WASHINGTON, DC—Congressman Allen Boyd (D-North Florida) last night voted against legislation to bailout the U.S. auto industry, citing his concern that this bailout will not be beneficial to the taxpayers in the long run. The Auto Industry Financing and Restructuring Act (HR 7321) passed in the House of Representatives by a vote of 237 to 170 and now awaits consideration by the Senate.
“My top priorities are to grow our economy and protect the taxpayers, and I am not convinced that bailing out the U.S. auto industry will do either of those things,” said Congressman Boyd. “I believe that American capitalism is the greatest economic system in the world, and we have to let the markets work. The U.S. auto industry has been struggling for quite some time, and it’s very clear that they need to make substantive, structural changes so that they can compete in a global economy.”
The Auto Industry Financing and Restructuring Act would provide up to $15 billion in short-term bridge loans to aid the U.S. auto industry. Under this legislation, the President would designate one or more individuals, known as a “car czar,” to hold the car companies accountable for developing and implementing viable long-term restructuring plans and to ensure compliance on financing efforts.
“Our nation is facing serious economic challenges, and there is a role for the federal government to play in stimulating our economy,” Boyd said. “However, committing taxpayer dollars to a specific industry without any clear strategy that the money will be put to good use or repaid is not the appropriate role for the federal government.”
“I am hopeful that this economic downturn will result in a renewed interest in Washington to clean up the federal budget and address our long-term fiscal challenges,” Boyd continued. “The first step is for our government to stop spending more than it has and start living within its means. I look forward to working in the next Congress to implement fiscal policies that will put our country back on a path toward economic prosperity for years to come.”