Washington -

 

U.S. automakers say they need a tow truck to pull them out of the economic slump, and they want it to come in the form of emergency money from the federal government.

Detroit's struggling big three seem to have a friend in Capitol Hill Democrats: House Speaker Nancy Pelosi, Senate Majority Leader Harry Reid and others are calling for immediate action to grant automakers quick cash from the $700 billion bank bailout.

Sen. Sherrod Brown (D-Oh.) said, "We must prevent industry collapse, we must stem the tide of domestic job loss."

The cost to taxpayers for the proposed rescue totals around $75 billion. But some experts warn that without it, the long term fallout from lost income and taxes could top $175 billion.

The director of the Center for Automotive Research, David Cole, noted, "If you lose one of the big guys -- a GM or a Ford -- that can cascade down to the supplier base and really bring the industry down."

President-elect Barack Obama (web|news|bio) has also signalled his support for bailing out the automakers, reportedly discussing the issue with President Bush (web|news|bio) during their meeting earlier this week at the White House.

However, the administration's response has been cool to such calls for action, and some critics are concerned about the effect such assistance could have in the long run.

Roben Farzad, Senior Writer for BusinessWeek, argued, "We don't have all these blank checks to write out to every industry that's hurting... 'cause certainly everyone is hurting."

Democrats counter that it's not a handout, but rather an investment. They say any assistance would come with conditions, such as limiting executive pay and requiring automakers to invest in creating energy-efficient vehicles.

Congress granted automakers $25 billion in assistance last month, but that money was intended for clean car technology, which won't help with the struggles of day-to-day operational costs.