I don't know about you, but I'm waiting with bated breath for news about the bailout for the Big Three auto makers (GM, Ford, and Chrysler) as the White House reviews its options in light of the bailout's death in the Senate yesterday.
Speaker of the House Nancy Pelosi summed up House members’ sentiments when she said that, “Bankruptcy is not an option,” pointing to the estimated 3 million jobs that could be lost if just one of the three companies becomes insolvent. However, members of the Senate believe that the bailout will be an inevitable road to nowhere, propping up the automakers only long enough for them to put bankruptcy plans in place.  

Speculation fills my head as I run through the scenarios. On one hand, a bailout has the potential to revive 20th century business models that may have become inappropriate and untenable for the economy of the 21st century. On the other hand, firm controls on the Big Three could force them beyond opposition to tighter emissions regulations and facilitate the production of next-generation, fuel-efficient vehicles. Product innovation, in conjunction with the seemingly inevitable loosening of wage and benefit requirements by United Auto Workers, may actually enable the U.S. auto companies to become more competitive with their foreign counterparts.

Because the auto industry is so pivotal to the health of our economy, a bailout not could not only pave the pathway to environmentally appropriate transportation solutions, but it also could trigger the development of other clean technologies, such as batteries and renewable energy solutions.    

A successful infrastructure stimulus will require creative thinking, rigorous conditions, hawkeyed oversight, and unyielding environmental standards. Members of Congress have a big task ahead of them. If they can muster enough political will to first reshape their own partisan and special interest culture and then carefully outline performance requirements for the auto industry’s conversion to hybrid, electric, and other sustainable solutions, then this week could be a yet another historic milestone for our transformation to a New Green Economy.