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Politics : Formerly About Advanced Micro Devices
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To: Tenchusatsu who wrote (782362)4/28/2014 1:49:51 PM
From: Wharf Rat1 Recommendation

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SiouxPal

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"The American auto industry would have survived without government intervention."

Nope... the entire domestic supply chain was collapsing, and, without that, Ford wouldn't have been able to survive. There were no private sources willing to finance GM and C. That leaves the USG.

The GM Bailout: Did Obama really save the Auto Industry?
August 5, 2013






As the 2012 election approaches, there will be much talk on both sides regarding the Obama administration’s role in saving the American automotive industry. You don’t have to take the Obama administration’s word for this, The Economist (initially against government help for the auto industry) has since issued an apology. And GM is once again the largest auto maker in the world.

From The Economist:

First, here are a few charts which show a clear correlation between the Obama administration’s actions and activity in the auto industry.





Because the above fact looks good for the Obama campaign, it looks bad on Republicans, especially Mitt Romney who suggested allowing Detroit to go bankrupt. So Republicans have a list of “reasons” why the auto bailouts were still a bad idea. I have organized them below and provided responses to them.
Myth 1: Only GM and Chrysler (not entire auto industry) were in trouble
 GM and Chrysler going under would have resulted in the loss of not only GM and Chrysler jobs, but the jobs of many industry-related workers (think automotive supply, fabrication, aftermarket, etc). The result would likely have been hundreds of thousands, possibly millions of job losses that would have further depressed non-automotive related industries (ie. retail and aftermarket companies where newly unemployed automotive or closely-related workers would no longer be spending their money). Knowing that GM’s bankruptcy would have a domino effect that would affect auto suppliers throughout the supply chain, Toyota and Honda agreed that GM should be bailed out.

factandmyth.com
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