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Canada gives $4 billion to auto bailout
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by Amy Judd | December 20, 2008 at 05:55 pm
138 views | 2 Recommendations | 8 comments
The Canadian government has agreed to give $4 billion to the auto industry to prevent a possible collapse of the industry.
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The amount is about 20 percent of the Bush administration bailout plan as well as Canada's part of North America's auto production.
“I will not fool you,” Prime Minister Stephen Harper told reporters in Toronto. “There is obviously money at risk here and there may well be more money at risk going forward.”
But, in words echoed by Dalton McGuinty, the premier of Ontario, Mr. Harper said that a collapse of the auto industry would create “a huge problem” for the Canadian economy.
“There are literally across the country hundreds of thousands, if not millions, of potentially affected families by the distress of this industry,” Mr. Harper said.
The loss of the American auto industry would deal a severe blow to Ontario especially, as the whole of Canada's auto assembly plants and about 400,000 people work in the industry.
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Most RecentMost Recommended Comments (8)
at 18:24 on December 20th, 2008
Corporate Welfare! This is a dangerous precident to set. How long before every industry sector is lining up to succle on the tax payer's tit?
at 19:20 on December 20th, 2008
I think it is important to help preserve jobs but at the same time am deeply saddened by the orgy of corporate socialism. How come socialist practices are only acceptable when they are being adopted to save failed lassez-faire/free market entities from their own mismanagement and greed?
at 20:11 on December 20th, 2008
Absolutely....Apparenlty Bush apologized for it and felt embarassed about that aspect of it, but couldn't cop the balls to admit it means those very lassez-faire principles do not work. Lassez-faire sounds awfully benign, too, compared to the reality of what they were doing. It's just another way of saying unregulated greed.
at 12:46 on December 21st, 2008
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at 12:42 on December 21st, 2008
Help me understand. There is an overproduction of cars, just sitting in the yard. They aren't selling therefore there is no revenue. So the bailout money isn't to build more unsold cars. If they don't build cars, they will have to lay off workers anyways.
Is the money going to the banks then, to pay off their debt?
Then does the bank own the government?
A quote from Roosevelt: The real truth of the matter is that a financial element in the large centers has owned the government since the days of Andrew Jackson.
at 12:43 on December 21st, 2008
Also I thought the house was in porogue?
at 15:36 on January 9th, 2009
Anyways, after the bailout, let's just hope for sensible developments this year. They should do it for the benefit of the taxpayers for having their career-saving bailouts.
at 14:44 on March 2nd, 2009
I didn't like the tune of their excuses. I totally agree that the bailout money isn't to build more unsold cars.