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,
â€śItâ€™s unfathomable. Itâ€™s unthinkable. Failure is not an option,â€ť Bernero continued. â€śThis industry is too important, not just to
Bernero compared the possible auto bailout to the previous Chrysler bailout.
â€śLook 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€ť said Bernero.
But one Bloomberg editor disagreed with that assessment. â€śWell, itâ€™s different this time because this landscape is different,â€ť Bloomberg Editor-at-Large Doran Levin said of the Chrysler comparison on Bloombergâ€™s â€śOn the Economyâ€ť podcast Nov. 7.
â€śFirst of all Chrysler was the weakest of a
Smith noted during â€śThe Early Showâ€ť that the city Bernero represents is home to some 6,000 auto industry workers.
Bernero even sparred with Fox Business Networkâ€™s Neil Cavuto over the issue Nov. 16, arguing that not bailing out the auto industry was a â€śprescription for going from a recession to a depression.â€ť
â€śHere 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 â€¦ Our companies are competing against countries, theyâ€™re not competing against other auto companies because they would be winning,â€ť Bernero said. â€śThe fact of the matter is Hyundai, and
Bernero continued, â€śIâ€™m not here to tell you that the American auto companies didnâ€™t 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€ť
Cavuto prompted Bernero by saying his support of the bailout was all about politics.
Cavuto asked, â€śSo mayor, if you were mayor of
â€śYou canâ€™t 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 â€¦ 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 didnâ€™t,â€ť Cavuto said.