House Approves $14 Billion Bailout

Big 3 Auto Makers Bailout

The $14 billion bailout proposal was sent to the House of Representatives tonight in order for the House to cast its vote. The bill passed 237 to 170, but a majority of the support came from the Democrats.

Only 32 Republicans voted in favor of the bailout, eight of which are from Michigan. Seven additional Republicans in favor of the bailout were also from Midwestern states that are home to automobile plants. Besides the Republicans from states directly tied to the auto manufacturers, there was little right-wing support for the measure. It’s going to take more than a couple payday loans to get this problem out of the gutter.

Checks and Balances—Senate Could Kill Bailout Measure

The House approved the bailout, but opposition from the Senate could kill the bill. It’s obvious that Democrats in the House are in strong favor of the bailout, but the majority of Republicans in the House and Senate are in strong opposition of the bailout. Republicans, along with some Democrats, in the Senate argue that the bailout will not solve the issues that plague the auto industry.

What is the Purpose of the Bailout?

A lot of media attention has been given to the auto bailout in recent times. However, the proposal keeps changing, and people are confused about the bailout’s purpose. The most current proposal is a $14 billion bailout designed for two of the three big auto makers. The $14 billion is much less than the original request, and the bailout would now help prevent only Chrysler and General Motors from going into bankruptcy. Ford Motors claims that it has enough money to stay afloat for now, while Chrysler and General Motors allege that they are merely weeks from going bankrupt.

A Temporary Solution

The bill would create a temporary remedy until the new Congress and President-elect Barack Obama can develop a more permanent solution. The bill calls for strict oversight of Chrysler and General Motors: the company executives would have pay limits and would be forced to get rid of the aircraft they used to transport to previous Congressional hearings. George Bush will also appoint a “car czar” that has the power to recall the loans within 30 days if the auto makers are not cutting their costs enough.

Bailout Is Now Up To The Senate

The fate of the auto bailout is yet to be determined. The House of Representatives and President George W. Bush have given their support, but it is now up to the Senate whether or not the measure will pass. The Republicans in the Senate believe that instead of being a temporary solution for the auto industry, the bailout is simply prolonging the inevitable—the collapse of the big three American auto makers. The future of the American auto industry relies on the Senate vote; it will take 60 Senate votes to pass.

Choose Your Own Fate

Aren’t you glad that your financial future isn’t up to someone else’s vote? If you need a financial bailout or a temporary financial solution, you are at liberty to get extra money when you need it. Payday loans can do for you what the House is hoping the bailout will do for the auto industry: give your current financial situation a little boost until you can get back on your feet.