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American Public Continues To Oppose Auto Bailout

by @ 7:59 am on December 16, 2008. Filed under Auto Industry, Business, Economics, Politics

Despite continuing indications from the Bush Administration that it is about to do an end run around the recent defeat of the auto bailout package, the American public continues to oppose bailout out the Big Three automakers:

Most Americans continue to oppose a government-backed rescue plan for Detroit’s Big Three automakers as majorities blame the industry for its own problems and are unconvinced failure would hurt the economy, according to a new Washington Post-ABC News poll.

Overall, 55 percent of those polled oppose the latest plan that Chrysler, Ford and General Motors executives pitched to Congress last week, on par with public opposition to earlier, pricier efforts. But with 42 percent support, the new request for up to $14 billion in emergency loans has more backers than previous proposals to secure up to $34 billion in loan guarantees.

But as with the earlier bids, those who strongly oppose the measure greatly outnumber those who are strongly supportive.

Opposition to the automaker bailout is fueled by the widespread perception that the companies themselves are responsible for their predicament, not the faltering economy. In the new poll, three-quarters of Americans said Detroit’s woes are mainly the fault of its own management decisions, and a sizable majority of those who blame the front office object to government help.

Nor have Detroit’s Big Three made significant progress persuading the public that bankruptcy proceedings would deepen the broader economic slowdown. Sixty percent said it would make no difference or would be good for the economy if one or more of the companies were forced to restructure under the protection of bankruptcy laws.

Democrats are among the most wary of the economic impact of failure, with 42 percent saying it would hurt the economy. They are more apt to advocate federal aid — 52 percent support it, up from 42 percent support for previous versions of the rescue bill. But they, too, are deeply critical of company managers — 72 percent fault Detroit’s strategies, not the overall economy.

Republican opposition has grown stronger, with 69 percent now against the bailout, an increase of 12 points since chief executives from General Motors, Chrysler and Ford last appeared on Capitol Hill to plead their case. Half of all Republicans polled now strongly oppose the plan.

Overall, independents continue to lean against the plan, with 57 percent opposing it and 41 percent supporting it.

This is the third poll in as many weeks (previous polls here, here, and here) that shows a clear majority of Americans opposed to government aid for Ford, Chrysler, and General Motors. And, it’s a clear indication that if the Bush Administration does go forward with this, it will be against the clearly expressed wishes of the public.

3 Responses to “American Public Continues To Oppose Auto Bailout”

  1. gabriel says:

    Now is not the time for polls or ideological arguments, but rather the time for aggressive economic leadership by the people we elected.

    I think the automakers should be allowed to fail, just not now. The economy is in shambles, and we just can’t afford another major hit.

    The better solution is to make the automakers pay dearly. The conditions of the deal should be:
    – Automakers declare bankruptcy
    – Shareholders and bond holders wiped out. Government owns 90% of company and exercises control.
    – Top 2-3 layers of management get fired with no severance (it’s their fault after all)
    – Renegotiate union wage rates and work rules consistent with what Toyota workers in the US get
    – Reduce (but not eliminate) pension obligations
    – Mandate implementation of tight fuel efficiency standards within 5 years
    – Mandate that 100% of equity to be sold back to public in 5 years

    So the companies get hit hard and pay the price, the new companies would be vastly more competitive, and the US economy and environment benefit.

    Yes, the US auto bailout should be implemented.

    For more political analysis blogs.

  2. There are many reasons why the bailout of Wall street and the auto industry is wrong but most importantly because the federal government is far more powerful than it was ever meant to be. Now the government can be a stockholder? Sounds too much like socialism.

  3. Kieran Adams says:

    the Auto Loan dealers on our place are giving us very expensive rates which we could not afford. we are still looking for better deals.~,:

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