January 5, 2009 -
January 12, 2009 • Vol. 14, No. 16
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Canada Plans to Save the Big 3, Too

The Star reports on the plans of Canadian Prime Minister Stephen Harper to present parliament with a new stimulus package to address the problems of Canada's Big 3:

Flaherty stressed that the government has tried to stave off an economic slowdown by using lower taxes – he brought in a six-year, $60 billion tax reduction program in 2007 – to improve business conditions. But he said there will be further stimulus to the economy, and suggested it might include help for the auto sector.

"We're going to have to deal with the automotive issue, obviously," he added. "Will we have to help a particular sector or more than one particular sector? The answer is probably yes."

The federal and Ontario governments have asked Ford, General Motors and Chrysler – thought to be collectively seeking $3 billion to $4 billion in aid – to produce recovery plans by Friday.

It's interesting to note that Canada views the Big 3 as a key part of their domestic economy even though they are headquartered abroad. Should our government give similar attention to Toyota, Honda, and other 'foreign' automakers that employ tens or hundreds of thousands of American workers, as they craft the bailout for Detroit?

At the very least, the Big 3 CEOs ought to be forthright about how many other foreign governments they are pressuring for assistance. If other nations offer them billions, is there any reason that ought not be deducted from whatever Congress may be preparing to serve up?

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