Auto Industry Bailout
The Auto Industry Bailout debate began in November 2009, when the CEO's of the Big 3 Automakers (GM, Ford and Chrysler) came to Washington to ask for more than $25 billion in taxpayer funds in order to keep their companies out of bankruptcy.
Due to the economic recession in the US, demand for their automobiles had fallen significantly and a massive cash infusion was needed immediately to keep the companies afloat. If the companies went into bankruptcy, Americans would not buy cars from them (so said the Big Three CEO's).
Regardless of the merits of the bailout request, the Big Three CEO's requests for a taxpayer bailout were largely undone when they were each photographed arriving in Washington in private jets. The juxtaposition of well-coiffed strutting from $50 million jets into waiting limousines on their way to ask for taxpayer money caused outrage among Americans.
Having had their initial request for a bailout denied after the public went bonkers over the private jet fiasco, the Big Three Automakers sent their CEO's to Washington for a second time in December 2009. Having learned from the private jet fiasco one month earlier, the CEO's drove in "green" hybrid cars from Detroit to Washington.
The apparent act of contrition did little to sway lawmakers when the automakers asked for bailout funds on their second trip to Washington. Easily swayed by lingering public outrage over the private jet arrivals in November, the Senate declined to provide the bailout funds requested by the automakers.
Despite being sent away empty-handed by the Senate, some well-placed telephone calls to senior Bush administration officials seemed to provide an end-around to the lawmakers' denial.
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