Scott Laue says history shows us what can happen when the auto industry takes a turn for the worst. He says if we look back to the 1980's, the Rockford area unemployment rare was in upwards of 20 percent as we held heavy ties to the automakers.
With the nation's jobless rate climbing higher quickly, Laue says President Bush knew he had to do something to avoid a virtual collapse of the car companies. The industry employs over 3 million workers, and letting them fail would cause a devastating ripple affect, locally and across the country.
"The auto industry has such a high impact of both the regional and national economy because of the trickle down affect. its not just the autoworkers, but its also the suppliers."
Part of the contingencies on the handout is the carmarkers have to report to lawmakers with a plan on how they are going to shore up their finances and remain competitive by march of next year.