Today President Bush announced $13.4 billion in “emergency” loans to GM and Chrysler with another $4 billion available February. On March 31st of next year, Obama and his peeps will evaluate the situation and determine the next steps.
Now certainly Bush doesn’t want to be known as the president that “let Detroit fail”, but this is ridiculous. The GOP pressed for wage and benefit cuts, and the compromise with the Dems is that the union requirements are nonbinding and the automakers can make any agreement provided they can explain it.
What the hell is that?
The UAW is a big reason the automakers are in this situation in the first place. If they don’t get their way, they can still threaten or stall the automakers.
I would only support an auto bailout if:
- The UAW was told to take a hike. Why would any company pay someone $30/hour to put a nut on a car?
- The money came from previously approved funds/programs and not from the main bailout fund (TARP), which was NOT approved for non-financials like the Big-Three.
GM has said they are cutting production in the US. Yet they have increased production in other countries such as Mexico where they are more financially viable. Both automakers say their showrooms are full and they haven’t been able to move any vehicles.
What is the point of giving them money so that they can continue to pack showrooms which aren’t selling any cars?
The only way this can work is if they negotiate with the UAW, cut costs across the board, shut down some plants, fire more US workers, and ramp up operations in other countries. How is that in the country’s best interest?
Futhermore, IT IS NOT THE ROLE OF GOVERNMENT TO PROP UP THE PRIVATE SECTOR. Especially with taxpayer money while the national debt surges!
The government needs to bail itself out by becoming responsible. Washington wants to hear about the automakers plan to become financially viable. WE THE PEOPLE want to hear the federal government’s plan to become financially viable. They’ve shit on the Constitution. They’ve shit on the dollar. They’ve ignored the will of the people.
Quoting the great Benjamin Franklin:
“Well, Doctor, what have we got—a Republic or a Monarchy?”
“A Republic, if you can keep it.”
The stakes are ALWAYS high.
