Time for Action on Auto Rescue Plan

December 16, 2008

Once again, partisan politics prevails over national interest in the backdrop of the economic crisis due to skyrocketing foreclosures, credit crunch and now,

Record unemployment at 6.7%, expected to rise further from the lack of action by the legislators, leaving the fate of the million workers in our nation hanging in balance.

The extreme demands by the legislators voting against the rescue plan to,

The United Auto Workers (UAW) union to agree to steep wage cuts to bring their pay equivalent to the Japanese auto industry is preposterous and poses the legitimate question to them in return.

Have these legislators made similar demands to the CEO’s of the auto industry prior to urging UAW to agree to such double standards?

Further, the following question from a wise representative of democracy to the so-called lawmakers otherwise the boulders contributing to the roadblock or failure of any important legislation is praiseworthy.

Even though the question is in context with the California State of affairs, it is still relevant as the Californian legislators particularly the Republican Party representatives have sworn to mimic their federal counterparts in escalating the economic recession.

Ref: Mercury news, December 12, 2008 – Thank you.

"What sacrifices are our leaders making?

Considering the latest estimates of the financial crisis facing California, I think we should all be asking our elected officials what sacrifices they plan to make during these hard times.

We the taxpayers are bracing for increases in taxes and fees, decreases in services, huge layoffs of public and private sector employees.

I have yet to hear anything about cuts being considered to the compensation, pension plans, health care, car allowances, per diem, etc., that our representatives enjoy.

The fact is that these so-called leaders are at the helm of this shipwreck.

Ultimately, it is their responsibility to run this state in a fiscally responsible manner.

They have failed miserably.

We should demand that any plan to bridge this budget gap start with cuts to those who failed us. "

Ken Kramasz

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The demand is fair and justified.

More grinding facts on the consequences of bailout failure:

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Article: Suppliers see their demise if Big 3 become insolvent

By Bill Vlasic and Leslie Wayne, New York Times.

Ref: Mercury News, December 12, 2008 – Thank you.

The excerpt from the article deserves attention.

“The hypotheticals about the domino effect of the companies’ troubles through the vast network of auto supplier firms – which employ more than twice as many workers as the carmakers – are becoming real.

Top of Pyramid

The Big Three, and their foreign competitors, are what most people think make up the entire auto industry.
But the car manufacturers are just the top of the pyramid.

While GM, Ford and Chrysler employ 239,000 people in the United States, the country’s 3,000 or so auto suppliers have more than 600,000 workers.

Most of the suppliers are not highly waged; they have no big pensions,…

Washington has a myopic view of the auto industry.

They just think of the Big Three and don’t think of us,” i.e. the suppliers.

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Challenge the Opponents:

What strategy or proposal the White House and the opposing legislators have in mind about the economy?

So far, they have been highly successful with their dogmatic policies that have led the economy towards recession.

With the lack of action in this matter, the collapse of other industries is imminent worsening the situation comparable to a black hole.

Aren’t they satisfied with the calamities they have brought upon this nation, that they are further determined to see through the peril before their much-awaited departure from the White House?

All these legislators including Senate Democrats in opposition to saving jobs and helping families through this rescue plan ought to think wisely, as they might be inadvertently putting themselves on notice in 2010.

For some, it might happen even sooner as there is a process called recall in a democratic system.

The people of the United States have learned a harsh lesson through Bush administration.

Conventional wisdom dictates that when something is of no value, it is best to discard and replace it with one of use that serves the purpose.

In the case of the incumbent administration, the notion might be what harm any inaction might do now as the term is nearing end.

History will do its part with judgment on the performance of any administration regardless of the cosmetic presentation by the representatives of the outgoing administration.

Notwithstanding the impending justice to be delivered for crime against humanity specifically violation of constitution thus far by oligarchy and their members.

In addition, the repercussions of the failures of any administration or individuals representing a political party cannot be ignored, especially if they are encouraging their clan (as it appears to be the norm in contemporary politics including democracy ) to retain Power further down the road.

No matter, how one circumvents the situation leading to the downfall of the once prosperous economy, the fact remains that willful negligence or malevolent policy to settle scores with opponents will result in their own ouster from the positions as legislators.

The elimination of the namesake lawmakers aka troublemakers will be the result of illogical conduct and abuse of power against the people and nation they falsely pledge to serve at all times and diligently during crisis.

Options for the White House to salvage the demise of the political party they represent in the coming elections is to act in the best interests of the people who are the electorate with the ability to entrust Power through electoral process.

Up until recently, the serious backlash suffered by the Republican Party represented by the incumbent administration in 2006 and 2008 is ominous that those who fail to deliver their commitments to democracy will share similar outcome reaching the point of no return to power.

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Action Required:

It is incumbent on the Treasury department and the White House to come forward and immediately release the unused $15 billion from the $350 billion financial bailout draw down currently held in cash to rescue the autoworkers and millions of jobs at stake.

Failing to avert the inevitable collapse of the industries providing food and livelihood for the electorate with power to elect officials to serve the public will be detrimental to the success and approval of the final bailout $350 billion defending the finance industry.

The authorization of the $15 billion from the current $350 billion is imperative barring any mandatory demand for wage cuts and benefits to the workers and UAW.

Any conditions to the rescue plan will apply to the CEO’s of the industry from cashing in bonuses and extravagant remuneration including kickbacks and shady Washington deals with the lobbyists by the legislators elected to protect national interest rather than self-interest.

Urgency of this auto rescue measure will prove the effectiveness of democracy in action.

Therefore, it is the responsibility of the Treasury department along with the White House to act promptly by releasing the cash held $15billion from the previously approved taxpayers’ $350 billion for the financial bailout and save the American workforce as well as the economy.

Procrastination rather than action in this matter will lead to the unrequested irrelevance and perhaps the end of a major political party in the coming elections by making way for the emergence of new political faction in the near future.

Thank you.

Padmini Arhant

P.S. The suggested plan of action also applies to the California legislators, currently engaged in threatening democracy and progress in all fronts of the legislation.

Written by Padmini Arhant · Filed Under Business, Featured | Leave a Comment 

Congress Adjournment

September 29, 2008

Review of the current article on;

Congress moves to adjourn with no deal on AMT

By JIM ABRAMS, Associated Press Writer 25 minutes ago – Thank you.

WASHINGTON – The House prepared to adjourn for the year Monday with no deal on a major tax relief package, increasing the odds that businesses will lose out on critical tax breaks and millions could get hit by the alternative minimum tax this year.

House Majority Leader Steny Hoyer, D-Md., suggested that it might be next year before consensus can be reached on a tax initiative that includes adjusting the AMT, providing tax relief to disaster victims and extending tax credits for renewable energy development, business investment and individual education and child care costs.

Lawmakers in both the House and Senate stressed that the bill would create tens of thousands of jobs and contribute to the nation’s energy independence. But House Democrats insisted that more of the package, totaling $138 billion in House bills, be paid for so as not to increase the deficit. Senate Republicans, averse to new taxes, said any changes in the Senate-passed tax bill would kill the entire package.

The House “has taken the morally and fiscally responsible position,” said Rep. Mike Ross, D-Ark., a leader of the 49-member Blue Dogs, a group of fiscally conservative Democrats. Meanwhile, “Republicans in the Senate continue to hold up this important legislation,” he said.

As Ross spoke, across the Capitol Senate Majority Leader Harry Reid, D-Nev., tried to bring up a House-passed bill dealing with renewable energy and extension of business and individual tax breaks that expired last year or will lapse at the end of this year. Republicans objected to consideration of the bill.

Reid acknowledged that “we can’t get it done” because Senate Democrats don’t have the votes to move the bill without GOP cooperation. He said he hoped the Blue Dogs “would understand we are not trying to embarrass them or anyone else.”

Hoyer, joining the Blue Dogs at a news conference, said “there’s not an intention” to return to Washington after the House votes on the financial bailout bill and adjourns Monday afternoon.
“I’m going to continue to work with Sen. Reid to see what can be done even if it is next year,” he said.

That delay would be a blow, at least temporarily, to a wide group of business and individual taxpayers. Without congressional action, those affected by the AMT, originally aimed at just a few very rich tax dodgers, would grow from around 4 million to up to 26 million. Those hit by the tax, most earning less than $200,000, would pay an average extra tax of $2,000.

The solar industry alone has estimated that it could create more than 400,000 jobs if it receives an eight-year extension of its investment tax credit.

“With hundreds of thousands of American jobs and billions of dollars in clean energy investment at risk, we urge congressional leaders not to leave for the election recess” until reaching an agreement, the CEOs of national hydropower, geothermal, solar and wind energy associations said in a statement.

Business groups have warned of serious repercussions if Congress does not renew the R&D credit, which expired at the end of last year, and various advocacy groups have pleaded for renewals of individual tax breaks affecting those paying college tuition, those from states with state and local sales taxes and teachers with out-of-pocket expenses.

The Senate last week, on a 93-2 vote, passed a massive package that included AMT relief, $8 billion in tax relief for those hit by natural disasters in the Midwest, Texas and Louisiana, and some $78 billion in renewal energy incentives and extensions of expiring tax breaks. In a compromise worked out with Republicans, the bill does not pay for the AMT and disaster provisions but does have revenue offsets for part of the energy and extension measures.

That wasn’t enough for the House, which insisted that there be complete offsets for the energy and extension part of the package.

Fiscal irresponsibility was a major factor in Wall Street’s meltdown and the need for Congress to step in with a bailout plan, said Rep. Dennis Cardoza, D-Calif. “It’s time for us to say no more.”
The House included steps to boost tax revenues from the oil and gas industries and close loopholes used by hedge fund managers and corporations to avoid taxes on their overseas incomes.
Senators also included in their bill a far-reaching measure to ensure parity in insurance benefits for mental health problems.
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Review and Analysis: The democratic society exercise voting rights to elect a representative in Congress and Senate to address issues affecting their daily lives and pass necessary legislation to primarily benefit the people through businesses and other economic infrastructure.

The legislators’ “priorities” from the above article should be of concern to the constituents. Their decision to leave for the election recess “after having returned from a long recess in August”, without reaching an agreement on issues like energy independence, tax relief to millions in small businesses, education and childcare costs reflects minimal importance to major economic crisis.

With election around the corner, it is important for legislators to recognize their obligations to the electorate and fulfill the commitments in restoring the nation back on track. In a gloomy economic climate, that is saddled with multi-trillion dollar debt conveniently passed on to the hard working lower and middle income groups struggling to meet ends, vacation should be the last thing on the mind of the lawmakers.

The electorate should demand that their elected officials resolve all of the above issues related to tax initiative that includes adjusting the AMT, providing tax relief to disaster victims and extending tax credits for renewable energy development, business investment and individual education and childcare costs with no further procrastination.

To quote the House Speaker “Nancy Pelosi” at the announcement of bailout deal “The Party is over” not just for the “Wall Street” but the entire “Power” specifically elected for policymaking and solving problems confronting the nation at all fronts.

When the “Presidential candidates” are advocating “performance based” salaries for “teachers” and others , the same principle should apply to “Washington” and “Wall Street” that are primarily responsible for the current economic mess.

The voter frustration and disappointment with “Washington” and “Wall Street” should be clearly demonstrated in the forthcoming electoral process.

Thank you.

Padmini Arhant

Written by Padmini Arhant · Filed Under Energy, Featured | Leave a Comment 

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