News on the U.S. economy has worsened in the past few months. Consumers aren't spending, companies aren't hiring, unemployment is steadily rising and people are scared. Families are being ejected from their homes because they can't afford their ballooning mortgage payments. This is not the situation any of us want to see our country in. Now, Congress has decided to step in and inject funds into the economy to give it a jump start - again. In the beginning of October, Congress passed it's first economic bailout package targeted toward banks and insurance companies. Congress now has its eye on the American auto industry, and that's causing some people to cry foul.

Let's face it: we need this bailout.

Let's think about what a bailout would mean for the auto industry. It would mean that the millions of people employed at the "Big Three," as well as the millions employed in spin-off industries, would be able to keep their jobs. GM alone estimates that one out of 10 people employed in the U.S. are employed in a service related to the auto industry. They also estimate 3 million jobs would be lost within one year if GM has to file bankruptcy, with another 2.5 million being lost the following year. If all these people lost their jobs, they would collect unemployment. Our unemployment system is not able to handle such a large influx of claims. It would be better if we could find a way to let people keep their jobs.

We would also end up importing foreign cars, which would be more expensive. Personally, I'd rather own an American-made car knowing that I've supported the American economy. I don't want more of my hard-earned money going to Germany or China - I want it to stay here.

However, I am not in favor of allowing Ford, GM or Chrysler to give their CEO's, who are clearly not the most responsible people, any kind of bonus. If the company wants to dip into its own personal savings, then go right ahead, but I do not want my children to have to repay loans that an executive used to go on vacation or buy a jet. These executives need to wake up and realize we are not willing to line their wallets anymore. It wouldn't hurt them to have to live like the rest of us for a while.

For all of the skeptics out there who are saying they aren't in favor of a socialist government policy - this is not socialism. Injecting capital into the economy is merely Keynesian economics at work. Keynes' "General Theory," when simplified, states that during a recession people save less and spend more, so the government must make up for that decrease in spending by spending and investing more - which is what we have been doing. When the economy is back to normal, then we can stop the excess government spending. I'm not going to lie. I look at the size of the federal deficit and cringe because I know I'll have to pay some of that back, but it has to be done.

The auto industry hasn't made the wisest choices in the past few years. They have spent unwisely and aren't producing the types of high-mileage, quality cars that can compete with Toyota and Honda. If Congress passes this stimulus package and puts in place the right provisions such as no CEO/executive bonuses, developing new technology for cleaner cars, etc., we will be better off in the long run. It's similar to having a cold. You take that disgusting tasting cough syrup and eventually you feel better. This is a bitter pill for America to swallow, but it's an important step toward making our economy better.

Ashley Lauze is a sophomore broadcast journalism student.

Article Tools