Sunday, November 16, 2008

Agreeing with Republicans

Showdown looming in Congress of automaker rescue, by Stephen Ohlemacher, AP via Google News. Emphases mine.

Hardline opponents of an auto industry bailout branded the industry a "dinosaur" whose "day of reckoning" is near, while Democrats pledged Sunday to do their best to get Detroit a slice of the $700 billion Wall Street rescue in this week's lame-duck session of Congress.

The companies are seeking $25 billion from the financial industry bailout for emergency loans, though supporters of the aid for General Motors Corp., Ford Motor Co. and Chrysler LLC have offered to reduce the size of the rescue to win backing in Congress . . .

. . . Sens. Richard Shelby of Alabama and Jon Kyl of Arizona said it would be a mistake to use any of the Wall Street rescue money to prop up the automakers because a bailout would only postpone the industry's demise.

"Companies fail everyday and others take their place. I think this is a road we should not go down," said Shelby, the senior Republican on the Senate Banking, Housing and Urban Affairs Committee. "They're not building the right products," he said. "They've got good workers but I don't believe they've got good management. They don't innovate. They're a dinosaur in a sense."

Added Kyl, the Senate's second-ranking Republican: "Just giving them $25 billion doesn't change anything. It just puts off for six months or so the day of reckoning."

If you do agree with bailing out General Motors, I suggest you watch Who Killed the Electric Car?, and then reevaluate your opinion.

There is no need to give corrupt millionaires and billionaires even more taxpayer money.



libhom said...

You are ignoring the hundreds of thousands of hard working, middle class Americans who will be casualties of your otherwise understandable attack on General Motors and other US automakers.

There is nothing wrong with putting conditions on how the bailout is done (e.g., using the money to retool plants to make more feul efficient cars), but throwing so many middle class people out of jobs during a major recession is senseless.

Anytime anyone finds themselves agreeing with the GOP, it always is good to take a deep breath, step back, and question assumptions.

Stephanie said...
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Peter said...

On the one hand, yeah it sucks for the hundreds of thousands of workers. Although, unions, are at best a flawed solution to a real problem. That's hardly the whole problem though.

On the other hand, it seems like the auto companies themselves squandered their chance at recovery. The SUV craze gave them time when they were already in a sluggish market, but they never took advantage of that time to innovate and develop better products for the future. And quite frankly, it's been like that for quite a while. And it should have been quite apparent for a number of workers that the auto industry was in trouble long enough to know that their jobs and pensions were hardly secure.

Bianca Reagan said...

libhom and Stephanie, I'm not ignoring the people who work for General Motors. I don't think they should lose their jobs. However, the answer is not giving the company's faulty management more money to pad their personal bank accounts.

. . . they never took advantage of that time to innovate and develop better products for the future.

I agree, Peter. And welcome!