher of Rasmussen Reports. Recent polling shows that just 35% now believe that a free market economy is the same as a capitalist economy.

Skepticism about the use of government regulations for favoritism runs deep: 68% of voters say most business leaders contribute to political campaigns primarily because the government can do so much to help or hurt their business. Other data shows that 59% believe that when members of Congress meet with regulators and other government officials, they do so to help their friends and hurt their political opponents.

The taxpayer-backed loans to keep Chrysler and GM in business were provided despite strong public opposition. Looking back, most Americans still think that the federal bailouts were a bad idea. But America’s Political Class holds an entirely different view.

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