The Real Auto Bailout: $26 Billion For Roads Is Released

While Obama hasn’t yet given automakers bailout money to ail their woeful financial prospects, he did help them out in the stimulus by allocating billions for highways, roads and bridges. Yesterday, $26 billion was released to states for transportation infrastructure projects.

The money will go to widening a highway in Kansas to prevent bottlenecks, towards paving in Maryland, building an expansive tunnel in Seattle, just to name a few. All of these projects are aimed to make driving a better experience. It might be a slight stretch, but this work will induce more people to drive which will in turn induce more people to purchase cars.

The more cars that are purchased, the better off automakers are. So, while they’re still not going to have money they can put in the bank, they’re getting a bailout. If they can survive long enough to enjoy the fruits of new highways, they’ll enjoy a secondary bailout effect.

 

NOW WATCH: Briefing videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.