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Why is Obama so eager to hand out money to the auto industry?

I understand the concerns about bailing out the auto industry. I get it that millions will loose their jobs if nothing is done-that unemployment could easily rise above 9%. This being said, if we have to just hand the gig three 50 billion dollars, why aren't some shrewd deals with incentives being made. Deals like: 1. The money would have to paid back with minimal interest over a ten year span, otherwise a higher default rate of interest would apply. 2. Restructure and reduce corporate pay scale/benefits/stock options by a minimum of 35%. 3. Eliminate all current union deals. No exceptions. You start making exceptions for one thing and the union floodgates will pour. 4. Lower interest rate/ loan payback for building and placing more fuel efficient vehicles. Very rough Example. If GM were to place 30,000 50 mpg with consumers, there interest rate would go from 2.5% to 2%. If they were to place 60,000 65 mpg vehicles their interest rate would drop to 1.5%. Obama wants to give the big three 50 billion. Fine. I don't like, and I don't agree with it. But, I can live with it if there were some parameters, and incentives for future developments. If a savy enough deal were to made, it could even be an opportunity. You want to just hand them 50 billion dollars? Fine. Let's bend them over and get something for that money. Make an example out of them for future companies that pull the same thing.

Public Comments

1. Just another bad bailout suggested by Pelosi and Reid. Weren't they suppose to be the fiscal minded party?
2. Actually, Obama does want to impose conditions, some similar to what you suggest. Caps on executive pay, stop making gas guzzlers, etc.
3. He needs a bullet proof Chevy Monte Carlo. Maybe he can pimp his ride.
4. Detroit is finished, the writing is on the wall. John McCain took some flack for actually saying that but he was pretty accurate. I mean, I don't think a bailout at this point should be focused at "saving" the automotive manufacturing industry in the United States because it will be a lost cause, rather, it should be focused on giving the people who are inevitably going to be losing their jobs a softer landing and help them find other jobs.
5. Obama isn't doing that, but he did suggest it and Bush has to do it. Bush is still President. And it is very important that they get this bailout, too many jobs will be lost.
6. Too many promises to the unions, and he is a spender, his record tells the story
7. Because he's a dem and will vote with Pelosi.
8. No-one at this time is eager to dole out money. Some measures are necessary however to keep at least some jobs in this country. If money is given to the Automobile Industry, there should be strict stipulations as to how it is to be applied. More energy efficient cars should be one. No outsourcing is another.
9. if cars are not being sold how is this money going to help? I have to agree I dont like it either.
10. He's thinking of the . 1,300,000 people that will be effected if just one of them shut down . And hopefully make the auto industry make more than just the automobile cause they can't do that too good . Look at what Honda makes and Yamaha makes in total Along with all of the importers of automobiles .
11. Because he needs to protect the unions and the campaign donations they provide. If the big employers of union labor go out of business then the Democrats lose a huge chunk of their campaign donations. BTW - one thing that you have to consider is that when you pay salaries and benefits the 'you get what you pay for' rule applies. If you restrict the pay scales for one industry - then the top talent will simply go to other industries. The auto companies are in trouble because they are not making the cars that the consumers want. Arbitrarily mandating that they make certain cars without the customer base of people who want to buy those cars will only mean that we will have to bail them out again in a few years.
12. socialist ways
13. Detroit a democratically held city for years. Auto companies are going bankrupt because Americans do not want their products and they are overpriced for the value. Why are they overpriced? Salaries of Union workers and pension funds for people not working. The company can not sustain the drag on their assets in a down turned economy. Bailout is not really for the industry but for the Union which pushed these companies into financial ruin. Example. You pay someone $30 a week to mow your grass. A few years go by and he says hey I need 45 because I need someone else to help me. A few years go by and he says I need 55 because gas prices are so huge and Me and my worker can not afford to be here. You say well I will just hire someone else for 30. The threats begin, your yard gets sprayed with some dirty words. The new worker tells you I can not do it because he has threatened my family. So you give in and pay 55. A few years later a third guy shows up and takes over for the first guy, but he tells you guy one needs a pension so You have to pay 65 bucks now. Meanwhile the guy down the street is paying an "undocumented worker" 20 bucks to mow his grass. You start to realize that this is a dead end, you sell your house and move into an apartment because the up keep on that precious lawn is bankrupting you. Moral of the story Unions are Bankrupting businesses.
14. This is what Americans are talking about , where's Pres-Bush he is in Power now and has been for the last 8 years; Pres-Bush can help. He need to help them out (middle-class Americans). They need the help; with the stipulations that Pres-Elec Obama is speaking of and it will work. That is too many people to put out ot work, America need to bring in new jobs as well.
15. False. Obama is all for cutting a deal that protects against mismanagement and waste. One of his biggest conditions is to make the automakers invest in green products.
16. This is actually a decent plan. However the Current Bush league is buying owner shares rather than bailing out. So, to be clear, the current government, not Obama, is practicing very socialistic solutions. I don't disagree that it will take something the size of government to straighten this mess out but I do want to see that they don't forget who they borrowed their seed money from. I also agree that unions, although they may have done some good, have misused their power to get higher pay and benefits than ever before. This translates into higher costs of production, higher priced vehicles and therefore much higher inflation. We need to stop letting greedy people run rampant from industry and Wall street to government. I do not doubt for a moment that if the big three get help it will come with a very big price tag. Perhaps even something like you suggest. Regardless, things are about to change big and we need to keep a very close eye on big brother. Let him know we are watching him too. Let your state reps know we will not stand still for throw our money at it solutions and that we demand to see a return on the 700 billion loan they "took" from us.