December 9, 2008
THE AUTO BAILOUT IS STALLING:
Bailout nation is in trouble today as reports circulate that the little-three bailout deal does not have the votes in the Senate to pass. Also, Nancy Pelosi wants a lot of Republican votes in the House, but it doesn’t look like she’s gonna get them. One key point missing from the Democratic proposal is a strict compensation condition, whereby GM wages and benefits must equal Toyota’s. The difference right now is roughly $75 for GM and $48 for Toyota. This is the Sen. Bob Corker proposal, and he himself is opposed to the bill because of the absence of any strict compensation conditions.
Nancy Pelosi calls the deal a barber shop, where everybody will take a haircut. But there is no UAW haircut. And that may turn out to be a real deal-blocker.
The bailout is unpopular with the public. I’m surprised that more GOP politicians aren’t taking an anti-bailout stance, since it’s an opportunity to align action with both public sentiment and small-govermnent principles.