Senate Republicans Still Don't Get It

The Senate Republicans who voted against the auto bailout once again failed to offer a real alternative to the Democrats, they were in favor of the bailout in theory, but ultimately killed the bill over wage concessions by the UAW. This strategy was both intellectually muddled and politically hamfisted.

The Republicans did not object to the fact that the bailout would have created an unconstitutional "Car Czar" to control the most important business decisions of private corporations, nor did they object to Democrats like Chris Dodd (D-Countrywide) calling for the firing of GM's CEO. Instead they chose to focus on getting the UAW to take pay and benefit cuts, thereby allowing the the media to present the story as one of stereotypical Republican union-busting.

A principled stand against the bailout as unconstitutional and socialistic would have been intellectually and morally sound, instead the Republicans were all too quick to accept the premise of the bailout, and then kill it essentially on a technicality. This left them in the worst possible position, verbally sparring with the UAW over who was to blame, excoriated by the media as anti-American and anti-worker, and standing on the sidelines as the White House and Treasury give in and use the TARP funds for the bailout anyway.

The Republicans started painting themselves into this corner when large percentages of them ended up voting for the TARP bill. When only 15 Republicans voted against the Senate bill, they lost any chance to claim the mantle of opposition, allowing all future government intervention in the economy to be measured against the monstrous TARP expenditure. How can Bob Corker (R-"Harold, call me") make a serious argument against giving $15 billion to Ford, GM, and Chrysler, when he voted for giving $700 billion to Goldman Sachs, Citigroup, and AIG? Richard Shelby (R-AL) voted against the financial bailout, but also represents a state with a massive presence by Toyota, effectively neutering his opposition by equating it with support for foreign manufacturers over American companies.

It is tough to see how the Republicans will benefit from this entire fiasco, they have allowed themselves, fairly or not, to be labeled as obstructionists and union-busters. The auto companies will get their loans, probably from the TARP fund, perhaps with additional assistance coming from the new Congress and Obama administration in January. The government will continue to take a greater role in planning and managing the economy and GM, Ford, and Chrysler will continue their inexorable slide into bankruptcy, only this time all Americans will be left holding the bag.