MSNBC Interview - Transcript

Interview

MSNBC Interview - Transcript

MSNBC Interview with Rep. Gary Peters (D-MI) (Via Telephone)

Subject: Michigan's Unemployment and GM's Financial Problems

Interviewer: Monica Novotny

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MS. NOVOTNY: Joining me on the phone, Michigan Democratic Congressman Gary Peters, a member of the House Financial Services Committee. Congressman, you have said that bankruptcy must be the absolute last resort. Forgive me for sounding flip here, but are we there yet?

REP. PETERS: Well, I'm very concerned, Monica. It looks as if we are heading that way. With the bondholders rejecting the deal that was put on the table, it looks like GM may be heading that way.

MS. NOVOTNY: Now, and what kind of impact will GM's bankruptcy -- as we're reporting, it could come as early as Monday -- would it have on your state, sir?

REP. PETERS: Well, we are extremely concerned here for obvious reasons. Michigan now leads the country in unemployment, and we know that GM has announced, as you mentioned, 21,000 job cuts. We're not sure which plants will be cut, but certainly we have a number of them here that may be cut. So we may see another round of major layoffs, which will have a continued negative impact in Michigan.

Some economists are saying our unemployment rate could be anywhere from 15 to 20 percent by the end of the year as a result --

MS. NOVOTNY: Wow.

REP. PETERS: -- of this. So we are very concerned about this, and also concerned not just about General Motors, but this intricate web of suppliers that supply all of these auto plants and supply General Motors. The suppliers are very concerned about whether or not they are going to be able to be paid, and paid on time.

MS. NOVOTNY: Right.

REP. PETERS: Certainly, the administration is aware of that. We're working very closely with the administration to make sure the financing is there to keep the company moving forward.

MS. NOVOTNY: Well, speaking of that, sir, I think there are a lot of people who are concerned about another round of potential bailouts here. We're talking about another $50 billion, perhaps, to help restructure. How do you justify that to the American taxpayers who say, "Enough with the bailouts"?

REP. PETERS: Well, the American auto industry is absolutely critical to the United States. It's a strategic industry. It is critical to the manufacturing base. And you cannot have a strong country without a manufacturing sector in this country. And the auto industry is integral to that.

MS. NOVOTNY: Okay.

REP. PETERS: This is money that is essential to keep jobs. And certainly in a recession, you don't want to be laying more people off. We want to be selling more cars. And the best way to get out of a recession is to sell more cars. And we want to get through this financial crisis, and know that we continue to have a strong and vibrant American auto industry with cars made in America.

MS. NOVOTNY: Michigan Congressman Gary Peters, thanks so much, sir. We appreciate your time.

REP. PETERS: Thank you, Monica.

END.

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