Who did the automobile bailout benefit?

What was it's main purpose? Should they have lowered their prices instead so more people could of purchased more vehicles?

7 Answers

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  • *
    Lv 4
    1 decade ago
    Favorite Answer

    In total, over 2 million people hold jobs that are directly linked to the production, distribution, and sale of new cars and trucks. Well over half of these depend on continued production and sale of Big Three cars and trucks. A conservative estimate of the direct impact of the failure of all of the Big Three automakers would be the immediate loss of at least a million jobs. Thus, the direct impact of the liquidation of the Big Three would add almost a percentage point to the current unemployment rate.

    The indirect but short-term effects of the collapse of the Big Three would add to this toll. Many auto parts suppliers will probably enter bankruptcy if the Big Three fail. This will hurt production of foreign-nameplate cars in the United States, because foreign assembly plants also depend on U.S. auto parts suppliers for many of the inputs that go into making their cars. Production interruptions at foreign-nameplate factories may in turn reduce employment in foreign assembly plants and in factories that supply auto parts for those plants.

    Finally, hundreds of thousands of workers in retail stores, banks, and service-producing companies will lose their jobs in communities where auto assembly plants and auto parts factories are located. The workers in auto assembly and parts factories earn wages that are one-quarter higher than those paid to average production workers. The indirect impacts of auto plant closings on local employment would therefore be greater than effects that would accompany the loss of other kinds of jobs.

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  • logan
    Lv 7
    1 decade ago

    It isn't a bailout, it is a LOAN.

    It benefited the middle class. When you consider that 8-10 other industry jobs rely on the big three, that's a lot of people who would be without a paycheck if they were allowed to go under. They can't lower their prices too much, they have astronomical (prices) health care, pensions and payroll to take care of. People can't buy a new car anyway because the banks haven't got off the money from their bailout yet. Not to mention the big three are one of our last manufacturing industries left. We will lose more then just jobs if we let that slip away.

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  • 1 decade ago

    It bailed out the companies which happens to be controlled by the most paid in any "respect", stock options, bonuses, etc. etc. Note how those that were actually making the products for the companies are put out.

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  • Anonymous
    1 decade ago

    Frankly it benefited the upper Midwest for a short time. GM and Chrysler are still bad company's with bad management that are going broke. Obama can't shovel enough pork into their mouths to keep them alive forever!

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  • J P
    Lv 7
    1 decade ago

    The UAW was the primary beneficiary, and by extension those that benefit from Union donations to political campaigns.

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  • 1 decade ago

    the 10 000 people lose their job everyday

    the unemployment rate up to 7.6%

    http://money.cnn.com/2009/02/06/news/economy/jobs_...

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  • Anonymous
    1 decade ago

    The manufacturers of corporate jets.

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