The Detroit auto company "bailout" is the beginning of the debate Obama will be facing in the next Congress. We are in a recession and possibly heading to a depression. The questions we face now, and in the coming months, revolve around what, if anything, the Federal government should do in response to this economic crisis.
The battle lines involve some familiar themes. Should the Government spend money? If so should it be through Republican favored tax cuts, for both wealthy individuals and corporations, or should the pump be primed directly with spending on projects and programs that create or preserve employment? Second, should the government actions promote well paying jobs, including unionized jobs, or should we go for the cheapest labor possible, with the secret hope of busting the union movement? Lastly, do we want to help people in this time of crisis or fiddle around enough so that the economy continues to slide with the hope of regaining lost seats in the next election and in the 2012 Presidential race?
These issues are at the core of the current debate and will be front and center when President Obama proposes new spending on Infrastructure, health care, and other priorities and revisions to the existing tax policies that favor wealth, capital, and the wealthy.