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It’s no secret that higher gas prices have hit America pretty hard.Â While higher gas prices have placed quite a financial strain on the American public, at the end of the day, the “group” that might be effected the most might not be Americans in general, rather the Big 3 American car makers – General Motors, Ford and Chrysler.

After spending years building up the infrastructure to produce profitable trucks and SUVs, higher gas prices have really hurt sales at the Big 3 American car makers.Â In an effort to stop the financial bleeding, many truck and SUV plants have been shut down, costing thousands of jobs and hundreds of millions of dollars in lost sales.

These current conditions have led the senior management of these car companies to ask the Federal Government for some financial help in the form of low interest loans to help convert truck and SUV plants into facilities which produce smaller, more fuel efficient vehicles.

While this Federal intervention may seem like a good thing – after all, a healthy manufacturing sector has always been good for the American economy – according to a recent poll, Americans appear to be pretty torn over whether or not the Federal Government should help the Big 3.

The poll, which ran on Daily Fuel Economy Tip for the past week, asked, “Should the Federal Government help Ford, GM and Chrysler convert truck and SUV plants into facilities that produce fuel efficient vehicles?”Â Here’s how nearly 200 people responded:

52% of respondents said the government should help

help 44% of respondents said the government should not help

help 4% of respondents said they were unsure

You certainly can’t blame GM, Ford and Chrysler for asking the Federal Government for some money.Â After all, over the past six months the government has stepped in to bailout Bear Stearns, Fannie Mae and Freddie Mac, and may end up stepping in to finance the sale of Lehman Brothers.

(UPDATE – THE FED AND THE TREASURY DID NOT STEP IN AND LEHMAN FILED FOR BANKRUPTCY THIS MORNING)

Since these bailouts could ultimately end up costing American tax payers hundreds of billions of dollars, it certainly doesn’t seem like much for the American automotive industry to ask for $50 billion in low interest loans.

Also, there is some precedent for the Federal Government stepping in when one of America’s large car manufacturers is hurting.Â Back in 1979, during the Carter Administration, the Federal Government stepped in and provided the necessary financing/loan backing required to keep Chrysler from falling into bankruptcy.

There are certainly plenty of good reasons for the Federal Government stepping in and helping out the car manufacturers, the largest of which is it will help save thousands of blue collar jobs, and hopefully revive the Rust Belt, where double digit unemployment is rampant.Â Additionally, the availability of more cars capable of better fuel economy is certainly worth the investment.

That being said, there are plenty of reasons to the Federal Government to not step in, namely, this is another case where corporate losses are being socialized while later profits will be privatized.Â If we’re going to proclaim ourselves as a free market, capitalist country, we have to be willing to let companies and firms – even big ones – fail if they are no longer viable.

This is certainly a very fine line to walk, and in order for this to end well, a lot of difficult decisions will have to be made on both sides of the aisle.Â However, when push comes to shove, I do expect that the Federal Government will step in and offer some financial help to the Big 3.

Their health is just too important to America’s over all economy, especially when you look at the fact that should one or more of these companies fail, there would be an immense trickle down effect, hurting part suppliers, dealerships, and creditors.

So, when it’s all said and done, GM, Ford and Chrysler may fall into the same categorization as Bear Stearns, Fannie Mae and Freddie Mac: TOO BIG TO FAIL.