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AUTO BAILOUT STILL LOOMS OVER TAXPAYERS

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AUTO BAILOUT STILL LOOMS OVER TAXPAYERS

AUTO BAILOUT STILL LOOMS OVER TAXPAYERS
Gov’t. Watchdog Group Warns Against
Boondoggles and Mandates  

Washington, DC,
December 15, 2008 – As the White House today offered assurance
to Detroit auto
makers that US taxpayers would be made to bail them out of their financial
woes, a government watchdog group renewed its warning against the looming
taxpayer boondoggle.

“No amount of taxpayer money can save Detroit
from its own mistakes or years of heavy-handed government mandates,” said John Berlau,
a financial policy expert with the Competitive
Enterprise Institute. 

“Detroit
needs to fix its labor costs, agreements with auto dealers, and other flaws in
its business model,” said Berlau.  “And
the government needs to get out of its way by repealing costly and
counter-productive mandates, such as fuel economy standards.”

Instead of a bail out or loan funded by taxpayers, Berlau pointed to other
viable options for the industry.

“A Chapter 11 bankruptcy gives the car firms a chance of being restructured
into lean, profitable companies,” said Berlau. “Auto makers should really ask themselves
if bankruptcy would be any worse than the price of becoming an appendage of Washington in the next
conceived bailout.”

See also:

Berlau comment
on how anti-merger laws hurt competitiveness

Ongoing commentary on bailouts at beyondbailouts.org