Here is the reason that I am for the 'bridge loan' to the auto industry: it's about the jobs.
Certainly, there need to be conditions on the money, but those conditions need to lead to developing new technology in the industry that save the current jobs at risk, and create opportunity for new jobs.
Secretary of the Treasury Henry Paulson's reason for the strategic change in the use of the $700 billion bailout money, from shoring up bad bank assets, to capitalizing banks, so that they will have the confidence to make loans follows the same 'trickle down' theory of economics that hasn't worked in the past eight years. Mitt Romeny's prescription for the auto industries problems will only lead to a greater economic collapse. Now is the wrong time for a 'You made your bed now lie in it' economic philosophy.
Corporations have the status of individuals in this country. But they are not individuals, and the failure of these companies impact the lives of real, flesh and blood human beings.
What we are desperately in need of our policies for the use of that money, that fee up the capital in the pockets of homeowners who are losing their homes and workers that are losing their jobs.
What has been proven is that homeowners and workers who make good wages, save, spend and invest. The fiscal policies associated with increasing the wealth of the wealthy has helped put us in the position that we're in and the answer to getting out of this meltdown, does not lie in rescuing the wealthy from their own excesses.
Allowing the Big Three to go under, isn't like McDonald's or Cosco's going under. If it's true that nearly 3 million jobs are in stake in some way and collaterally probably even more.
Abandoning auto makers to 'market forces', is not like punishing an unruly child. If we allow them to fail, we all get punished. Most of us have been punished enough.