February 22, 2009

Michigan Governor Jennifer Granholm thinks that Republican governors need to do more homework before dismissing government loans to save the automotive industry. "My pal here from South Carolina, who I think is a bit -- you'd have to say he's a bit of an outlier in terms of economic theory, more of a libertarian than the rest of us or most folks -- would say that this creative destruction would be good," Granholm said of South Carolina Governor Mark Sanford.

Speaking on a panel of governors on Fox News Sunday, Minnesota Governor Tim Pawlenty disagreed with Granholm. "The unions and auto companies have been unable to put a deal together that fundamentally restructures the industry. It needs to get done. The only way it's going to get done is in bankruptcy court," argued Pawlenty.

"Governor Pawlenty, have you read the reports they've just submitted? I bet you haven't," Granholm shot back. "The unions have made enormous concessions. Starting wages have taken 50% pay cuts. Don't tell me they haven't done that," she said.

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