Pelosi's Motown Juggling Act

Bailout the UAW? I mean automakers. That might make sense if they have corrected the problem that has led to their fall in the first place. That is, union corruption and the high costs of production that comes with it. Blahh, what does Nancy Pelosi have in mind?

If there was a moment that highlights to what extent the Democratic Party has become captive to its special interests, this might be it. Mrs. Pelosi and Harry Reid have spent this week demanding that Washington stave off a car-maker collapse. What makes this a little weird is that Mrs. Pelosi and Mr. Reid are Washington. If they so desperately want a Detroit bailout they could always, you know, pass one.

Instead, having punted the Detroit question in the past, and having failed to offload it on the Bush administration, Mrs. Pelosi is now stuck dealing with it in the middle of a lame-duck session that is tangled in Colombia trade politics. Detroit's demands are meanwhile pressing in a postelection environment where Big Labor and greens are presenting their own bills for political services rendered. If you're wondering why Mrs. Pelosi hasn't yet decided what will happen when Congress returns, it's because she hasn't decided which group to annoy.

Democrats have been trying to shuffle money to Detroit since summer, but their timing has been off. The Michigan delegation's big push for auto funds coincided with September's financial crisis. With Washington in a panic, voters howling over $700 billion for banks, and an election in the offing, the leadership decided a Detroit bailout was one hot potato too many.

The plan? Make it the Bush administration's responsibility to give Detroit cash -- namely by claiming after the event that the $700 billion rescue package for financial institutions was in fact a rescue package for auto makers. This was attempted with several hilarious "colloquys" -- pre-scripted dialogues between members that were quietly inserted into the Congressional Record after the vote, all aimed at rewriting the "intent" of the law. Say, this one, from Oct. 1:

Michigan Sen. Carl Levin: "As Treasury implements this new program, it is clear to me from reading the definition of financial institution that auto financing companies would be among the many financial institutions that would be eligible sellers to the government. Do you agree?"

Connecticut Sen. Chris Dodd: "Yes, for purposes of this act, I agree that financial institution may encompass auto financing companies."

Alas! All for naught! Treasury Secretary Hank Paulson has stubbornly insisted that -- whatever the dreamy "intent" of Sen. Levin -- the $700 billion is, indeed, earmarked for financial institutions. Even a last-ditch letter-writing campaign by Mrs. Pelosi and the Michigan members this weekend, begging the administration to let them off the hook, wouldn't budge Mr. Paulson.

And so Mrs. Pelosi has been landed with Detroit, again. The auto makers have staged a brilliant PR campaign, tying their misfortunes to today's financial mess -- never mind those decades of mismanagement. They've warned that the ripple effect of a crash could cost three million to four million jobs. Democrats have also undoubtedly been reminded by UAW President Ron Gettelfinger that those come from his union, which recently helped Mrs. Pelosi win an election.