Thursday, December 11, 2008

Will the Senate Vote Down Auto Bailout?

The latest news from Reuter's

It is our opinion that one of the last acts of the current Congress should be a "No" Vote on the current plan.

$15 Billion is money better spent other places. The White House won its battle that the money come from an already existing bill for energy-efficient cars.

The bailout of the banks and financial institutions was a necessary evil to avoid a complete credit collapse that would have doomed the economy even worse than current conditions.

Government involvement in private industry can only spell trouble. We do not need central-planning!

See related post.

Sen. Bob Corker's Republican alternative (from include the following points:

  • GM and Chrysler must reduce their debt by two-thirds by March 15, or file for bankruptcy. This would allow them to renegotiate their debt with lenders and bondholders.

  • The United Auto Workers union would have to accept significant equity in the companies to help offset future retiree health care payments, instead of cash or other assets the companies were to contribute to union-controlled trust funds that will pay those claims in the future.

  • The union would have to accept pay cuts for GM and Chrysler workers to levels paid at the U.S. plants of overseas automakers.

This is what we've argued all along. Why does it cost The Big 3 upwards of 60% in labor to produce a car? The Union contracts MUST be renegotiated through bankruptcy. Tax dollars should not be used as an appeasement to the unions -- or $15 Billion in votes for the Democrats.

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