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Wednesday, May 25, 2011

Mitt Romney Flip Flops on the Auto Bailout

Remember in 2008 when President Obama gave the auto industry in Detroit several millions of dollars in an effort to prevent them from going out of business?  At that time, almost along party lines, Republicans said that the bailout would do nothing to save the auto-makers.  Some even went as far as to say that Detroit should be left to go into bankruptcy.  One of those Republicans was Mitt Romney.  At that time, Romney was going on every news outlet he could find to voice his disapproval with the administrations plan to bail out the Big 3 (GM, Chrysler and Ford).

After only about 3 years later, the auto industry is booming, showing profits and even paying back in full what they had received in bail-out money.  Earlier this week, Chrysler paid back almost in full, the $7.5 billion dollar loan the government had given them.  General Motors announced the creation of 2,500 jobs in Detroit alone, and Ford's stock has been on the upswing since 2009, as seen here:
Courtesy Yahoo! Finance
 Romney was so sure that the bailout wouldn't work, he wrote an op/ed in a newspaper, titled "Let Detroit Go Bankrupt", in which he said "you can kiss the American automotive industry goodbye.  It won't go overnight, but it's demise will be virtually guaranteed."

Courtesy Google Images

Yesterday Eric Fehrnstrom, Romney's spokesman said, Mitt Romney had the idea first.  You have to acknowledge that.  He was advocating for a course of action that eventually the Obama administration adopted."  The bailout is definitely working, it's creating jobs, it saved jobs, and prevented one of the biggest sectors in America from going broke.  It's like these people who are either in the news, or are the news themselves, don't remember that almost everything is on record nowadays. 


UPDATE

Ford was never bailed out by the government.  In fact, they were quite proud to not have taken any money.  My apologies for the misinformation.

3 comments:

  1. Except......wait for it......Ford never got a bailout, and were dayam proud of it to. I'm surprised you miss that in your research since you even included a graph! :P Romney's debacle isn't debatable, but what is is the whether GM and Chrysler even needed it to begin with. Certainly we can debate whether that money could've been elsewhere to stimulate the economy vs bailing out a company. Much like the Bush-initiated and Obama-finalized bank bailouts, it amazes me how quickly they can return a profit. Yet, GM still makes shitty cars and my bank (B of A)denied me a personal loan even with a 800 FICA. Fuck em.

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  2. Oops, I meant FICO score.

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