CEI Attacks Auto Industry Bailout Bonanza
Auto Industry Seeks Additional $25 Billion Dollar Bailout
Washington, D.C., November 7, 2008— Auto executives yesterday
huddled with House Democrats to discuss a possible $25 billion loan to the
industry, this on top of the first $25-billion taxpayer “loan” already approved
by Congress for the industry.
The Competitive Enterprise Institute condemned the bailout
proposals as a huge mistake that would hurt taxpayers and, ultimately, the auto
“Congressional attempts to favor domestic automakers will be
a waste of taxpayer money, a skewing of automaker competition, and an
invitation for even more industries to seek bailouts in the future,” said Sam Kazman, CEI General Counsel.
“If Congress wants to help the auto industry, the best way
to do so is by repealing the stringent fuel economy standards that it enacted
last December,” Kazman added. “With gas prices dropping, fuel economy mandates
will become an even tighter noose around the industry’s throat. Meanwhile, thousands of vehicle occupants
will be killed due to reduced crashworthiness as the industry downsizes
automobiles to meet the standards.”
In CEI’s view, even though multi-billion dollar bailouts may
no longer be the rarity they once were, that does not entitle them to Cole
Porter’s Anything Goes status. There
are a number of major automakers that will be able to not only survive but eventually
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