(Newser Summary) – It’s looking unlikely that a new economic stimulus package and a Detroit bailout will happen this year, the Wall Street Journal reports. The proposals are facing stiff resistance from Republicans and may have to wait until the new, more heavily Democratic Congress convenes in January and Barack Obama takes office. Democrats are leery of introducing a proposal that may face a veto from Bush.
Industry experts warn that one or more of Detroit's Big Three may collapse before then. GOP leaders are unsympathetic, calling the proposal to throw a $25 billion lifeline to uncompetitive automakers "neither fair to taxpayers nor sound fiscal policy." Senate Majority Leader Harry Reid has vowed to push for the legislation despite partisan resistance, saying the automakers are a vital part of the nation's economy. Source: Wall Street Journal
I'd want to be careful about bringing up a proposition that might fail. There's some political considerations that need to be made over the next few days. - Senate Banking Committee Chairman Christopher Dodd
The financial straits that the Big Three find themselves in is not the product of our current economic downturn, but instead is the legacy of the uncompetitive structure of its manufacturing and labor force. - Rep. John A. Boehner, R-Ohio
