In Michigan, Candidates Bash Auto Bailout

None of the eight Republican presidential candidates for president said Wednesday night that the federal government’s bailout of the American auto industry was a good idea.

Though not surprising, given that the bailout was one of several things that helped spur the rise of the conservative Tea Party, it was remarkable in that last night’s debate was held less than an hour from Detroit, home to Chrysler and GM who both received billions in federal aid back in 2008 and 2009.

“Whether it was by President Bush or President Obama, it was the wrong way to go,” said frontrunner Mitt Romney. “They gave General Motors to the UAW, and they gave Chrysler to Fiat.”

Romney was reminded that he advocated helping the automakers back in 2008 when it was discovered that both were in danger of going out of business. He said, however, that he had been referring to getting rid of federal regulations on fuel standards that were “hurting Detroit.”

When pressed, Romney said that Chysler and GM should have been forced to go through a “private bankruptcy process.” Economists who supported the bailout, however, have noted that banks were not in a sufficient position to help the automakers at the time.

Former Utah Governor and American Ambassador to China Jon Huntsman agreed with Romney. Considered to be the most moderate candidate in the GOP field, Huntsman called the bailout “absolutely inappropriate,” arguing that it could end up costing taxpayers as much as $15 billion.

“This country is never again going to bail out corporations,” Huntsman said.

Near the end of his presidency, former President George W. Bush gave $25 billion to GM and Chrysler, a sum that President Obama increased by $60 billion when he took office. An administration task force then swiftly guided the two companies through bankruptcy.

Since 2009, the two companies have added over 130,000 jobs, and are hoping to add another 140,000 in the next few years.

During a visit to Michigan last month, Obama said the $85 billion investment “paid off.”