Michigan Mayor Says No Auto Bailout Will Mean Depression
Give the auto companies billions of dollars or Americans will all be lining up for soup.
At least that was the warning from the mayor of Lansing,
âItâs unfathomable. Itâs unthinkable. Failure is not an option,â Bernero continued. âThis industry is too important, not just to
Bernero compared the possible auto bailout to the previous Chrysler bailout.
âLook at the Chrysler aid package 30 years ago. That was a good investment for taxpayers. It was paid off early and in full and I believe this will be a prudent investment,â said Bernero.
But one Bloomberg editor disagreed with that assessment. âWell, itâs different this time because this landscape is different,â Bloomberg Editor-at-Large Doran Levin said of the Chrysler comparison on Bloombergâs âOn the Economyâ podcast Nov. 7.
âFirst of all Chrysler was the weakest of a
Smith noted during âThe Early Showâ that the city Bernero represents is home to some 6,000 auto industry workers.
Bernero even sparred with Fox Business Networkâs Neil Cavuto over the issue Nov. 16, arguing that not bailing out the auto industry was a âprescription for going from a recession to a depression.â
âHere is where your rigid capitalist ideology tumbles, because you are forcing our American auto companies to compete in non-capitalist, in a non-free market economy âŚ Our companies are competing against countries, theyâre not competing against other auto companies because they would be winning,â Bernero said. âThe fact of the matter is Hyundai, and
Bernero continued, âIâm not here to tell you that the American auto companies didnât make mistakes. But those other auto companies made mistakes too. The difference is their governments are there subsidizing them, supporting them, providing healthcare, manipulating their currencies, and what we have here is pundits like you pulling the rug out from underneath them and kicking them in the shins.â
Cavuto prompted Bernero by saying his support of the bailout was all about politics.
Cavuto asked, âSo mayor, if you were mayor of
âYou canât pick and choose what you consider to be your nearest and dearest cause. Mayor, you are a great mayor, you are looking out for your people â I admire you for that. But to then say that this is somehow an important national issue if we let these guys go âŚ Mayor, I remember the same argument espoused to keep the television industry in America: Because there would be hell to pay; jobs lost if we didnât,â Cavuto said.