North West Florida Republican

It is no secret. The big three automakers are not doing good. They are running short of cash. No, they are not out of cash yet but they could be if things don’t go good. They want to head off a problem by asking the Government for another $25 billion in loans. On top of the $25 billion in loans that Congress has already given them for retooling. Some of which probably went to pay labor unions.

The automakers asked Congress for more money. The amount of money they have asked for is unclear. They couldn’t give a number. Nor could they say when they would pay it back or if it would be enough money.

Claims that Bankruptcy would mean loss of thousands of jobs is misleading. The companies that file bankruptcy don’t just close the door and stop manufacturing goods. They continue to operate while negotiations are underway to restructure.

This is what the automakers need to do. Restructure. The best way to Restructure is Bankruptcy.

Labor unions are not in favor of this at all. It will definitely affect their bottom line. It will mean fewer members and less dues. It could also mean that they are even more marginalized. This is why the leaders of UAW has petitioned those they supported in the elections to approve a bailout loan to the automakers.

While the CEO’s have ganged together to petition congress for $25 billion dollars, congressional members don’t buy the story from these three. Some Senators, like Senator Jon Kyl (R), are skeptical that a bailout of the big 3 would even work.

But the prospective bailout is getting held up in the Senate, where lawmakers don’t appear keen to save the ailing industry. “Just giving them $25 billion doesn’t change anything,” Sen. Jon Kyl, R-Ariz., told FOX News. “It just puts off for six months or so the day of reckoning.” – Fox News

At least some members in congress are questioning the need and the ability of the loan to be paid back.

The question we should be asking our Representatives is if they support a bailout of the Big Three. Given the history of some of them, they will certainly vote to bail them out. We can see what has happened to the $700 billion bailout that was supposed to be for financial institutions. Will the same thing happen with the Automaker bailout? No one can answer that question.

If the bailout is approved, it will just postpone the restructuring to another day.

Let the Automakers go into bankruptcy. Let a judge force restructuring so that the automakers can return to profitability. If they need a loan afterward then we can get congress to provide that.

Sure, there is the possibility that people would lose jobs. Just like everyone else, they will have to deal with that.

Enough is enough. Congress needs to stop providing free money to anyone who wants it. We can’t afford for the Democrats to double the budget deficit in less than 6 months.

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