The senate killed the bailout bill over a partisan dispute on union wages. The republicans should be up front to tell everyone their real agenda, which is quite obvious. The southern based GOP senator’s states have been given tax abatements (taxpayer’s money) as an enticement to the nonunion automakers in return for building their plants in the south. The UAW contributes heavily to the Democratic Party, so why not make a play to shut down the unions.
The Michigan democratic lawmakers have always turned a blind eye to higher CAFE standards and union demands, for votes, so they are not innocent in this issue. That’s why I continue to say “the only politician with conviction comes from a safe district.”
I don’t have any answers and I am not seeking slogans lectures or propaganda. I just want honest answers.
1. Can the big three automakers actually survive?
2. Do we really need three automakers?
3. If the answer is no, would anyone really tell us?
This whole mess is so hypocritical, because it is not only about the UAW. Our European and Asian competitors subsidize their automobiles with universal healthcare or other government subsidies. Therefore, the idea that paying the Michigan automakers southern wages of about $8.00 an hour is not going to fix the problem. The union must restructure their benefits but so should the management and the dealerships. I was hoping they would turn one of the auto makers into an electric car manufacture before our European and Asian competitors beats us to it.
Those insisting on a complete failure of the big three ;be careful what you wish for. Bankruptcy will relieve the auto makers from honoring the guarantees, create slow sales, and believe it or not; this is all interconnected with our local plants, dealerships, banks and suppliers. We are not immune.
I remember the first $700 bailout when the GOP house members killed the bill and the stock market immediately collapsed. Those same house members wanted a do over. Most naysayers have to see tangible proof of a depression, because they live in a world of one sided arguments.
I believe the White House will be forced to use the already approved TARP funds to prevent a disaster on their watch. World markets are already in freefall due to the senate’s rejection of the $14 billion bailout.
As for the politics, if the White House does not grant the loans or a bailout ;the republican lawmakers will have to live with their decision. If it stands as is, and we would go into a deep depression the GOP would no longer exist. I think the white house will be a bailout to the GOP senators.
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