2008-11-18

Baltimore Sun would put "significant conditions" on auto aid

Amazingly, today's editorial -- "Conditional auto aid" -- makes no mention of union work rules or executive abuses. Here are the conditions they do mention:
Congress should name an experienced, respected executive to monitor GM's performance, and GM's leaders should move quickly to reshape the company. If they falter or courts interfere, federal aid should end.

Some of the steps that GM should take are obvious, such as reducing their brands to increase efficiency and cut costs. Health benefits for retirees, to be financed from an $80 billion trust fund established by the company and run by the UAW, also should be pared back.
The Sun's editorial board might try reading Ryan Grim of Politico to get some ideas:
"Emergency assistance to the automobile industry would be conditioned on executive compensation restrictions, a prohibition on golden parachutes, rigorous independent oversight, and other taxpayer protections
UPDATE: Congressman Ruppersberger talked yesterday about the bailout/rescue on the Ron Smith show. For audio, of Dutch, see the six links on the side.

UPDATE:Brian Faughnan at RedState intuits another purpose for the bailout: to protect the flow of UAW union dues. And Bill Hobbs thinks Congress should stop trying to run the car companies and start fixing laws that handcuff them:
why not figure out how to reform the tax and regulatory structure so that Ford, for example, could make money producing and selling that 65-mpg car here?

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