Obama's Intersection of Foreign and Domestic Policy

Environmentalists have known for years that America's dependence on foreign oil was problematic for the nation's foreign policy. It requires us to bow before OPEC; instead of being unconstrained, we're forced to make foreign policy decisions based on who has the the oil (i.e. Kuwait and Saudi Arabia), not who has real problems (i.e. Darfur).

This is why Obama's announcement yesterday that he would require the EPA to review Bush-era guidelines which prohibited California and other states from adopting auto emissions guidelines stricter than federal emissions standards is such a good move.

We need to applaud any move that increases our chances of becoming energy independent. In the end, America will save in lives and in treasure; we won't have to fight for oil and our energy dollars will go to domestic suppliers and spent in our domestic markets.

This move, ultimately requiring more stringent auto emissions standards will be difficult on the auto industry, but now is the right time. If you let the auto companies pick when they'll change their behavior, we'd never have seat belts, airbags or anti-lock brakes.

Besides pure common sense, another reason Republicans, like John Boehner need to support his policy, is their own ideological convictions. Traditionally, conservatives take a states-first mentality. They normally don't like the federal government dictating to the states. However, when Bush was doing it, they didn't mind. With Bush gone, the GOP should return to its conservative principals and support a move that puts states - and the country - first.

Auto Bailout Talks Collapse In the Senate

From The New York Times:

Auto Bailout Talks Collapse in the Senate
By THE ASSOCIATED PRESS
Published: December 11, 2008
Filed at 11:36 p.m. ET

WASHINGTON (AP) -- A $14 billion emergency bailout for U.S. automakers collapsed in the Senate Thursday night after the United Auto Workers refused to accede to Republican demands for swift wage cuts.

The collapse came after bipartisan talks on the auto rescue broke down over GOP demands that the United Auto Workers union agree to steep wage cuts by 2009 to bring their pay into line with Japanese carmakers.

Majority Leader Harry Reid said he hoped President George W. Bush would tap the $700 billion Wall Street bailout fund for emergency aid to the automakers. General Motors Corp. and Chrysler LLC have said they could be weeks from collapse. Ford Motor Co. says it does not need federal help now, but its survival is far from certain.

The White House said it was evaluating its options in light of the breakdown.

''It's disappointing that Congress failed to act tonight,'' a White House statement said. ''We think the legislation we negotiated provided an opportunity to use funds already appropriated for automakers and presented the best chance to avoid a disorderly bankruptcy while ensuring taxpayer funds only go to firms whose stakeholders were prepared to make difficult decisions to become viable.''

The Senate rejected the bailout 52-35 on a procedural vote -- well short of the 60 required -- after the talks fell apart.

The implosion followed an unprecedented marathon negotiations at the Capitol among labor, the auto industry and lawmakers who bargained into the night in efforts to salvage the auto bailout at a time of soaring job losses and widespread economic turmoil.

The group came close to agreement, but it stalled over the UAW's refusal to agree to wage cuts before their current contract expires in 2011. Republicans, in turn, balked at giving the automakers federal aid.

Reid called the bill's collapse ''a loss for the country,'' adding: ''I dread looking at Wall Street tomorrow. It's not going to be a pleasant sight.''

''In the midst of already deep and troubling economic times, we are about to add to that by walking away,'' said Sen. Chris Dodd, D-Conn., the Banking Committee chairman who led negotiations on the package.

I have watched, as the Republican Rat Bastards and their ilk in the media, have attacked the Auto Industry, mainly by maligning the unions.

Because, that's what this is all about.

Those lowlife mofos, want to bust the auto unions. They want everyone to live in constant and consistent fear of losing their jobs, and being abused as they are in those plants in the south. Mofos like Richard Shelby want all states to be as ass-backwards as his Alabama.

They didn't say SHIT about how much the folks on Wall Street were making. BUt a blue collar guy, making a decent wage, oh no, we can't have that, now can we.

I'm so mad about this, I can barely type.

There are MILLIONS of jobs attached to the auto industry. But, these blood sucking mofos could care less. They could care less about the American Worker making a living that is actually decent. That has something like benefits. That has a wage where he can live with his family, and maybe even save up.

Have the auto companies been mismanaged? Of course they have. Nobody doubts this.

But, to listen to the constant refrain of the GOP rat bastards trying to place this on the UAW - fuck that.

I want all those ' working Americans, White Americans' to take good, hard look and see who wants to make you all serfs of the corporations. Every last one of them mofos has an ' R' behind their names.

We have a Mainstream Media that is too pathetic, and probably doesn't even know anyone whose family has made a living. Whose family got out of poverty and into the middle class because of those union jobs. This is what I mean about having ideological diversity on the Obama economic team. Give me a couple of folks who have FAMILY that actually WORKS in this country, over 5 more Chicago PhDs.

Rachel Maddow says it nicer:

Unions are the problem with the auto industry, according to Mitt Romney

Former Massachusetts Governor and presidential hopeful Mitt Romney has written an op-ed in the New York Times about the auto industry. Gov. Romney is uniquely qualified to comment on the industry...not only due to his personal knowledge of the business but also because his father was the president of American Motors. I was expecting, then, something that was thoughtful and insightful; unfortunately, this article included the same old Republican talking points. It could have been written by Newt Gingrich or Rush Limbaugh.

In a little less than 900 words, Gov. Romney summed up the problems of the auto industry in one word...unions. Unions are the sole problem. Not once in the article did he mention anything about management. He did not mention anything about healthcare costs. The problem was simply labor costs. The former governor mentioned that American automakers spend the extra $2000 per car. Other car manufacturers like BMW, Honda or Toyota don't have to pay this expense. Unions are the root of all evil. That's Romney's argument in a nutshell.

Nowhere in Gov. Romney's article does it mention anything about CEO pay. He doesn't mention that the CEO of General Motors, G. Richard Wagoner, is getting paid about $14.4 million per year. That is not much when compared to hedge fund managers who made hundreds of millions (some times billions) of dollars per year...but when you compare that to less than $1 million per year that the CEO of Toyota takes home everything comes into focus.

Gov. Romney, like many other Republicans, argues that America does not need to bail out the auto industry. Instead, America needs to let the auto industry go bankrupt. Once they file for Chapter 11, the auto industry can renegotiate contracts and refocus on their product.

Lee Iacocca , 1979, received loan guarantees from the United States government. His Chrysler Corporation began to produce smaller, cost-efficient carsThe Dodge Aries and the Plymouth Reliant are examples.. In 1983, Chrysler introduced the minivan to the United States. Because of these innovations, Chrysler was able to pay off its loans seven years ahead of schedule. (Iococca's silence is troubling. I hope that he isn't sick. hope that he will weigh in on this subject.)

I will not pretend to know all the ins and outs of Detroit. What I will tell you is that throughout the 1980s and 1990s they pumped out a series of cars that were unreliable, expensive and guzzled gas. During this time, Toyota and Honda chipped away at their market share by delivering small, cost-efficient and reliable cars. There is no doubt that mistakes were made both by management and labor throughout this time. For too long Detroit has continued to rely on SUV and truck sales which have large profit margins. A new model needs to be developed. Detroit has to figure out a way to develop cars quicker and faster. Detroit needs to innovate. (I know everybody uses the word innovate, too much, meaning create something.) Detroit needs to develop several types of new cars. These cars should include electric cars and hydrogen cars. There should be new fuel-efficient cars. We need to be more and better hybrid cars. The reliability of American cars should be unparalleled. Detroit should not expect Americans to buy a new car every 3-4 years. Americans don't make that kind of money anymore.

The American auto industry must take risks. In the past, the auto industry was making way too much money to take any risks. They never sqw the need to do so. They were forced to embrace seatbelts, safety glass, anti-lock brakes and other innovations. In my opinion, small divisions should be set up to take risks, while they alll design and research auto safety to see if it all works.

Finally, Detroit needs to look at several problems and work with labor unions and the government to fix these problems. These problems include (but are not limited to) healthcare costs, pension costs...labor costs. If Detroit can build a car that is as good as a Mercedes, Audi or BMW...I don't mind paying the extra $1000 - $1500 more if I know the workers are being well compensated.