Another bailout package is in the works in Congress, one that’s even less popular but that’s not stopping the Democrats from pushing for it. House Speaker Nancy Pelosi said a government lifeline would be provided only if the auto industry meet new fuel-efficiency standards and restructure to limit executive compensation. Of course, there is no mention of concessions from the United Auto Workers (UAW) union.
We all know that the Democrats are good buddies with the UAW. This bailout will infuse fresh blood into the dying General Motors, Ford, and Chrysler so that the UAW can drain them some more. Big Auto already knows to make better, fuel-efficient cars. They came late to the green game and are paying the price. But the root of the problem is unionized labor in the auto industry. It’s interesting how Jeffrey D. Sachs never mentions this in his Washington Post article. Michael E. Levine, writing for WSJ, is on the right track: Why bankruptcy is the best option for GM.
