The House passes automaker bailout plan–Senate approval in doubt
FOX News is reporting that the House of Representatives has just passed a $14 billion bailout plan to help the Big Three automakers stay alive, despite objections from Congressional Republicans, especially those in the Senate. The vote was 237 to 170 but it may be a moot point because the Senate Republicans may resort to a filibuster to keep the measure from going to the White House for President Bush’s signature. Through all of the debate about this bailout, there is one thing that keeps nagging at me. How many times have we heard in recent weeks that something has to be done about these problems and it has to be done now? That song and dance is certainly not a new tune, but those who are touting this plan are still singing it from the top of their lungs. Here is what White House Press Secretary, Dana Perino had to say about it today.
White House Press Secretary Dana Perino even issued a statement Wednesday evening warning that Democrats and Republicans alike acknowledge a “disorderly bankruptcy could be fatal to U.S. automakers and have devastating impacts on jobs, families and our economy.”She touted the legislation on the Hill as an “effective and responsible approach” to the automakers’ problems.
Having heard the cry of wolf so many times, I am not sure it’s going to work this time. Sooner or later, the American citizen is going to say enough is enough.
Helping lead the opposition against the bailout plan is Oklahoma Republican, Tom Coburn, and from knowing how he can dig his heels into the ground, the Democrats have their work cut out for them. From FOX News:
The White House, though not formally endorsing an agreement with congressional Democrats, dispatched administration officials to Capitol Hill to make a case for the rescue package. During a contentious, closed-door luncheon with Senate Republicans, they got an earful of criticism from the rank-and-file, some of whom have already announced plans to block the measure.”They got a good dose,” said opponent Tom Coburn, R-Okla., as he emerged from the session.
Even auto state Republicans who have pushed hard for a bailout said the measure needed work. Sen. Kit Bond, R-Mo., said he wanted to see changes. And Sen. George V. Voinovich, R-Ohio, said the measure didn’t have the necessary Republican votes to pass Congress.
According to Bloomberg, Senator Coburn has said he is willing to support an effort to filibuster the measure, if it comes to that.
Senator Tom Coburn, an Oklahoma Republican, would support an effort to filibuster the bill, his spokesman said today. “He believes it’s naive to trust Congress to manage the auto industry when it can’t manage itself,” said Coburn spokesman John Hart.
On November 18, Senator Coburn published a letter on his Senate website, detailing why he believed a bailout plan for Detroit was such a bad idea. The opening paragraph explains very clearly why he is so much against giving the automakers money to stay afloat.
“The Big Three will not be competitive until their employment costs are comparable to their competitors. The United Auto Workers union and Big Three executives jeopardized the future of their companies by allowing employee costs to cripple their competitiveness. This combined with excessive corporate tax rates will undermine any business plan moving ahead. Additional federal funds will only prolong their need to reorganize and lower costs. Renegotiating labor contracts is the only sensible way forward,” Dr. Coburn said.
I realize there is a great danger to the American economy, if General Motors, Ford Motor Company, and Chrysler go under, but as I have asked before, I will ask again. Where do these bailouts stop? Can we just continue to bailout every company who gets itself into trouble by making poor financial decisions, such as letting the labor unions control so much of the way they conduct business? I understand there is may be hard consequences if the three automakers go belly up and more jobs are lost, but how much more of a burden is the American taxpayer going to expected to bear?
All of this talk about a car czar to oversee how the three automakers conduct their business is all fine and good, but how many times in the recent past have we heard this talk of oversight and watched it add up to nothing but more money down the drain? Senator Coburn has a reputation for sticking to his guns and I hope he and the other Republicans who are rebelling against this plan do just that. Somebody needs to “just say no” to more bailout funds coming from the pockets of the American taxpayer.
That’s my take!
Larry
