SecondWar said:
Am I correct in saying that (like with the banks) many republicans opposed the auto industry bailout or criticised it after it happened? If nothing had been done the knock-on effect (espcially in the short-term) would have been horrific. Thousands (hundred of thousands to millions? not too sure how many exactly the american big 3 employs). The chain reaction on other industry and the rest of the economy as a whole as all of those workers became jobless would have pretty much sent the US into a depression. |
its true that republicans did oppose the auto bailout. However, to be fair, the bailout is not what saved the auto industry, the managed bankruptcy's that they went through is what saved them, and republicans just wanted them to go through that first.
You see, the Auto companies were over leveraged and in toxic amounts of debt. The Bankruptcies helped them remove the toxic parts of the companies so that they could be leaner and more able companies.
The bailouts may have saved some jobs (not many) in the short term, but honestly, once the companies had gone through the bankruptcies they could have hired employees back if needed.