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Anonymous
Anonymous asked in Politics & GovernmentPolitics · 1 decade ago

If republicans believe in corporate welfare, why are they resisting the auto industry bailout?

Republicans have long been accused of being in the pocket of big business. So why are they against the auto industry bailout?

The auto industry has already been given $25 Billion by Congress to make more efficient cars. Why can't they use that money? Why do they need another $50 Billion to stay around?

Or are democrats the ones who support corporate welfare and is this a prime example?

GM, Chrysler, and Ford need to focus on quality and Harley Davidson is a success story in this area. Should the big three hire Harley to show them how should be done?

Update:

Isn't the auto industry part of big business?

18 Answers

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  • 1 decade ago
    Favorite Answer

    Because we have never supported any kind of welfare, that is a myth.

    They need the money to pay for the benefits of their union workers and retirees. That is why they can;t compete. The foreign car makers are not unionized and don;t have to spend an additional $2500 per car for labor just to make them and that doesn't account for their benefits package.

    Harley is not a union company that is why they are profitable. Maybe if a couple of million people lose their jobs, they will see how crippling the unions are and do away with them. Life isn't fair or easy, it's time some people just accept it. I am a small business owner and if I were forced to unionize I would close up shop!

  • Anonymous
    1 decade ago

    Republicans resist the auto industry bailout because they know they can get away with it. Since there is a Democrat majority, the bailout will probably still happen. Republicans can still look like they advocate smaller government intervention without being responsible for millions of Americans becoming unemployed. If John McCain had won the presidency, I bet you'd see the Republicans whistling a different tune, talking about how integral the Big 3 are to the US economy and how we can't allow them to fail in an already struggling economy.

  • ?
    Lv 7
    1 decade ago

    Because a large portion of the money would go to help out the unions and pay the pensions and health benefits of their retirees. Very little of the money would go to actually help the company get out of their mess. Also, one of the companies blamed the economy on their problems. They may be partially true but, the failure to take responsibility for their own problems have turned many republicans off. If it was just the economy the Japanese automakers would be in the same situation. They are not.

  • Anonymous
    1 decade ago

    Hmmm The Republicans claim they believe in Capitalism but do not care to subscribe to the whole system. The Father of Capitalism, Adam Smith clearly stated that the system would not work WITHOUT UNIONS as a system of checks and balances to Corporate Greed. A failure to have strong unions would result in failure and collapse of the Capitalist Economy......hmmm sound familiar???

    That is what has happened in our country. There is no middle class to speak of any more. There is no fair wage in this country anymore and the greedy B's just can't seem to get it that if you continue to erode the middle class there will be no more dollars going into their greedy overstuffed pockets... they have all of it and do not want to play the game fairly.

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  • Mike
    Lv 4
    1 decade ago

    Take a look at who runs Congress. It is democratic. Now, look at who is pushing for the bailouts.

    "Senate Democrats intended to introduce legislation Monday attaching an auto bailout to a House-passed bill extending unemployment benefits; a vote was expected as early as Wednesday."

  • Anonymous
    1 decade ago

    the 700 billion dollar bailout was ironic coming from republicans. Welfare came from Democrats and is supported by Democrats, Republicans only do this because it's supposedly important.

  • Anonymous
    1 decade ago

    Because they are no longer in a power position in the Congress. The car industry needs to go away and come back as the leaner, more fit entity who is ready to do business for the people. Ready to sell good cars at a reasonable prices.

  • 1 decade ago

    It would be good money after bad....the industry is controlled by unions which are sucking the life out of them, and unions are huge contributors to Dems whose policies in Michigan have ruined the state economy too. Let 'em declare bankrupcy, they'll still be around, shed the 19th century unions and get back in the game.

  • Anonymous
    1 decade ago

    Because this mess was caused entirely by the greedy UAW

    Let them fix the mess they created

    " 22 dollars an hour"

    The average auto worker makes 43 an hour. That is overpaying for the skills they have.

  • Anonymous
    1 decade ago

    The Democrats are the ones who support corporate welfare and is this a prime example.

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