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Today the NY Times online reported " the White House and Democratic Congressional leaders said...they were close to agreeing on the terms of a $15 billion government rescue of the American automobile industry that would be directed by one or more appointees of President Bush and would impose expansive federal oversight of the auto companies."
Wait...the banks get $700 billion with no oversight but the auto industry has to show a viable restructuring plan and will have an auto "czar" overseeing it? Oh, and let's not forget the concessions the unions are being asked to make.
I understand that once burned, twice shy. As a taxpayer I like the idea that someone noticed that maybe it isn't such a great idea to give away massive amounts of money with no strings attached. But I'm becoming increasingly disturbed by what I see as the different standards for white-collar vs. blue-collar industries. The auto industry is asking for $15 billion to save over a quarter of a million mostly blue-collar jobs. The banking industry is in line to get $700 billion. Any jobs saved will be white-collar.
Don't get me wrong. I think there is plenty to be upset about with the U.S. auto industry. It often seems one beat behind. Large gas burners when gas prices are soaring. "Greener" vehicles years after Toyota. You know the list. But the thing is...the auto workers are not responsible for those decisions, the auto execs are. And to be perfectly fair, I may believe the vehicles the U.S. automakers produce are hopelessly out-of-touch, but there are millions of people who happily and loyally drive their U.S. made cars. (My parents never bought a car that wasn't U.S. made and they loved almost every single one of them.)
What does this have to do with Joe the Plumber? I'll get to that tomorrow.
The problem is not with the fact that there is differing standards between banking and auto standards. The problem is the fact that the Auto makers tend to only give money to the people in their areas (Dingle-berry comes to mind). Whereas Bankers make congress go-round by giving everyone money. That's why they got 700 billion (that several have already said will go to corporate bonuses), whereas Detroit ASKED for a total of 37 billion (including open lines of credit which may not be needed) and MIGHT still get 15. How many automakers give money to both parties? Does the UAW give to Republicans? Specifically ones from Alabama? Of course not. You get what you pay for. Bankers have made damn sure that whatever they want they get (see bankruptcy bill from '07), by making sure that everyone gets money. Bribery is what makes government go around (see also Illinois Senate seat).
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