If there is one thing that has become starkly evident, it is that republicans are willing to let entire sectors of the economy tank if it hurts unions. This is done on ideological assumptions and has nothing to do with good government or kindness to others.
I listened to Congressman Zach Wamp tell an interviewer that he wanted to let the auto companies go bankrupt. "They'll go into chapter 11 and they'll be fine," Zach said. Zach has been a very strong apologist for George W. Bush whose administration has pumped over 2 Trillion dollars into the financial sector but refuses to help America's manufacturing base. I don't get it. Sure the (Not so anymore)Big 3 have serious problems and they need to be slapped around with major concessions and conditions but if they go down, roughly 2 million jobs will be lost in direct labor and another 12 million jobs will be lost in the down market ripple. Zach either has no clue or he's a mean sob. I don't think he's that mean.
The economist who has been uncannily accurate in predicting the current financial mess stated it best on the automotive bailout, "We have to!" (Watch this)
So what are Republicans thinking?
The GOP never dreamed it would get to kill a massive part of organized labor and have an entire region of the country completely collapse on the Democratic parties watch to boot, but that is just the opportunity that has arisen for the Limbaugh/Coulter wing of the GOP.
A 25 billion dollar loan, with strings attached mandating the auto industry stay the fuck out of monkeying with healthcare reform and making them go green or else, could save hundreds of billions of dollars in social spending over the next 10 years alone.
10 to 12 million jobs lost, boom!, 200 to 1 trillion dollars in emergency social spending to deal with the collapse's impact on the region, the UAW dead and Wal-Mart the biggest employer in the region, Michigan in full economic collapse and millions of voters ripe for being in play in the next round of the Culture War.
That clear observation comes from here. Lots of really good thinking and ideas on how to structure a bailout.
At this moment in history, the American Republican party looks like the mean little bully who came to your birthday party, broke all the toys, and crapped on the cake on his way out the door...Then goes around telling everyone your party sucked.
The GOP, and the media pundits who are all clamoring for Obama and the Congress to let the auto industry die will be damning us and running against the Democratic Party as the party that 'Let Michigan Die' or 'Let Detroit Die' for a generation if the auto industry is allowed to die.
I'd say that's about right.
Peace,
Steve
Oh...And the best idea for a condition in the bailout proposal is that executive pay has to be capped at CAFE standard MPG times the pay of the lowest paid worker. That would be amusing for wure.
Until the unions step up to the plate and negotiate some concessions that wil get their pay and benefits package in line with their competitors they should be allowed to file chapter 11 and restructure. At this point the unions have not offered anything. Quite frankly the American consumer has spoken on this issue by buying foreign cars made here. You can buy a Toyota for lets just say 15,000 with some bells and whistles worth 2,000 in upgrades and the comparable American car for 15,000 has no bells and whistles because 2,000 of that cars price is to cover the union's unreasonable labor contracts. Why is a guy at Toyota worth $35/hour and the same guy and job in detroit is woth $68/hour. The unions have destroyed the airline industry (and please don't bring up the cost of fuel) and now they are destroying the automobile industry.
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