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Dec-11-2008 07:52printcomments

Libertarian Party Calls Logic Behind Auto Bailout 'Insanity'

Says only hope for the long-term viability of automakers is bankruptcy and restructuring.

Auto factory

(WASHINGTON, D.C.) - The nation's largest third-party is calling for Congress to strike down a measure backed by the White House that would risk at least $15 billion of taxpayer dollars to bailout the American automotive industry.

"It's insanity," says Libertarian Party spokesperson Andrew Davis.

"It's insane that we keep going back to the taxpayers to bailout struggling corporations who, for lack of good management and sound business practices, have become unprofitable. Who in Congress is standing up for the taxpayers? Where are the Republicans, who claim they stand for the free market? Where are the Democrats, who claim they oppose corporate welfare?"

The current plan seeks to initially give Detroit automakers a $15 billion, taxpayer-backed loan with a deadline of March 31 to develop a plan for profitability. If, by the deadline, automakers fail to reach what the White House has established as "viability," the loans would be recalled—something Davis says is "already written in the stars."

"We all know what's going to happen, and it's not going to be the outcome proponents of the bailout want us all to believe," says Davis.

"Automakers will get $15 billion of taxpayer money, and when April rolls around, they'll be asking for more time and more money. There are absolutely no provisions in the bailout bill that require any type of change to management, union contracts or company structure before receiving taxpayer money. All taxpayers have is a promise that the same CEOs who put their companies in this mess will get it right the second time."

"Or, the third time, if you're talking about Chrysler," Davis adds.

"The end goal of any restructuring should be removing the management that led companies into this pitfall," says Davis. "This should be done by the companies—not the government. The Libertarian Party favors letting these companies file Chapter 11, instead of risking taxpayer dollars for promises of reform. It will be tough in the short-term, but better for the long-term stability of our economy."

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Henry Ruark December 11, 2008 11:44 am (Pacific time)

To all: Anyone ever encounter a starving libertarian ? Few are indigent or in any possible danger, greatly contrasting with those workers whose very lives depend on the continuance of these operations, bad as they may have become. Common sense demonstrates the extreme social collapse sure to follow economic withdrawal, open to only even more costly consequences payable from only one source: Guess who ??? We've allowed this destruction on our watch in this once democratic nation. We cannot now abandon our own brothers, sisters --and their chidren, our charges, too-- caught in consternation not of their making. We are complicit; we must now share the burden for that sure guilt. Why not start with that $100 million monthly spent in a wasting war undertaken by preemptive action ? Part of that start must be precedent-setting unavoidable Constitutional action vs those who initiated the calamity we now face as a nation. We CAN rescue and remedy, if we will but use wit, wisdom and will of the people, as demonstrated on Nov. 4.

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Sean Flynn was a photojournalist in Vietnam, taken captive in 1970 in Cambodia and never seen again.