Shortest Way Home, by Pete Buttigieg: on Budget & Economy


George W. Bush: 2008: $17.4B bailout for auto companies

In 2008 President Bush was preparing to leave office, but the emergency couldn't wait for the transition. In December he boldly initiated a $17.4 billion bailout package, saying, "Bankruptcy now would lead to a disorderly liquidation of American auto companies." To me, "disorderly liquidation" sounded like a cartoon whirlpool, with cars and workers waving their arms for help in the downward spiral toward the drain. A simpler way to put it was that millions of lives and hundreds of communities stood to be ruined. Yet the move to prevent this disaster was clearly not a political winner--something about the word "bailout" makes voters allergic--and the Senate was loath to vote for the package. When Congress refused to authorize funds, Bush acted unilaterally, rewiring money that Congress had authorized, with other purposes in mind, as part of the TARP bank rescue.
Source: Shortest Way Home, by Pete Buttigieg, p. 82 Feb 12, 2019

Mike Pence: Economic development grants at regional level, not cities

[As governor, Mike Pence introduced the Regional Cities Initiative]. One main idea of the program was that that communities in the same area should work together. For years, cities and towns would view their immediate neighbors as economic rivals, trying to lure jobs across a city limit or county line. But since many workers commute across these boundaries anyway, it does no good to add jobs at the expense of the next town over.

True regional collaboration proactively working with other cities by sharing resources to grow the economy--was still rare in Indiana. To incentivize better behavior, the state offered a major grant for local economic development work, not to a city but to a region. In order to compete with the funding, all the counties and cities in an area would have to band together, show they could collaborate, and submit a joint application showing how they would share the funds.

Source: Shortest Way Home, by Pete Buttigieg, p.207 Feb 12, 2019

Mitt Romney: 2008: auto industry bankruptcy would force modernization

In 2009, Obama expanded on Bush's unpopular $17.4 billion auto industry bailout package. By 2012, this once-unpopular policy had come to be seen as a clear win.

Obama used it as a cudgel against his opponent, Mitt Romney, who had opined against the bailout in a 2008 op-ed entitled "Let Detroit Go Bankrupt." In 2008, that had been the safe position to take, but by 2012 voters understood that bold action had been needed. The tables had turned, and now Romney was left trying to explain away his previous view. His campaign actually tried to take credit for the bailout he had once opposed. A campaign spokesman said of the structured bankruptcy: "Mitt Romney had the idea first." To be fair, Romney was making some nuanced & sensible points in his article about the need for Detroit to modernize, but events had disproven his bottom-line 2008 prediction: "If GM, Ford & Chrysler get the bailout that their chief executives asked for yesterday, you can kiss the American automotive industry goodbye."

Source: Shortest Way Home, by Pete Buttigieg, p. 83 Feb 12, 2019

Richard Mourdock: OpEd: 2009 auto bailout not worthwhile despite saving jobs

[Mourdock argued in June 2009 before the Supreme Court to stop the Chrysler bailout, but lost]. Mourdock himself was no worse off for his courtroom rejection. He made a name for himself, and in his own mind he had stood on principle by defying Washington and the auto workers who had pushed so hard to save their jobs.

Mourdock simply could not accept that government getting involved could be a good thing, even if it prevented the destruction of thousands of lives. But I wonder, sometimes, whether he talked to any of the families whose livelihoods could have been wrecked by his legal adventure. Did he think about the stakes for them?

To Mourdock, it seems, the most important issue at stake in the auto rescue was that investors on the bond market would have to take a haircut. To the rest of us, the most important issue was that families lives could be ruined by the same kind of economic disaster that had nearly killed my hometown half a century earlier.

Source: Shortest Way Home, by Pete Buttigieg, p. 87-8 Feb 12, 2019

  • The above quotations are from Shortest Way Home
    One Mayor's Challenge and a Model for America's Future

    by Pete Buttigieg
    .
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2020 Presidential contenders on Budget & Economy:
  Republicans:
Gov.John Kasich(OH)
V.P.Mike Pence(IN)
Pres.Donald Trump(NY)
Gov.Bill Weld(MA)
Democrats:
Sen.Michael Bennet (D-CO)
V.P.Joe Biden (D-DE)
Gov.Steve Bullock (D-MT)
Mayor Pete Buttigieg (D-IN)
Sen.Cory Booker (D-NJ)
Secy.Julian Castro (D-TX)
Mayor Bill de Blasio (D-NYC)
Rep.John Delaney (D-MD)
Rep.Tulsi Gabbard (D-HI)
Sen.Kirsten Gillibrand (D-NY)
Sen.Mike Gravel (D-AK)
Sen.Kamala Harris (D-CA)
Gov.John Hickenlooper (D-CO)
Gov.Larry Hogan (D-MD)
Gov.Jay Inslee (D-WA)
Sen.Amy Klobuchar (D-MN)
Rep.Seth Moulton (D-MA)
Rep.Beto O`Rourke (D-TX)
Rep.Tim Ryan (D-CA)
Sen.Bernie Sanders (I-VT)
Rep.Eric Swalwell (D-CA)
Sen.Elizabeth Warren (D-MA)
Marianne Williamson (D-CA)
CEO Andrew Yang (D-NY)

2020 Third Party Candidates:
Gov.Gary Johnson(L-NM)
Gov.John Kasich (R-OH)
V.P.Mike Pence (R-IN)
Howard Schultz(I-WA)
Pres.Donald Trump (R-NY)
V.C.Arvin Vohra (L-MD)
Gov.Bill Weld (L-MA)
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Page last updated: May 21, 2019