Despite strong support among Democrats in Congress and the media, Republicans led by Senators Corker and Shelby won a key vote Thursday evening, with support for capitalism showing renewed strength in the against the socialist forces led by lame duck President George Bush, former Senator Barack Obama (D-IL), House Speaker Nancy Pelosi (D-CA), and Harry Reid (D-NV) in the Senate.
Both the United Auto Workers (UAW) labor union and the Detroit auto makers supported a plan by Mr. Bush and the Democrats to loan approximately $15 billion to the failing Detroit auto industry. The plan would have called for bankruptcy-like changes for the troubled companies, as well as the appointment of a government ombudsman or "car tzar" to approve all major decisions for the companies accepting the money.
Negotiations failed when the labor union, whose workers receive over $70 per hour in benefits, refused to take a pay cut to allow the plan to go forward.
The public was overall against the plan, despite intense support from the news media. Media reports portrayed the total collapse of the American automotive industry as the alternative to this plan.
Former Illinois Senator Barack Obama (D-Chicago), who resigned last month amid the corruption scandal which has so far resulted in an indictment against his close allies Antoin "Tony" Rezko and Illinois Governor Rod Blagojevich (D-Chicago) was not directly involved in the negotiations.
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