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Senators Looks for Reassurances on Automaker Bailout
Dec 04 2008 by Sara Lacey
The Big Three CEOs are back on Capitol Hill today. They’re continuing their pleas for financial assistance from the government while Congress tries to decide how to proceed.
This morning’s big question was asked by Sen. Jon Tester (D-Montana). He asked Gene Dodaro, the Government Accountability Office’s acting comptroller general, if he could provide reassurance that we wouldn’t be back in the same position in a year or less if the bailout occurs. Tester wanted to know that the automakers wouldn’t be back at Congress’ door, hat in hand. Dodaro said the GAO hadn’t done the work to determine whether that would happen and that any assurances weren’t possible.
This is important because it seems to be the one question that could tilt some votes in favor of the automakers. It’s the one question we can’t get ironed out as of yet.
Parental sidebar: I sense that Congress wants something like a crystal ball to help them figure out the best situation for the automakers. As a parent, I can relate. I’d love reassurances that my decisions are the best ones for my kids, and in the absence of hard evidence, a crystal ball sure would be nice.
Sen. Sherrod Brown (D-Ohio) asked Dodaro about how unemployment funds, food stamps, Medicaid and other programs would be affected if the automakers go out of business or into bankruptcy.
“There’s no question to the extent to which unemployment rises, it puts additional strain on all this social safety net programs that you mention, Senator,” Dodaro said. “Not the least of which is health-care costs and Medicaid, which is already growing at a rapid rate.”
Bob Franken, a MSNBC correspondent, made an interesting point about the support for the bailout proposal. “What you have is a sort of geographical split here. We were just watching Sherrod Brown, he’s from northern Ohio,” Franken said. “It’s part of the nation’s Rust Belt that has a direct investment in the future of the automobile industry. But as you move farther from that to the Sun Belt there is less support for it because there’s not such a direct effect.”
There’s lots of wrangling going on in Washington, D.C.; we’ll keep you posted.
Why aren’t the financial bailout recipients being questioned about “being back in the same place in 5 years?” And if the Sun Belt thinks this doesn’t affect them, then they’ve gotten too much sun - the auto industry affects 1 in every 10 jobs in America, NO MATTER WHERE you live!