Why Are Republicans Against The Automaker Bailout Plan?

This anger probably has a lot to do with which political party gets more financial support from the auto unions. Why Are Republicans Against The Automaker Bailout Plan?By Cliff Montgomery – Dec. 10th, 2008The Bush Administration has struck a deal with majority Democrats in Congress to transfer $14 billion of emergency aid to a U.S. auto industry teetering on the brink of bankruptcy, congressional officials told The Associated Press (AP) today. Firm opposition to the plan is still held by some Republicans, however.GOP anger probably has a lot to do with which party gets more financial support from the auto unions.Industrial unions since 1990 have shelled out a whopping 98% of their federal political donations to Democrats, according to The Center for Responsive Politics, a political watchdog group. In the 2008 election cycle alone, Industrial unions gave over $11 million to Dems; the GOP received just over $200,000, states the Center.Hence the support for the deal from Democrats–and the almost illogical hatred from Republicans for the auto industry.”Administration officials who were dispatched to Capitol Hill to sell the agreement got an earful of criticism from GOP senators during a closed-door luncheon,” states another AP report on the situation.The House already has begun procedural votes on this bailout package plan. Majority Democrats are keen to pass the measure this week.If the deal becomes law, the cash probably would be handed over within days to an especially struggling Chrysler LLC and General Motors Corp.Ford Motor Company’s slightly better cash position will allow it to stay afloat for now. The deal, if passed, would make Ford eligible for later federal aid.The measure also would establish a federal “car czar” appointed by George W. Bush to distribute the loans. The current deal empowers the “czar” to “force the carmakers into bankruptcy next spring” unless they “cut quick deals with labor unions, creditors and others to restructure their businesses and become viable,” according to one AP report.Expect the Bush-appointed “czar” to make a special push against the unions–the most anti-Republican component of the auto industry.Perhaps tellingly, the Bush White House did not consult Republicans during its Congressional negotiations. Hence in an apparent act of political brinksmanship, a few Senate Republicans already have vowed to block the initiative, which may delay a decisive vote for days.Like what you’re reading so far? Then why not order a full year (52 issues) of thee-newsletter for only $15? A major article covering an story not being told in the Corporate Press will be delivered to your email every Monday morning for a full year, for less than 30 cents an issue. Order Now! Wait, why does an independent news source run advertisements? The Spark answers in its advertising policy. * Please check out our ads–they help keep this news site running. Thanks!