Auto Bailout

There are two points about the auto bailout that I have not seen well discussed in our regional paper.

On the one hand, we are not talking about the fact that the people in Alabama, Mississippi and Tennessee have forgone tax revenue to attract auto manufacturing, albeit from foreign owned nations. The gave up additional tax revenues in terms of lower pay scales for the workers in those plants. Now they are asked to give up additional monies to pay for a bailout of the US big three. I am not saying we shouldn't bail out the big three (although a majority of those surveyed say we shouldn't), but I am saying that not everyone sees it the same way.

The other thing is that this is not just about us. President Bush gave GM and Chrysler $ Billion. What I hadn't noticed as that a day later Prime Minister Stephen Harper announced, along with Ontario Premier Dalton McGuinty, loans of C$4 Billion ($US 3.3 Billion) to GM and Chrysler from Canada and the province of Ontario.

"In Ontario, we've got thousands of people and their families who rely on the auto industry to be on firm ground, so they can put food on the table and keep a roof over their heads. ... No state or province employs more workers, and we're not going to give that up," said Premier Dalton McGuinty, speaking alongside Harper Saturday.

And then Ontario Premier McGuinty goes on:

McGuinty warned that the money will only be delivered after auto companies agree to meet conditions set by the federal and Ontario governments.

"Those conditions include limits on executive compensations. The loans will only stay in place beyond March 31, 2009 if our governments are satisfied there are solid restructuring plans in place and under way," said McGuinty.

It turns out it is not always about us

Regards -- Cliff