Blaming Management, Not Economy, Most Still Oppose Automaker Loans

Dec. 15, 2008— -- Despite dire warnings, more than half of Americans still oppose federal loans to rescue the Big Three automakers, with two main reasons: Six in 10 doubt their reorganization in bankruptcy would hurt the economy. And three-quarters say they made their own bed.

Overall, 55 percent in this ABC News/Washington Post poll oppose such loans; 42 percent support them. Support has advanced modestly from 35 percent three weeks ago. But opposition has been steady, and more strongly felt.

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A key reason is that just 22 percent believe the automakers' problems are mainly the fault of the bad economy; 75 percent instead blame the companies' own management. And it matters: Among those who blame the economy, two-thirds support the loans. But among the many more who blame bad management, 61 percent are opposed.

Similarly, the loans are supported by most of the people who think the broader economy would suffer if one or more of the automakers went into bankruptcy protection. But only 36 percent are persuaded that a Big Three bankruptcy indeed would hurt the economy. And among the rest, again most – just shy of two-thirds – oppose the automaker loans.

Congress rejected a loan package last week, leaving the Bush administration looking for alternatives. This poll noted that the government is considering up to $14 billion in loans with a government board to oversee the automakers' restructuring, and presented pro and con arguments: Supporters say it's an underserved bailout and the companies would be better off reorganizing under bankruptcy laws; opponents instead say the loans are necessary to protect auto workers and save a key part of the U.S. economy.

Not only do 55 percent oppose the loans, 34 percent do so "strongly," outstripping the level of strong support, 20 percent.

These views come at a time of extraordinary economic concern. Consumer confidence hit a record low in the weekly, 23-year-old ABC News Consumer Comfort Index two weeks ago; a mere 7 percent said the national economy is good, 20 percent called it a good time to spend money and fewer than half rated their own finances positively. It would seem a prime time to blame the economy for the automakers' troubles, making the public's focus on their management, instead, all the more potent.