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Can we get something straight between Detroit and the rest of America?
What the auto industry is seeking in Washington is a loan, L-O-A-N, as in something you borrow and then pay back — with interest.
This is not a gift, a grant or a handout. It’s a loan, the kind of thing financial institutions used to do before they all had to scurry to Washington for their own bailouts, which have been far bigger and subjected to considerably less scrutiny than this loan that the auto industry desperately needs to keep operating — and keep millions of people employed.
And an interesting suggestion from Hugh Hewitt, law professor, radio host, Republican, blogger, “Should the GOP Bargain On The Bailout?”
If the GOP’s leadership in the Senate calculates that it must go along with the bailout of the Big Three because of the overall weakness in the economy, I hope they at least bargain for some concession such as a giant tax restructuring for Michigan and Ohio, a demonstration project on the economic effects of tax reform. If the UAW and industry supporters are going to succeed in opening a fiscal lifeline to Detroit, couldn’t the GOP at least demand that all of Michigan and Ohio provide a demonstration of what a lower corporate tax rate can mean for an economy. Call them Irish Zones, after the tax policy of the Republic of Ireland, and declare that companies headquartered in Michigan or Ohio will pay 12.5% corporate tax, as all corporations do in Ireland.Related story: The New York Times runs a post-mortem on the Saturn experiment at GM.
How else to explain the growing multitude of out-of-service escalators in the Metro? Arriving at the Van Ness/UDC Metro earlier than normal Wednesday morning, all the main escalators up-and-down were kaput. This morning at Cleveland Park, no functioning down escalators to the station proper. It’s been getting worse for weeks, now.
Normally you just shrug your shoulders and chalk the deescalation up to urban decrepitude and incompetence and the failure of the federal government to provide the billions of dollars the system needs, a new Manhattan Project of infrastructure investment (except it would be D.C., not Manhattan).
But we spot other indications of efforts to shape the behavior of the autochthonous public…
Who’s reading these accounts? Folks in Philadelphia, Peoria, Petaluma? Well, maybe — and the Post’s Inauguration Watch site is good — but it’s more likely the news about the inaugural is being consumed by Washington metro residents, whose dread has to be growing. Picture it: a week of disruption, like Rolling Thunder with ball gowns and charter buses and visiting relatives and bars open 24 hours. In comparison, a bunch of guys on Harleys is no big deal.
We’ll resist the metropolitan manipulation and stick around. Inaugurations are history, and President Obama’s official taking office has more historic oomph than others. The NAM is also sponsoring a Gala Celebration, a good reason to stay in town.
And if the warnings, cautions and columns of advice seem scary in sum, consider them just sincere efforts by the locals to make the inauguration experience as pleasant as possible.
Except how do you explain the escalators?
]]>Michigan needs to act like the Big 3
Daniel Howes: Conventional wisdom holds that Michigan is entering Year Seven of its one-state recession because Detroit’s automakers are tanking — and poised to drive off a cliff.
Toyota to cut domestic output amid slowing demand
TOKYO — Toyota is starting to feel the pinch of the global slowdown at home. 7:04 am
Honda to cut jobs in Britain, Japan amid global slump Britain new car sales down 37 percent in November
Some place their hopes in nostalgia.
A ’60s classic back in Motown
Schlitz’s Classic 1960s beer is back on shelves after nearly three decades, prompted by demands from aficionados hankering for the maltier, full-bodied lager.
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| Committee: | ||||||||||||||||
| Title: The State of the Domestic Automobile Industry: Part II | ||||||||||||||||
| Date: 12/4/08 | ||||||||||||||||
| Time: 10:00 AM | ||||||||||||||||
| Place: 106 Dirksen Senate Office Building | ||||||||||||||||
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| Publication: Printable Hearing not available at this time | ||||||||||||||||
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| Witnesses | ||||||||||||||||
Panel 1
Panel 2
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You watch the hearing online here.
Is another key economic post about to be filled by President-Elect Barack Obama? Even as he called a Chicago press conference to announce the expected nomination of New Mexico Governor Bill Richardson to head the Commerce Department this morning, Washington was filled with talk that he has settled on a little-known California Congressman to be US Trade Representative. Congressional Quarterly reported that Obama has asked Xavier Becerra , who has represented Los Angeles in the House of Representatives for 15 years, to fill the key post. The US Trade Representative is the government’s primary negotiator on trade agreements such as the now stalled Doha Round—aimed at expanding trade in services and other sectors and reforming agricultural subsidies—or pacts such as those set with Columbia and South Korea which are stuck in Congress.
The story cites a number of business and free-market sources concerned about Becerra’s mixed record on trade — anti-CAFTA, anti-trade promotion authority, but pro trade agreements with Peru and Chile. While he voted for NAFTA, he now expresses regrets. We note that Becerra has been moving up on Ways & Means and had leadership aspirations — recently being elected caucus vice-chairman — making party-loyal votes increasingly important.
We collected Rep. Becerra’s votes on NAM Key Votes related to trade since the 106th Congress (1999-2000).
You can read them in the extended below.
UPDATE (6:20 p.m.): From Reuters:
“Looking at his voting record, he’s certainly not a protectionist and he’s certainly not a total free trader,” said Frank Vargo, vice president for international economic affairs at the National Association of Manufacturers.
“If he were selected, I would not see it as a sign the administration is throwing in the towel on trade. I believe he would have an open mind and be pragmatic.”
Vargo said he was convinced Obama and manufacturers share the same goal of expanding trade, despite some differences.
Rep. Xavier Becerra (D-CA)
| Official NAM 110th Congress House Voting Record | ||
| Description | Preferred Position | Compared with NAM preferred position |
| U.S.-Peru Trade Promotion Agreement. Vote on legislation implementing the U.S.-Peru Trade Promotion Agreement. Approved 285-132 on Nov. 8, 2007 (Roll No. 1060). Signed into law (P.L. 110-138) on Dec. 14, 2007. The NAM supported the Agreement, which would eliminate nearly all of Peru’s tariffs on U.S. goods, increase protection of American investments, strengthen U.S. intellectual property rights and reduce non-tariff and regulatory barriers in Peru. NAM POSITION: Yes. | Y | Plus |
| Delaying Vote on U.S.-Colombia Trade Agreement. Vote on H.Res. 1102, a resolution removing the U.S.- Colombia Trade Promotion Agreement from expedited “fast track” floor consideration as required under U.S. trade law. Approved 224-195 on April 10, 2008 (Roll No. 181). The NAM opposed the resolution, arguing that removing the 90-day timetable for action would prevent timely and fair consideration of the Agreement and could undermine the ability of the United States to enter or complete future trade agreements. NAM POSITION: No. | N | Minus |
| NAM’s Official 109th Congress Voting Record (House) | ||
| Withdrawing U.S. Membership in the World Trade Organization (H.J. Res. 27) Vote on H..J. Res. 27, a resolution to withdraw the approval of the United States from the Agreement establishing the World Trade Organization. Rejected 338-86 (with 1 voting “present”) on June 9, 2005 (Roll No. 239). The NAM opposed the resolution, noting that the United States, as the world’s largest trading nation, needs the rules-based trading system in order to continue leveling the playing field and obtaining the gains from trade for the United States and the rest of the world. NAM POSITION: No. | N | Plus |
| United States Trade Rights Enforcement Act (H.R. 3283) Vote on the U.S. Trade Rights Enforcement Act. Approved 255-168 on July 27, 2005 (Roll No. 437). The NAM supported H.R. 3283, which would help protect and enforce U.S. trade rules that are established through free trade agreements and the World Trade Organization. It specifically authorizes the application of U.S. countervailing duty (CVD) law to exports from non-market economies, such as China, and would establish a system of comprehensive monitoring of Chinese compliance with its trade obligations on intellectual property rights and market access. NAM POSITION: Yes. | Y | Minus |
| CAFTA-DR: Central America- Dominican Republic Free Trade Agreement (H.R. 3045) Vote on legislation that would implement the Central American-Dominican Republic Free Trade Agreement (CAFTA-DR) into U.S. law. Approved 217-215 on July 27, 2005 (Roll No. 443). The NAM supported CAFTA-DR, which is likely to result in $1 billion per year in increased U.S. manufactured exports and more U.S. jobs. Signed into law on August 2, 2005 (P.L. 109-53). NAM POSITION: Yes. | Y | Minus |
| U.S.-Oman Free Trade Agreement (H.R. 5684). Vote on H.R. 5684, legislation implementing the U.S.-Oman Free Trade Agreement. Approved 221-205 on July 20, 2006 (Roll No. 392). The NAM supported the bill and the FTA, which would require all U.S.-made consumer and industrial products to enter Oman duty-free, gaining even greater market share for U.S. manufacturers. NAM POSITION: Yes. | Y | Minus |
| NAM’s Official 108th Congress Voting Record (House) | ||
| U.S.-Singapore Free Trade Agreement. Vote on H.R. 2739, legislation implementing the U.S.-Singapore Free Trade Agreement. Approved 272-155 on July 24, 2003 (Roll No. 432). NAM members supported the accord, which sets a valuable precedent for future FTAs with the developing countries of Southeast Asia, where U.S. manufactured exports face average bound tariff rates of 30 percent. Signed into law (P.L. 108-78) on Sept. 3, 2003. NAM POSITION: Yes. | Y | Plus |
| U.S.-Chile Free Trade Agreement. Vote on H.R. 2738, legislation implementing the U.S.-Chile Free Trade Agreement. Approved 270-156 on July 24, 2003 (Roll No. 436). The NAM supported the accord, which eliminates nearly all tariffs on U.S. manufactured exports upon implementation and provides the framework for a successful Free Trade Area of the Americas (FTAA) accord. Signed into law (P.L. 108-77) on Sept. 3, 2003. NAM POSITION: Yes. | Y | Plus |
| United States-Australia Free Trade Agreement. Vote on H.R. 4579, legislation that would implement the U.S.-Australia Free Trade Agreement into U.S. law. Approved 314-109 on July 14, 2004 (Roll No. 375). The NAM supported the legislation and the FTA, which is likely to result in $1.8 billion per year in increased U.S. manufactured exports and more U.S. jobs. NAM POSITION: Yes. | Y | Plus |
| NAM’s Official 107th Congress Voting Record (House | ||
| Disapproving Normal Trade with China (H.J. Res. 50) Vote on a resolution of disapproval seeking to discontinue normal trade relations (NTR) with China, triggering major tariff increases on Chinese imports and inviting retaliation against U.S. exports to China. Rejected 259-169 on July 19, 2001 (Roll No. 255). NAM POSITION: No. | N | Plus |
| Trade Promotion Authority (H.R. 3005) Vote on H.R. 3005, legislation renewing trade promotion (formerly fast track) authority. Approved 215-214 on December 6, 2001 (Roll No. 481). The NAM supported the legislation, which is critical in prying open foreign export markets and concluding major trade agreements. NAM POSITION: Yes. | Y | Minus |
| Trade Promotion Authority (Conference Report to H.R. 3009) Vote on the conference report to H.R. 3009, which renews Trade Promotion Authority for five years, extends the Andean Trade Preference Act, expands the Trade Adjustment Assistance program, renews Generalized System of Preferences, and more. Approved 215-212 on July 27, 2002 (Roll No. 370). NAM POSITION: Yes. | Y | Minus |
| NAM’s Official 106th Congress Voting Record (House) | ||
| Vote on a “resolution of disapproval” seeking to discontinue China’s normal trade relations (NTR) status, triggering major tariff increases on Chinese imports and inviting retaliation against U.S. exports to China. Rejected 260-170 on July 27, 1999 (Roll No. 338). NAM Position: No. | N | Plus |
| Vote on H.R. 4444, legislation granting permannent normal trade relations (PNTR) to China, significantly reducing tariffs on U.S. exports and opening key new markets to U.S. companies. Approved 237-197 on May 25, 2000 (Roll No. 228). Signed into law (P.L. 106-286) on October 10, 2000. NAM Position: Yes. | Y | Plus |
President-elect Barack Obama’s pick to lead the U.S. Department of Homeland Security will face a nomination hearing before a Senate committee whose chairman, Sen. Joseph Lieberman, has been both a critic and a defender of the H-1B program. The Connecticut senator’s most recent action on the program came in April, when he backed legislation seeking a major increase in the number of H-1B visas that are issued.
Arizona Gov. Janet Napolitano, who was officially nominated Monday to head DHS, is a strong advocate for increasing the H-1B cap. She is expected to appear in late January or early February before the Senate Committee on Homeland Security and Governmental Affairs, which Lieberman heads. The ranking GOP member is Sen. Susan Collins of Maine, who last year pushed for reform of the H-1B program.
This morning, NAM President John Engler particpates in a news conference sponsored by the National Center for Public Policy and Higher Education marking the release of “Measuring Up 2008: The National Report Card on Higher Education.” While the NAM strongly supports the increase in H-1B visas, Engler will make the case for “growing our own,” creating an educational system with an effective STEM component — Science, Technology, Engineer and Mathematics — that prepares students for the innovation economy.
]]>Unfortunately, the Bush Administration and the Federal Reserve have thus far declined to use their powers to improve our nation’s financial stability by assisting the auto industry. Notwithstanding existing authorities, this Congress is prepared to consider additional legislation that would give the assistance you seek, provided that you submit a credible restructuring plan that results in a viable industry, with quality jobs, and economic opportunity for the 21st century while protecting taxpayer investments.
House Majority Leader Steny Hoyer’s statement, December 2.
Last month, the Democratic leadership in Congress insisted that the automakers present a plan for long-term viability before receiving any assistance from taxpayers. With the economy officially in a recession, we continue to work to help this vital industry, and its 3 million jobs, ride out the storm and emerge stronger.
But before any taxpayer money is provided, the American people deserve to know how the Big Three plan to survive the current crisis, become competitive companies once again, and eventually repay taxpayer loans. The American people also need to be assured that the companies will be held accountable for any tax dollars they receive, and that CEOs will not be rewarded with exorbitant salaries.
Today, the automakers are presenting to Congress their plans for restructuring. We will examine them closely in the days to come, and on Thursday and Friday, Congressional committees will hold hearings. I hope that those hearings, along with the plans submitted today, will lead to increased public confidence in the auto industry’s viability and that Congress will be able to take action next week.
Comments by White House Press Secretary Dana Perino, December 2:
Q The automakers are getting ready to present their plans up on the Hill. Has your position — has the White House position changed at all on this? Have you seen any summaries? Do you know what they’re –
MS. PERINO: I don’t know if we have seen the summaries or not. I know Secretaries Gutierrez and Bodman sent letters to Congress last week to give the administration’s view on the taxpayer issue. We have said that we want to provide help for the auto industry. We thought that we had provided a bipartisan way forward to be able to do that. It is refreshing for us to see Democrats finally coming forward and accepting that companies need to prove that they are viable in order to get taxpayer dollars. But we’ll have to see what these plans are. And we’ll have to see what the Congress decides to do, as well. I think there’s — it’s a little bit premature here on a Tuesday. We need to wait and see what the plans are, and then they have to testify Thursday and Friday. And I don’t know if we know what the Hill will do yet.
November 25th letters from Commerce Secretary Gutierrez and Energy Secretary Samuel Bodman. Also see Gutierrez comments on Good Morning America, December 1.
]]>The Detroit-based domestic auto industry submits its plans…
From The Detroit News, “Survival roadmap for the Big 3“:
WASHINGTON — Detroit’s Big Three automakers made a desperate plea for a $34 billion emergency federal bailout Tuesday, as General Motors Corp. and Chrysler LLC warned they would collapse by the end of the year without immediate help.
The automakers delivered new business plans to Congress written during the last 11 days that for the first time spelled out in great detail the problems they face and the painful steps they must take to survive and restore profits amid plunging auto sales and a bleak outlook for 2009.
The recovery plans exposed how conditions have worsened dramatically in the past two weeks since GM, Chrysler and Ford Motor Co. made their initial request to Congress for $25 billion and came as the industry reported a nearly 40 percent drop in November sales, the worst sales month in 26 years.
And more from the News:
The Detroit papers do a fantastic job covering the industry’s condition, arguments and broader impact on the economy. Here’s the Detroit Free Press:
]]>General Motors Corp. and Chrysler LLC warned Tuesday they could collapse without federal aid before the end of the month, as they joined with Ford Motor Co. to urge $34 billion in loans and to press lawmakers to resolve a standoff threatening hundreds of thousands of jobs.
The Washington Post story, “Republican Chambliss Wins Georgia Runoff,” cites Senate Republican Leader Mitch McConnell’s comments that maintaining the 41 seats is essential for forcing compromise — except on the misnamed Employee Free Choice Act.
McConnell has said Republicans will sharply oppose one measure backed by Obama and most Democrats: requiring businesses to recognize labor unions if a majority of employees fill out cards supporting unionization, rather than the current requirement for a secret ballot in such votes. Labor unions back the provision, while many business groups oppose it.
“It’s unacceptable. It’s overwhelmingly unpopular,” McConnell said recently. “That is the kind of thing that they ought not to pursue. And if they do pursue, it ought to be defeated.”
Chambliss has been an outspoken leader against the anti-democratic, job-killing card-check legislation. We’re glad he’s there to keep fighting.
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