Las Vegas Sun

April 26, 2024

LETTER FROM WASHINGTON:

Little empathy for Big Three in D.C.

Reid helping press for an agreement to aid Detroit, but he’s getting only tempered support at best

WHAT ABOUT REID’S COLLEAGUES?

While Senate Majority Leader Harry Reid continues to nudge negotiations to strike a deal for a bailout of the Big Three automakers, Nevada’s other members of Congress remain divided. Rep. Shelley Berkley indicated she would favor the bailout if taxpayer money is protected. The GOP, however, favors restructuring the Big Three in bankruptcy court — a stance that could prove troublesome for Rep. Dean Heller, whose sprawling district includes rural Nevada, home to many Big Three car dealerships.

For a nation with such enduring love for American autos, the last month has been an amazing and painful divorce.

The creators of the muscle cars and convertibles that are the international icons of the open road have been left to grovel for a little help from their friends.

The Big Three automakers have pleaded for $34 billion cash they say they need to stay afloat as the economy crashes around them. GM, Ford and Chrysler executives rolled into town in their company-made cars in an appeal to the patriotic populism that has fueled their success for generations.

Instead, they were met with tough love.

A CNN poll said 61 percent of the country remains unconvinced 34 billion taxpayer dollars should be used to rescue the Big Three, despite the potential job loss. One of every 10 American workers is in an auto-related industry — and the economy lost a half-million jobs in November alone.

The problem for the automakers, apparently, is bailout burnout.

The country seems unable to muster any sympathy for the makers of the Mustangs or Firebirds or Chargers of its youth at a time when grown-ups are trying to save their homes from foreclosure and buy holiday gifts without credit.

By Friday, with Detroit continuing to make its case on Capitol Hill, the most remarkable development was the absence of any semblance of a political coalition of the political right and left strong enough to approve a bailout.

Nevada’s lawmakers in Washington may face a decision on the auto bailout this week, in the final days of this Congress. The vote is shaping up to be as difficult as the one they cast on the $700 billion Wall Street bailout in October.

The arguments go like this:

Although auto-related businesses make up less than 1 percent of the Nevada workforce, the state’s rapidly rising unemployment makes every job matter.

Plus, what’s good for the country is especially good for Nevada — a state that needs a robust national economy to keep tourists coming and spending.

Yet convincing constituents that taxpayers should send money to the auto companies remains a tough sell.

Senate Majority Leader Harry Reid has been nudging negotiations along in hopes of striking a deal. Democrats may be more inclined to support their union allies in the powerful United Auto Workers in agreeing to a bailout.

Democratic Rep. Shelley Berkley has indicated she would be inclined to vote for rescuing the companies if she could be assured taxpayer money would be protected.

Republicans have been more reluctant to intervene as the economy tailspins.

Sen. John Ensign and Rep. Jon Porter both voted to rescue Wall Street, but their party has been more interested in restructuring the Big Three (and their union contracts) in bankruptcy court.

Rep. Dean Heller, a former stockbroker and stock car racer who has a seat at the center of the action on the powerful House Financial Services Committee, has declined requests from the Sun to discuss his views about the Big Three.

Heller’s sprawling district, which includes Nevada’s rural reaches, is home to many of the Big Three dealers who supply the American-made cars and trucks popular to the region. Many of the dealers are struggling.

Squaring their needs with his reluctance to commit federal money to bailouts may be a difficult choice.

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