Auto Bailout Fails – Common Sense Prevails

The bill before the Senate to bail Detroit failed yesterday in a vote of 52 to 35, with 12 “not voting”. Of those 35 Nay’s, 4 Democrats broke ranks and voted with the Conservative Republicans. The 12 who did not vote were a mixed bag of well-known Democrats and Republicans including, Biden (D-DE), Graham (R-SC), Hagel (R-NE), Kennedy (D-MA), Kerry (D-MA), and Sununu (R-NH). (Source: US Senate)

The Bill, supported by Barney Frank, Nancy Pelosi, Harry Reid, President George Bush and President-Elect Barrack Obama, was defeated over two sticking points that, for all intents and purposes, seem reasonable, considering it would be the people paying for several generations for an industry that has consistently failed to become competitive. The stumbling block – Republicans called for pay and benefit cuts slated for the Auto Workers Union in 2009. One has to understand that a machinist belonging to the Detroit Auto Makers Union makes an hourly wages that is disproportionate to others performing the same functions in any other industry in the United States. The average machinist can expect to earn approximately $18 to $22 per hour, while the UAW worker can anticipate an average of $73 per hour (which includes rich benefits and pensions.) Additionally, those that have been laid off, fall under this bail-out umbrella, and would continue to receive an average of $31 per hour. There are, articles aplenty, regarding the “myth” of the $73 UAW worker, referencing sources such as The New York Times and the UAW, which, may not be entirely subjective when the auto-industry is ready to feed off the public trough.

Needless to say, The New York Times is blaming those pesky Republicans for dashing the dreams of Detroit. However, where was the Bay State’s Junior Senator, John F. Kerry, Obama’s biggest pre-election cheerleader, in all of this? Surely his extra vote could have helped out Obama and Reid? Perhaps he could have persuaded those four Democrats who voted “Nay” to go along with Reid and Company. Or perhaps Kerry decided to sit this one out as the bailout was not popular in the Bay State. Most likely, he was absent with better things to do.

All this aside, the idea was simply reprehensible to the American Pubic. Constant bailouts of industry, with an eye towards partial state ownership, rankles conservatives, libertarians and anyone who takes a common sense approach to the ups and downs of business and its exclusion from government. Our economy has been, as far as anyone can tell, capitalist – which seems to have worked out fairly well to date. It appeared this concept came into contempt beginning in 2006 when the Democrats gained control of the House and Senate, and now the idea of Government Owned everything runs the Hill. That said, the worst case: Detroit will fall into bankruptcy, have to retool, perhaps along the lines of Toyota,Honda and Nissan USA, whose employees earn on average $48.00 per hour, and who, are economically sound. Recovery may be slow, but it is sure, and it is also tax-free.

Daily Newspapers Slump - Missing the Obvious – Alternative News Outlets vs. Ideology

John Gapper, at the Financial Times ponders the question: “Who will Mourn Local Newspapers?” - and in yesterdays article laid out the case against “bad journalism” produced by blogs and talk radio. He also bemoaned the fact that journalist feel the general public is not as well served by these new outlets. He closed his article with the hope that the demise of the local daily papers will “strengthen the editorial position of the remaining elite: The New York Times, The Wall Street Journal, Bloomberg, the Financial Times etc.”

Therein lays the problem that continues to be overlooked by those “elites” who would guide the populace rather than report the news. One has to look to ratings in terms of right vs. left, over a period of time, to understand that the rise of “alternative news”. Twenty years ago, the daily newspapers and network broadcast news enjoyed a virtual monopoly; there simply were no other sources available. Today, conservative talk radio and the Fox News Network dominate their respective rankings. Rush Limbaugh, for example, enjoys a week cume (equivalent to a newspapers circulation) of 14.25 million, compared to the top ranked NBC evening news of 8.34 million. Comparing apples to apples, conservative talk radio is enjoying relative prosperity while more left leaning radio networks like Air America and
NPR are either clawing out of bankruptcy or facing layoffs.

It would behoove those “elites” who feel that the Internet and conservative talk radio are to blame, to get a grip on reality. In another financial times blog, Gideon Rachman is adamant that the problem lies with ”Internet slime” and those “gun-toting…..bit of the United States” (Conservatives). This situation has now dissolved into intense denial and anger. The crux of the matter is simple. Ideology has no place in journalism with the exception of an editorial page in a newspaper (or a segment on the nightly news, etc.). The last four general elections have shown a country that is deeply divided – right vs. left. When a news outlet, be it a newspaper, broadcast news network, cable news network or radio talk show, caters to one segment of the population only (or candidate as was the case in the last election), they are bound to lose circulation, “cume”, and viewership to those outlets that offer another “editorial” point of view. Should, by some miracle, what has become known as the Mainstream Media, wake up from its stupor and begin to report, while defining editorial (be it conservative or liberal) as such, confining it to a specific segment, they just might stand a chance of winning back a share of that audience.

L.A. Times – Headline: “It’s The Democrats Turn to Cope with Scandals” – They Can’t Be Serious!

The Los Angles Times, Janet Hook, has come to a startling revelation with the arrest of Illinois Governor Rod R. Blagojevich – there may be corruption in the ranks of the Democrat Party. The article opens with the notion that a “series of scandals” have come from the Blue side of the aisle since the party won a majority on the theme that it would put a halt to the “culture of corruption” that existed under GOP leadership. The problem that faces the nation, vis a vis, two strong national parties, with literally no opposition besides on another, is that both parties have been subject to “bouts” of scandal - however, it is the depth of the scandal and how the particular political party handles the offending member, that should be examined.

Had the Democrat Illinois Governor been a member of Congress, it is more likely that he would be holding onto his seat and undergoing internal “ethics” investigations, until he had served out his 10th term. Unlike the Red side of the aisle, where, once the media turns on its spotlight, no matter the “crime”, that member is pushed out of office and forced to resign – post-haste. In some instances, it appears that the Republicans react more with horror and dismay at the hint of a scandal – than the existence of an actual deed. Case in point – Trent Lott, former Speaker of the House, resigned in 2002 after remarks made at a birthday party for Strom Thurmond . Lott, who was toasting the aged Thurmond, who, like Robert Byrd, Democrat, were segregationist in the 1940’s, stated that the he have voted for Thurmond when he ran for president and the country would have been better off – a nicety, toasting the life of a man who had served his country for many years, and as Lott explained when a media storm ensued, offering apologies to anyone that would be offended. If all were fair between the media and both Political Party’s, or had Lott been Barney Frank saying the same of Robert Byrd, that would have been the end of it”. Lott remark was looked upon as a scandal so heinous that there was nothing left to do but resign. Foley and Craig ring any bells? Compared these men to that news hound, Barney Frank and one starts to wonder about these newly found Democrat scandals.

Hook, to be fair, does list a few of the more prominent scandals that have faced the Democrats in the past two years – mentioning newly retired Jefferson of LA (retired by the people), who stuffed cash in his freezer, Gov. Spitzer of NY, involvement with call-girls, and Rep. Rangel (NY), ongoing problems with the IRS. Jefferson remained in his seat, during the investigation, Spitzer, outside the hallowed halls of Pelosi and Reid's legislature, succumbed to the law, and Rangle, is still being protected by “internal investigations”.

Now, the Democrats believe that the Republican’s will make something of the latest Chicago “politics as usual” mess – and, rightly so, investigations into the entire brouhaha have been requested by the GOP. However, that does not mean that anything will take place outside of the halls of Congress – internal investigations are the likely route, and there will be zero mention of these latest Democrat criminal shenanigans two weeks or less from now in the press.

Ms. Hook should cross the country and spend some time in Chicago, Michigan and Massachusetts to understand how deep the scandals run and just how many take place in the Party that heralds the Kennedy’s, the Pelosi’s, the Kerry’s, the Reid’s, and of course, the Barney Franks. These are not, of course, all national figures, yet high ranking elected state officials, who continue to earn the title of “felon.” Barney Frank, received a reprimand from his fellow legislators, for fixing parking tickets for a prostitute, and in the past months, former Mass Senator Wilkerson, was busted for stuffing bribes in her bra, Boston City Councilor Chuck Turner arrested for accepting a bribe, and of course, Former Speaker of the Mass. House, Finneran, who is now a talk show host on Boston’s WRKO.

Suffice it to say, that for the most part, Republican’s say darndest things (or act like their Blue counterparts) and get hauled off, investigated and hounded by the media into resignation, while Democrats appear to enjoy stocking up on large sums of cash, normally by stuffing it into a freezer, down a bra, or in the case of those in charge of Fannie and Freddie, Lord knows where, and they either are investigated by their own party, or if actually charged, end up with a radio gig. It is the inequity of press coverage, and the “protection of the House”, that keeps those that might otherwise do time for a crime, in high-profile, national and state positions. The Republican Leadership can call for investigations, however, it is more than likely that little will come out of this whole “boondoggle” (business as usual) in Chicago.