Bush’s Auto Bailout program attracting praise and criticism
Automakers Chrysler and GM have been thrown a lifeline by the Bush administration. The $17.4 billion promise made by Bush to struggling automakers has won appreciation on one end and has also raised some eyebrows on the other.
The idea has been disliked by the Congressional Republicans who believed that the large sum of money should have been directed towards banks and financial firms. The autoworkers union has however shown appreciation of the bailout program and has accused the Republicans of being harsh on them.
Barack Obama, who is all set to take office in January has appreciated the efforts of the government. However he warned the auto companies not to take the bail out program as a chance to squander money. He urged them to reform bad management and make best use of the lifeline that has been thrown at them during the current financial turmoil.
Once Obama takes office he will have the authority to reopen the arrangement and discuss new terms with the United Auto Workers Union. Obama did not commit any possible changes in the plan.
The Auto industry provides more than three million jobs across the country. The $17 billion loan package has provided struggling companies to get back on their feet and has not only managed to save the companies but also the millions who are employees in the industry.
The auto industry is of vital importance to the economy. This is because it affects almost every sector of the economy and therefore it was integral to help it survive. The loan package was announced to help the companies avoid facing bankruptcy. While the president has announced an overly generous loan he has also issued a warning that if the companies fail to restructure they would have to pay back the loans immediately.
The Republicans are however adamant on their point of view that tapping on the national reserve to bail out struggling auto makers is not a very wise decision. The loan package has also been termed as an abuse of power by the Republicans. They also claim that many adjustments and changes will have to be made because of the big promised loan which the government has not yet taken into account.
