Growls

Sen. Jim Webb (D-Va) explained in a letter today the reasoning supporting his vote to provide what Sen. Webb calls “a bridge loan - not a bailout - for the domestic American automobile manufacturers.” The complete text of the letter follows:

“Dear Mr. Wise:

    “Thank you for contacting me with your views about federal assistance to domestic automobile manufacturers and the U.S. Senate's debate of relevant legislation in December 2008.  I appreciate your taking the time to share your thoughts with me, and I understand the concerns you raise.

    “As you know, the ongoing economic crisis and credit crunch have created an environment that threatens the existence of U.S. automakers. Proponents of offering financial assistance to U.S. auto manufacturers state that one in every ten American jobs is tied to the automotive industry.  Proponents also argue that a collapse of the major U.S. auto manufacturers would put hundreds of thousands of autoworkers out of their jobs and would send ripples throughout our already struggling economy.  In Virginia alone, there are almost 50,000 jobs that are directly connected to the auto industry, in the form of parts and suppliers, dealers, and assembly plants. On the other hand, opponents of federal assistance to automakers argue that the circumstances now facing U.S. manufacturers are a product of corporate mismanagement and poor business decisions and that taxpayer-funded assistance would be unfair.

    “After careful analysis, on December 11, 2008, I voted to advance bipartisan Senate legislation that would have provided a bridge loan - not a bailout - for the domestic American automobile manufacturers. Unfortunately, a minority of senators filibustered consideration of this bill. I believe that blocking consideration of this important legislation was a misapplication of the priorities that should govern our political leaders. Quite simply, it is inequitable to earlier support a $700 billion bailout for mismanaged financial institutions that largely protect exorbitant executive compensation, and yet not support this loan package, which was designed to provide cash-flow that would have helped millions of working men and women.

    “Senate opposition to this bridge loan legislation was based on the faulty argument that unionized auto workers are too highly compensated. However, subtracting from the average United Auto Worker (UAW) compensation the money needed to support retirees' health insurance and pension expenses, UAW workers take home about the same wages as non-union workers at foreign-owned car plants in the United States.

    “If ensuring parity in pay between union workers and workers in non-unionized plants is a priority, then parity should be applied evenhandedly to company executives.  The average American CEO makes 400 times what the average worker makes, while the average Japanese CEO makes only 10 times what a Japanese worker makes.

    “The health of our nation's domestic auto manufacturers, suppliers and dealers is as important and as deeply woven into the fabric of our economy as the health of Wall Street. In that light, I will carefully examine any policy proposals related to this matter - with your views in mind - to ensure that they are fair, that they protect hard-working Americans, and that they strengthen our economy.

    “I hope you continue to share your thoughts with me and my staff in the years ahead. I also invite you to visit my website at www.webb.senate.gov for regular updates on issues that are important to Virginia and our nation.

    “Thank you once again for contacting my office.

Sincerely,

Jim Webb
United States Senator

JW:kw

To contact Sen. Webb’s, click here.