John Judis at The National Review tries to make sense of what happened with the auto bailout proposal in the Senate:
OK, let me get this straight. Tennessee Republican Senator Bob Corker, backed up by Alabama Senator Richard Shelby and South Carolina Senator Jim DeMint, made it a condition of the auto companies receiving help that the United Auto Workers agree to a reduction of wages and benefits to the level of those paid by the Japanese companies that have plants in those senators’ states. Desperate for the deal, the UAW and the Democrats agreed to a phased-in reduction, but the Republicans insisted on an immediate cut. The deal broke down, and Republicans--aided by a few Red State Democrats (e.g. Baucus, Lincoln, Tester)--used a filibuster to kill the bill, which would have passed on a majority vote.
Here’s what bothers me. Japanese companies, which for years have benefited from one-way deal by which they could sell cars in the U.S. while U.S. companies were stymied in selling cars and trucks in Japan, set up non-union plants in low-wage, low-education, right-to-work states where they can pay less wages and benefits to their workers. Of course, in Japan, these same companies recognize and work with unions, but not here, where they have a chance to undercut American firms that work with unions. Corker and these other great patriots want to allow these Japanese companies to dictate the wages and benefits that American companies pay their workers. It’s despicable. Imagine, for a moment, American companies being allow to operate in this manner in Japan or South Korea. It would not happen.
It was all or nothing for the Republican Senators. Here they had the opportunity to do what they believed was some serious harm to the United Auto Workers and they weren't going to miss an opportunity even if it meant putting the whole U.S. economy in peril.
I wrote yesterday:
By the way, U.S. Senators earn $169,300/year, have a very expensive benefits package including a sweet pension plan. Those costs are paid by taxpayers. (Link)
Did you know that the Canadian equivalent to our U.S. Senator makes $124,619/year? Shouldn't we expect, particularly given the collapse of our economy, Senators Corker, et al. to be demanding pay cuts for U.S. Senators to match what Canadians MP's make?