George W. Hoover Bush?

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President Bush has approved a 17 billion dollar bailout of General Motors and Chrysler, to tie their operations over until March 31, 2009. Fiscal conservatives like Larry Kudlow are damning the action as Bush giving in to the United Auto Worker's Union. Other analysts are claiming Pres. Bush made this decision to avoid the moniker of Hooverite, Pres. Hoover having worn the label as the president who oversaw the last great depression commencing with the stock market crash of 1929. No one seems to be saying that Pres. Bush simply did the right thing by the country, except the executives of General Motors and Chrysler, and me.

I will argue that Pres. Bush looked at the options of extending TARP (Troubled Asset Relief Program) funds to the auto makers or not, considered the consequences of each, and in a rare moment of competence, decided that the country, economy, and workers would be better off if the automakers did not fall into bankruptcy. Nothing more complicated than that. Others are arguing he is playing to his legacy and is avoiding a Hoover reputation. That may be a consideration, but, who could seriously say this is Bush's first and foremost consideration?

President Bush has all the appearances of a man who wishes the nation and her people well. If wishes were the foundation of reality, our nation would be vastly better off after 8 years of President George W. Bush. It simply does not appear rational as Larry Kudlow suggests that Pres. Bush is knuckling under to the union in a sudden conversion to pro-unionism and giving them what they want. The union is not the foremost concern or factor in anyone's calculation in the White House.

The 1 to 3 million estimated lost jobs as a result of GM and Chrysler entering bankruptcy is the major issue to weighed against tax payers having to shoulder the $17 billion rescue. However, it is absolutely clear that the Treasury was going to issue that remaining $17 Billion dollars to some corporation or another, therefore, the tax payers in fact, are not shouldering any more debt by Pres. Bush having chosen the auto makers as the recipients instead of AIG or Bank of America.

Amazingly, it appears Pres. Bush took this simple scenario, weighed the consequences, and actually arrived at the right decision for America and her people in these troubled times for workers under threat. As a result, it is now the Senate Republicans like Corker and Shelby who must wear the egg on their face. Had the Republican Senators not filibustered the Democratic proposals for a bridge loan, with its strings attached limiting exec compensation, targeting the loans for specific uses, and forcing the union to hold their position at their last concessions as recently as 4 months ago, tax payer dollars would have gotten more bank for the buck insuring the proper usage of their dollars by GM and Chrysler.

Their is a class war going on here with these bailouts, and Pres. Bush has, in his parting days, made a decision to leave the Senate Republican class war against blue collar workers, and simply act in the best interest of the economy, on which he no doubt recognizes his finger prints of deregulation and absence of oversight indelibly imprinted. The fact that Senate and some House Republicans would author 750 billion dollars of tax payer future earnings to bail out white collar shareholders, executives, and Wall Street financial institutions without ANY conditions attached, but balk at a mere $17 billion to save auto workers jobs, and the jobs of up to 2 million other blue collar workers in the parts manufacturing, sales, and servicing industries, simply megaphones political class warfare.

It is hard to imagine how Republicans could possibly muster a majority of national votes in any foreseeable future election while clinging to this sort of political class ideology that has cost mainstream working Americans so dearly, in jobs, 401K savings, and home foreclosures, so many of which are still brought on by overwhelming health care debts. That said, Democrats are not on political easy street. If they fail to put this recession behind us in the next 3 years while convincing the public that deficits are a priority, it is equally difficult to see how they could retain the majority votes they enjoyed in this last election.

But, it is appropriate to give credit where it is due. Pres. Bush appears to have made the right decision, at the right time, with the right motives. That is truly a remarkable accomplishment for this lame duck president who has quacked us up so often with incomprehensible actions and decisions.

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This page contains a single entry by David R. Remer published on December 19, 2008 6:29 PM.

The Other Parties - 2008 was the previous entry in this blog.

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