Panel I of a Hearing of the House Financial Services Committee - Stabilizing the Financial Condition of the American Automobile Industry

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REP. UPTON: Well, thank you, Mr. Chairman. I appreciate your willingness to go out of regular order to allow us to do that, as we're expecting votes perhaps as early as 10:30 within our Republican conference.

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 initial proposal and later pressed Secretary Paulson to use the authority granted under the measure to help average citizens, not just $147 billion for AIG, especially as AIG's execs were holed up on 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. And Paulson said of the vote, quote, "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," end quote. That's what he said.

I asked Secretary Paulson, "Does allowing our U.S. 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 country, runs counter to the initial intent of Congress in passing a rescue package that 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 across the country, and the U.S. auto industry created the middle class and the manufacturing sector, the backbone of our very economy. You don't get more Main Street than the U.S. auto industry. And 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 lose literally perhaps as many as two and a half million jobs almost overnight, and the ripple effect will be devastating on the 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.

So let's look at what we're talking about here -- $25 billion in loans that will get paid back versus $100 billion in lost tax revenue, millions of jobs lost, and a prolonged economic crisis. There is (mass ?) support for helping automakers and their are millions of employees survive this crisis. There is fear out there, not just in Michigan, that the collapse of GM, Ford and Chrysler could, would trigger an economic depression. Americans understand that the auto industry is extremely important to the U.S. economy, not just for Michigan.

The legislation that we passed wasn't supposed to be about bailing out Wall Street, but rather protecting working families, students, retirees and all taxpayers, every one of them, from the consequences of a financial meltdown. If the White House won't use its existing authority to protect Main Street jobs, then Congress must act again to ensure that they do.

The people of Michigan are suffering tremendously, big-time, with the highest rates of unemployment and home foreclosures in the country. And while there's plenty of blame to go around, we cannot stand idly by as the 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 which we haven't witnessed in our lifetime.

I yield back the balance of my time. Thank you, Mr. Chairman.

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