Presidential polls for the 2012 election have shown that likely voters in Ohio trust President Obama more than Mitt Romney on how he would handle the economy in a second term. While the results over the past few weeks have been close, with 48% trusting Obama more on the economy vs. 46% trusting Romney, there are very clear reasons why Obama deserves more trust. The auto industry and its impact on the larger economy are at the core.
Imagine the impact on the price of cars if the U.S. auto industry had collapsed. The parts suppliers would have been taken down along with the auto industry. Foreign automakers rely on the same parts makers, and this would have brought them down too. The entire collapse of the ability to mass produce cars would have led car prices to skyrocket. This is one reason we needed to get this right. President Obama had one shot and brought us through this successfully. Mitt Romney's approach would have failed.
Mitt Romney’s financing plan for restructuring the auto industry would have failed and taken the economy down with it. The core problem with Romney’s plan was not the nuts and bolts, but the financing source. Romney wanted the automakers to go into bankruptcy and seek private financing to fund the bankruptcy. This approach ignores economic reality, as well as a bigger picture that must be taken into account as the leader of the free world.
President Obama successfully led the auto industry turnaround through the only means possible. President Obama’s approach left us with a rapidly expanding auto industry that is now hiring again. In many quarters as GDP (economic output) grew 1.8%, which people considered sluggish, half of that growth came from an expanding auto industry.