Barack Obama Fiddling While Detroit Burns

As negotiations in Congress over a prospective auto industry bailout drag on, one leading Democrat is criticizing President-elect Barack Obama for being essentially absent from the discussion. Rep. Barney Frank (D-MA), Chairman of the House Financial Services Committee, said that Obama has to engage on the issue if there is to be any hope of getting a deal done.

"[Obama is] going to have to be more assertive than he's been."

Frank's comments come as lawmakers and the Bush Administration wrangle over how, and whether, to prop up the struggling auto makers. The White House wants to let the companies use $25 billion in loans already approved as an emergency fund to prevent the companies from collapsing. Democrats are reluctant to allow Detroit to dip into that fund for anything other than what it was approved for, the development of more environmentally friendly vehicles. But Congressional leaders are willing to use a portion of the $700 billion financial bailout fund to rescue the industry, even though that fund was not approved for the purpose. Either way, the negotiations are taking place without the most influential player in Washington, the incoming president.

In September, when the financial crisis came to a head, candidate Barack Obama was similarly uninvolved in the negotiations over the Wall Street bailout. He attended a high-level White House meeting, but used the occasion to attack House Republicans, who were floating an alternative to the $700 billion package, rather than contribute anything substantive. As a candidate, Obama had the luxury of sitting on the sidelines of those negotiations. But now that he has been elected, he does not. Presidents must set directions and make decisions, not simply wait to see what develops the most support and jump on the bandwagon. Obama will have to get his hands dirty on the auto industry bailout if he wants to save Detroit. Until he is ready to do so, however, Congressional Democrats appear to be on their own.

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