How quickly we forget $25 billion dollars! Just this September, Congress approved $25 billion in aid to the struggling U.S. auto industry. And the big three is back for another $25 billion dollars! Sincetotal market capitalization for the Big Three is about $7 billion, why are we talking about loaning them a total of $50 billion?
Some of you may remember when Chrysler got its 1980 loan guarantee. Back then Lee Iacocca cut his annual salary to a dollar and slashed the wages of other top workers by 10 percent. The tax payers never paid a cent. It was a $1.5 billion loan guarantee.
Another great comparison of world auto industry
Another history lesson: 30+ years ago everyone said that the steel industry was important to our domestic economy. No bail out was provided and we survived (including Pittsburgh, Youngstown, etc.).
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