Detroit Bailout Update
||By Anna Finger
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The Detroit bailout was a very costly bailout. The bailout cost taxpayers twenty five billion dollars. This bailout was designed to help the financially hit automobile
Automakers have seen declining profits and sales because of the downturn that the economy has taken. Many people are deciding not to purchase new cars. Many banks are now
denying car loans because the economy is so unstable so they do not want to take on so many new credit liabilities. If people cannot afford to purchase new automobiles then
the automobile industry loses money and employees' jobs are threatened. Detroit, Michigan is known for its automobile manufacturing plants. Because of the economic crisis,
major automakers asked the government for twenty five billion dollars in low cost federal loans to help them stay afloat.
The huge price tag of the Detroit bailout is to help automakers make more energy efficient cars, trucks, and sport utility vehicles. The United States of America is a very
energy dependent country. Our country relies on foreign oil and we need to lessen our dependence on foreign oil. Because we import most of our oil from the Middle East and
other foreign countries it puts our country at risk. By investing in the technology and employees that are needed to make more energy efficient the automakers will increase
their workforce and help keep American workers working.
The Detroit bailout had to happen in order to save the United States automobile industry. If the automobile industry fails then the economic impact will affect many Americans.
The Detroit bailout affects Americans because it will help the economy. If there are more energy efficient automobiles being manufactured then more people will have jobs.
If more people are employed then those employees can take care of their families financially and will in turn stimulate the economy. Those employees will stimulate the economy
by purchasing items from stores, dining out, going to movies, and buying homes etc. The economy is a ripple effect where one event can positively or negatively affect the
economy as a whole.
The Detroit bailout will hopefully bring the price of fuels down. Gas prices have been very high and many people are desperate for relief. The only way to accomplish this is
to build automobiles that use alternative forms of energy and get better mileage per gallon of fuel.
The Detroit bailout was necessary in order for the automobile industry to survive. Hopefully the bailout will help to make the economy thrive so that Americans can have
some financial relief.