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Republicans Have a Chance at Redemption

Auto bailout is first post-election test for embattled GOP lawmakers

Michelle Malkin offers sound advice for Republicans on Capitol Hill:

The first step toward GOP redemption is to stop the automakers’ bailout and roll back the creeping conversion of the Crap Sandwich 2.0 into an all-purpose bailout bonanza for every last American industry and corporate special interest in financial peril.

For those of you who don’t read Malkin regularly, Crap Sandwich 2.0 is her description of the $700 billion bailout rescue plan for Treasury Secretary Hank Paulson to tinker with the world’s financial markets.

Six weeks after its passage — with the support of 34 Senate Republicans and 91 House Republicans — Congress is back in town ready to act on another bailout. This time it’s the Detroit automakers knocking on lawmakers’ doors begging for a handout.

Few would disagree that the Big Three are in trouble. Last month GM’s sales dropped 45%, Chrysler’s were down 35% and Ford’s fell 30%. But rather than bailing out these companies, lawmakers should shoo them away. There is another option: It’s called bankruptcy. And despite what the bailout proponents say, it’s really the only viable way for Detroit to remake itself and survive. Feeding the beast won’t fix the problem.

Republicans will play a critical role because any legislation requires 60 votes in the Senate. Democrats control 50 seats (following Barack Obama’s resignation), meaning there’s no way this passes without a number of GOP defections. A vote could take place as early as tomorrow.

Exit polling on Election Day showed a majority of Americans (56%) opposed the bailout. Yesterday nearly 60 grassroots organizations voiced their strident opposition to the auto bailout. (Correction: The groups opposed state and local government bailouts.)

After two weeks of soul-searching, the first step on the road to recovery is admitting you have a problem. Now would be a good time for Republicans to put principles first.

COMMENTS

  • kingfish

    Um, didn’t this website favor the passage of the bailout? I was against it as I actually sat down and read all three versions. However, I seem to remember Redstate pushing for the passage of the bailout and telling us it was necessary (and wont’ be until banks quit cooking the balance sheets). Was just a little surprised to read this post.

    • havermeyer

      I’m a newbie here and would also be curious if this site supported Hank bailing out his buddies for the Ultimate Golden Parachute (how set is this guy after giving a bunch of colleagues $B’s).

      What an absolute mess.

  • Nick_Schaper

    Thanks Rob. I thought folks might be interested in seeing Leader Boehner’s statement on this also:

    ?Spending billions of additional federal tax dollars with no promises to reform the root causes crippling automakers? competitiveness around the world is neither fair to taxpayers nor sound fiscal policy.

    ?Earlier this fall, the Democrats in charge of Congress approved a $25 billion loan package for America?s ailing automakers. Why are Democratic leaders in Congress discussing an additional taxpayer-funded bailout on top of that $25 billion package instead of ensuring these loans are made available to the automakers as quickly as possible? Why have the Democratic leaders of Congress been willing to provide this money without insisting that the companies receiving these federal dollars demonstrate to Congress and to taxpayers that they have a credible plan to strengthen their financial health? And what assurances will Democrats give taxpayers about their chances of getting their auto bailout money back??

    • kingfish

      This site supported the bill and published a post by Steve Forbes supporting it as well. I’m all for repentance, ;-) , but just thought I would point it out. Was a bad bill from start to finish and was always against it. Anyone that read those bills in their entirety should not be surprised at all by what has happened since its passage.