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White House and Nancy Pelosi circumvent will of States
Last night the representatives the states rejected the House’s plan to bail out the Big Three automakers. The disagreement lay in the House’s refusal to force the unions to accept pay concessions. Last night Nancy Pelosi called upon the White House to circumvent the will of the States and impose a bailout by shunting monies already allocated for the financial crisis to the car companies and their unions.
Not surprisingly, President Bush is considering Pelosi’s demands. However, before acceding to the demands of Pelosi, Levin, and Gettelfinger, Bush should consider the long-term costs to the economy of allowing the carmakers to escape their poor management and the union’s rapaciousness. It is acknowledged that this is to be only a bridge “loan” meaning that everyone fully expects to be back in this same position at a later date when the carmakers blow through the money. Bush should also consider whether caving in to the Democrats will make Michigan any redder, whether the Unions will switch allegiances or if, politically, it will only serve to save the bacon of a number of Democrat representatives.
I’m no constitutional scholar, but it seems that diverting funds that Congress approved for the finincial markets and repurposing them to bail out the automakers may be impermissible under the Constitution’s clear rule that only Congress has the authority to spend. Congress last night rejected further spending for the purpose of bailing out Detroit. It would be violation of the separation of powers for the executive branch to conduct an end run around that inconvenient fact. Another breach of contract seems to be in the offing.
