Stubborn Bush Prepares His Final Act: Devastate The Ailing Economy By Letting The Auto Industry Die
Stubborn Bush Prepares His Final Act: Devastate The Ailing Economy By Letting The Auto Industry Die
Our guest blogger is Daniel J. Weiss, a Senior Fellow and the Director of Climate Strategy at the Center for American Progress Action Fund.
George Bush’s deep unpopularity, lack of a positive agenda or accomplishments, and his waning days in office have sapped most of his presidential powers save one: the ability to say “no.” His intransigent opposition to long term bridge loans to save General Motors, Chrysler, and Ford has forced Congressional leaders to scramble to provide assistance to prevent bankruptcy, which would devastate the already ailing economy. It appears that there is a tentative deal that will keep GM and Chrysler on life support until the new president and Congress can provide long-term assistance to nurse them back to health.
The possible deal would loan GM and Chrysler up to $17 billion from the Advanced Technology Vehicles Manufacturing Incentive Program, established by Sec. 136 of the Energy Independence and Security Act. This program provides up to $25 billion in loans to retool factories so that they can produce more efficient vehicles that meet new fuel economy standards. Already, the Big Three and smaller innovative start up companies are seeking these funds.
Speaker Nancy Pelosi opposed using these funds for the bridge loans because they are supposed to jump start efforts to build significantly more efficient cars. Taking this money would only delay this critical effort, slowing American companies’ efforts to win the race to build the super efficient cars of the 21st Century.
November’s shocking unemployment figures of another half million people out of work made it imperative that GM and Chrysler avoid bankruptcy. Speaker Pelosi acted responsibly to provide the only solution that Bush and conservative lawmakers would accept:
“Congress is considering various short term funding options for the American automobile industry. We will not permit any funds to be borrowed from the advanced technology program unless there is a guarantee that those funds will be replenished in a matter of weeks so as not to delay that crucial initiative. Regardless of the source, all funding needs will be tightly targeted with vigorous supervision and guaranteed taxpayer protection.”
This weekend, Congressional leaders will hammer out the conditions for the loans. These restrictions should include protection of workers and retirees health care and pensions; limits on executive compensation; independent oversight; commitment to continue research, development and production of significantly more fuel efficient cars; and, an agreement that the Big Three will cease their legal and lobbying efforts to block or weaken motor vehicle fuel economy or greenhouse gas standards. Congress could vote on the deal the week of December 8th.
Hopefully, the Department of Energy will not halt the Advanced Vehicle loan program. Its funds could be replenished in January 2009 as part of an economic stimulus package designed to save and create jobs. This bill could also include the additional bridge loan funds necessary to save and rejuvenate the auto companies. The 111th Congress – with more progressives and fewer conservatives — will consider such a bill shortly after it is sworn in on January 6th. This essential economic relief package would then go to the new president, who will do more than just say “no.”
5 Responses to “Stubborn Bush Prepares His Final Act: Devastate The Ailing Economy By Letting The Auto Industry Die”
Register
RSSLogin
Topic Cloud
ArchivesBlog RollAbout Wonk RoomContact Us
Donate
Auto bailout insiders target Section 136 Advanced Technology Vehicles Manufacturing Loan Program funding in scheme to stop electric cars from reaching the market. URGENT ACTION NEEDED.
Section 136 funding became one of the first conduits to fund mass market electric cars without blockade but when the adversaries of electric cars realized this, they declared war on that fund. Plans to have it “replenished” by Detroit or the Treasury are already known to be impossible to achieve.
The plans to gut Section 136 funding will kill Tesla, Fisker, The entire Florida and Bay area auto industry and dozens of new car companies for the sake of 3 corrupt insider companies. In an agreed partnership with the steel and oil industry, Detroit has lied about the ability to bring 100MPG+ vehicles to market.
There is no other funding for electric cars without this fund. The venture markets have shut down and no investor will be the “first-in” for an automobile effort.
Detroit has worked with the oil and steel industry to keep alternative energy vehicles, which use no oil or steel, from reaching the market. Gas stations have now been proven to be the main cause of Cancer in the U.S. There is a sticker on every gas station in California that proves this and a joint report on DNA mutation by major universities is about to come out linking gasoline to 80% of the cancer in the U.S. To kill off Section 136 funding is to increase U.S. Cancer and lung disease and put America decades behind foreign technology.
The TARP funds have more than enough access and cash but it is preferred, by oil industry resources to put maximum resources into compromising the ATVM Loan Section 136 funding.
Electric cars have been around since the 1800’s.
GM delivered a 100+MPG-equivalent car to the market ages ago. Many companies and individuals have built 150+ MPG electric vehicles for decades. All such projects have been stopped by synthetic impediments.
Legislative, funding, distribution channel lock-off, and access blockades have been deployed for decades to prevent electric cars from reaching the volume market.
The current American Electric Car Companies can replace EVERY job lost to Detroit if supported.
Call Nancy Pelosi (1-202-225-0100) and Harry Reid (1-202-224-3542) today and leave them a message to not take this action.
Please forward this message to every political official and community action group you can.
December 6th, 2008 at 10:11 amBush wants to kill the UAW, on behalf of this Chamber of Commerce buds.
When Carlyle Group affiliate Boston Private Financial Holdings gets $153 million in TARP money, something stinks. Carlyle has $40 billion in uninvested capital and taxpayers pony up for a firm catering to the high net worth marketplace?
Only in Bushville…
December 6th, 2008 at 11:20 amIf Bush really doesn’t want to try for a little redemption, then someone please tell me why bankruptcy receivership isn’t the best option. Get the CEOs who could have been making plug-in hybrids years ago the hell out of Motown.
December 7th, 2008 at 12:06 pmOr at least the recipients of these “bridge loans” ought to be required to produce something to compete with the Golf TwinDrive plug-in hybrid.
December 9th, 2008 at 4:14 amI don
February 18th, 2009 at 6:03 pm