Monday, March 30, 2009

Obama Talks Tough and Constructively About Auto Industry While GOP Congressional Leaders Attack Obama for Firing GM Head, Wagoner


While Senate Democrat Majority Leader Harry Reid praised President Obama for the president's "firm resolve" when he has dealt with the auto industry: "The Administration's decision to send GM and Chrysler back to the drawing board was driven by three critical and commendable goals: protecting taxpayers' investment, moving America more quickly toward energy independence, and ensuring these two companies and the American auto industry as a whole can survive and as many workers as possible can keep their jobs," Reid said in a statement. "As we have maintained since the earliest days of this crisis, if these companies do not develop strong plans to remain viable in the long term, they will lose our support."

Republican leaders have gone out of their way to criticize the president's efforts to right the badly listing automobile manufacturers. Senate Minority Leader Mitch McConnell contradicted the Majority Leader when he said that Republicans have been the leader for seeking to create reform of the auto industry.

"Republicans in Congress called for true reform before bailouts last year; automakers were given billions instead," McConnell's statement read in part. "Republicans said that taxpayer money set aside to strengthen the economy by preserving the flow of credit shouldn't be used for bailouts of individual businesses and unions; it was doled out anyway. And Republicans called for an end to funding enterprises that refused to demand reform from management, labor and investors; each refused."

McConnell ended his grab for attention by saying Republicans agreed with the notion that reforms must "be taken seriously or the taxpayer bailouts will end" but that that should have happened "tens of billions of dollars ago."

Te most severe critic of the president and Democrats position on the auto industry concentrated on Corker's criticism about te firing of Mr. Wagoner, the former head of GM. It should be remembered that Senator Corker was one of the GOP's leading voices last December when Republicans called for drastic wage cuts against blue-collar employees.

Senator Corker a Senator from Tennessee said the "Wagoner firing was a "sideshow" meant to distract people from what he called the lack of progress made since aid first went to automakers last year and cast the administration's moves as a "major power grab" and a threat to free enterprise."

Corker continued his rant: "With sweeping new power the White House will be deciding which plants will survive and which won't, so in essence, this administration has decided they know better than our courts and our free market process how to deal with these companies."

Former GOP presidential standardbearer, John McCain said: "the Administration's removal of GM CEO Richard Wagoner "remarkable" and "unprecedented," and suggested it would have a chilling effect of other corporations. "So instead of sending General Motors and Chrysler into the pre-packaged bankruptcy they deserve, now have taken the unprecedented step of firing the CEO of General Motors," he said. "A remarkable move by the federal government. I think unprecedented in the history of this country."

McCain retorically asked: "What does this signal send to other corporations, financial institutions about whether the federal government will decide to fire them as well."

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