Tyler (who is definitely NOT clueless) quotes our clueless subject of the day, Bruce Bartlett, as follows:
"I think it would be a terrible mistake to simply write a check to the auto industry without demanding major, major restructuring of its labor contracts. Without that the money will simply go down a rat hole and the automakers will just be back again in a year or two asking for more money. Obama has a strong hand to play here and I hope he uses his leverage. With bankruptcy as the only alternative to federal aid, he can drive a very hard bargain with the auto workers. If he caves and just writes a blank check, everyone will know he can be rolled and he will pay a heavy political price for it. If Obama shows toughness on this issue, I think it will pay enormous dividends for him down the road. "
Um, Obama bash the unions in his first major act as president? Really Bruce? You think that's a winner for him? Really?
Yes he has "leverage" and yes he will use it, but sadly, he will use it to mandate vague and useless "green jobs" and alternative technology initiatives (I say useless because he'd be mandating this for companies that can't create conventional jobs or master existing technologies).
If we are going to do anything here, I'd say just give a lump sum payment to the workers and let nature take its course with respect to the corporate structures.
I don't think it's the union that put Detroit in their current predicament. It did not help, that's for sure but the union does not design and market the product nor undertake investments or make acquisitions.