Tag Archives: tax payers

Pondering The Auto Bailout

A CNN research poll showed that 61% of Americans oppose a government bailout for the U.S. auto industry:

NEW YORK (CNNMoney.com) — A majority of Americans oppose a bailout of the troubled U.S. auto industry, according to a poll released Wednesday.

The CNN/Opinion Research Corp. poll, conducted by telephone on Dec. 1-2 with nearly 1,100 people, showed that 61% of those surveyed oppose government assistance for the major U.S. automakers.

[…]

A full 70% of respondents indicated that a bailout is unfair to taxpayers.

In addition to being unfair, the poll showed that a majority of those surveyed think a bailout would not help the economy.

CNNMoney.com

Before I say another word, I want to make clear that I am not claiming any kind of expertise in the area of economics. I wonder, though, if a simple, common-sense approach to this might be in order.

Let’s begin with the the concern that a government bailout of the auto industry would be unfair to taxpayers. I wonder if the people who oppose the bailout on these grounds have considered the 3,000,000 (three million) people who make up the auto industry. That’s 3,000,000 more people out of work!

Will those who are claiming that a bailout would be unfair to taxpayers be OK with those 3,000,000 people putting their children on Medicaid, receiving food stamps and government funded housing assistance, and a variety of other forms of government aid — all of which is funded by taxpayers?

For those who are concerned about the fairness to taxpayers, doesn’t it make more sense to support a one-time bailout which will keep 3,000,000 people working, out of the unemployment and “welfare” lines so that they have more to put back into the economy?

Yes, the economy. That’s the other concern. In addition to a bailout being unfair to taxpayers, those opposing it also think that it would not help the economy.

And putting 3,000,000 people out of work will?

Like I’ve already said, I’m certainly no expert on the subject. But I don’t think it takes an economic genius to figure out that putting 3,000,000 people out of work can’t be “fair” to taxpayers or good for the economy.

Am I missing something, or have these people not thought this through very well? Sure, there need to be restrictions and conditions on any sort of bailout. But, in the bigger picture, doesn’t it make more sense and benefit all sides to keep the auto industry moving and 3,000,000 people working?

As always, I welcome any and all feedback.

Posted by Lottie — Copyright © 2008 Rambling On