Presidential debate 101: Did Mitt Romney want Detroit to go bankrupt?(Read article summary)
Mitt Romney said in the presidential debate that, in effect, Obama followed his plan in calling for Detroit automakers to go bankrupt. But there's a key difference: At the height of the fiscal crisis In 2008, commercial lending was dead, hence the need for government funding.
Did Mitt Romney really say the US should let Detroit auto firms go bankrupt back in 2008? That was a subject of fierce contention in the town-hall presidential debate last night. But the millions of voters who tuned in to the Hofstra rumble heard little more than “did too” “did not” repartee about Detroit’s bailout. We think the exchange was confusing, so we’ll take a stab at decoding the facts behind this big issue.
First, the baseline: Yes, Mr. Romney did use the “bankrupt” word in conjunction with Detroit’s fate, as President Obama charged near the debate’s beginning. (“When Governor Romney said we should let Detroit go bankrupt, I said, we’re going to bet on American workers and the American auto industry,” were the president’s exact words.)
In fact, Romney published an opinion piece in The New York Times on Nov. 18, 2008, that was titled “Let Detroit Go Bankrupt." He didn’t write the headline, but was given a chance to approve it, according to the Times.
The piece opposed the bailout auto executives were begging for at the time. Better to let the weaker Detroit firms go through a “managed bankruptcy," wrote Romney, so they could emerge leaner on the other side, shed of onerous union contracts, pension obligations, and real estate costs.
“Detroit needs a turnaround, not a check,” wrote Romney back then.