Thank you Mr. Chairman. Our economy is in trouble. That’s not news. There’s uncertainty in the market and job losses are mounting. It is our responsibility as lawmakers to act decisively to reverse this economic downturn and save millions of American jobs. We all know what’s at stake.
The “financial rescue” plan that Congress passed just before the election was, for a large part, opposed by many of our constituents. Most Americans saw that bill as a bailout for Wall Street, when help is desperately needed for Main Street. I opposed the Administration’s original proposal and later pressed Secretary Paulson to use the authority granted under this measure to help average citizens, not just provide $147 billion for AIG, especially as AIG’s execs were holed up in a posh resort on Uncle Sam’s dime. My concerns were answered with a plan that I supported containing stronger oversight and a variety of provisions intended to help Main Street. They have failed in meeting that Congressional intent. Paulson said, of the vote – “This was obviously a very important vote. It was a vote to protect the American people, protect their jobs, their economic well-being, it was to protect the small businesses, people’s savings.” (Reuters, October 4, 2008)
I ask Secretary Paulson, does allowing our US Auto industry to die – and losing millions of jobs supported by this vital industry fulfill his definition of protecting American jobs or small businesses? Denying support to the auto industry – losing millions of jobs across the nation -- runs counter to the initial intent of Congress in passing a rescue package and is completely unacceptable.
President Bush and Secretary Paulson should know that the U.S. auto industry is Main Street. The auto industry is American jobs. The auto industry supports countless small businesses all over the country. The US Auto industry created the middle class and the manufacturing sector – the backbone of our economy. You don’t get more “Main Street” than the U.S. auto industry. Turning our backs at this time would be a disaster for our economy.
Earlier this week, everyone in the financial sector cringed when Citibank announced layoffs of over 50,000 employees. Now imagine the economic impact of multiplying those job losses by 50. That’s the magnitude of what’s at stake today. If we lose one of the Big Three, we’ll literally lose 2.5 million jobs overnight and the ripple effect will be devastating on a national scale. Not only will we lose those jobs, we’ll also lose over $100 billion in tax revenue and $275 billion in middle class income over the next three years.
Let’s look at what we’re talking about here: $25 billion in loans – that will be paid back – versus $100 billion in lost tax revenue, millions of jobs lost, and a prolonged economic crisis.
There is vast support for helping automakers – and their millions of employees – survive this crisis. There is a fear out there – not just in Michigan – that the collapse of GM, Ford, and Chrysler could trigger an economic depression. Americans understand that the auto industry is extremely important to the U.S. economy – not just Michigan.
The legislation we passed wasn’t supposed to be about “bailing out” Wall Street, but rather, protect working families, students, retirees, and all taxpayers from the consequences of financial meltdown. If the White House won’t use its existing authority to protect Main Street jobs, then Congress must act again to ensure they do so.
The people of Michigan are suffering tremendously, with the highest rates of unemployment and home foreclosures in the country. While there is plenty of blame to go around, we cannot stand idly by as a pillar of our economy collapses, the aftershocks of which would further damage our Nation’s economy. The State of Michigan already has an unemployment rate of nearly 10 percent. To do nothing and watch the domestic manufacturing sector crumble would further fan the flames of unemployment on a national scale in a way we haven’t witnessed in our lifetimes.
