What do you think is more important to Congress, keeping the Big Three auto makers in business and helping them to become profitable to save jobs? Or using the bailout for mostly political ends by catering to the usual special interest groups?
Figure this one out. A key issue car makers have been raising even before the bailout has to do with California's new greenhouse gas vehicle emissions standard.
To get on track and begin meeting these challenges America's auto makers need the certainty of a single national standard ....
And what do the Democrats propose? That Detroit must meet every Federal and State standard in this regard. Last year Bush refused a waiver for the EPA, meaning California can't go it alone and there is effectively one national standard. Obama is on record as wanting to grant the waiver ASAP after he takes office.
Bottom-line? Washington is fine with taking another $15 Billion in taxpayer dollars for the loan program - with more sure to come in January, but only if they get to appease particular special interest groups. If they were actually sincere about making these businesses work, the last thing they would be doing is giving them another hurdle to jump.
The split over California could draw out the fight in Congress even further, if the House and Senate end up debating different bills. Under the draft, GM and Chrysler would have to drop lawsuits over California's law, which has been adopted in 17 states.
Environmental groups have pressed Pelosi, who represents San Francisco, to include the ban, and Frank said the clause had strong support among Democrats.
And there's another route for California and its allies to put the rules in place. Last year, the Bush administration blocked the California law from taking effect by refusing to grant a waiver from the Environmental Protection Agency. Obama has said he would reverse that decision, and California officials have been working with his transition team to make the change quickly.
There have been multiple reports of Europe backing away from some of its more stringent environmental policies precisely because of the global economic challenges we face. Meanwhile, our elected officials want to spend more of our money while doing the reverse.
That's either insane - or simply business as usual in Washington, depending on your point of view.
You are absolutely right, Dan. Congress has no business stepping aside on this issue. Congress has the power to regulating interstate commerce, the realm auto manufacturers deal in.
From the Constitution:
"The Congress shall have power...To regulate commerce with foreign nations, and among the several states, and with the Indian tribes;..."
Posted by: Fred Beloit | Wednesday, December 10, 2008 at 10:15 AM