Okay, I'm going to need this one explained to me. The head of GM, justifiably taking a lot of the blame for GM's sorry state, is getting booted out by the federal government. Technically, it's the GM board of directors doing the booting, but they're desperate enough for government support that they're doing so at government request--no firing, no life support. Although such federal involvement in corporate activity makes me uneasy on general principle, I don't see any immediate objection to the decision; if taxpayers are to cough up a few hundred billion, they (or their representatives) can reasonably ask for something in return.
What I don't understand is why the same logic isn't being applied to the firing of the jerks who lead the financial institutions who engineered the financial meltdown. They're in even more desperate straits, have behaved even more badly, caused even more damage to the nation's economy, and are being bailed at even higher price tags. The double standard parallels an even more execrable double standard, wherein both White House and Congress are suggesting bankruptcy to the auto firms as a way to clear debts owed in the form of pensions and benefits to line workers, yet those same leaders won't suggest AIG go into bankruptcy as a way to clear its obligation of multi-million dollar bonuses to its investors who did so much damage to both nation and AIG.
There's no logical sense to this disparity, nor legally compelling argument behind it, nor ethical obligation behind it; if anything, the disparity should be reversed. So I have to conclude it makes sense by some arcane political calculus, because I can't find any other reason.
The obvious and most likely explanation is that our national leaders are tangled up in some mixture of political dependence on the banksters and lingering awe at their now-discredited financial acumen. Neither one is defensible, and that Obama is part of the general attitude that no harm be allowed to come to the engineers of the crisis is a grand disavowal of his promise of change.
Perhaps the disappointment I feel in that disavowal is the real motivation behind looking for another explanation: the truth is hard to accept. Still, there's another possibility.
Obama, still in his first hundred days, has proven extraordinarily skillful at political jiu-jutsu, seeming to concede ground only to leave his opposition off-balance and unable to resist his thrusts toward his own objectives. He cooperated with Republicans on the budget, for example, just far enough to expose them as fundamentally unappeasable, after which he withdrew several budget concessions, congressional Republicans having lost what popular support they retained. He offered Cabinet posts to Republicans under conditions that would undermine their national strength rather than buttress it. He deftly turned right-wing indecision into an open schism simply by letting Rahm Emmanuel mention Rush Limbaugh's name. Obama is a smart guy and a very, very savvy politician. More than once, he has found success by conceding, or appearing to concede, where I wanted him to slap down the wrong-headed. He might be doing so right now, concerning GM.
Judging by Obama's track record as president, this may be how things work: suppose he wants to bail out the auto industry, whether for the benefit of those who depend on it for jobs, or for the benefit of the larger economy, or both. Doing so would be popular with auto workers, but unpopular with the rest of the country. But if he boots the corporate executives, the whole plan goes down a lot easier, because it looks like the fat cats are sharing some of the pain (whether or not they do in reality), and because Obama can claim he's taking steps to make sure past mismanagement will not be given the chance to mismanage the bailout money. Conversely, leaving the heads of AIG, Countrywide, Bank of America, and similar financial vipers in place makes it harder to defend the notion of keeping those companies alive indefinitely at public expense.
It's a plausible scenario. The problem is, it's a pure fabrication on my part, audaciously hoping Obama's savvy will prove more effective in getting things done than would my own preference for straight-line movement. Obama has, in campaign and in office, demonstrated he is capable of making his tactics work. But that leaves a lot of us hopeful liberals in a dilemma: dig our heels in and demand simpler leadership, which could sabotage the only person in the world currently able to return a little democracy to our democracy, or trust his methods, sophisticated beyond our understanding, in the hope that Obama's goals are close to our own. And isn't trusting technocrats and their methods too sophisticated for our understanding how we got the financial meltdown in the first place?
