Friday, December 12, 2008
Senate Republicans Get Something Right
Congratulations to Senate Republicans, who finally developed a spine and killed the auto industry bailout -- at least for now. With the large Democratic majority in the House, the Senate is the last line of defense against more bailouts. I had given up on on the GOP Senate minority after it acquiesed to the horrible, panic-driven $700 billion "rescue" plan. It's good to see that they aren't going to go along meekly with every government handout, after some weak protests.
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Actually, it should read "Senate Republicans Get Something Totally Wrong."
ReplyDeleteThis is neo-Hoover Republicanism run totally amok.
I'm far more in favor of federal help to a beleaguered manufacturing sector of the economy than I am to the utterly discredited banking and financial sector.
But I guess the prospect of actually helping keep a [still] vital sector of our national economy afloat, with tens of thousands of jobs at stake, is way too positive a goal for these Repub a*sholes to embrace. We've got to be true to our "conservative principles" (that's a laugh after the last eight years) even if it means destroying the domestic economy.
In some ways it is actually good for Mitch McConnell et al to be fighting this. His idiotic and self-destructive "leadership" on preserving domestic manufacturing will be yet another nail in the GOP coffin.
"This is neo-Hoover Republicanism run totally amok."
ReplyDeleteThe Hoover Republicanism is coming from the Bush administration. You are supporting Dick Cheney's historically-ignorant comments about Hoover. Hoover panicked and reacted with big government intervention. He would likely support these bailouts. People who oppose the bailouts are pretty far from Hoover.
"I'm far more in favor of federal help to a beleaguered manufacturing sector of the economy than I am to the utterly discredited banking and financial sector."
How about neither? Just because we passed a terrible financial sector bailout isn't a good reason to make additional mistakes, and throw even more taxpayer money down a hole.
"But I guess the prospect of actually helping keep a [still] vital sector of our national economy afloat, with tens of thousands of jobs at stake, is way too positive a goal "
You've been reading too many irrational left-wing websites. There's no reason to assume bad motives on either side. Conservative Republicans, and libertarians who opposed this bailout on ideological grounds did so because they do not believe that government bailouts are useful or effective -- or even consitutional in the case of libertarians.
Those who opposed it because of the specific terms, didn't think the concessions offered were great enough to enable the auto industry to turn around.
In my opinion, the best thing for the auto industry is to enter bankruptcy and undergo a total reorganization, which might result in viable companies that can make a profit. When you have businesses that are currently losing money every time they sell a car, it makes no sense to prop them up with taxpayer money. Their business model is unsustainable in its present form.
It now appears Bush is going to bail them out anyway, so the Senate's positive action was probably wasted.
The problem is that the bailout will pass for some of reasons that made it necessary in the first place. The UAW spent too much money and energy on political contributions to the Democratic Party, and too little on helping make its industry more competitive. The auto industry stuck to the delusion that the car of the future is right around the corner; they've been saying this for at least fifteen years, justifying future bailouts even as there were no results to show for it.
ReplyDeleteRedhand, letting failing industry fail doesn't come from Hoover; it comes from Thatcher. Hoover's problems were that he tried to respond to the crisis with protectionism (which triggered retaliatory tariffs, destroying world trade) and balanced-budget austerity. Letting the banks fail was another big problem, but the $700 billion bailout ensured it won't happen this time.
The Hoover lesson I'm referring to was his antediluvian "balanced budget austerity," which is right up the same ally as UNRR's (I prefer DavidC's commenter handle, BTW, more human) "don't waste taxpayer money as a matter of principle" reflex.
ReplyDeleteAs to DavidC's comment that I've been reading "too many liberal blogs" the real reason the Senate Repubs are willing to shitcan the domestic auto industry is not concern over the Federal fisc but inbred, get-even hostility to the UAW, even if it costs innumerable jobs. As the WaPo's E.J. Dionne notes, "A hideous class bigotry has disfigured this debate."
I don't disagree that the Big Three's problems equally stem from a lack of innovation. But to sacrifice the domestic industry after the billions wasted on POS companies like AIG is not just poor politics: it's criminally stupid.
Redhand,
ReplyDelete" the real reason the Senate Repubs are willing to shitcan the domestic auto industry is not concern over the Federal fisc but inbred, get-even hostility to the UAW, even if it costs innumerable jobs."
That's what I was referring to. Do you really believe that Republicans think that not bailing out the auto companies will be a disaster, but that they want to do it anyway just to smash the UAW?
It's true that Republicans don't like the UAW -- for good reason in my opinion -- but there's a big leap from that to thinking that they want to kill the economy just to attack the union.
Your argument would be like me saying that Democrats don't really think that bailouts are necessary or will help the economy, they just support them in order to gain government control over major industries.
"I don't disagree that the Big Three's problems equally stem from a lack of innovation. "
It's not just that. The big three have been selling millions of cars. Many of their cars are good vehicles -- I have a Lincoln & a Chrysler myself and they've been excellent cars. The automakers have been crippled by a combination of bad management & unsustainable costs, of which the major one is labor costs. They could have the finest, most innovative cars in the world, but it doesn't matter if they have to sell them at a loss, which is what they've been doing.
Do you really believe that Republicans think that not bailing out the auto companies will be a disaster, but that they want to do it anyway just to smash the UAW?
ReplyDeleteIn a word, "Yes." Auto bailout's death seen as a Republican blow at unions.
The "modern" GOP is that nihilistic and toxic.
"The "modern" GOP is that nihilistic and toxic."
ReplyDeleteThat sounds pretty irrational. It's basically a "Republicans do evil things because they are evil" argument.
I guess you don't think Democrats believe the bailout is a good idea either, and they are only supporting it because they are allied with the UAW. That makes about the same amount of sense
I don't know - personally, I support the bailout as political insurance against authoritarian populism. The last thing the US needs is a Huey Long waxing poetic about how the US would have good industry again if only he got absolute power to crack down on finance, immigrants, and imports.
ReplyDeleteAlon,
ReplyDeleteThat's a concern if the economy really does plunge into a depression. But I'm skeptical that bailouts are the only thing standing between us and another great depression, or that they are even a positive intervention at all.