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U.S. Congress more generous to Iraq than American automakers
Australian News.Net
Sunday 7th December, 2008
It is a cruel irony to Americans that the Congress that was so quick to commit to an invasion of Iraq, which will cost up to $3 trillion, is procrastinating over a rescue plan for it’s country’s own automaking industry.
The cost of Iraq in direct terms is in the order of several hundred billion dollars, with some parties forecasting the overall cost, including indirect funding, to ultimately come in at $3 trillion.
President-elect Barack Obama repeatedly during the election campaign for the presidency made the point that Iraq was costing $15 billion a month.
For a Congress that failed to properly scrutinize the Bush administration’s mission to invade and occupy Iraq, and failed to oversee the war torn country’s reconstruction program, it is taking a closer interest in blocking an urgent revival program for the nation’s three biggest automakers, which unless it acts soon, will result in the industry’s deconstruction.
On Friday night Chrysler Inc., engaged bankruptcy attorneys Jones Day to prepare the way for the firm’s likely path into Chapter 11, as time is running out for the struggling automaker. General Motors is also considering plans for bankruptcy as the Congress continues to deliberate. Industry analysts say the failure of one or more of the big three could result in the loss of millions of jobs throughout the U.S. economy, as manufacturing, spare parts production and distribution, car dealerships and regional economies are dependent on the viability of the automakers.
As one blogger put it on Nashville’s City Paper:
“Does congress not realize the number of jobs and the amount of money connected to the auto industry? Take Spring Hill. There are the auto workers, the suppiers of parts and service to the factory, the suppliers of parts to the suppliers, the suppliers of raw material to the suppliers, the owners of restaurants and shops in the area, the suppliers to the shops and and restaurants, on and on. All would die if GM dies. All of these businesses and their employees pay taxes... not if GM dies. Do some math and see if Spring Hill as a municipality could survive. And this scenario plays out in town after town all over the country. If the auto companies go away, hold on to your hat. Depression WILL hit this country not to mention, any car someone might buy, the profit goes to Japan or somewhere else. You would not be able to buy an American car even if you wanted to and who says the car prices won't go sky high. You would pay whatever the Japanese say. It will be just like oil is now... we don't have our own and this country is headed toward becoming a third world country. We won't make anything and we all just become consumers. Very scary.”
Over the weekend it appeared an emergency assistance package of half of what the automakers were seeking may be approved on an emergency basis – but the details have yet to be worked out. If secured it would amount to little more than one month’s funding of Iraq.
The amount currently being considered, $15 to $17 billion equates to little more than 2% of the $700 billion Congress approved for the banking industry.
When Congress approved $162 billion in additional funding for Iraq and Afghanistan in June this year the Senate vote for the package was 92 to 6. The funding was to cover the cost of the wars until the new president takes over. The spending bill took the amount Congress has directly provided for Iraq to $650 billion, and for Afghanistan $200 billion.
Several U.S. firms with ties to the Republican party and the Bush administration have benefited from non-compete tenders to the tune of hundreds of billions of dollars. It must come as a blow to the workers in the auto industry throughout the country, that so little regard, so much scrutiny, and so much time is being used to vet what everybody in America knows: the auto industry needs help, and it needs it now.
It seems Detroit is another New Orleans when it comes to getting the Federal Government’s attention. If news reports that the automakers request for $34 billion is likely to be halved in any assistance approved, it will be like the initial response that New Orleans got after Katrina.
It’s a pity Detroit doesn’t have weapons of mass destruction.  Email this story to a friend
Comments on this story
T.A.
12-07-08, 02:21 PM |
WHERE IS BILL CLINTON?
How can the economy go from everyone working, prices were low & everybody was buying? I blame Bush for only doing one think in his whole 8 yrs.And tht was the Iraq war. Nothing else for the nation, not one thing.
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Taxpayer
12-07-08, 12:14 AM |
U.S. Congress more generous to Iraq than American automakers
I drive an 18yr old BMW which is put together better and drives better than anything that Ford, Chrysler and GM puts out today. The American automotive industry has learned nothing from Honda and BMW, it just keeps on building cars that nobody wants to buy. Why should average taxpayers have to fork over $Billions to subsidize the automakers and its well paid workers, most of whom enjoy better wages and more benefits than the average taxpaying Joe on the street? Let them build better cars or go out of business.
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GlueBall
12-07-08, 01:45 AM |
Foreign car factories in USA
Major foreign car factories in USA: Mercedes Benz at Tuscaloosa, AL; Toyota at Georgetown, KY; Honda at East Liberty, OH; BMW at Spartanburg, SC . . . to name a few. Hundreds of thousands AMERICAN workers are employed at these and other USA plants. VW is building a factory right now at Chattanooga, TN. There is no need to keep subsidizing Ford, Chrysler and GM cars if they can’t compete and if people don’t buy them! Get real!
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Anonymous
12-07-08, 12:57 AM |
Lets get behind the autoworkers
Well I think thats the whole idea. Give them the support they need to retool and produce better cars. They are willing to do this and have already provided plans to to build more energy efficient vehicles. Can you imagine the cost of your next BMW is there is no Ford, Chrysler or GM? This is about producing better cars in America, using the millions of Americans we have in the auto industry workforce (including car dealers, spare parts retailers, car finance brokers, etc etc) - rather than simply closing down and importing cars and trucks from overseas.
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Anonymous
12-07-08, 01:00 AM |
This is about the workers
If Congress turns its back on the auto industry it will be turning its back on 3 million workers in this country. I’m not worried about the shareholders of the big 3, I’m worried about the workers. There are (or were) 25 million people in Iraq. If we can support them to the tune of hundreds of billions or trillions of dollars, I don’t see how we can’t fork out 20 or 30 billion for our own workers.
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Pilot Pres
12-07-08, 08:09 AM |
Look at the True Story
I worked for a subcontractor for GM, 3 years ago I was sent home the Thursday before Chrismas because my job was sent to Mexico. For 2 years that I worked for GM, I watched all the executives come rolling in between 10, 11 and 12 o’clock, go to lunch and then leave at 3 or 4 o’clock. While I do feel very bad for the families and the workers that would suffer, they need to look at the upper management that caused this disaster.
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elscrapito
12-07-08, 09:25 AM |
where were you on the banking aid
I was against the banking aid, but congress saw fit to bail out the moneymongers. I have lost my business because the economy is so bad people cannot afford repairs to their houses. I lost my home because I couldn’t afford the payments. The bank that foreclosed on my home, sold it to another bank for more than I owed, then that bank sold it for less than half of what it was worth. They took a $120,000 loss because no one is working. This LOAN to the big 3 is needed by more than just the exec’s. Stop the diseased economy with more than just a band aid. Give an antibiotic injection real aid. $$$ and a dose of anti NAFTA and buy AMERICAN.
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Anonymous
12-07-08, 10:44 AM |
-
This whole thing has a combination of guilt. Far too powerful Unions in bed with the fatcats that run the auto industry, a congress that requires impossible CAFE standards to the industry (government restriction to competition) greed and power goes all around. The credit industry adds to the problems and last but not least the high profit making cost of oil broke the back of global economy and brought all this about...None of us have any control over all those factors.
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factoryrat
12-07-08, 08:26 PM |
Am I the only person in this country who WANTS to drive an SUV? Should I be embarrassed?
If those blowhards in Congress have their way, we will all be driving that silly little
SMART CAR, while they still tool around in limos! Try putting 3 car seats in a
compact car. It’s not only impossible, it’s very unsafe. If I’m willing to give up
3 or 4 miles of gas millage for the safety of my kids, am I Un-American? Anyone needing a Ford F150 better buy it now, before Congress bans them!
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American by birth
12-08-08, 02:02 AM |
Please wake up,
You ever lived in a box under a bridge. That will be concidered high living if the country dont wake up and get there head out of there crack. Plain and simple we need to buy everything we possibly can made in the good ol USA. Dont bite off the hand that feeds you. Wake up.Why do you want to send all your US dollars to Japan or Germany,I drive a 12 year old Chevy. Its a great truck. You,d be surprised what would happen if we,d stop giving all our money to all the other countries.Think about it. Its really simple.I worked for GM 32 years. I thank them for everything they did for my family and I. There just a company trying to survive in the U.S. Let the big 3 fail and you haven,t seen depreshion in our country yet. It wont be pretty. What kind of box do you want to live in?
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Anonymous
12-08-08, 01:33 PM |
The Big 3 Build What People Want!
I get tired of the argument that the big 3 build cars that people don’t want. This simply isn’t true! You’ve been brainwashed by the media. The big three have almost 50% of the market share. It’s amazing that they still have this much market share when every time you turn around the media is bashing the Big 3 or the UAW.
The problem isn’t a failed business plan. All of the automakers are hurting right now! That is what happens when sales go from 17 million units to 12 million units in one year. The big 3 are also at a disadvantage to the transplants because they helped build this country and have legacy costs to show for it. Should they be looked down on for this? No! Who could have planned for health care costs skyrocketing like they did?
All of you idiots that just graduated from business school that think that Walmart is a great business model and that we don’t need a manufacturing base need to pull you head out of you know what. Guess what, you and I are subsidizing Walmart employees because the company that makes billions of dollars isn’t paying their employees a living wage. This countries wealth was built through manufacturing and now we’re going bankrupt through debt to other countries. Wake up people and start supporting your own country.
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