In a further revelation about how entirely terrible the auto bailouts were, the Daily Caller has been doing some good investigative journalism and uncovered evidence that administration officials intentionally subverted contract law, pension agreements, and bankruptcy law in an effort to help union members and do harm to non-union employees.
This is directly related to economics because as the government expends efforts to determine winners and losers in the marketplace the co-ordinative ability of the market is severely compromised. People begin to make business and personal choices based not market support, but on the likelihood that government will support them. This leads to misallocation of resources - harmful because of the money spent, but much more harmful because those resources (money, people, etc...) are not being used to produce something people actually want to buy.
The several dozen failed fedgov investments in green energy projects come to mind here.
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