D-Day In Washington

D-Day (Detroit, that is) has arrived in Washington. The CEOs of the Big Three are expected to make their cases individually for government aid. Speculation about the plans for each manufacturer have reached a fevered pitch. Whether or not the automakers will be successful remains to be seen; debate on the matter isn't scheduled until later this week, and Speaker Nancy Pelosi says that Congress could return to its collective desk on Monday, December 8 for a vote, if it likes what it sees from the automotives.

The debate has touched nerves around the country, and few people remain opinionless on whether or not the government should offer a hand. Taxpayers are tired of bailouts, but this one pales in comparison to the $1.5 trillion bailouts that have been hastily arranged in the last month to prop up banks and insurance companies.

Some people wonder aloud why the financial industry rates such lavish attention from Congress with hardly a second thought to how the recipients will spend the money, while at the same time, Congress is demanding detailed business plans from the automakers who are asking for a combined amount that's less than 2% of what the banks were handed, with no questions asked.

At stake is more than just the $25 billion. Each of the automakers comes with billions in pensions and benefit guarantees to millions (yes, millions) of retirees. Those pensions are guaranteed at some level under by the Pension Benefit Guaranty Corp.

The stereotype of the "lazy UAW worker" persists, but the people who work in the plants - and who would likely lose their jobs - run the gamut from the highly educated (including Master's Degree holders) to single mothers who are simply trying to support their families by doing honest work.

The automakers use suppliers - some commonly - who are in danger of going out of business. That would translate in to lost jobs both in and out of the country, and additional pensions that would fall to the PBGC for payment. A failure of one or more of the Big Three would guarantee an end to the domestic auto industry, and would place an undue economic hardship on both the Midwest and the South.

The real question that Congress must answer is whether or not we as a country will maintain our manufacturing capabilities. Ultimately, we must "do" something to generate income. We cannot rely on "soft industries" like information technology and finance to generate long-term, sustainable and distributed wealth around this country. The loss of our manufacturing capability would signal that we have opted for a society based solely upon the Haves versus the Haves-Not; that we value equity over equality; and that we're prepared to deal with the consequences of disenfranchising Main Street to prop up Wall Street.

Photo Courtesy of the Ford Motor Company