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Democrats Give Detroit One More Shot at Bailout

Jul 31, 2020
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Democratic leaders, conceding that their efforts to bail out America’s automakers stand no chance in Congress this week, are extending a final opportunity to the Big Three: Submit specific plans for getting the companies back on track and repaying the taxpayers, they offered, and Congress will return to Washington in December to consider legislation.
“We want them to come up with a proposal that we can get through here [Congress] on Dec. 8,” Senate Majority Leader Harry Reid told reporters in the Capitol Thursday afternoon.
The heads of Detroit’s automakers have made the rounds on Capitol Hill this week, but their efforts to secure $25 billion in emergency loans have hit a wall of Republican opposition. GOP critics, including the White House, remain unconvinced that the money would be used to rework the companies’ failing business models into viable strategies. Republicans also fear that the emergency loans would never be paid back.
Democrats said the companies’ plans — to be submitted to Congress in the first week of December — should focus on these two sticking points. “The key is accountability and viability,” Reid said. “That’s all we’re asking. It’s not too much.”
Senate and House Democrats have been somewhat at odds over where the funding would come from. House Speaker Nancy Pelosi (D-Cal.) has insisted that it be diverted from the $700 billion Wall Street bailout plan enacted last month. Meanwhile, key senators have floated the possibility of using an existing $25 billion earmarked to retool factories for the production of better cars.
Pelosi on Thursday deflected questions about the source of funding, saying she first wants to see the automakers’ plans. “We’re not talking today about what money will be used,” Pelosi said.
Maybe we’ll have that December session after all.
Dexter Cooke

Dexter Cooke

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Dexter Cooke is an economist, marketing strategist, and orthopedic surgeon with over 20 years of experience crafting compelling narratives that resonate worldwide. He holds a Journalism degree from Columbia University, an Economics background from Yale University, and a medical degree with a postdoctoral fellowship in orthopedic medicine from the Medical University of South Carolina. Dexter’s insights into media, economics, and marketing shine through his prolific contributions to respected publications and advisory roles for influential organizations. As an orthopedic surgeon specializing in minimally invasive knee replacement surgery and laparoscopic procedures, Dexter prioritizes patient care above all. Outside his professional pursuits, Dexter enjoys collecting vintage watches, studying ancient civilizations, learning about astronomy, and participating in charity runs.
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