Here's what I just recieved in reply to my communiction with my politicians.
Quote:
Dear Chris:
Thank you for contacting me to express your opinion relating to a possible financial bailout of America’s automobile industry. As a former businessman and current elected representative of the hardworking taxpayers of my district I remain very cautious about using public funds to rescue any failing private sector enterprise. Most of the proposals mentioned to date including direct financial grants and subsidized loans would not have my support or vote.
While I understand that the current financial market and credit crisis have seriously harmed both business and financial prospects for our automakers, they have an even more significant operational problems. Until these American manufacturers develop competitive products, reform management practices and bring labor costs under control, no amount of federal underwriting will resolve their current and future challenges.
As the former Chairman of the U.S. House of Representatives Aviation Subcommittee during America’s aviation industries most difficult times I devised a rescue plan that might serve as a model. We provided no direct loans. Only loan guarantees for which recipients paid a fee. We also required strict review of viable business plans by an independent panel.
We placed the government and taxpayer in a primary position if any loan failed. While only two loans were rescheduled and a number denied, all loans were repaid. Furthermore, taxpayers received $345 million in fees and revenue from the loan guarantee program.
I know Congress can find creative and responsible means to get both America’s auto workers and many of our other ailing businesses back on track. Please know I will do everything possible and in a responsible manner to get our economy in a positive direction as soon as possible.
With my regards and best wishes, I remain
Sincerely,
John L. Mica
Member of Congress
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