Monday, December 08, 2008
The Auto Industry Bail-out Answer
If you are like me, then you have been watching a lot of TV during which Congress has been debating the auto-industry bail-out. You may also have caught mention that President-Elect Obama has reportedly removed any mention of an oil-industry windfall tax from his website. I heard this and a light bulb went off:
The oil industry should bail out the auto industry.
Seriously. The oil industry has made billions off consumers (i.e., taxpayers) with high oil prices. It has a large, vested interest in keeping Americans buying gas and oil. Hence, it has the money and the motivation to save the auto industry. And it wouldn't cost taxpayers a dime.
If the government can negotiate for Chase to buy Washington Mutual and for Citi to try to buy Wachovia, why can't the government start pushing the oil companies to lend the auto builders the money they need to stay in business?
Further, why haven't I heard anyone in Congress say that if they auto industry takes taxpayers' money, it has to promise to spend every dollar in the US? And with plants in Canada and Mexico and other countries, why aren't those governments being asked to chip in?
We shouldn't use taxpayer dollars to save the auto industry. Let the oil companies do it. And if we end up using taxpayer dollars, then every dollar has to be spent in the US, with not one penny going to executive compensation or perks.
If you agree with me, feel free to forward this blog to your Congressman.
Posted by Andrew Zack at 2:29 PM