The Big Three Bailout – Socialism's Redux

The R.C. Blog is pleased to publish the first, in what we hope are many, regular opinion pieces on current economic and political issues from one of the most knowledgeable and charismatic Conversatives in No. Va. -- Christian Stockel.

Mr. Stockel, to be exclusively featured on the R.C. Blog, has a wealth of knowledge and experience in global economics and financial management and was a senior official in the federal government and worked directly on many of the issues confronting our current economic problems.

The R.C. Blog proudly presents "Thoughts from the Right Side"...

Thoughts from the Right Side - Christian Stockel

Congress continued its inquisition of executives from the Big Three today executed under the pretense of finding a way of "saving" the big three from extinction. Unfortunately, the political narrative being fed to the American public hides the real objective Congress and the political allies of the Democrat party. This objective has nothing to do with the survival of the American automobile industry and everything to do with saving the UAW and paving the way for a more involved Federal presence in the private economy. A brief review and comparison of the questions posed to the executives and union bosses tell the entire story. Now don't get me wrong. I enjoy the irony of having Barney Frank and Co. lecturing Detroit executives on fiduciary responsibility, fiscal discipline, and long term thinking as much as anyone else; however, if the CEOs of General Motors, Ford, and Chrysler knew what was good for them and their companies, they would run and file Chapter 11 bankruptcy before their corporate jets lift their wheels from the runways at Dulles Airport.

Despite the popular myth that 3-4 million jobs will disappear unless the auto industry get a chance to suck at the government teat, the fact is bankruptcy (Chapter 11 style) and restructuring would most likely result in a leaner, meaner, and more competitive industry that doesn't rely on UAW labor. The fact is a total restructuring of these firms will enable to follow a successful model of production employed by foreign manufacturers in the southern U.S. The Big Three wouldn't disappear; in fact, they would thrive, free of Congressional money and control. That strikes fear in Congressional Democrats. A successful U.S. auto industry setting up shop in a southern red state (yes there are still some left) and leaving blue state Michigan to fade further would put an inconvenient crimp in the Democrat model of economic development and be an uncomfortable story line to explain to the American public. It is interesting listening to Rep. Barney Frank bemoan how the the blue collar workers are being overlooked in the Federal bail-out bonanza that favors white collar industries and workers. However his real aim is to keep the UAW relevant and their members in job contracts that have hamstrung domestic auto manufacturers for over 30 years and in the Democrat party's hip pocket.

Currently, UAW workers at GM, Ford, and Chrysler earn an average hourly wage of $71.00 including benefits. In comparison, American workers at Japanese, European, and Korean car manufacturers in the US earn an average of $37.00. This does not include the extravagant retirement benefits and iron clad job protection schemes (e.g., you can't fire people that are poor performers) that have been extorted from the Big Three. Add to that the simple fact that a company like GM supports almost two retirees for every active worker and one can easily visualize the tight spot in which the American companies find themselves. Try being swift and nimble with that anchor tied around your neck. Chapter 11 restructuring would put these contracts and job guarantees in jeopardy. After backing Barack Obama and the Democrats substantially in the past election, the UAW is going to use their leverage to protect their current position – as untenable as it may be. The made their bet and won – they will make sure that they get the pay off. Add the ill-named Employee Free Choice Act and you have a business killing environment we haven't seen since 1929. To be sure, the demands and interests of other liberal interest groups will find their way into this discussion. The environmental lobby, economic justice lobby, and I am sure the gay rights lobby will find a way to interject themselves in this effort.

Congress is looking to put together a bailout package that will not only resolve the Big Three's short term liquidity problem and provide a political win for the Democrat controlled Congress, but maintain the current labor and management model that will inevitably result in the demise of our domestic automobile industry. However, in today's short-term news cycle and public memory – that is not important. As sad as this scenario may be, the long term implications will be worse than a large spike in Michigan's already depressing unemployment rate, a sudden lack of new Corvettes, some worthless stock, and the rapid deployment of executive golden parachutes.

In fact, the scenario being played out in Congress is simply a continuation of the political narrative established in the presidential election by the Obama campaign. A narrative that re-wrote history and planted the false notion of the “failure of capitalism” in the public consciousness and the need for a “responsible role” of the federal government in the private economy. This narrative was unchallenged by the McCain campaign and the leadership of the Republican party. (Remember, “our guy” is the one who talked about having the government pay people's mortgages.) This narrative changed the nature of the public debate and is what gave the Democrat party an image of being more responsible than Republicans when it comes to addressing issues in the economy. With the presidency secured and large majorities in the House and Senate, the Democrats are using the current economic crisis as a backdrop to ram through their agenda. This agenda; however, will be far less moderate than Obama let on in the campaign and will be in fact a far-left. socialist agenda. On the heels of unprecedented government ownership and entanglement in the financial industry, Congress is poised to give the government an unprecedented role in the automobile industry. Ideas that have been discussed so far have included government ownership of stock, government representation on the boards of these companies, and of course significant government input in management-labor relations. One can only imagine what the next Cadillac or Mustang will look like with the design, engineering, and management input of Congress. Envision an all electric Pacer with recycled denim interior in pastel colors with an EPA mandated governor limiting it to 25 mph.

As this circus unfolds in front of us, we conservatives should be asking who on our side in Congress is raising the voice of resistance to the steady march of managed economics and left wing madness. Who is articulating the virtues of free markets and limited government? No – sorry – those are just crickets you hear. After getting bruised in the most recent election cycle – few Republicans are offering any political or rhetorical resistance. It is even more painful to see the Republican Presidential candidate reaching across the aisle and looking to make a deal. It seems many Republicans are only looking at the short term political implications of current economic difficulties and ignore the larger risk and potential disaster that will result from this constant bail-out process. Once this precedent is established – no industry will be safe from federal meddling. As the siren call of federal bail-out funds beckons struggling companies, an ever growing list of American industries will be snared in Congress' grasp and corporate boards headed by the likes of Dodd, Schumer, Pelosi, Reid, and Waxman will be a reality. It signals the death of American free enterprise and the unique American economic model. One day in the near future, many of us who know better will all wake up and realize we are living in a cheap copy of France without the benefit of its food and wine.

Videos from Last Week's Heritage Foundation President's Club in Washington

The Heritage Foundation has just posted several videos from last week's President's Club Fall Meeting in Washington. Here are a few of the videos from the event...


Heritage President Ed Feulner
on the state of the Conservative movement



Rep. Mike Pence (Ind.)
on Conservative principles



The dinner address by
the Honorable William J. Bennett

PG County Police Hold Funeral for Abandoned Infant

In the Washington, D.C. metropolitan county of Prince George's County, Md., it is nice (for a change) to see a positive news story regarding its police department. Dealing with one of the most violent counties on the East Coast, the police department finally received some "above the fold" positive press in the Washington Post. The men and women in the PG Police Department exhibited great respect for life, especially for the innocent life of a newborn found in a trash bag.

Honoring 'a Baby No One Loved'
Prince George's Police Hold Funeral for Abandoned Infant

The homicide detectives stood in the cold wind yesterday at a quiet Clinton cemetery to bury an infant they named Maria del Pilar. They were the only mourners.

A month ago, the newborn was found alive in a trash bag in the Takoma Park area. She died later that day, and her mother was charged with murder. No one stepped forward to bury her, so Price George's County police officers gathered yesterday morning to do so themselves.

"This was a baby no one loved. This was a child who did absolutely nothing wrong," said Maj. Daniel Dusseau, head of major crimes for the Prince George's police.

Maria is the third infant whom Prince George's police have named and buried at Resurrection Cemetery in Clinton, a somber ritual that officers say is both cathartic and, they hope, a reminder to parents of what happens when they abandon a baby.

Buried next to Maria are two others: John Caleb Daniels, who was found in a plastic grocery bag in Oxon Hill in 2004, and Maria Grace Daniels, who was found in a plastic bag in a sediment pond in Riverdale Park in 2006.

The children could have been taken to a hospital, a church, a fire station or another safe haven, as allowed under Maryland state law, authorities said. Instead, police investigated their deaths and planned their funerals.

The lead investigator in Maria's case, Detective Nelson Rhone, organized yesterday's service and helped name Baby Jane Doe: Maria, because she was Hispanic, and del Pilar, after the Virgin of El Pilar, who is celebrated in Spain on Oct. 12, the day of the baby's birth and death.

"Every detective wants to close his case and provide some closure for the family. Unfortunately, when there is no family, the only closure we can provide is to the infant," Rhone said.

The funeral was a collaborative effort: The Fraternal Order of Police Lodge 89 raised money for a headstone, Lee's Funeral Home donated all services and a tiny coffin, Clinton Floral Shop sent a basket of pink carnations and white daisies, and the police chaplain performed the ceremony.
In addition to showing compassion to infants who died within hours of birth, the funerals help detectives cope with the heartbreak of such cases, said Steve Rhoads, the police chaplain. Most people don't realize the strong bond that investigators often form with victims whose deaths they are trying to solve, he said.

"They think that these guys are robots and unfeeling," Rhoads said. "This proves that they are not."

The cases of the first two abandoned babies are unsolved, but police have an arrest in Maria's death because of an anonymous tip. Four days after Maria was found, Prince George's police arrested Wendy Y. Villatoro, 25, who lived in the Takoma Park area. She admitted abandoning the infant, police said, and was charged with second-degree murder. The baby's extended family declined to claim the body.

"These are the kinds of victims your heart just breaks for, because they were completely innocent," said Detective Kelly Rogers, who helped organize a funeral for Maria Grace Daniels, the baby found in Riverdale Park. "Most of us have kids and know that if you just hear somebody yelling 'Mommy' in a crowded store, you turn your head out of instinct. You know something must have been seriously wrong with them or going seriously wrong for them to do this."

Obama's Catholic Backers

Fantastic "op-ed" in yesterday's Washington Times. This is "must reading" for Traditional Catholics who still feel betrayed by the 54% of so-called "Catholics" who voted for Sen. Obama on November 4...

The elections weigh heavily on the hearts of America's Catholic bishops who gathered in Baltimore last week for their annual meeting. Not only do the bishops remain conflicted about how to contend with pro-choice politicians -a topic on their agenda - but they are also conflicted with their own Catholic colleges and professors, who played a vital role in turning the Catholic vote to Barack Obama.

Despite the Catholic bishops' clear disapproval of Mr. Obama's support for abortion rights - including his pledge to sign the Freedom of Choice Act - which would nullify state restrictions on abortions - many Catholics were persuaded that they could vote for Mr. Obama in good conscience. Exit polls show that he won over self-described Catholics 54 percent to 45 percent, better than the 52-46 split among all Americans. He even made inroads with Mass-attending and white, non-Hispanic Catholics.

For that, Mr. Obama has liberal Catholic professors and Catholic colleges to thank. It was Catholic academics who made the argument for Mr. Obama in the media and in lectures to Catholic audiences. Vocal Obama supporters include Pepperdine law professor Douglas Kmiec, a former dean of the Catholic University of America law school; Boston College theology professor Lisa Sowle Cahill; Duquesne law professor Nicholas Cafardi (former dean of Duquesne's law school); Notre Dame theology professor Cathleen Kaveny; and a St. Peter's College humanities professor, Jesuit Rev. Raymond Schroth.

The argument: that Mr. Obama will do more than John McCain to reduce abortions by fighting poverty, reforming health care and otherwise helping Americans in need. Mr. Cafardi has gone so far as to claim that "we have lost the abortion battle, permanently" and therefore Catholics should not be swayed by Mr. McCain's opposition to Roe v. Wade.

In publications ranging from Newsweek to the National Catholic Reporter, the professors openly attacked several bishops for proclaiming Catholic teaching that the right to life - including legal protections for innocent human beings - is a priority over other serious issues like the economy and health care. Mr. Kmiec accused the bishops of "low partisanship" for urging Catholics to vote in conformity to their faith. Mrs. Cahill blamed the church's shepherds for "damaging [the] rich Catholic faith tradition" and Notre Dame theologian Rev. Richard McBrien laments a "dearth of pastoral leadership" among bishops appointed by the late Pope John Paul II.

Throughout the campaign, several Catholic colleges and universities - including Mount Mercy College and St. Ambrose University in Iowa, St. Louis University in Missouri and Villanova University in Pennsylvania - hosted political rallies and stump speeches on their campuses. At St. Peter's College in New Jersey, nearly 3,000 people rallying for Mr. Obama were serenaded by a children's choir from a nearby Catholic school. An election-eve rally at Xavier University in Cincinnati featured performers Mary J. Blige, Shawn "Jay-Z" Carter and Sean "Diddy" Combs urging votes for Mr. Obama.

Nine members of Mr. Obama's Catholic National Advisory Committee were professors at Catholic colleges, and their peers were generous donors to Obama's campaign. Professors at the Jesuits' Georgetown University were ranked seventh among all U.S. colleges and universities in donations to the Obama campaign, totaling $179,000, according to an October analysis by the Chronicle of Higher Education.

So, why the enthusiasm for Mr. Obama on Catholic campuses? "[W]hile most Catholic pro-life groups, bloggers and some media outlets skew to both the theological and political right," explains columnist John Allen in the National Catholic Reporter, "a substantial share of the Catholic academy, in tandem with other media outlets and a galaxy of peace-and-justice activists, leans to the political and theological left." Left-leaning academics are nothing new to the United States, but on Catholic campuses their activism can become opposition to the religious truths which Catholic educators are expected to teach and respect.

Sociologist Anne Hendershott documents the decline of the Catholic academy in her forthcoming book "Status Envy," and a new national survey by the Center for the Study of Catholic Higher Education (www.CatholicHigherEd.org) drives the point home. Theological dissent, contempt for the bishops and the Vatican, capitulation to the "Sexual Revolution," and imitation of elite universities and their glorification of academic freedom and cafeteria-style curricula produce graduates from Catholic colleges that are far less committed to the moral, social and political values of their predecessors.

But they do share, it seems, the values of Mr. Obama and American pop culture - so much so that pundits have begun to question whether the "Catholic vote" truly exists any more, as the majority of Catholic voters seem to follow social trends. Only a faithful minority adheres to the teachings of the Catholic bishops.

Dissent in the pews is something the Catholic Church has wrestled with for centuries, long before the 2008 elections. The more contemporary challenge is fidelity among Catholic educators and the apparent consequences when professors are in open conflict with the bishops.

Patrick J. Reilly is president and founder of the Cardinal Newman Society.

Fantastic Comic