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Pelosi Joins White House in Approval of Big Three BailoutPublished 09/10/08 Craig Harrington - Print ArticleE-mail - editor@economyincisis.org The White House, both Presidential candidates and now the House of Representatives seem likely to approve a multibillion dollar bailout package to Detroit-based automakers, according to The Free Press. The proposed package would amount to $50 billion in loans to General Motors, Ford and Chrysler, all of which have struggled amid lagging sales and massive debt. The automakers have argued that they require government assistance if they are to retool their manufacturing to emphasis the small, light, fuel-efficient cars of the future and regain their competitiveness with brands such as Toyota and Honda. The government approved $25 billion in loans to automakers in last year’s energy plan, but that money was never made available. The new plan would call for $50 billion over three years; $25 billion the first year, $15 billion the second and $10 billion the third. This planned proposal would charge the automakers an interest rate of just 5 percent, as opposed to the 20 percent or higher commercial lenders would charge. The loan package is hoped to provide sustainable stability to the already greatly undermined industry and potentially protect thousands of American jobs. However, the responsibility of such a spending plan has to be questioned. The U.S. government not only runs budget deficits nearly every year, but it has accumulated debt over the last 50 years amounting to trillions of dollars. The United States has no money to loan anyone, even for a project as seemingly important as this one. The U.S. must first borrow money from another country willing to finance our spending, and then turn around and loan that money away. This plan would not just cost the government $50 billion; it would cost the U.S. $50 billion plus interest over many years. Without a balanced budget, any major government program will simply cost the U.S. much more in the long-run. Source The Free Press:
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Unions are a joke. You are forced to pay money to people who do nothing then they make you miss work for something you may not care about. If the people running the companies were REAL Americans, unions would not be needed. For now we need them because the conservatives have given big business and foreign power too much of our rights and our money. Do not blame the Liberals, blame yourself for voting inside the box. we need REAL change, that means looking outside the Rep/Dem party. Together they are destroying America.