MSNBC reports that Senate negotiations on an auto bailout bill have collapsed. Apparently Democrats and Republicans were near a deal, but the talks fell apart when Republicans insisted that the United Auto Workers union accept significant wage cuts, which the UAW refused.
So let’s review where we are: Senate Republicans were willing to spend $700 billion bailing out the nation’s banks without a precondition of placing limits on executive salaries. Republicans did not demand that bank executives slash their salaries. Republicans did not require banks to eliminate existing golden parachutes for senior executives. However, Republicans are adamant that they will not support a $14 billion loan to the auto companies unless the auto workers accept pay cut.
Any questions about where Republicans’ loyalties lie?
But wait, say Republicans. We had to bail out the financial sector because letting the banks fail would disrupt the entire economy.
Okay, but given the current economic climate, is anyone foolish enough to think letting the auto companies fail will not have dire consequences to the overall economy?