Today's Meet The Press first featured Senator Carl Levin (D-MI) and Senator Richard Shelby (R-AL) as opposing views on the automotive bailout, you can easily surmise who is for and against in this duo. And it's easy for a column such as this to sit back, not claim expertise, and just report what the two senators said without taking a stand on this issue. Well, it's put up or shut up here in this space and everywhere in America. Hard decisions are at every turn.
Before we get to that, let's just briefly review some of the details presented by the two men. Senator Shelby's argument is that the Big 3 should not be bailed out and go into bankruptcy because they don't make products that people want, they're not innovative, and bad management abounds. True, true, and true. On the other side, Senator Levin pointed out that 1 in 10 jobs are automotive related and that GM, in particular, is making many innovations. Additionally, if GM files bankruptcy, 175 billion dollars will be lost in tax revenue and the ensuing legal fees.
Right now, there is 25 billion dollars waiting for the Big 3 - this column say use it. As Katty Kay pointed out later in the show, under normal economic circumstances, you could let it go, but these aren't normal circumstances. This column believes that the big three should receive this money with strict conditions. First, it should be taken out of the $700 billion initially allocated -$25 billion is 4%. The Bush Administration is against this idea because that money is strictly for the financial industry. The Bush Administration, we believe, is giving this money to save its corporate cronies and coffers and the vote of no-confidence with their decisions has long been established.
Remember that GM is a global company and leads the way around the world in the auto industry. This is the catalyst for their recovery and it should be invested in. The strict conditions should include but not be limited to the following: the head of GM, Wagoner, has to re-interview for the job. He should come with an action plan and make the case to the government that he is the one that can turn things around. If the Board at GM, who wants Wagoner kept on, can fork over $25 billion then they get the say, but if it's coming from the government, us, then the government has the say. Clear goals need to be set and fuel efficiency has to be the top line of the mandate. These things will be difficult on the American Auto Worker, but here's the choice - lower benefits or no benefits. Most Americans right now, even the ones on Wall Street, are saying at this moment that they just feel lucky to have a job. This is an attitude to be capitalized on. It's about survival and survival is a powerful motivation. Also, messaging on behalf on the Big 3 is vital as well. If GM and the other two U.S. auto companies were to replace every "Escalade" commercial during Sunday football with commercials explaining innovation and change in philosophy and new models that reflect that - people would feel more confident about helping these companies. And that's another why we should let these companies fail. The devastating psychological effect of the loss of that many jobs, essentially all at once, will grind over spending and confidence to a resounding halt. Lastly, some people would argue that if you bailout the auto companies, then why not then Circuit City or DHL? Retailers and Service companies have failed in this country and have been reinvented - it's more of a natural life and death cycle of business. Remember Woolworth's? The autos are absolutely different, manufacturing can not be allowed to fail - if manufacturing forever flees, it will never return. Retail outlets will always spring up anew.
Everything else about the program today was periphery. T Boone Pickens is on his way to getting his wind farms done. It's going to happen. It's the natural gas initiative that needs the scrutiny and support. How fast we act on that is key.
Hillary Clinton as Secretary of State? Good choice, it is the number 3 spot in the administration and placates many hard feelings. However, there are two other reasons why it's a good choice. One, she has the experience, savvy, and forthrightness to do the job AND it's true, she doesn't have the much leverage in the Senate as a junior Senator. Clintons are best when they're on the world stage. Andrea Mitchell brought up that they would have to vet Bill Clinton with regard to the donors for his library. Talk about not rehashing the past... the library is built and whoever donated, the result is that it will not be torn down. Hillary Clinton carries a ton of Bill's luggage. At a certain point, we have to let her stop paying the fees to check those bags.
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