Cross-posted from the Breakthrough Institute
Last night, the US House of Representatives approved 14 billion in emergency loans to keep GM and Chrysler on life support into the new year. Senate Republicans are in revolt though and may block passage without new amendments to allow more dramatic restructuring of the company's debt.
I hate to say it, but I'm forced to agree with Republicans on this account: $14 billion to prop up GM and Chrysler until Obama takes office is an obvious half measure, a stall tactic that will merely punt the tough decisions down the line another couple months. While it may buy us a month or three, the proposed bailout will amount to nothing in the long term unless more dramatic actions to restructure and reinvent the American auto industry are also taken.