by Laura Conaway

We're getting a lot of mail today from people wanting to talk about the American auto industry. Leaders of General Motors, Ford and Chrysler asked Congress yesterday for a rescue or loan or bailout, whatever you want to call $25 billion in financing from Uncle Sam. Their request is drawing a fair bit of flack in the press, like this op-ed from Michigan luminary Mitt Romney.

One of Detroit's big problems is that it's paying a ton for employee benefits like retirement funds and health insurance. Listener Jesse Knaak writes:

Instead of a handout why doesn't the federal government take on the responsibility of the medical care for the union retirees? If that debt obligation is taken off the books it would allow some breathing room for restructuring.

 

The other side of this is that the union could then become a partner in developing the new health care system that could provide for these workers. If their pension health care is so much better than the Obama health plan then I don't want to pay GM so that their retirees get better care than everyone else.

Bonus: Rep. Barney Frank's big idea