

Same beef, different bailout.
Rep. Paul Broun, R-Athens, voted against a $14 billion auto bailout that passed the House 237-170.
Broun joined the six other Georgia Republican congressmen, as well as Democrat Jim Marshall, in voting against H.R. 7321. The bill, which faces an unknown fate in the Senate, offers low-interest loans to domestic carmakers (taxpayers would be first in line for repayment ahead of other creditors), requires the companies to restructure by the end of March and creates a “car czar” President Bush will name to oversee negotiations among executives, unions, creditors, retirees and dealers.
Broun, regrettably, did not use any colorful, folksy agricultural metaphors like “cow patty” to describe the bill, but he made clear his distaste in a press release:
“I believe it’s time to bailout the taxpayers through tax cuts. The best way to bailout the car manufacturers is by reducing their regulatory burdens. Historically, whenever the federal government has cut taxes and eliminated business regulations, the economy has grown.
“If liberals refuse to cut taxes during tough economic times, how will American families be able to afford new cars? Congress should completely remove any federal regulatory involvement in the automotive marketplace, allow the Big 3 to fully innovate, and give money back to Americans. That is the way to stimulate the economy and that’s how we can help Chrysler, Ford, and GM, as well as the car dealers.”
- Blake Aued's blog
- Login or register to post comments
"If liberals refuse to cut
"If liberals refuse to cut taxes during tough economic times, how will American families be able to afford new cars?"
And if we don't have taxes to pay to rebuild our infrastructure, what are Americans going to drive their cars on, moron?
On top of that, I'm not sure
On top of that, I'm not sure what liberals Broun is talking about. Isn't Pres. Bush still in office til January? Didn't he lower the corporate tax burden as low as it's ever been, cuts that don't expire til 2010? The only time this guy talks without sounding like a walking cliche is when he's talking crazy instead.
Why not let UAW bail them out.
UAW can make a loan from the pension program in exchange for stock and the same control of management decisions that the goverment wants.
What does Broun know about finances anyway...
I seem to recall haering an awful lot of about his bankruptcy from years back.
I do not trust this man to make decisions concerning the nations fiscal policy.
JMSnowdem, from what I have heard...that was discussed prior to the executive appearances at the Capitol. The only entity that has the ability to take the risk of bailing out the Big 3 is the federal government. Risking the pensions of the UAW members is not something that UAW is willing to risk.
Broun is a moron...and we need a new congressman. Can the Democratic Party find somebody intelligent and capable to run for congress in 2010? Please.
It's not the goverments risk. It's ours and I don't want it.
"Risking the pensions of UAW members is not something that UAW is willing to risk"
Yet they are more than willing to risk to the money of the US tax payer. This is their problem. They should bail out their own mess, elect new leadership and be willing to put their own money in the game if they truly think they can rebuild this company. otherwise, quit and sell the assets to someone who can profitably make a car that does not suck.
Obama Vol,I do recall a
Obama Vol,
I do recall a time where you actually defended Paul and denounced Bobby.
I don't care if it's a Democrat or a Republican, but yes, someone new definitely needs to fill his seat. Perhaps someone who is disciplined enough to reach across the aisle, denounce partisanship, and get to work on the issues instead of trying to reclaim McCarthyism.
Brandon Shinholser
Broun Correct
Hey Blake,
Why no entries on the Blago scandal? It's the biggest political story since the election but you remain moot. As the lead political reporter for the ABH, I would think that you would have some kind of take on the going's on in Illinois. I would like to hear your thoughts on how this will affect the first year of Obama's Presidency. Thanks.
As for the Broun remarks about the auto bail-out, it seems like he is trying to position himself as one of the louder voices of opposition to the increasing dem majority. This bill won't pass... until February. I think the nay vote was correct in this situation as nearly none of our elected officials that were not privy to the actual negotiations on this bill had time to read it, and no time was devoted to debate. The UAW will be the big winner in all of this in the end, as unions are one of the bigger contributors to dem campaigns and have been darlings of the incoming president throughout his political career. Another winner in this "bridge loan" will be the environmental lobby. One of the stipulations in the proposed bill was forcing the Big Three to end litigation proceedings fighting against the passage of higher MPG and emission standards, which at this time are basically unattainable. As for a "car czar", who the is that going to be? I can't think of a single politician who has a background in the auto industry. Basically it will be someone who has no knowledge of what it takes to succeed, which will lead to repeated failure and a giant waste of money.
I remain moot?
Not sure what that means, but I don't really have anything to add on Blagojevich that you haven't already heard elsewhere. It seems that Obama is clean and I really don't see this having much of an effect on him, other than possibly to give right-wing talk radio types something else to scream about.
As for the auto bailout, you are correct that it did seem rather rushed, and that is probably the main reason it failed in the Senate.
I do not think the UAW will be a winner, though, unless you define winner as its members still have jobs. The union is giving up a lot to get this done.
As for higher mileage and emissions standards, they are clearly attainable. Japanese automakers have attained them, and the Big 3 are already selling cleaner cars in California, where the pollution regulations are tighter.
One major reason why they're in this mess is that $4 gas never occured to them. They kept feeding the public's thirst for profitable trucks and did not develop quality smaller, fuel-efficient vehicles.
Car and truck emissions are the No. 1 source of air pollution in Georgia, ahead of coal-fired power plants. It is a serious problem, and if the carmakers are unwilling to tackle it themselves, maybe the government needs to force them, and this is a perfect opportunity to do so.
You're not in !@$#% law school
Blake,
I know you hate it when I do this, but you're supposed to have an English degree.
But, Dooooood, sometimes you just push the limits. I know you're quoting the inaptly named "mentok", but show some pride.
You want to edit the title of the previous post, don't you.
BTW, FWIW, my CAPTCHA is "ami"
And Thank God for that
Sanderlinsghost,
I know you hate it when I do this, but you are supposed to read the posts before you run your mouth.
I was tweaking Mentok for saying I "remain moot." He probably meant "mute."
but you are supposed to read
but you are supposed to read the posts before you run your mouth.
Really.
Then you would have known that I acknowledged that you were quoting the inaptly named mentok.
Good to have you back, SG.
Good to have you back, SG.
JmSnowden
For one, UAW did not cause this mess. Secondly, it is not their job, nor is it the Big 3 auto company's job, to look out for the tax payer.
Essentially they have two options: get money from Washington to cover the bills until things bounce back...or they can liquidate all assets and default on all debt (or file for bankruptcy protection).
One of these options has potential for positive results to the country. Getting the money to pay the bills will keep hundreds of thousands of people employed and earning money that they can spend somewhere.
The latter option will make hundreds of millions of dollars for a few highly invested share-holders and put hundreds of thousands of middle-class workers out of a job.
The Big 3 executives could have been greedy. They could have gone ahead and pulled a "Gordon Gekko." They are doing the responsible thing though...they are asking for help. There will be many strings attached if they get it...as there should be.
Stop hating the working class.
You need to take a few
Obama Volunteer, you need to take a few finance courses before spouting off such nonsense on a public blog. The "latter option" that you refer to will certainly not benefit shareholders (or owners of the company's common stock if you will). All creditors, bondholders, preferred stockholders, et al, all rank above the common shareholder in terms of being made whole. You can't just liquidate the assets of a corporation and tell your creditors to take a hike. Voluntary or involuntary liquidation would involve the distribution of any resulting funds to satisfy debt, with the common stockholder, being the lowest man on the totem pole, getting what's left (which is usually nothing}.
Obama is lucky all you did was pass out fliers.
Stop hating the working class? You're a moron. UAW has more hand in this problem than the taxpayer so they should have more of a hand in solving it. Of the three issues you list , you neglected a structured bankruptcy which will prevent seizure of assets and give time for restructuring. That is the extent in which the Goverment should help the big three.
Businesses fail. The fact that some businesses with failed strategies and horribly inefficient workforces are not allowed to fail, disrupts the competitive market and prevents workers who do perform well from receiving the benefits of such hard work. This is true hating on the actual working class. It's like doling out equal air play to every band on WUOG even if they suck instead of playing the ones who are actually good. Being good at your job has got to be worth more than being a do nothing. If UAW was a band, they'd be the Tommy Seebach Experience.
Money given to the big three might as well be burned. They have no effective go-forward strategy. They are saddled with a bloated, woeful workforce. They have all become irrelevant in their market and it is time UAW workers start putting their own money where their mouths are.
The rest of America is seeing their jobs and retirement take a wack, yet UAW think that the rest of us own them their security for the worthless junk they have puked out for the past decades. They have created this situation for themselves. Let them fail.
I could break you, mate.
And what exactly is pulling a "Gordon Gekko?" In the film, Gekko speaks out against an organization who spends too lavishly on it's executives and he chastises them for their lavish perks while stockholders are seeing profit stall. it's from the infamous Greed Is Good speech in case you have never seen the movie your are trying to reference.
Is this what you call pulling a "Gordon Gekko"?
No. You just used another catch phrase your probably read on another moron's blog. Much like "hating the working class".
Wow...you
were quick to come out on the defensive for your flawed thoughts on the inner working of America's financial industry. Probably as a reflex action to a perceived attack on your failed conservative philosophy.
UAW does have an interest in the survival of the companies. Not to the extent the GOP and management tried to force on them in recent days...a majority of the blame for what is currently happening belongs to the morons making the decisions about creating companies under the umbrellas of the Big 3 for the purposes of for consumer financing of automobile purchases.
I am no moron. I gave a simple statement as to what I believe will happen. Personally, I see little reason to seek the accomodations of bankruptcy in general. Since this country has zero liability for shareholders...I see no reason why the Big 3 should even bother paying bills this month, or next. Wagoner can quadruple his net worth by turning GM into a veritable chop shop for Japanese and Korean car makers. Same goes for the entire board of directors. (That is pulling a Gekko...or I should say Ivan Boesky if you are old enough to know that name without going to wikipedia)
Break me?...you right-wing thug. Grow up.
The only reason I think the gov't should help is to prevent job losses and the loss of pensions belonging to 30year employees. I do have a problem with the plan though...I do not think that anything will change with the automakers. They will probably blow through the cash and have nothing to show for it. If that is the case, UAW should make few concessions and begin paying out what pension funds they currently have while doing what they can to raise other funds.
One thing is for sure, the Big 3 have been dealing with the unions forever. They adapted long ago to the higher costs of union labor...the company is failing because management did not do its job. Everything from their financing schemes to their product line to their advertising campaigns...they all suck. I do not go to Chevy dealerships because every chevy commercial I see is some redneck driving a pickup truck in some desert.
Guess your daddy is not a union rep overthere?
"I could break you, mate" was from the movie you referenced. You'd know that if you had actually seen it, you silly little sheep. Bahhhhhh.
"They adapted long ago to the higher costs of union labor". No, it seems they're adapting right now. How's that going?
"They will probably blow through the cash and have nothing to show for it." So this is why you think we should bail them out? Interesting.
The same situation affect the democratic party as affect the auto companies. A long time ago, they both struck a deal with the unions that promised the world with never the intention of living up to it. Well now, the chickens have come home to roost and both will have to bet their future on appeasing the UAW. If leftist thugs like you have their way and we give out more give aways to these unions in return for votes and the whole thing backfires, you will destroy more than our new Presidents credibility with the nation.
Wait until you hear this crunchy groove, Ikeman.
"your failed conservative philosophy."
What the hell are you talking about? So anyone who does not think we should give money to a failing business with no plan has a failed conservative philosophy? Lay off the pipe, you dumb hippie.
This raises a really good point. As Democrats return to power, lets hope it will not return to the neo-Mcarthy ways of terming everyone who does not toe the most left line as "right wing" and failed "conservitive agenda". This is exactly from the political playbook from these past eight years. Question the war? Well, then you hate freedom. Question the treatment of prisoners? Well, you are soft on terror. Today's version is: Don't want to give more money to labor unions? Well you're George Bush's best friend and you want to marry him.
I really hope we get past the politics of the past. In case you have not heard, the old ways of the democratic party (Clintons) were weighed, measured and found wanting. It is time for a new era where the Democratic party actually gets things done instead of just being an obstruction. It's time to move past abortion, weed and unions as being the core party principles and get back to equal rights and taking care of the vulnerable. This is the new democratic party and the hippies will need to take a back seat.
It best summed up in a quote from a movie ( And yes, I've seen it)
"The war's over, the bums lost".
You guys are tearing each
You guys are tearing each other apart, easy.
Jeff, what is your party affiliation? philosophy? If you don't mind me asking.
Brandon Shinholser
uhhhhhhh.....American Party.
I never vote a party line and I think blind party loyalty is one of the most destructive elements in American politics. My philosophy is fairness and equality, which used to be the core of the Democratic party. I don't believe campaign donations should buy influence be they from oil companies or labor unions. I think we should take care of those who truly need and also take care to avoid those who use things intended for the poor for enrich themselves. I think this country owes its citizens and should encourage prosperity. This does not mean I support socialism but it does mean I support affordable healthcare, affordable education, affordable taxes and the least number of barriers between people and what they wish to accomplish. I believe in being responsible to ones family, community, company, stock holders, employees and country.
This auto bailout is against what I believe on a ton of levels. I believe the only reason labor unions are getting this much favor is the financial support they have given to candidates. I believe giving these funds to a broken system rather than offering actual retraining and reinvestment in the workforce harms the competitive nature of our economy which, in turns, harms those who are actually working towards their own success.
More than anything else, this bailout is about skirting responsibility. It is about failed management not acknowledging or expressing a desire to correct terrible business practices. It is about a glutenous labor union who refuses to concede a penny of it's disgusting wages while expecting the tax payer to fund their excess from the tax shrinking economy. It's about a goverment who cannot call this auto failure what it is and instead keeps looking for ways to win at politics though the heavens fall.
We have to accept the truth. As a country, we have lived too opulent for too long. We bought flat screen TVs while our neighbors got foreclosed on. We traded in cars every two years and scoffed at people who rent furniture and used title loans. We had wine and cheese awareness rallies, thanking ourselves all the while as the actual needy saw their plight dim even darker. We ignored those with less than us and now the facade that separated rich and poor is starting to crumple. We want wind farms, just on someone else's property. We complain about the evil of wall street until it is our retirement account that won't get the expected return. We want to bemoan so-called corporate farms while we picket family farms about dust and exhaust and fertilizer until they just give up. We talk about values and freedom while we kill innocent people and lock up people with no trial or even charges.
Our future will be a return to reasonableness and, for the most unreasonable (no matter what their party affiliation) it will be the most uncomfortable.
More than anything else,
More than anything else, this bailout is about skirting responsibility. It is about failed management not acknowledging or expressing a desire to correct terrible business practices.
I agree with you, but wasn't the Wall Street bailout about the exact same thing??
I talked to my dad about this the other day, he works for a Ford dealership in CT and I was worried he might lose his job. He told me it's not just the auto companies you have to worry about failing. There are tons of businesses connected to the automakers that could be in danger of collapse as well. The automakers don't make everything they put in cars, but get them from other places. And if suddenly one of your major buyers isnn't buying from you anymore, you probably will go under, too.
"but wasn't the Wall Street
"but wasn't the Wall Street bailout about the exact same thing"
Yes. In fact it is even worse. And I feel for your Dad and the situation he might face but lets look at this in the light of market forces. If there is a need for good American cars, some company is going to emerge from this in a better position. Structured bankruptcy will give them the flexibility to hold off creditors and renegotiate agreement which have driven them to this point. All of this considers that Americans can believe in American cars again.
But if years of poor quality, high prices and cars completely out of sync with the energy and economics of the world have soured people on American cars, no amount of taxpayer money will save them. Until they build a product that people want and that people can trust over the long term, this is going to be the lot of the big three.
The bad news for people like your Dad is that the auto industry has gotten used to people buying more car than they need, more often. It may take this latest economic situation to teach Americans that we don't all need new cars every two years and perhaps they don't need a car that cost twice the salary of a first year teacher.
This is does not have to be all bad news. It may just be the chance for a new American car company to emerge. They could start with a hybrid that real people can afford. Before Southwest airlines, the other airlines said short haul could not be done profitably. Before FedEx, the postal service said overnight could not be done profitably. VW, Honda,Nissan and Toyota have the position in the US they have today because the big three refused to make smaller, more gas efficient cars as fast as people wanted them. We cannot trust the vision of the big three to tell us where the auto industry can or should go. These are the people who make Expeditions and Hummers which I think shows their ability to see into the future.
We were sold the Wall Street bailout on the idea that it would encourage banks to lend. That has not happened. Wall Street wailed how if we did not bail them out, banks would not lend and the economy would crash. we gave them the money and they put it in their bank accounts. Now the auto companies are crying the same thing "give us money or we'll take down the economy". How many companies will we allow to ransom the goverment on threat they'll collapse the system? Who is next, big oil?
I say take the billions of dollars and loan it to UAW, dealers and vendors so they can take control of the company. They can put up their pensions, dealerships and own cash as collateral to ensure they won't try to emulate Wall Street and put the money in their bank accounts. They're already asking to gamble with the taxpayers future, might as well put some of theirs on the line as well. They can replace management, manage their own costs and put their sweat in knowing if they succeed, they'll see a very fair share of the reward.
If they can emerge from this as they say they can, then the big three will be worker/ dealer owned. If they cannot emerge despite this goverment assistance, then they were never going to and had tried to stick the rest of us with the bill.
Snowden hits on the central
Snowden hits on the central theme that caused many of us of a "conservative" (I prefer "fundamental") bent to bail on Saxby Chambliss. We actually believe in the free market. As I noted before, since the turn of the 2oth century, any number of car companies have come and gone, with no major disruption of the American economy. These were not fringe players, but major automotive concerns. The "Big Three" used to be the "Big Four" until American Motors went belly up. Packard was the premier premium car manufacturer.
The only "market disruption" would be if Americans abandoned their consumption of automobiles. As long as Americans maintain their demand for automobiles, SOMEONE will fill it. There is no evidence that that SOMEONE can't be an American company, albeit a smaller leaner company paying lower wages, and competing more efficiently, as Eco 101 tells us it should.
Entire industries have come and gone without any disruption in the American economy or more importantly, major government intervention. Barnesville, Georgia was a major center of buggy manufacturing, and it's hardly a ghost town today. No televisions are made in the United States, and darn few of any other electronics. Have you ever seen an American made cell phone? Me neither. This has become a major industry in the United States, for which we are entirely dependent on foreign sources. There was an article in the paper last week about how NO aspirin is manufactured in the United States. I haven't researched it, but the newstories about the contamination of Chinese pharmaceuticals suggests that this is probably the case with other more critical medications.
Just this weekend, I had a conversation with a friend in the textile industry. He said for all practical purposes the manufacturer of clothing is dead in the United States. The only exceptions are some high end labels and military production. The south was dotted with thousands of "cut and sew" plants, all now abandoned, mostly sitting vacant. Some one some time will right a treatise about what perfect industries they were for their time and place. They employed mostly uneducated women, providing essentially a cottage industry into which the women could enter or leave as they chose, providing a living wage that the women could not get in any other occupation without relocating, and providing an economic base for the thousands of little communities in which the plants were located. No government intervention was proposed for theselittle industries, primarily because the owners were usually families, and the employees non-union.
The plants which produced the cloth for these plants sit vacant and abandoned (i.e. Wellington Puritan, Jefferson Mills in Crawford, Harmony Mills in Commerce, and so on). Where was the bailout for all these plants whose jobs have not been replaced to this date.
Ironically, the industry that was synonymous with American industrialization, steelmaking, is all but dead in the United States. The irony is that the steel industry used to set the standard for wages and labor policy for the entire United States. The irony is that as the firms failed, and cheaper foreign steel became prevalent, you didn't see the major consumer of steel in the United States, the auto industry, lined up to beg the government to support the continued production of high priced steel. The automakers very willing participated in the extinction of this industry in the United States.
The proposed bailout of the automakers ignores the lessons of the post WWII experience in England, where the preservation of archaic industrial institutions, and the preservation of featherbedded jobs has essentially eliminated England as an industrial force. ALL of their automobile companies have failed, and are foreign owned. Again it is ironical that the owners of the failed English auto companies are the American companies begging the government to spare them the fate of Land Rover, Triumph, Jaguar (a Ford in drag), and so on.
It may be that we all end up driving Japanese cars, but we will be talking on our Brazilian made cell phone, wearing our Cambodian manufactured clothing, and looking cool in our Mexican made sunglasses when we do it.
Oddly enough,
Oddly enough, for the most part, I agree with you JMSnowden.
I disagree with the UAW not willing to give up a penny...they did agree to, but on the condition that management and the shareholders would give up something as well. Management and the shareholders reneged...then UAW did as consequence to the actions taken by the other parties in the deal.
The harsh tone of my previous posts was merely reaction to your language.
Some of what you began to go on about treks into my area of expertise...the campaign donation part...and this is where I somewhat agree with you, but there is a discord. I do not think that Congress acted on behalf of donors. I do think they are trying to act on behalf of their constitutuents...but the constituents, in large part, have no voice unless they belong to an interest group. Unfortunately poll data shows that well over a majority of voters decide on a party line.
Our system was intended to be pluralistic in nature...but the citizenry has become complacent. Most American's are becoming free riders to programs and policies designed to appease the interests. The only way to keep our system artificially alive (like what we have done with our economy) is to encourage this behavior...or change the qualifications for citizenship (which, in my opinion, is long overdue).
We were blessed with the candidate that has become our president-elect. Hope, however reckless, did prevail in this last election. People were inspired to atleast go to the polls...for better or worse. Our history is rich with this sort of love/hate attitude towards candidates, parties, policies, etc. It takes a special breed of American to be liberal...liberal in the traditional definition of the word (not the made up version of the Faux news ilk).
I like safety nets for workers. There are hundreds of thousands of employees that work for the "Big 3" that nothing to do with their failure...and I find it disgusting that we do not have a regulatory system that protects them somehow from the greed and misconduct of their corporate superiors. That is the only reason I support a loan to these companies. I know what it is like to lose a pension because of corporate mismanagement. The scale to which it is going to happen in Detroit is unfathomable, to me. I know I am not alone in thinking this. Perhaps the only thing that should happen is a government gaurantee on these funds rather than even paying the bills. I am no financial whiz, but there has to be a way the pensions can be transferred to individual IRA's without them being lost. Maybe that would stimulate the economy and send a message.
I like the idea of safety
I like the idea of safety nets as well but they are unrealistic and horribly unfair when paid for by the taxpayers who have no safety net. All Americans will eventually know what it is like to lose a pension because of mismanagement. It's called social security. We can no longer give out favors to the highest donor and when it comes to that fact, I put UAW right up there with Haliburton.
Doling out favors for campaign support is one of those things that was supposed to be Change we can believe in. I'm ready to see that change.
Instead of trying to move in and plan retirement for autoworkers, let's start finding a way to make them relevant. It might mean shifting from building cars to build rail. It might mean starting a new auto company from the ashes of the old. Whatever it is, we need to throw off the restraints of union bought loyalty and big Detroit, small minded thinking and plot a new course rooted in fairness.
Absolutely,
but their years of work shouldn't be for nothing.
Justice as Fairness.
Unforunately,...we can't live in that concept.
Social security can not act in the manner that private "retirement security" can. Some concessions are probably necessary though. I get less than $2k.month from social security...my medicine runs about $800.month.
I like the public works idea. Obama made mention of that in a previous press conference.
Let's not go so far as Haliburton when making union comparisons. Perhaps back as early as the 70's...but not any further. They rely on bid-contracts.
Unfortunately, as sooon as you start tying issues together you lose elections. Reality tells a different tale, but by the time the electorate realizes their savings are disappearing because pensions from 1980 do not pay for medical bill in 2008...you know the story.
This is what prompted me to post.
Paul Broun is a disgrace. It is only because of ingrates like him that I wish congressmen made no-money for their "serivces." Atleast Norwood believed in a patients-bill of rights (only on his death bed).
Hopefully Broun will regain his mind before he dies in office. The democrats can not expect to win with losers like Saxon on the ticket...we need a smart successful man that can gain trust from the people to win elections.