In the latter part of 2008, the U.S. economy was rapidly falling apart: the stock market collapsed, the housing bubble burst, and gasoline prices soared. skyrocketed. Most US-based businesses were faced with the reality that they would not be able to survive in such desperate economic times. The US auto industry, in particular, began to succumb to the economic crisis. The government stepped in by proposing a multibillion-dollar bailout to stimulate the economy and restore economic balance. The possibility of this unprecedented government intervention has been condemned by many economists. If the government were to help the ailing auto industry, that industry would have to reduce its spending and plan for the future to demonstrate to critics of the bailout that they would use government funding to add value to the economy once again. President Bush signed the emergency The Economic Stabilization Act (EESA), more commonly called “the bailout bill,” became law in October 2008 (Woods, 2009). Within this framework, the Secretary of the Treasury launched the Troubled Asset Relief Program (TARP) to purchase distressed mortgages and purchase ownership stakes in banks (Muolo, 2009). To finance the $700 billion economic recovery, American taxpayers would be forced to foot the bill. The Emergency Economic Stabilization Act was not the first time in U.S. history that the government intervened to improve the nation's economic status. After the Great Depression, President Roosevelt provided economic stimulus packages to revive banking systems and various aspects of U.S. agriculture (“History of Government Spending,” n.d.). In fact, President Roosevelt is also credited with passing the Social Security Act and providing protection to struggling unions and mig... middle of paper... despite the loss of $14.6 billion. The times. Retrieved June 23, 2011, from http://business.timesonline.co.uk/tol/business/industry_sectors/engineering/article561193Stoll, J., Dolan, M., McCracken, J., & Mitchell, J. (2008, 3 December). The big three are seeking aid for 34 billion dollars. Wall Street Journal. Retrieved June 23, 2011, from http://online.wsj.com/article/SB122823078705672467.htmlTaylor, E. (2008, February 28). Automakers are leaning towards the countervailing effects of the euro's surge. Wall Street Journal. Retrieved June 23, 2011, from ABI/INFORM Global (1436135321). Weil, N. (2008, September 1). Save Chrysler; At the struggling automaker, private equity ownership is pushing IT to cut costs through outsourcing and retooling to compete globally. THAT IS. Retrieved June 23, 2011, from ABI/INFORM Global (1559192691).Woods, T. E. (2009). Fusion. Washington, DC: Regnery Publishing, Inc.