Barrett Expresses Opposition to Auto Bailout Plans

Press Release

Today, Congressman Gresham Barrett (SC,3) participated in a Financial Services Committee Hearing on "Review of Industry Plans to Stabilize the Financial Condition of the American Automobile Industry" where he heard the testimony of executives from Ford, GM, Chrysler and the United Auto Workers on their plans to avert insolvency. Barrett, who opposes plans that would provide automakers with taxpayer-backed loans, gave an opening statement in which he questioned whether it is the proper role of Congress to intervene in the internal business decisions of private corporations and expressed skepticism about Congress's financial expertise and ability to foresee market trends.

"Countless people across this country are losing their jobs. I know these are tough times, but the discussions we are having today do not make sense to me," said Barrett, who further explained his opposition to the automaker bailout plan and his fear of government intervention in private businesses. "We are not a bank, and we are not a management consultant, yet we are trying to evaluate the business plan of corporations. Trust me; Congress is no authority on how to spend money efficiently and effectively. And we certainly cannot predict the direction of a marketplace. I am concerned that businesses are rightly going to start thinking they can just come to Uncle Sam, and we'll bail them out."

Barrett also expressed concerns that Congress was placing a different value on auto industry jobs than those of any other industry. "What do I tell my textile folks back home that have watched their jobs all but leave the nation?" asked Barrett. "What do I tell the small business owner that is struggling to keep their doors open?"

After giving his statement and hearing the executives' testimony, Barrett asked the witnesses about whether they had adequately considered other options, such as bankruptcy plans, that would better protect American taxpayers and reduce the role of the federal government. He also questioned the executives on how government mandates may have had a role in the automakers' perilous conditions and whether any pressures from Congress had led the automakers to add provisions to their proposed business plans that made them less competitive in the American car market.

"This hearing reinforced my fears about the direction of government in America," said Barrett. "The federal government has to get out of the business of trying to save individual businesses. Instead, we should be creating an environment where businesses can succeed, not micromanaging the affairs of private industries and determining which businesses fail and which grow."

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