Today in Washington D. C. - Nov 19, 2008

The Senate will be evaluating the Auto-industry manufacturers' request for a bailout. On Monday, Senate Majority Leader Harry Reid began the process of bringing up four bills that could be brought to a vote later this week: the House-passed unemployment insurance extension bill (H.R. 6867), the House-passed “stimulus” bill, which includes unemployment insurance (H.R. 7110), a bailout for domestic auto manufacturers and unemployment insurance (S. 3688), and large package containing the stimulus bill and auto bailout (S. 3689). It is likely only one of these will be voted on, if any.

If the Republicans and Blue Dog Democrats stand strong their will be no bailout for the auto manufactures. Many are advocating that a business going bankrupt is not a lost industry but an opportunity for the auto manufacturers to restructure and especially correct the overburdened high priced union labor contracts that are driving up the cost of auto's beyond market price or demand. In addition, with retooling an mechanization like ford Motors has done in the plants in other countries, higher quality is achieved while labor costs are reduced thus making better quality cars at lower prices.

The Wall Street Journal notes an important subplot of these discussions. The Journal writes, “[L]ook closely and you can see that what's really going on is an attempt to use taxpayer money to remake Detroit in the image of the modern environmental movement. Given a choice between greens and blue-collar workers, Congress puts the greens first. . . . Earlier this year, Congress had approved $25 billion in loans to the car companies for ‘green retooling,’ and the White House said Friday that Detroit could tap that money quickly for more general purposes with a couple of conditions. . . . Democratic leaders refused. They are insisting instead that the Bush Administration give Detroit another $25 billion in cash from the Treasury’s Troubled Asset Relief Program. ‘The Bush Administration’s proposal is unacceptable,’ declared Senate Majority Leader Harry Reid.”

One question for Democrats appears to be which they consider more important: creating an auto industry that serves green goals above all else, or saving the blue-collar jobs they’re concerned about.

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