Trump in 2008 on bailing out the Big Three car manufacturers: "I think the government should stand behind them 100 percent."
Washington, DC - The Club for Growth today criticized Donald Trump for saying that the federal government should back the auto industry and that "You cannot lose the auto companies.":
"If there's anyone who should know the value of filing for bankruptcy, it's Donald Trump. He should have known that the $13.4 billion government bailout of the auto industry just put off the inevitable while putting taxpayers at risk," said Club for Growth President Chris Chocola. "Bailouts and nationalizing whole industries can cripple free markets and has hampered our economic recovery. We need our next President to understand that economic freedom leads to growth and prosperity for all, and that the government should never be in the business of picking winners and losers."
Trump on bailing out the auto industry: "I think the government should stand behind them 100 percent: CAVUTO: Do you think that we can afford to do without one of the Big Three?TRUMP: No. I think you should have the Big Three. I think, frankly, they should do dip financing. I think the government should stand behind them 100 percent. You cannot lose the auto companies. They're great. They make wonderful products. Maybe they're making too much. Maybe they're not making too much. I mean, I just brought a Dodge Ram truck from Arrigo Dodge, who's a member of one of my clubs and great guy. (Fox News, 12/17/08)
Trump favored bailing out the auto industry instead of letting them go bankrupt, but he has filed for corporate bankruptcy at least four times: Previously, Trump filed for corporate bankruptcy in 1991, 1992, 2004, and 2009. As Trump stated in the interview, these Chapter 11 corporate bankruptcies were used to negotiate debt deals. After the deals were done, all of his companies went on to survive (and in some cases thrive). (International Business Times, 4/12/11)