Homes or Autos Who Deserve Money First?
- 5 Comment
Tomorrow starts a fresh day on capitol hill and it’s widely expected to bring a fresh set of bailout talk. Congress is about to begin debating a bailout for the big 3 automakers, Ford, GM, and Chrysler. Clearly there’s a need for funds to keep the cash strapped companies from closing their doors, but should this be our countries top priority? I have to ask why congress wouldn’t give top priority to a bailout bill that keeps cash strapped homeowners from closing their doors vs big business.
The head of the FDIC came out on Friday with a new plan that would allocate taxpayers funds to aid homeowners and stop the rise of foreclosures. The plan is estimated to save 1.5 million homeowners from losing their house. The cost to the American taxpayer is projected to be $24.4 billion dollars aprox. the same as the estimated bailout for the big 3 automakers. Both set of bailout funds are suppose to come from the recently passed 700 billion financial rescue plan; the only problem is no one out in Washington D.C. can come to an agreement on giving the green light to either. There’s no doubt that both bailout plans have pro’s and con’s, but which one should take precedent? Does congress have it backwards with trying to push a bailout plan for big business before the very people who elected them?
At the end of the day the American taxpayer is responsible for funding the 700 billion dollars given to the Treasury Department. It would stand to reason that they should be first in line for financial aid. Is this a case of big business flexing it’s muscle in Washington or simple a function of bad timing for American homeowners? I’d love to hear your thoughts on who deserves first shot at getting a piece of the 700 billion, struggling homeowners or struggling car makers.
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5 Comments on this post
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BankVibe said:
Give it to the homeowners. I am sick and tired of the US government throwing money at failed business models. I feel sorry for the people and families (of Detroit) whose livlihood rely on these companies but at some point we have to let these businesses fail…and put faith into the American worker that new businesses will start again. IMO
November 17th, 2008 at 1:24 pm -
shane wahl said:
I agree, dude. What is underlying your post is a fundamental question in political economy. In my view, Reagonomics is a lie. That is, the trickle down theory is a gross falsification to make the rich elite happy. How do you rebuild the economy? You make sure that the ground has a foundation! Any bailout should be directed at the American people and not at corporations. This comes down to the fundamental notion that people “at the bottom” not spending is a greater detriment to the economy than the greedy wealthy having trouble making THEIR ends (greedy ends) meet. When we see the finance economy falter and then wait for the “real” economy to do so as well it is clearly time to keep the “real” economy afloat first so as to build upward.
November 17th, 2008 at 2:41 pm -
Dan said:
Why are the leaders in Washington supporting a bailout of the auto industry? Aren’t these the same people suggesting that we reduce our dependence on foreign oil? Maybe if we let the auto industry solve it’s own problem (or fail) the innovation of capitalism will produce the solution for more than one problem?
The bailouts need to stop, and should have never started. The financial industry bailout was a devastating start down a path to bailing out everyone. Couldn’t we all use some government help? There is a name for that, it is called Socialism. Next thing you know, our tax dollars will be paying for everything and everyone. Want a free ride??? America is your answer. (What happened to “Ask not what you can do for your country…”)
November 17th, 2008 at 8:04 pm -
Justin said:
I would have to agree with giving the money to homeowners who need it before bailing out another failing US business. I wonder if I can get a couple billion for FixThePig; I bet I can turn more of profit then the big 3!
November 17th, 2008 at 8:09 pm -
Cindy said:
Give it to the responsible people who AREN’T going into foreclosure because they are the one’s smart enought to spend the money wisely. Let all the people in foreclosure fall - either they were gambling and knew the risks or they were too dumb to realize the risks. Some people need to learn the hard way, rewarding them for their mistakes will only lead to more mistakes. As for the big companies I’m against any bailouts for them for the same reason. It’s all a ploy to line the CEO’s pockets.
December 5th, 2008 at 11:22 pm
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