United States President-elect Barack Obama said that he “Will not allow the country’s car industry to collapse,” but help must come with strict conditions. He also said that the industry would have to restructure. The US car makers are asking for a $34 billion bailout plan. There has been some controversy about where the money should come from.
The plan is a “stop-gap,” which will help the three ailing firms until Mr. Obama can take office and help formulate a long-term plan. He has said that letting these firm going into bankruptcy is not an option.
Economist Paul Krugman has said that he doubts that the US car sector would survive; however it is worth our help in the short run. He says that in the end these companies will probably disappear.
1 comment:
I think this is crazy. Chrysler has already been bailed out once before in 1979. President-Elect Obama appears to be going about it in the right way. He says it will be strict, saying that they must restructure.
I would be against this bailout but I've heard that the entire city of Detroit is really suffering because of the poor auto industry. Bail out the people of Detroit, not the auto industry.
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