The question isn't about should we bailout the auto industry. The Bush Administration, the GOP and the Democrats all agree that a bailout is necessary. That isn't even the question. The bailout WILL happen, simply because letting Detroit go under would be a massive blow to the US economy, cost about 3 Million Jobs and push unemployment into the 10% range. Obviously nobody wants this.
The question is where is the Money going to come from.
The Dems want to use part of the $780 Billion that was given to the Wall Street banks. The GOP wants to use funds set aside for researching new alternative fuel cars for the Bailout. The Dems say this that is a non-starter.
Frankly the Dems are right on this. We need to get off oil for a variety of reasons that should be obvious, and the only way thats going to happen is to replace the combustion engines with something else. The oil industry has worked feverish since the 1970s to kill off alternative-fuel automobiles, and of course the ties between the GOP and big oil and well known. Meanwhile the automakers would just love an excuse to push out another gas-guzzling Hummer because the profit margin is greater and because they are lazy. R&D into new ideas cost money and the auto industry would prefer live in the past pushing techology thats clearly obsolete rather that investing in the future. Which is why the Asians are going to beat the pants off the US auto industry once again.
What everybody doesnt realize is that the current drop in oil is only temporary, the moment the US economy stablizes the price wil start to rise again.
"My center is giving way, my right is in retreat situation excellent. I shall attack." -Foch
I am from NYC. I fly a French flag because I work in Paris.