Woodrow Wilson Center: Washington Must Couple Auto Bailout With Plan for the Future

Washington DC November 20, 2008; Kent Hughes, director of Science, Technology, America, and the Global Economy (STAGE) at the Woodrow Wilson Center, argues that Washington needs to act today with federal investments, loans, and loan guarantees. In short order, Washington must demand a business plan from the entire auto industry and key experts that points the way to an economically viable future.

"Washington must develop its own strategy to deal with a painful transition that will affect workers, small businesses, and entire communities," Hughes said. "We did it for defense industries after the Cold War and we need to do it today for businesses that are an integral part of the defense industrial base.

"From parts to products, from design to development, the American automobile industry lies at the heart of American manufacturing, is a key element in the U.S. innovation system, and will be essential as America moves from borrowing from the world to paying its way," Hughes said.

"We cannot leave Detroit to spiral into debt, decline and eventual demise. Failure of the industry; failure to act are not options for a great country