Below The Beltway

More details are likely to come out later tonight, but the preliminary details of the deal are about as bad as expected:

WASHINGTON — An agreement between the White House and Congressional Democrats over the shape of a rescue plan for the auto industry advanced on Monday, with Congressional Democrats calling for a taxpayer-financed plan that would be directed by one or more appointees of President Bush.

According to draft language being circulated on Capitol Hill, the Democrats would call for an overseer, also known as a “car czar,” with expertise in such areas as “economic stabilization, financial aid to commerce and industry, financial restructuring, energy efficiency and environmental protection.”

The United Auto Workers union, meanwhile, is planning to seek a stake in General Motors and a seat on its board in exchange for concessions by its members.

The draft bill, which is still being negotiated by Congressional leaders and the Bush administration, would provide emergency bridge loans totaling about $15 billion to the foundering automakers, particularly General Motors and Chrysler, which are in the greatest danger of financial collapse.

The president’s appointee would be responsible for disbursing the emergency money and would be responsible for supervising the implementation of the drastic reorganization plans that the auto manufacturers agreed to carry out in exchange for government aid. The president would also be able to designate other officers from within the executive branch to assist in the auto industry rescue.

By Jan. 1, according to the Democrats’ draft, the car czar would be required to develop benchmarks for assessing the automakers’ progress in carrying out those plans. The car czar would also have the powers to convene meetings of stakeholders in the auto companies including labor unions, creditors, suppliers, automobile dealers and shareholders.

The automakers would have to submit to broad oversight and also grant unfettered access to their financial books, company records and other data, and they must seek permission from the car czar for any business transaction worth $25 million or more.

In proposing a single presidential-designee as the supervisor of the auto bailout plan, Congressional Democrats decided not to pursue the creation of an oversight board that would have included five cabinet secretaries and the head of the Environmental Protection Agency.

Instead, they’re proposing putting a single person, a dictator if you will, in charge of an entire American industry.

That’s not capitalism, it’s not freedom, and it’s certainly not American.

This one has to be defeated.