The Auto Bailout Was Fiscally Responsible

[Infinite Hope]

However, it seems as though the auto bailout has paid off. One Chrysler plant “added a second shift of production to the tune of about 1,100 jobs.” Another Chrysler plant will add 900 at a plant outside Detroit. In the year following the bailout and bankruptcies, 55,000 jobs were created in the auto industry which is the largest growth for the auto industry in more than a decade. More than 10,000 additional jobs are projected to be created by the end of the year. Chevrolet and Ford are both operating at a profit and Chrysler is nearly profitable with only the interest on the government loans keeping them in the red.

...

Fiscal responsibility is a long term approach and means making the financial decision that is the most fiscally responsible, not necessarily the one that is the most fiscally reluctant.


http://thepoliticalpanorama.wordpress.com/2010/08/01/the-auto-bailout-and-fiscal-responsibility/">Read the full article and leave your 2 cents in a comment!

[Edweird]

1. I support helping industries that produce goods. Wall street - not so much.

Keeping the workers working is a good thing.

[Recursion]

2. TARP has made the government money, too

I'm not sure what to do with that fact.

[w4rma]

3. Where did the returns on the TARP money come from? Us. What did we get in return? We got robbed.

The Auto Company bailouts were good policy, however. They should have forced them to build more and pay more to workers here in the U.S., however. But, definitely good policy, in general.

[Recursion]

4. You mean ultimately where did it come from?

Directly it came from the firms that the Treasury held warrants on. I suppose you could find a way to say that money came "from us" originally.

[w4rma]

5. Sorry, I was a little less than clear in the previous post. Corrected, I think. (nt)