The US senate failed to give support to the proposed $14 bn bailout plan to the struggling US car industry. ‘We were three words away from a deal’ said Republican senator Bob Corker. He has been a key negotiator on the failed package, and he is now blaming the White House, saying it undermined attempts to reach a deal. But why should American tax payers save this industry who sends it’s beggars in a private jet?

Should the big three car companies go bankrupt the impact on US economy would be devastating.Millions of people would lose their jobs. Not only the ones working directly for Ford, Chrysler and General Motors, but everyone who works in car dealerships, who sell cars, car hiring firms and people who works on cars would also lose their jobs. With the US economy already in hard weather, suddenly getting millions more unemployed and on benefits is something that the US simply cannot handle.

So with the senate saying no, what will President Bush say? The latest word from the White House is that money earmarked for bailing out the failing banks could be used to save the car industry instead. This will save more jobs, and the strain on the US economy will be less.

Dana Perino, the White House spokes person, said it would consider the TARP programme to prevent a collapse of the car industry. She added that it would be irresponsible to further damage the economy by allowing the US car industry to fail.