Obama pledges to bail out the auto industry

When Barack Obama takes office on January 20 he knows full well that his most pressing task will be to revive the ailing US economy. The president-elect has said that he wants to bail out 'the big three' car companies - Chrysler, Ford and General Motors.

Obama has little choice, says Ryan Avent in the Guardian. "In the wake of a magnificent electoral victory built on promises to help Main Street, how can the President-elect tell the country that the government's bail-outs are reserved for Wall Street?" But Avent warns that if the Democrats do push through a rescue package for the car companies other industry sectors will soon want similar aid.

"This isn't socialism," says Joseph Romm on Salon. "And it isn't nationalization of the auto industry. It is immunization of the auto industry against the seemingly fatal disease of mental decay."

Felix Salmon of the Conde Nast Portfolio is one of those not convinced that Obama's plans are necessary: "There's a bailout vs bankruptcy meme going around with regard to GM," he explains – "a choice which makes me want to tick 'none of the above'."

LAST UPDATED 12:15 PM, NOVEMBER 18, 2008