At Michigan Debate, Questions on Auto Bailout Opposition to Rule
ROCHESTER, Mich. — With Herman Cain’s sexual harassment controversy continuing to dominate the race for the Republican presidential nomination, the GOP candidates gather tonight in a state that, like much of the country, cares more about another issue: jobs.
Few states have been hurt worse by the country’s faltering economy than Michigan, where the unemployment rate still hovers at 11 percent, 2 percent higher than the national average. The automotive industry, so crucial to this state, has tried to bounce back after receiving federal bailout money, first under the Bush administration and now under Obama’s.
At Oakland University, site of tonight’s CNBC debate, a group of students was unanimous in its belief that the economy is the key issue this year. One student, Jessica MacMurtrie, said her father – who worked for General Motors – has had three jobs in the past year.
“He’s obviously not happy about that, but it is what it is,” MacMurtrie said.
Another student, Paula Yumpo, said the automotive industry is improving, but not quickly enough.
“I think little by little it’s coming back,” Yumpo said. “I’d like for the progress to be a lot faster.”
According to a new Univision/Latino Decisions poll released Tuesday, 74 percent of all voters nationwide said the most important issue for them in picking a candidate would be jobs and the economy. The poll found that Obama enjoyed leads over the top three Republican candidates – Mitt Romney, Rick Perry and Herman Cain – but that the president also faced fierce opposition this year.
Nationwide, 50 percent of Americans said they disapprove of the job the president is doing (37 percent said they disapproved strongly; 13 disapprove somewhat), while 48 percent approve.
Before tonight’s debate, Democrats have sought to pounce on Romney’s opposition to federal intervention in an effort to save the struggling U.S. automakers. Romney, who was born in Detroit, has defended his position by arguing that he believed in orderly bankruptcies for GM and Chrysler, but not bailouts with government money. However, no private money was prepared to step in, leaving the government to choose between multi-billion dollar bailouts or liquidation.
In a new web video titled “Hit the Road, Mitt,” the Democratic National Committee highlights a November 2008 op-ed that Romney wrote in the New York Times called “Let Detroit Go Bankrupt.”
“Voters in Michigan will have a clear choice between Mitt Romney and the rest of the Republican field, which wanted to let Detroit go bankrupt, and President Obama, who not only extended a loan and restructuring package that saved 1.4 million jobs up and down the auto supply chain,” DNC communications director Brad Woodhouse said in a statement Tuesday.
In an ABC News/Yahoo News interview with George Stephanopoulos Tuesday, Romney again defended his stance, saying the government should only have provided federal guarantees for warranties on cars.
“If they would have needed additional support from the government for things like warranties, that is something that I could have supported,” he said. “But the initial money was wrong, and giving the companies to the UAW, that was wrong.”
Obama’s campaign spokesman Ben LaBolt quickly fired back that “if Mitt Romney was president, there would not be an American auto industry. Industry experts have been clear: Our auto companies would have faced liquidation if Mitt Romney had his way, and more than 1 million Americans would have lost their jobs. Mitt Romney must explain to Michigan voters this week why he would have let Detroit go bankrupt.”
The controversial automaker bailouts are sure to play a prominent role at tonight’s debate here. Three years ago, Obama won Michigan by more than 16 percent in the general election, but as Michiganders readily admit, this time around may not be as easy.
“Some people are very resentful to him because they say that the auto companies don’t give the same pensions as before or the same benefits as before,” said Maria Cecilia Saenz-Roby, a professor at Oakland University. “They are really divided in Michigan.”
“The university is affected, too,” she continued. “Because our students don’t have the means, the university has had to give extra grants this year and last so as not to lose the student body. This is all to say that we are all suffering.”
Matthew Jaffe covers the 2012 campaign for ABC News and Univision.

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At this debate they will all suddenly “see the light” and yet at the next debate, in a non auto manufacturing state, they will all slam the bail out.
Posted by: MiketheElectrician | November 9, 2011, 11:45 am 11:45 am
The auto industry was destroyed by big labor. Their wage and benefit demands, have driven the price of cars to astronomic levels.
My first brand new car, cost me $3200. Today, that same car, would cost over $20000.
We owe nothing to the US auto industry. They crated their own mess.
Posted by: Rick McDaniel | November 9, 2011, 12:00 pm 12:00 pm
The economy is not recovering because the Obama Administration’s “government controlled” bankruptcy rewarded unions while ignoring contract law. Confidence was shaken as to if money lent for contractually obligated collateral has any value!!
Posted by: Common _ Sense | November 9, 2011, 1:11 pm 1:11 pm
So you republicans think we just should have let GM go out of business? What about the thousands of auto workers that would have lost their jobs. GM seems to be doing fine now, and hiring. I don’t understand how you can justify not helping corporations that are in trouble, but favor giving tax breaks and other perks to corporations who are amassing record profits.
Posted by: tmferretti | November 9, 2011, 3:41 pm 3:41 pm
Good. let’s get the conversation going, about big labor’s major role, in causing the bailout, in the first place.
Posted by: Rick McDaniel | November 9, 2011, 5:39 pm 5:39 pm
Unions wages/benefits contributed to the collapse of the auto industry and then the Union got the benefits of the bail-out! This seems fair!
Posted by: Common _ Sense | November 9, 2011, 5:49 pm 5:49 pm
Why did the democrats have to destroy Detroit anyway?
Posted by: TexBork | November 9, 2011, 6:11 pm 6:11 pm
tmferretti, It wouldn’t have gone out of business. It would still have gone through bankruptcy and restructuring and the assets would have been bought up and even though it would change how it was managed, it would have survived. The taxpayers didn’t have to nor should have been forced to pay for their mismanagement nor the demands of the unions.
Posted by: TexBork | November 9, 2011, 6:28 pm 6:28 pm
Bailing out corporations sets a bad precedence. Like Solyndra thinking they can just use their WH connections and waltz right in to get a taxpayer funded “loan”.
Posted by: newcountryman | November 9, 2011, 6:38 pm 6:38 pm
every business knows when obama and the dems are gone this country will re open for business and we will recover, not until then.
Posted by: catman | November 9, 2011, 6:44 pm 6:44 pm
Yeah, open for business IF you are wealthy enough and don’t pay taxes to support the country.
Posted by: raggmopp | November 9, 2011, 8:15 pm 8:15 pm
The auto industry isn’t fully recovered because there are so many people out of work and/or worried about the money they lost when the stocks and housing prices tanked.
If we all read labels and choose to buy American whenever possible, we can create jobs, bring jobs back to the U.S. and every industry, including the auto industry will pick up.
Any politician who says we shouldn’t have saved the auto industry doesn’t understand how many suppliers would have gone under, too, killing more jobs. Or those politicians own stock in foreign car companies! :)
Posted by: Librarian53 | November 9, 2011, 10:19 pm 10:19 pm
The root cause of the auto companies’ problems was not the unions. It was lousy management, that pushed the manufacture of high margin SUV’s, didn’t focus on business basics and saw their market positions slide because of lousy quality, poor engineering and design, and lack of innovation. the President and other elected officials from both parties who rescued the domestic auto industry did the right thing for the country. Any time you do a rescue, some people get benefits they don’t really deserve. So what. The purpose of the rescue was to prevent further deterioration in the economy, and it worked reasonably well. I think it’s incredibly ironic that some people blame the President for the fact that their benefits have gone down, compared to pre-bailout times. How do their current benefits compare to “NO BENEFITS” if there were no auto companies to provide jobs?
Posted by: Steve Hamilton | November 9, 2011, 11:50 pm 11:50 pm
This debate was pretty good. It covered pertinent subjects and the candidates did not resort to attacking each other. Most had some really good points to make. In any case, Romney is the man with the best chance to unseat Obama among the widest demographic. Most people I know have decided on Romney. He is calm and thinks things out. Romney has business and government experience that is sorely lacking in Obama and most of his Republican opponents. He has the best chance to turn the economy around because of his experience and history of working across party lines. He is not flashy, but a good stable man who loves his country and will do the best job. On the health care issue, he has the most experience as to what works and what does not. I think he will be able to offer some real help in that area and it will not include a Federal takeover.
Posted by: Connie Davis | November 10, 2011, 12:30 am 12:30 am
I find that most people who criticize unions don’t know anything about them and have never belonged to one. Unions don’t have the power you think they do, the company has all the money and the facilities. When you negotiate a contract you’re given the financial reports from the SEC through the Freedom Of Information Act. This information spells out how the company is doing. and most important, how they’re spending the money YOU earned for them. If Detroit was in such bad shape why did the execs get such big bonuses? When they got the bailout money the first thing the CEO did was a 2 million dollar office remodel. How did that help car manufacturing. When I was in a union (30 years) the first 15 were good. Pay raises were based on cost of living. Second 15 were ALL give backs. Presidents pay went from 96,000 to 1.5 Million. Went from 4 vice-president to 16.Would you rather everybody worked for what the GOOD company thought was enough? Think we’re in a mess now, try that!! Keep in mind, if you’re not the CEO you’re just an employee. When we had strong unions nobody worried about their 401′s, or the government paying for health care. The were NEGOTIATED!! Is no negotiation for golden parachute, exec pay, perks or how the company is run. If the company bankrupts labor goes to unemployment line, welfare, food stamps. Execs go to another company or retire on their severance package. Union people are not a bunch of stupid buffoons as you seem to think, nobody would kill their soul source of income!! How’s the upper class going to feel when we reduce all wages and all taxes for the benefit of corporations and they have to pay for everything. Doesn’t do any good to worry about manufacturing if nobody can afford to buy!!!
Posted by: Bigguy | November 10, 2011, 12:50 am 12:50 am
How is passing a business’s red ink to the taxpayers a good thing.
It’s great that GM and Chrysler are reportedly in the Black. But that could have been achieved through normal litigation through bankruptcy. And ‘No’, Bankruptcy does not necessarily mean that they would have disappeared.
Posted by: Wylie-Mike | November 10, 2011, 2:56 am 2:56 am
I saw yesterday where GM passed Toyota as the largest selling car company in the world. If this doesn’t tell you the bail-out was a god thing maybe the fact that thousands of auto-workers still have jobs will.
Posted by: tmferretti | November 10, 2011, 1:29 pm 1:29 pm
BIGGUY
You even explained it better than I could. The labor unions built the middle class who enjoy all the benefits those guys on the picket line fought for. Too many Americans have bought into the corporate rhetoric that demonizes the unions to allow the corporations to out-source and use foreign cheap labor. 50 years ago, there would have been no out-sourcing of American jobs or American workers would have shut this country down.
Posted by: tmferretti | November 10, 2011, 2:07 pm 2:07 pm
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Posted by: Marcie Fischbein | November 23, 2011, 12:14 pm 12:14 pm
can you please ask something about healthcare
Andrew
Posted by: Andrew | December 10, 2011, 7:01 pm 7:01 pm