Romney Was Right About the Auto Bailouts

Michigan’s primary is right around the corner. Cue the renewed outrage that Romney didn’t support the government bailouts of Detroit’s Big Three automakers.

Back in 2008 as everything regarding the American economy came crashing down in a flame of glory, the automobile industry and Detroit was at a crossroads. Either they ask for a bailout from Washington like everyone else, or they could go into bankruptcy, reorganize and come back out stronger – without a dime from the already stressed American taxpayer.

As we now all know, Chrysler and General Motors took the bailout route, while Ford nabbed a line of credit just in case. In 2008, Romney criticized that decision in an op-ed, saying:

If General Motors, Ford and Chrysler get the bailout that their chief executives asked for yesterday, you can kiss the American automotive industry goodbye. It won’t go overnight, but its demise will be virtually guaranteed.

Without that bailout, Detroit will need to drastically restructure itself. With it, the automakers will stay the course — the suicidal course of declining market shares, insurmountable labor and retiree burdens, technology atrophy, product inferiority and never-ending job losses. Detroit needs a turnaround, not a check. [Emphasis added]

Romney was, of course, right. But in the end, the bailout didn’t prevent bankruptcy. After nearly $50 billion in bailouts Chrysler filed bankruptcy in May 2009, and General Motors followed suit a month later.

So today, with the Michigan primaries growing closer, Romney’s opposition to the bailouts that “saved” the American auto industry will be trotted out like he was wrong in the first place, especially since he has doubled down in another op-ed. Teagan Goddard at Political Wiredidn’t waste any time, and I’m sure others will follow. Hacktastic.

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