Browsing the archives for the auto industry tag.

What’s with the horsemen?

Economy, Politics, US Economy, US Politics

After I passed on John Judis’ take on the auto bailout here, we had a bit of a discussion in the comments section. So who could sketch my amazement to see, via TNR, that Bill Kristol – that Bill Kristol – gets it. Here he was, last Monday:

Last week, Senate Republicans picked a fight with the U.A.W. on union pay scales — despite the fact that it’s the legacy benefits for retirees, not pay for current workers, that’s really hurting Detroit, and despite the additional fact that, in any case, labor amounts to only about 10 percent of the cost of a car. But the Republicans were fighting Big Labor! They were standing firm against bailouts! Some of the same conservatives who (correctly, in my view) made the case for $700 billion for Wall Street pitched a fit over $14 billion in loans for the automakers.

There is, of course, plenty in his column to take issue with as well. But there don’t seem to be many nits to pick with this summary:

So Senate Republicans chose to threaten to filibuster the House-passed legislation embodying the George Bush-Nancy Pelosi deal. The bill would have allowed President Bush to name a car czar, who could have begun to force concessions from all sides. It also would have averted for now a collapse of the auto industry, and shifted difficult decisions to the Obama administration.

Instead, Bush will now probably have to use the financial rescue funds to save G.M. [..]. And Senate Republicans now run the risk of being portrayed as Marie Antoinettes with Southern accents.

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Damn right

US Economy, US Politics

Read John Judis on how the Republicans torpedoed the auto bailout.

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What We Can Learn from the 1979 Bailout

Economy, Politics, US Economy, US Politics

Almost thirty years ago, an automotive CEO appeared before Congress to ask for help.  His company was failing due to poor management decisions, run away gas prices and an overall economic slowdown.  If only he could get enough money to stay in business, his company’s next generation of small, fuel efficient cars would hit the market and lead to the company’s success.  His company employed 40,000 US workers and laying them off would be a disaster at a time when the economy was already struggling.  He’d even work for a dollar a year.  Sound familiar?

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