Tuesday, December 09, 2008

Auto Bailout Update

At the time of writing of this piece, I was hearing that the initial reaction at the White House to the Democrats' proposal on the Auto Bailout was rather chilly. Could this bit -- received from another source -- have something to do with it:
Yesterday's New York Times reported that Democrats drafting the auto bailout bill are, “expected to require that the Big Three automakers, as a condition to getting government loans, drop their legal opposition to efforts by California and 15 other states to reduce heat-trapping gases.” As Rep. Boehner noted in a letter to Energy and Commerce Chairman Henry Waxman on Nov. 21, this provision is a "regulatory assault" that "would effectively bar the American auto manufacturers from competing in the largest market in America, unless they make substantial changes in manufacturing that would increase costs to consumers, making the ‘Big 3’ even less competitive – and making their collapse even more likely." The attached draft of the Democrats' proposed legislation includes this provision. If Democrats are serious about saving the American auto industry, why would they include a provision that makes the Big 3 even less competitive? Wouldn’t that make the current bailout a clear and pointless waste of the taxpayers’ money?
The Democrats are not interested in saving the American automobile industry...they never were. All they really care about is protecting the unions because the bosses can strong-arm the members in to voting their way.

UPDATE: Senator George Voinovich has expressed concern on this issue as well:
“I will continue to fight for the American auto industry by providing a bridge loan that they have to pay back. I am pleased that the Democratic leadership backed away from its opposition to using previously appropriated funds and adopted the bipartisan Levin-Voinovich proposal to use funding already authorized. However, I have concerns about the Democratic draft of the compromise legislation. One of my concerns is that this bill doesn’t go far enough to secure viability plans from the auto companies that would best ensure that the money will be paid back to the taxpayers. I am also concerned with other provisions that could hurt the auto industry in the long run. I will continue to work with my colleagues and the White House to address those concerns. I am hopeful we will have a compromise to vote on this week.”
In the statement, he alludes to "provisions that could hurt the auto industry in the long run" which is exactly the sort of thing that the "California" exemption would do. The Democrats have over-reached. By supporting their eco-weenie friends, the Demcorats have shown that they are not interested in the workers at all...this is just another leverage issue for them and their radical agenda that is out of touch with American values.