Car czar: Auto bailouts saved Detroit, state of Michigan

General Motors and Chrysler might not be around right now if it hadn't been for an $85 billion bailout by the United States government, but it appears as though that investment also saved the entire state of Michigan.

It's no secret that Michigan's economy is closely tied to the auto industry - after all, General Motors, Chrysler and Ford all call the mitten state home - but a new report reveals just how close Michigan came to following GM and Chrysler down the bankruptcy path.

Speaking at a recent event, Steve Rattner, President Obam's former car czar, revealed that Detroit and the entire state of Michigan would have likely gone bankrupt if it weren't for the government's bailout of GM and Chrysler.

"The state of Michigan would have declared bankruptcy," Rattner said. The home city of the automakers would have suffered a similar fate, with Rattner adding Detroit "certainly would have gone bankrupt" without government intervention.


The automaker bailout may end up costing U.S. taxpayers upwards of $30 billion, but that seems like a small price to pay to keep an entire state out of financial ruin.

References
1. 'Former car czar says...' view