Risky Business

Post-Election Agenda: From One Bailout to the Next

By Matthew Bandyk

Posted: November 7, 2008

So what group might the Democrats first help with the political capital they gathered from their impressive electoral victory?

Average, working-class Americans?

Poor children in inner-city schools?

Giant automotive corporations?

If you answered C), you're correct. It appears that the Democrats may soon push through $50 billion in loans for the Detroit automakers, a doubling of the number previously discussed.

At least they never pulled an about-face on this issue like John McCain: saying that the jobs lost in Michigan aren't coming back, and then supporting this bailout anyway.

The odds of this money going through have to only be increased by today's news that Ford and GM had very rough third quarters.

The GOP is in the middle of an identity crisis. If it wants to shake its reputation as a party of economic elitists out-of-touch with the average American, how about aiming at being the "pro-entrepreneur" party? A good place to start building that identity would be to oppose bailouts for special interests, be they Wall Street or the Detroit Three.

Impact of new chairman?

Great point! One development that could have some bearing on this issue is Henry Waxman's intention to challenge John Dingell (who's in the auto industry's pocket) for the chair of the House Energy and Commerce Committee.

Mike of MI @ Nov 07, 2008 11:32:56 AM

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Risky Business

Risky Business

Matt Bandyk, a reporter for U.S. News, explores capitalism from where it all begins, with the entrepreneur, whose risk taking and experimentation provide the roots from which the rest of the economy grows. As much courage as it takes to create one's own business, even the entrepreneur needs some help, and this blog will look at news, trends, and practical advice for starting and running a small business.

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