Showing posts with label General Motors. Show all posts
Showing posts with label General Motors. Show all posts

Tuesday, January 06, 2009

Blame Forward: Holding Republicans Accountable as Obstructionists to Revival


Blame Forward: Holding Republicans Accountable as Obstructionists to Revival



with John Michael Spinelli

Op-Editude

Columbus, Ohio: Having stymied important legislation from passing for two years by preventing Senators from reaching the magic number of 60 in the Senate, backing a reckless war launched by a reckless president that will end up costing us all trillions of dollars and loosing big time in two successive election cycles that show just how fed up Americans are with their brazen, party-first policies that have brought us to the brink of disaster, it seems appropriate that Republicans be blamed forward for what appears to be their strategy of opposing at all costs President-elect Barack Obama's spending plans to bring America back to life again after eight straight years of pet Republican policies that put the nation, and much of the world, on life support.

Republicans, from George W. Bush in the White House to their control of both chambers of Congress for four years starting in 2002 when the GOP regained control of the US Senate, can rightfully be adjudicated as the party who endorsed at best and sat by idly at worst as their leaders, who said government was the problem but who became intoxicated with its power, took us from Clinton budget surpluses to massive Bush budget deficits.

It would seem that people who constantly carp about government as the enemy, who don't know how to run it efficiently or effectively when put in charge of it yet feel as happy as a pig in mud when they have that responsibility and who say starving it so it can be drowned in a bathtub is good, shouldn't be allowed to have anything to do with it; but that would be un-American and un-Democratic, not matter how much sense it makes.

As compassionate as a fox in a hen house, Republicans have brought great harm and heartache to the nation. As the minority party, they now intend to thwart the first African American president and his agenda to revive an economy that's tanked, put to work millions of people who have lost their jobs and bring about the kind of change that garnered him eight million more votes than John McCain or Sarah Palin, showing just how tired and disgusted the nation is with them and their party's so-last-century social and fiscal models.

Woody Hayes, the now infamous football coach of Ohio State University who won several national titles but who will forever be known as the military-like curmudgeon coach who was fired because he slugged an opposing team's player in a bowl game as the tide turned against the Scarlett and Gray, used the phrase "paying forward" to teach the lesson that "paying back" is retrospective while doing good deeds along the way instead of at the end of your career is prospective. Doing so, Hayes believed, you'll have built up a line of credit in being humane that will make you and those you touch better off for it.

Republicans who ruled Washington and state capitals from the mid-1990s to the election cycle of 2006 and who ladled out opportunities for Democrats to me partners in policy formulation as sparingly as a jailer giving food to prisoners and who believed unbridled spending was good as long it was for the war in Iraq, are now whining that Obama needs to be mindful of spending so future generations won't be unduly burdened. Such overt, disingenuous hypocrisy is a wonder to behold. But Republicans have no shortage of brazen chutzpah when it comes to telling others to not do what they do.

Now the minority again after an electoral drubbing of staggering proportions that will be achieved again in 2010 because hopeful GOP leaders think that doubling down on their agenda of making the rich richer, the middle class poor and siphoning off tax dollars to pay their cronies is what you do when you get elected, Republicans are staging, and the media is swallowing it whole like they did the bogus reasons for going to war in Iraq, that too much spending to put people back to work and remedy a housing situation made possible by the greedy Wall Street crowd their economic policies were crafted to satisfy, an assault on Obama and a new, expanded Democratic congress voters installed last November for following through on the campaign promises they ran on and won on.

New York Times columnist and winner of the Nobel Prize in economics, Paul Krugman, sees the new-found caution on spending by Republicans as their way to water down Obama's spending plans to a point where they won't do the job, thereby giving them the chance to say his agenda doesn't work, and please elect us again.

Krugman displays his math skills, arguing that Obama's plan to spend about $775 billion over two years is a conservative amount to do what's needed to put people back to work. He says it "takes $300 billion to reduce the unemployment rate by 1 percentage point" and that spending less will do less, playing into Republican arguments they media is already regurgitating that tax cuts for the wealthy and business is what's needed.

"I see the following scenario: a weak stimulus plan, perhaps even weaker than what we’re talking about now, is crafted to win those extra GOP votes. The plan limits the rise in unemployment, but things are still pretty bad, with the rate peaking at something like 9 percent and coming down only slowly. And then Mitch McConnell [aka "Dr. No"] says “See, government spending doesn’t work.” [Paul Krugman ]

Job losses just in 2008 is about 2 million, and news from the Gallup polling group released Tuesday forcast that the unemployment rate is likely to surge on Friday, as the Bureau of Labor Statistics is expected to show that jobs lost at the end of the year will exceed the seasonally adjusted four-week average of 552,250. The Gallup poll also predicts that the unemployment rate is likely to "surge past 7%." And for those of us who believe the official unemployment rate is tamped down from what it shoud be, the real rate, made up of categories of workers not normally factored in to calculations, could be 4-5 percent higher.

While this debate is taking place, we learn that manufacturing activity fell to its lowest point in 28 years. We also hear that some state governors, especially five from the Midwest including Ohio, are asking the new president and congress to open the cash-flow sluice gates to prevent more cuts to education, social services and infrastructure.

For states like Ohio, where about 250 thousand jobs are directly or indirectly tied to the fortunes of Detroit's Big Three, news that Chrysler sales are off 54 percent, General Motors 31 percent and Ford over 32 percent is downright scary. Even without a collapse of car makers, Ohio and two other states, New York and North Carolina, had to shut down their electronic unemployment filing systems due to system stress and heavy volume.

The report by ABC News said
about 4.5 million Americans are collecting jobless benefits, a 26-year high. Web sites and phone systems now commonly used to file for benefits, it said, are being tested like never before. That's not all, folks.

John Michael Spinelli is an economic development professional, business and travel writer and former Ohio Statehouse political reporter. He is also Director of Ohio Operations for Tubular Rail Inc. To send a tip or comment, email ohionewsbureau@gmail.com


































































































Tuesday, December 02, 2008

Ohio to Washington: Get Our Motor Running



Ohio to Washington: Get Our Motor Running

Ohio Officials Says Big Three Automakers Must Not Be Allowed to Fail


OhioNewsBureau

with John Michael Spinelli

Columbus, Ohio: The governors of the united states of America went to Philadelphia Tuesday to ask the next president, and by extension the future congress for an economic life jacket of about $176 billion. The governors met in the nation's first capital while corporate leaders from Detroit's Big Three automakers traveled to the current capital, downsizing themselves from company jets to cars, asking for a bridge loan to the future of about $30 billion.

Among the 41 governors from states with buckling budgets was Gov. Ted Strickland of Ohio. In office for less than two years, the poor boy from Appalachia in the southeast took over a state already in economic trouble, when in 2006 he became the first Democratic elected to governor in 16 years . State finances have waned and worsened from his first day on the job to now, as demonstrated by current income shortfalls that have prompted Strickland to impose two budget cuts already with another one waiting on deck.

As the first capital was in Pennsylvania, current Gov. Ed Rendell, a Democrat, became a default spokesman for other governors whose state finances are either smoldering or have burst into flames, like California, where a $28 billion deficit prompted Gov. Arnold Schwarzenegger to hope government can help, contradicting his party's patron saint, Ronald Reagan, who famously mocked government for being the problem not a solution.

The day before he left for his meeting in the City of Brotherly Love with President-elect Barack Obama, Strickland spent Monday pulling the curtain to the public on the scary state of Ohio's economic picture.

In simple terms, state leaders are faced with a $640 million shortfall for this biennium, and could be looking at a future hole of $7.3 billion, a figure that skyrockets if the automakers and their related vendors and suppliers, who total nearly 250,000 workers, get called out on strikes by congress, especially in the Senate where enough votes to let them implode could win the day.

One Ohio senate member whose district is nestled in northeast Ohio, where many of the state's auto-related jobs are found, is proposing the Ohio legislature approve a resolution asking congress to provide immediate support for US automakers.

With auto industry and labor union leaders at his side, Dale Miller, a Democrat from Cleveland, wants congressional funders to understand the importance of cars to Ohio, but also wants car industry leaders to know they must undertake big changes to remake their companies.

"America cannot lose its domestic automotive industry," Miller said in a Tuesday afternoon media release. Appointed to the Senate but now in his first full term, Miller said "Too many jobs are at stake, and we cannot be a great nation without a strong manufacturing base...We must take decisive action to help and require our domestic manufacturers to do their part to get their house in order."

So what's at stake for Strickland, Miller and Ohio if the Big Three don't get their tank filled in Washington? According to statistics from the Ohio Department of Development, in 2006, the Ohio Department of Development estimated the economic impact of the motor vehicle assembly and related manufacturing in the state of Ohio to be $93 billion dollars in sales and employment up to 248,000 people. These numbers represented 12.3 percent of totals sales and 3.7 percent of total employment in Ohio.

Ohio's auto industry ranks second in the United States in automobile production and ranks first in the country in the number of auto suppliers.

Nationally, approximately 4percent of U.S. gross domestic product is auto-related and represents almost 10 percent of U.S. industrial production by value. One out of every ten U.S. jobs is auto-related, and in Ohio more than 253,000 people, or about 5 percent of the work force work in the auto industry.

Speaker of the US House of Representatives, Democrat Nancy Pelosi of San Francisco, said plans auto leaders are bringing to congress should be "viable, forward looking and deserving of tax payer investment."

She said intervention will happen one way or another, and that it should be through a short-term TARP loan that can get them to the end of March next year.

If their faux humility and mia culpas extracted under duress win them the funding they are asking for, General Motors will drive away with $18 billion, Chrysler will park $7 billion and Ford will fill its trunk with $9 billion. Chrysler said it will likely cut 25 percent of its workforce, another blow to Ohio.

The labor leaders who will join state senator Miller Wednesday in Columbus at the Statehouse, will be asked to lobby for major new concessions to lower costs of production, a demand Republican leaders, especially one with foreign car makers in their districts, will demand to win their vote.

Everyone, even state leaders, want leaders of the Big Three to come to town with a new plan, not a new sales pitch. Gentleman - start our engines.

John Michael Spinelli is a former Ohio Statehouse government and political reporter and business columnist. To send a tip of comment, email ohionewsbureau@gmail.com