In our fragile economy, failure to act to keep the auto industry afloat is simply not an option.

Our government moved quickly to help Wall Street because of its impact on the entire economy.  With the American auto industry teetering on the brink of disaster as a result of the global economic recession, it’s equally critical to help families on Main Street by approving immediate assistance to Chrysler, Ford and GM.  Now is no time to leave the millions of workers who rely on the American auto industry for their livelihoods out in the cold.  And it is no time to throw our economy into a deeper downward spiral when we can least afford it.

Not only does the American auto industry directly employ hundreds of thousands of workers, it also supports billions of dollars of economic activity in communities all across the country.

Beyond immediate assistance, we must also invest quickly in energy efficient automotive technology, which would mean more jobs and a stronger American auto industry that is competitive around the globe.

First of all at this hearing, nothing seemed to be producing a lot of facts or information that was useful to the members of the Financial Services Committee or to the American people. As far as the bailout plan, I think we have spent about $350 billion dollars and have gotten very little result from that, which indicated to me that the Secretary and Bernanke had no idea what they were doing.

It’s unfortunate that we have squandered some more American taxpayer dollars for something that has not worked. We are no better off today than we were in early October. I am more interested in what Sheila Bair is talking about, of dedicating $24 billion dollars that was left over to do loan modifications, to keep people in their homes, to attack the root cause of the issue, which is housing foreclosures. Until we start addressing that, we are just spinning our wheels.

Labor costs, enormous pension and health care liabilities and inefficient production have all contributed to the current crisis in the auto industry.  But, Big Three executives are putting the blame entirely on the economy and that does not add up, especially when other car companies are staying afloat. They are not taking responsibility for what has been in the making for years.  Instead they are looking to you, the taxpayer, to bail out their bad decisions and are blaming it on the economy. Read the rest of this entry »

I think this hearing and the one we are going to have Wednesday are essential in terms of getting information from the Administration, particularly the Secretary of Treasury and Chairman of the Federal Reserve, to where we have been, where we are, and where we are going in dealing with the economic crisis. I think there has been hesitancy on part of the Administration to provide that information and as a result, it’s jeopardizing the confidence of the American people and Congress in the action that the Administration is taking to address this crisis.

There is a lack of understanding between the parties testifying and Financial Services Committee. We and the American people are interested in determining where we stand in addressing the economic problems.  There is a shaken confidence level out there and we are trying to repair it.

I think the bailout is effective in terms of stabilizing the markets. I think it has some serious deficiency, at least in my mind, about picking winners and losers, which I attempted to emphasize with National City Bank in Cleveland. It also hasn’t reached down into the neighborhoods yet, and that has to take place. It’s moving forward, but it is certainly not mission accomplished.

Regarding a second stimulus package, I’m always a big fan of infrastructure and creating jobs that way, but some of the stuff we’ve been talking about I’m not a big fan of, so we’ll see.

The Bush administration has committed $290 billion of the $700 billion rescue package and not filled the mandated independent oversight posts.  When added to AIG’s recent spending sprees, it is imperative that some serious changes be made.

AIG is reported to be planning to spend $503 million in deferred compensation to some of its top employees. They also held a $340,000 conference at an Arizona Resort – which included poolside meetings and upscale dinners. Read the rest of this entry »

NFIB is opposing any attempt to bail out Detroit’s Big Three auto companies without significant restructuring and effective independent oversight.

One publication described our opposition to a bailout without conditions as “surprising.” Not at all, and here’s the reason why: There are many small businesses across the country struggling to make payroll and pay the bills. They aren’t asking for a bailout, and neither should the automakers. Read the rest of this entry »

On one hand you have Senator Ted Kennedy’s return to the Senate and Senator Max Baucus’ bold call to action on health care reform. On the other you have an economy in turmoil and worries about our nation’s fiscal future. In the middle is a question that comes as no surprise: can we really afford health reform? At the New America Foundation we respond with a different question: can we afford to wait any longer?

As our recent data analysis shows, failing to fix our broken health system is greater than the cost of investing in reform. Consider that the U.S. economy lost as much as $207 billion in 2007 because of the poor health and shorter lifespan of the uninsured. This is over $4,500 per uninsured resident – more than the cost of providing that person with quality health coverage.
Read the rest of this entry »

See new responses from Rep. Earl Blumenauer (D-Ore.), National Association of Manufacturers Vice President for Tax and Domestic Policy Dorothy Coleman, Rep. Ileana Ros-Lehtinen (R-Fla.), Public Citizen President Joan Claybrook, and Rep. Michele Bachmann (R-Minn.) to The Big Question, a feature where influential lawmakers and interest group leaders give their answers to a question that’s driving discussion across the country.

Today’s Big Question: Is bailing out Detroit good policy or bad policy?

The Big Question is a feature where influential lawmakers and interest group leaders give their answers to a question that’s driving discussion in news circles around the country.

Today’s Big Question is: Is bailing out Detroit good policy or bad policy?

Look below for responses from Rep. Earl Blumenauer (D-Ore.), National Association of Manufacturers Vice President for Tax and Domestic Policy Joan Claybrook: Rep. Ileana Ros-Lehtinen (R-Fla.), Public Citizen President Joan Claybrook, Rep. Michele Bachmann (R-Minn.), Americans United for Change Deputy Executive Director Caren Benjamin, Judicial Watch President Tom Fitton, House Minority Leader John Boehner, Cato Institute Center for Trade Policy Studies Associate Director Daniel Ikenson, Sen. Bernie Sanders (I-Vt.), Rep. Ron Paul (R-Texas), and Americans for Tax Reform President Grover Norquist.

Rep. Earl Blumenauer (D-Ore.): The question of whether an additional bailout of the auto industry is good or bad policy depends entirely on how we provide assistance.

Giving the Big Three auto makers more funds to continue business as usual is probably not good policy nor is it a wise use of resources. I have long advocated investments that accomplish more than one objective. Read the rest of this entry »