Automaker Bailout Stalls in Senate

The Republican leader, Senator Mitch McConnell of Kentucky, gave a floor speech in which he sharply criticized the measure, ending hopes of an easy agreement to the plan.

He said his colleagues would not back the plan despite the aforementioned White House approval of said plan. “A lot of struggling Americans are wondering where their bailout is,” McConnell said.

However, an alternative plan by Senator Bob Corker, Republican of Tennessee, one which would require steep concessions by the United Auto Workers union and by creditors to General Motors and Chrysler was supported by McConnell.

While McConnell talks of Americans wanting to know where their bailout is, he seems to forgot how many jobs may be on the line here: not just automaker jobs but those that support the automakers in one of many ways.

This is also a typical GOP tactic to break, still further, the backs of unions. Unions workers, by and large, strongly support the Democratic party.

One thing is certainly strange: think of how much money has been spent in the bailout of financial institutions and Wall Street and compare it to this relatively piddling amount.

Corker's plan would require the automakers to cut their debt obligations by two-thirds by March 31st. G.M. alone has more than $60 billion in debt.

Additionally, the automakers would also be required to cut wages and benefits to match the average hourly wage and benefits of Nissan, Toyota and Honda employees based in the United States. The plan would bar any pay for idled workers other than “customary severance pay.”

It's true that most Americans seem against a bailout: a Pew Research Center Poll showed that just 39% agreed with a bailout of GM, Ford and Chrysler.

In a separate Marist College poll, 48% said they oppose federal loans for the struggling automakers while 41% approved.