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DeMint to Force Vote on Ending Auto Bailouts
Budget Amendment would ban further use of taxpayer funds to prop up failing auto manufacturers |
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April 2, 2009 - WASHINGTON, D.C. - Today, U.S. Senator Jim DeMint (R-South Carolina), chairman of the Senate Steering Committee, announced plans to offer an amendment to the budget resolution to end bailouts for automobile manufacturers like General Motors and Chrysler. Specifically, the amendment prohibits the use of Troubled Asset Relief Program (TARP) funds to provide further bailouts to auto manufacturers.
“The auto bailouts have made a bad situation worse by wasting billions of dollars and delaying inevitable restructuring for these failing companies,” said Senator DeMint. “We reached a point of absurdity this week when the nation’s highest office was turned into a car dealership. It’s time to end this embarrassing socialist experiment.
“America is founded on free people living under established laws, but this administration is changing the laws of our economy on a daily basis and it’s anyone’s guess which business is next in line for a government takeover. This vote is about drawing a line in the sand to tell the administration it can no longer micromanage our economy with unchecked power. We must put the brakes on this out of control socialization of our economy.
“Not only are the bailouts unlawful and unfair to taxpayers, but they haven’t improved the economy and are corrosive to private industry. The administration has used the bailouts as an excuse to oust the CEO of a private company, while ignoring the unions that dragged the automakers to the market floor. The union bosses who forced inflated wages and unsustainable legacy costs onto GM and Chrysler have curiously escaped the administration’s all-powerful grip.
“Congress never gave the President the authority to take over the American auto industry. Instead, Congress rejected the auto bailouts last year and urged GM and Chrysler to enter bankruptcy to manage their crises under the same laws used by other companies.
“Now that these companies have burned through more than $17 billion from taxpayers, they are brazenly asking for at least $21 billion more. Americans are fed up with their tax dollars being wasted on failed companies while their families struggle to make ends meet.
“I’m pleased the administration’s auto task force has finally agreed that bankruptcy is necessary, but I’m afraid their version of bankruptcy will be guided by politics not economics or the rule of law.
“America did not become the world’s leading economic power by allowing Washington bureaucrats to centrally manage our economy. We became strong and prosperous through free-market capitalism that rewards innovation, competition and hard work. We cannot reward failure and expect our economy to succeed.”
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