Friday, November 5, 2004

Detroit has big stake in what happens next in nation's capital

http://www.detnews.com/2004/insiders/0411/07/c01-326317.htm

By Daniel Howes / The Detroit News

Daniel Howes


If you buy conventional political wisdom, a second Bush Administration and
stronger Republican control of Congress should be good for Detroit's
automakers.

Congress and the White House could deliver medical malpractice reform, now
that the Republicans have picked up four Senate seats and the two most
prominent Senate shills for plaintiffs lawyers - Carolina senators Fritz
Hollings and John Edwards - are retired.

They could craft an energy bill that lowers the cost of energy and
stabilizes oil prices, twin concerns that are pushing the cost of doing
business higher and disposable incomes for the rest of us lower.

They could use President Bush's promised tax-code reforms to shape tax
incentives that would encourage job-creating research and development
investment in the United States - not foreign countries.

They could craft tax policy that rewards consumers for buying the
gasoline-electric hybrid vehicles that increasingly will be appearing in
American showrooms. Fiscal conservatives won't like federal subsidies for
private consumer products, but Detroit can't pin its future only on big
trucks and SUVs.

They could target the skyrocketing cost of health-care, a $10 billion per
year burden on Detroit that's only getting heavier, by pushing legislation
that encourages the use of sophisticated information technology to manage
electronic prescribing of drugs and electronic medical record-keeping, for
example.

Or the Republicans controlling the White House and the Congress could spend
the next two years bullying the opposition and beating their collective
chests while doing victory laps up and down Pennsylvania Avenue. Possessing
power is necessary for delivering results, but it isn't sufficient without
an agenda and action.

The party that's supposed to be an auto industry friend, even if it
necessarily one all the time, could actually help improve the
competitiveness of American automakers and slow the erosion of American
manufacturing jobs without easing fuel-economy and environmental
regulations.

Increased majorities on both houses of Congress should make it easier to
move legislation, but without a filibuster-proof majority in the Senate,
Republicans can't do it alone. For Detroit, the worst thing to come from
Tuesday's national spanking of the Democratic Party would be nothing.

Before the election, there was quiet talk among industry lobbyists in
Washington that a Kerry Administration might, in fact, be more amenable to
tortured industry pleas for some kind of federal answer to its health-care
burden.

That would be debatable if it wasn't now moot. Aside from the United Auto
Workers policy shop and the coterie of Big Three retirees perpetually
worried about losing their health-care bennies, Tuesday's results
effectively kill any serious discussion about how and whether a national
health-care solution would ease some of Detroit's problems.

There are other answers. The challenge will be getting Republicans off the
victory parade and back to work.

Daniel Howes's column appears Sundays, Wednesdays and Fridays. He can be
reached at (313) 222-2106 or at [EMAIL PROTECTED]
<mailto:[EMAIL PROTECTED]>  Catch him Fridays with Paul W. Smith on
NewsTalk 760-WJR.

Reply via email to