WASHINGTON, D.C.  -  Many of us have heard about the latest debate on Capitol Hill regarding our economy.

This time it involves the “Big Three” – General Motors, Ford and Chrysler – looking for more government assistance to shore up their hurting companies.

This week, the top leaders of these corporations testified in front of Congress to explain why they needed another $25 billion of taxpayer money – on top of the $25 billion in Federal loans they already have available to them to help retool their factories to build more fuel-efficient cars.

 Whether or not to provide additional assistance is a serious question. These proud American companies employ hundreds of thousands of workers across the country, and rely on a supplier and dealer network employing many thousands more.

With unemployment rising across Alabama and our nation, the collapse of these companies could seriously hurt our economy. On the other hand, it may not. They may emerge leaner and more competitive.

This October, you may remember Congress passed the Emergency Economic Stabilization Act of 2008.

This bill, while controversial, was designed to help free up our credit markets. It was passed for Main Street’s economy – everyday people like you and me – so folks across East Alabama could get a loan for things such as covering payroll or making an emergency home repair. 

 
The automotive bailout, which was being debated in the Senate, is something entirely different.

The original proposal would have given $25 billion to these three companies, not to help them improve or streamline their operations, but simply to survive the short term.

It looks like that proposal is now off the table, with Congress looking at other sources of funding for the Big Three. Regardless of the source of the money, though, these proposals still don’t seem to add up.

While no one wants to see any company fail, I cannot support a proposal that uses taxpayer funds to bail out a handful of individual companies facing crisis due to their own mistakes and questionable management decisions, while ignoring others also struggling to make ends meet.
Here in East Alabama, we’re home to both Hyundai in Montgomery and Honda in Lincoln, not to mention the new Kia plant right over the Georgia line in West Point.

In the bailout’s current form none of Alabama’s automakers would benefit directly – much less the hundreds of small and medium sized businesses across East Alabama who wouldn’t be eligible for such assistance but who are also struggling.

These businesses employ hard working Americans too that are facing tough times. Why would Congress ignore their needs?

Americans are facing tough economic times. That’s why I have supported an extension of unemployment benefits, a second economic stimulus, and more money to states for important healthcare programs like Medicaid.

Regardless of the outcome this week, the auto bailout issue will likely return soon. When it does Congress must be aggressive in helping make things better, but it should also debate seriously why aiding specific companies, while ignoring the pains of others, is the right thing to do. As always, please contact me at www.house.gov/mike-rogers.