Politics

Auto Industry Bailout not in Country’s Best Interests

Despite the protests by me and many of my Republican colleagues, it appears as if the Democratic leadership of both Houses of Congress moved one step closer today to committing the American taxpayer to substantial role in restructuring the three domestic automobile manufacturers. I am opposed to this legislation in its current form.

Our legal system already provides an entire chapter of law devoted to how to reorganize struggling firms ? Chapter 11 of the United State Bankruptcy Code. A federal bankruptcy court has the expertise and structures already in place to ensure that the reorganization occurs in an orderly and equitable manner, free from the political interference that would surely be exercised by Congress or a politically appointed overseer.

With the millions of individuals connected to the domestic automobile industry, there is no fix to Detroit?s problems that will shield everyone from harm. But, given the dire picture that the Big Three have painted, it is clear to me that any delay in seeking relief in the form of a bankruptcy will only further imperil the companies and everyone dependent on them. Every day that goes by reduces the options available to the management teams to reorganize. Buying them a four or six month reprieve simply delays the extraordinarily painful choices that must be made if our domestic automobile manufacturers are going to continue to compete in a global industry.

Full post as published by Mike Conaway's Blog on December 10, 2008 (boomark / email).