Tough decisions paying off - Obama

Detroit : US President Barack Obama said the "tough decisions" he made to give almost $60 billion (Dh220 billion) in aid to the US auto industry saved a million jobs and led to the strongest period of growth for automakers in a decade.

In his weekly address on the radio and the internet, Obama said the help given to General Motors and Chrysler Group have led to a "hopeful story" of economic recovery following the nation's worst economic crisis since the Great Depression.

"There's no doubt that we have a long way to go and a lot of work to do before folks here and across the country can feel whole again," he said in the address, recorded at a GM plant in Hamtramck, Michigan, Friday. "But what's important is that we're finally beginning to see some of the tough decisions we made pay off."

Obama is stepping up his defence of government aid to automakers as polls show voters haven't been persuaded the spending was worthwhile. A Bloomberg National Poll conducted from July 9 to 12 shows the federal assistance package to automobile companies is becoming less popular: 48 per cent say they became less supportive of it in recent months, while 17 per cent say they have become more supportive.

Obama visited GM and Chrysler plants in Michigan on Friday as part of an administration campaign leading into the November congressional polls to highlight the impact of the president's economic policies.

The administrations of Obama and his predecessor, George W. Bush, committed a total of $85 billion to rescue the automakers, aid suppliers and prop up the financing arms of GM and Chrysler. About $67 billion in loans and equity investments are still outstanding, according to administration figures.

Obama advisers have said they expect about $60 billion — the amount committed by the administration — to be recouped.

Obama in his radio address said the government investments are helping the companies reinvent themselves to make cars like GM's Chevrolet Volt, an electric car than can go 40 miles before using its gasoline-powered generator.

He called on Republicans in Congress to work with him on taking more steps to encourage hiring by passing legislation that would give tax breaks and lending assistance to small businesses. Senate Republicans blocked consideration of the measure earlier this week.

"At a time when America is just starting to move forward again, we can't afford the do-nothing policies and partisan maneuvering that will only take us backward," he said.

In the Republican address, Senator Mike Johanns of Nebraska said Obama's policies are hurting private-sector job creation by creating new rules and regulations. He singled out provisions of this year's health-care overhaul that requires more business record-keeping for total purchases over $600 in a year.