The wisdom of Bruce Bartlett

I think it would be a terrible mistake to simply write a check to the
auto industry without demanding major, major restructuring of its labor
contracts. Without that the money will simply go down a rat hole and
the automakers will just be back again in a year or two asking for more
money. Obama has a strong hand to play here and I hope he uses his
leverage. With bankruptcy as the only alternative to federal aid, he
can drive a very hard bargain with the auto workers. If he caves and
just writes a blank check, everyone will know he can be rolled and he
will pay a heavy political price for it. If Obama shows toughness on
this issue, I think it will pay enormous dividends for him down the
road.

Via Brad DeLong, Bruce is now blogging.  And if you want some provocation, here is Kevin Drum on the idea of a GM bailout. And Felix Salmon has some interesting ideas.