by Frank James
President-elect Barack Obama welcomed President Bush's decision to approve a $17.4 billion bailout for the Detroit Three automakers but warned the companies that the American people's patience was running low and urged them not to waste the grace time they've received to restructure their businesses in order to avoid bankruptcy.
In his last press conference before heading to Hawaii for the Christmas holidays, Obama also indicated that his planned economic stimulus would be massive as has been rumored.
Though he declined to name a dollar figure, the president-elect didn't deny reports that it could be as much as $1 trillion. Acknowledging that the amounts being contemplated were enough to raise the concerns of taxpayers, including himself, he said he was struck by the consensus of economists that a stimulus had to be "bold" to be effective and was the priority, given the economy's deteriorating condition.
As he spoke with reporters, Obama was accompanied by some of the last members of his cabinet to be named, House members Hilda Solis, a California Democrat, and Ray LaHood, an Illinois Republican, who were named to head the Labor and Transportation departments, respectively.
Obama also named Ron Kirk, Dallas's former mayor, to be U.S. Trade Representative and Karen Mills, a Maine venture capitalist, to head the Small Business Administration.
In discussing the auto bailout, Obama never mentioned Bush. It was a noticeable omission, especially since the president has said specifically that one of the reasons he decided to approve spending money out of the $700 billion bank rescue fund was so Obama wouldn't be greeted on his first day of office with the collapse of the auto industry.
Obama seemed intent on sending a signal to auto makers that they should not delay making any hard choices in the hope of getting better terms from his incoming administration.
And in a nod to the organized labor members in his Democratic party base, he emphasized that he wanted all of the auto makers' stakeholders -- management, labor, suppliers, creditors and bondholders -- to bear the pain of the expected restructurings. The president-elect made clear that he would find unacceptable any package of concessions that required relatively more from labor than from other stakeholders.
"I do want to emphasize to the big three automakers and their executives that the Americans -- people's patience is running out, and that they should seize on this opportunity over the next several weeks and months to come up with a plan that is sustainable," Obama said. "And that means that they're going to have to make some hard choices."
"... I just want to make sure that when we see a -- a final restructuring package, that it's not just workers who are bearing the brunt of that restructure; that they're not the ones who are taking all the hits and others, who in the past have enjoyed a lot more of the benefits of the auto industry, somehow aren't being affected."
Obama described the White House's action as a "necessary step taken today to help avoid a collapse in our auto industry that would have devastating consequences for our economy and our workers."
Asked about the stimulus program now being considered which reports have said could range from $675 billion to as much as $1 trillion, Obama acknowledged that such amount would significantly add to the deficit.
But the risk of not doing enough was greater than running up the deficit, he said. Indeed, if not enough of a fiscal stimulus is pumped into the economy deficits could still grow because of the decline in tax revenues and the need to spend money on social safety net programs like foods stamps and unemployment insurance.
The president-elect acknowledged that care would have to be taken, however, in what the fiscal stimulus dollars are spent on.
"What we want to do is make sure that in spending that money to help jump-start the economy and put 2.5 million people back to work, that we are also looking at the long term," Obama said. "And that's where Ray LaHood, myself and others on the economic team are going to be changing how business is done in Washington.
"Every dollar that we spend, we want it spent on projects that are there not because of politics but because they're good for the American people," Obama said. "You know, if we're building a road, it better not be a "road to nowhere." If we are building a bridge, it better be because an engineer identified a bridge that has a structural weakness and that has to be dealt with."
Comments
Solis said, "As secretary of labor I will work to strengthen our unions."
Posted by: Surprise! | December 19, 2008 4:28 PM
Nothing like jumping on the Bandwagon.
Posted by: Inky | December 19, 2008 5:15 PM
Obama talks a lot about the "need' to make what he calls "hard choices."
Can anyone name one instance where Obama made a "hard choice?" For example, can anyone point to a specific piece of legislation Obama introduced in Congress, or caused to be introduced, that addresses the auto maker and auto union demands?
The upcoming administration's motto: "Do as I say, not as I do."
Posted by: Doug Zoak | December 19, 2008 5:24 PM
Solis said, "As secretary of labor I will work to strengthen our unions."
Posted by: Surprise! | December 19, 2008 4:28 PM
Any eight grader will tell you that. but congres sure dosen't actmlike eigth graders when it comes to unions.
Posted by: Inky | December 19, 2008 5:32 PM
http://www.spectator.org/archives/2008/12/19/payback-time
Posted by: Payback! | December 19, 2008 6:22 PM
Get used to it, Republican union-busters for the lat 25-30 years. You will not have the government, to do your dirty work, for you. With the passage of the EFCA, democracy will be back in the workplace. Majority sign-up would ensure the decision whether to form a union by majority choice, not by the employer unilaterally. The bloggers championing the EFCA's defeat, are spreading lies and distortions. Don't believe what I am posting, either, just do a little homework and you will see the EFCA is a a sound democratic way to ensure worker's rights to start unions !! As Secretary of Labor, I hope Rep. Solis works extra hard to pass the EFCA, American workers are entitled to form unions, if the majority decides they want them !! Let's stop management from sticking their nose in worker's business, if that is allowed, we would all be working for slave wages !! Unfortunately, that is the case for a great number of workers, in America.
SUPPORT OUR TROOPS, BRING THEM HOME, ALIVE AND WHOLE. NOW.
Posted by: Don Fitzgerald, Chicago | December 19, 2008 7:08 PM
Obama talks a lot about the "need' to make what he calls "hard choices."
Can anyone name one instance where Obama made a "hard choice?" For example, can anyone point to a specific piece of legislation Obama introduced in Congress, or caused to be introduced, that addresses the auto maker and auto union demands?
The upcoming administration's motto: "Do as I say, not as I do."
Posted by: Doug Zoak | December 19, 2008 5:24 PM
"Hard Choice" is a softner for CHANGE..
Posted by: Inky | December 19, 2008 7:17 PM
Fitz,
1. What lies?
2. If you think card check is more democratic that a secret-ballot election, is that how we should elect political leaders?
Posted by: Prove It | December 19, 2008 7:37 PM
I favor this new voting legislation. I believe there should be a time limitation on the legislation and that a secrete vote should follow a year or two after the union takes hold.
t needs to be easier to unionize but we must assure that there is not corruption.
Posted by: Ron M | December 19, 2008 8:05 PM
Posted by: Don Fitzgerald, Chicago | December 19, 2008 7:08 PM
.
Don’t worry, Don, we won’t. Who could possibly believe a guy who thinks Bill (“Guilty as sin, free as a bird”) Ayers was merely exercising his constitutional rights when he and his fuzzy friends bombed banks and government buildings? (Don't look now, Don, but I think you've picked up an albatross.)
Posted by: John W. | December 19, 2008 9:36 PM
I recently came across your blog and have been reading along. I thought I would leave my first comment. I don't know what to say except that I have enjoyed reading. Nice blog. I will keep visiting this blog very often.
Sharon
http://www.autoloans101.info
Posted by: Sharon | December 20, 2008 12:10 AM
The secret poster;
Iraq had secret-ballot elections, so does Cuba, so does Russia, but are they democratic ? Secret ballot elections are no guaranty for democratic results. Majority sign-up is far more democratic than secret-ballot elections, if for no other reason than, management can do less intimidating than it could, if there were a long drawn out election process. Heck, just look at Chicago politics, with its secret-ballot elections. Are the citizens better served , because of the secret ballot process !!? Management intimidation is the reason for the insistence on majority sign-up. That is one of the big reasons for the need to pass the EFCA, as soon as the new Congress is installed. For far too long, the American worker has been denied the right to start unions, through management intimidation, under the guise of secret-ballot election, but don't take my word for it. Do your own research and you will see, how necessary the EFCA needs to be enacted. Don't let anyone put their thoughts into your head: Research the matter. The workers of America deserve an honest and informed decision, on the part of all of America, which will allow them to start-up unions without the intimidation of management !!
SUPPORT OUR TROOPS, BRING THEM HOME, ALIVE AND WHOLE. NOW.
Posted by: Don Fitzgerald, Chicago | December 20, 2008 8:36 AM
How does Obama have authority to hector anybody about spending money wisely?
Reagan brought us back from 10.7% unemployment (not today's 6-7%) with tax CUTS, spending CUTS, and incentives for small business. Instead of this proven formula, which created 16+M jobs, we get a socialist spending-spree with money we don't even have.
The Blago case cerainly focuses the mind on Obama's promised big government programs- which have always been likely to encourage corruption. This plan to flood state and local governments with money will surely empower corrupt politicians, Democratic donors, and union bosses.
These types of misguided projects are to be approached with additional caution after what was heard in Blagojevich's words on the FBI tapes- demanding $1M in campaign donations from an unnamed cement company who won the contract for the "green lanes" and other improvements to the Illinois Turnpike.
Such proposals demonstrate the skill with which Democrats wrap spending that financially benefits their political supporters in an aura of social/environmental responsibility.
We should examine carefully Obama's similar programs in Illinois- where he helped provide subsidies for (convicted felon and Obama fundraiser) Tony Rezko to build and maintain "affordable housing" in Obama’s district. Much of the resulting housing is a joke, uninhabitible due to substandard work. People freeze in the winter, plumbing leaks, and a 3 year old boy was crushed to death last summer by shoddy construction. While Rezko couldn't find the money to get the heat on, he was still making his political contributions to Obama, though.
Hopefully the Blago case will suck Obama into it's vortex and peels the gold-plate off of this lead statue... maybe people will finally wake up and realize the kind of Bolshevik con-artist they put in the White House, and put a brake on these specious schemes that will promptly push the deficit over $1 trillion. The inflation resulting from this print-money spending will hit us all in the pocketbook... and hard.
http://reaganiterepublicanresistance.blogspot.com/
Posted by: Reaganite Republican | December 20, 2008 8:54 AM
Merry Christmas and Happy New Year to the auto big wigs...they now have the money and can go on vacation.
Posted by: lochnessmonster | December 20, 2008 9:05 AM
Don Fitzgerald or whoever is using his tag-line now:
You didn't identify an lies, but I guess you are saying you would prefer we select political leaders by card-check. I don't think you would find many political leaders or citizens of the United States agreeing with you.
Secret ballot elections are the best guaranty of democratic results. Majority sign-up is less democratic than secret-ballot elections because it does not provide the most important protection of free choice: the anonymity of the voter. Those trying to justify this restriction of voting rights to union supporters by denying access to the polls by those who would vote "NO" to a particular union on the basis of alleged management intimidation intentionally ignores the reality that management can't go in a voting booth with a worker but a worker has no privacy protection with regard to whether or not she signs a union authorization card. That is precisely why you want EFCA instead of the current election process.
And yes, Chicago citizens are better served by secret-ballot elections than any alternative. Democracy may not be perfect, but it is the best system of government on the face of the earth and not one democracy operates by card-check. Supporters of EFCA are authoritarians hiding behind a fraudulent "movement." the label is not self-justifying or self-authenticating. The Nazis called themselves a movement too.
The propagandists for this attempt to use the power of the state to build market share for labor organizations - like John Bonior and his special interest organization American Rights as Work - put the wrong words in front of Barack Obama and have led him down a garden path that will destroy his credibility with main-stream Americans when they see what EFCA really means for them.
Yes, it is the Department of Labor; not the Department of Management, not the Department of Organized Labor, and not the Department of Management. It exists to protect the rights of ALL employees; not just the 7.5% in unions and it certainly does not exist to strengthen unions.
Posted by: Stop the EFCA Payoff to the Organized Labor Lobby | December 20, 2008 10:06 AM
To the secret poster,
As for politicians, wasn't EFCA passed by our House of Representatives and stalled in our Senate, by a minority of Senators. Please, try to be a little bit more accurate with your facts, or those that you present as facts.
This will be my last post on this subject, EFCA, until you are able to distinguish between fact and distortion. I would say that you do your cause a great disservice, by misleading people, put your whole premise is an absurdity, supported on exaggerations. What good are secret ballots in Russia, or Cuba, or any where, if those that supervise the elections are not above suspicion? Out of the last 35 years, since Reagan broke the air comptrollers union, the Republicans, for the majority of the time, have controlled the apparatus of the American government and that includes, the NLRB. The Board that supervises such elections. Take a wild guess, as to their contributions to a fair and equatable decisions on the part of the workers, who wished to start unions !!!
This link may help our contributors decide for themselves.
http://www.tcdailyplanet.net/article/2008/07/21/big-lie-being-spread-about-efca.html
SUPPORT OUR TROOPS, BRING THEM HOME, ALIVE AND WHOLE. NOW.
Posted by: Don Fitzgerald, Chicago | December 20, 2008 3:04 PM
Fitz,
Why don't you go over to Region 13 and tell those career NLRB employees what you think of them? They are hard-working professionals insulated from politics and committed to protecting employee rights. By the way, they are represented by a union - NLRBU. And by the way, PATCO decertified itself by engaging in an unlawful strike. Ever see Postal employees or other federal employees do that? That's because it is illegal and always has been.
Aside from all that, I hope you are feeling well.
Posted by: Ghost in the Machine | December 20, 2008 8:33 PM
The New Deal of the 1930's that Obama thinks it's so great to emulate created nothing but a pile of debt.
FDR never had unemployment under 14%... and averaged 17%.
Treasury Secretary Henry Morgenthau on the New Deal, 1939:
We are spending more than we have ever spent before and it DOES NOT WORK. . . . We have never made good on our promises. . . . I say after eight years of this Administration we have just as much unemployment as when we started. . . . And an enormous debt to boot!”
The New Deal was a collossial economic failure, and history is just now beginning to reveal it.
http://reaganiterepublicanresistance.blogspot.com/
Posted by: Reaganite Republican | December 21, 2008 8:37 AM