Congressman Davis Announces Opposition To Automobile Bailout

Press Release

Congressman Artur Davis today released the following statement in regards to his opposition to H.R. 7321, the Auto Industry Financing and Restructuring Act:

"While I am aware that American auto manufacturers are in crisis and acknowledge that the collapse of that industry is unacceptable, I believe that the bridge loan before Congress is the wrong approach. I am convinced that this $15 billion dollar package is only an installment on an open ended commitment that is hardly guaranteed to make the industry more productive or efficient.

"I also believe that we need clear guiding principles as to what industries are eligible for federal intervention and exactly what role our government is going to play in aiding these troubled segments of our economy. Today, it is the domestic automobile industry that seeks federal help; tomorrow, it will be another industry, and then another. Rather than follow this path wherever it leads, we should be exploring private sector options such as forced consolidation or receivership.

"Finally, I have too many doubts about how our money authorized in the financial markets bailout package that Congress passed in October has been managed. There is too much evidence that taxpayer dollars have gone to unintended purposes like executive compensation and too little evidence that the infusion of government dollars has made banks more inclined to loan to consumers and small businesses. Given that uncertain track record, there is too much of a risk that the automotive bailout will not work in the way Congress intends."

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