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Friday, December 5, 2008; 11:00 AM
Don't want to miss out on the latest in politics? Start each day with The Post Politics Hour. Join in each weekday morning at 11 a.m. as a member of The Washington Post's team of White House and congressional reporters answers questions about the latest buzz in Washington and The Post's coverage of political news.
Michael A. Fletcher, Washington Post White House reporter, was online Friday, Dec. 5 at 11 a.m. ET to take your questions about the latest transition and executive branch news.
A transcript follows.
Read the latest post from Capitol Briefing, and also see Pershing's election analysis at The Post's new Political Browser, a collection of the biggest and best campaign stories of the day from across the Web.
A transcript follows.
Get the latest transition news live on washingtonpost.com's 44: A Transition to Power, or subscribe to the daily Post Politics Podcast.
Archive: Post Politics Hour discussion transcripts
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Michael A. Fletcher: Good morning, everyone. Let's get started.
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Western Washington: As one of those laid-off workers in the November Unemployment's Statistics, can you tell me if members of our Congress "feel our pain"?
Michael A. Fletcher: Interesting question. I think members of congress have to be in touch with the growing unemployment problem, which has been more pressing in some parts of the country (Midwest, Rhode Island, Florida, California) than others. But today's distressing news that the economy shed more than half a million jobs last month, taking the annual loss perilously close to 2 million has everyone's attention, I'd think. Recently, congress did extend unemployment benefits. Now whether someone who is still on the payroll can feel the pain of those who are not may be another matter.
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washingtonpost.com: More Bad Economic News on the Labor Front (Post, Dec. 5)
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Vancouver, Wash.: Could you tell us which Cabinet positions have not been filled by the new administration and who the leading candidates are said to be?
Thanks for taking the question Mr. Fletcher.
Michael A. Fletcher: Let me try. Some that have not been filled are: Labor, HUD, Interior, Education, Transportation, Education, Veterans Affairs, Energy and, officially, at least, HHS. The likely choice for HHS is former Sen. Tom Daschle. Labor seems up in the air, but some names are Michigan Gov. Jennifer Granholm and former Michigan Rep. David Bonior. Education: New York Chancellor Joel Klein, Chicago School chief Arne Duncan,even former Sec. of State Colin Powell are mentioned. Interior: Arizona Rep. Raul Grijalva is a candidate; HUD: Miami Mayor Manuel Diaz and Atlanta Mayor Shirley Franklin are talked about; Transportation: Minnesota Rep. James Oberstar is among those mentioned; Veterans: Former Georgia Sen. Max Cleland and Tammy Duckworth, Illinois Veterans Affairs chief, are among those mentioned; Energy: Granholm and Pennsylvania Gov. Rendell are talked about. Whew!
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Anonymous: When Gov. Richardson leaves office, New Mexico will get another Democrat governor, but when Gov. Napolitano moves to Washington, a Republican will take her place. Is Napolitano's replacement acceptable enough to Dems to not make Napolitano hesitate to take the new job, or was Homeland Security just too tempting a post to turn down?
Michael A. Fletcher: Her replacement is Arizona Sec. of State Jan Brewer, who is described as a conservative Republican. I read that some Democrats are upset about this. But the fact is that Gov. Napolitano's second and final term would end after 2010, as she is term limited.
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Boston, Mass.: Why are so many powerful forces aligned against the Big Three? The media does many serious and probing pieces on the "value" of Detroit to American industry. Bogus $70 an hour numbers are trotted out regularly.
I am financial analyst, and I find it far more troubling that a loser like Citigroup gets $25 billion, no questions asked, then a $300 billion Federal guarantee and then another $20 billion no strings attached.
If it saves a few hundred thousand jobs in the middle of a financial catastrophe, throw away $25 billion on the workers and communities of the Big Three rather than $350 billion and counting on the incompetents at C.
Michael A. Fletcher: I think your point is one made by quite a few people on the Hill, at least by "Rust Belt" representatives such as Ohio Democratic Sen. Sherrod Brown. Of course, he does not advocate throwing away the money, but it is striking that there seems to be so much resentment toward auto workers who may make, with OT, $70,$80, or even $90K. That's good money, no doubt, but hardly enough to finance excess, and hardly anything next to what executives on Wall Street command. I suspect there is some resentment toward the "Big Three" (you have to put it quotes these days) because of perceived past sins of resisting efforts to make more fuel-efficient vehicles, etc.. But, in the end, I also suspect your view will win out. It is hard to imagine Congress or the administration allowing any of them to collapse in an economy as perilous as ours.
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Cleveland, Ohio: You missed EPA in your cabinet response -- what's the latest on that position?
Michael A. Fletcher: The names we've reported are Mary Nichols, the California air resources chair; Kathleen McGinty, head of Pennsylvania's environmental agency; and Lisa Jackson, who does the same in New Jersey.
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Alexandria, Va.: Morning, Is Cong. Mike Thompson from California still in the running for Interior Sec? Thanks
Michael A. Fletcher: So we've reported.
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Chicago, Ill.: As someone who initially opposed an automotive industry bailout, I become increasingly frustrated at the disproportionate scrutiny towards the automakers versus the financial institutions who have been loaned billions with little scrutiny or oversight. For example, AIG retention pay instead of bonuses. Why are the CEOs of the financial companies not required to forego salary as the automotive CEOs have pledged? I find this very frustrating.
Michael A. Fletcher: It is interesting how the posture toward the two industries differs. Of course, the financial industry is seen as kind of the blood of our economic body. It provides credit and financing, and if that does not flow, everything dies. So maybe that's part of it. Their situation was far more complicated, too, and harder to grasp, given all the confusion surrounding financial tools like credit default swaps, etc.. Plus, timing seems to be playing a part. Those dire warnings of economic collapse that surrounded the creation of the TARP just do not seem to ring as resoundingly now, even if they are just as ominous.
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Wilmington, N.C.: Demagogues have widely trumpeted a $70 plus per hour "cost" of labor in efforts to use the auto manufacturers' situation to inflame anti-union sentiments. This baldly misleading figure has gained substantial currency in our daily discourse (try turning on talk radio for 10 minutes). How does that happen? Why are so many misinformed about such straight forward matters (see also: offshore drilling's effect on gas prices)? As an economics reporter at a major news organization, do you ever assign yourself some degree of personal responsibility for the gap in knowledge where these shysters work their tricks?
Michael A. Fletcher: Maybe I should take responsibility, but I don't because it feels like many of the facts are in the newspaper. Despite that, people just seem to play to their biases, particularly in this modern media environment.
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Silver Spring, Md.: When will we find out who's replacing Obama in the Senate?
Michael A. Fletcher: I think the governor of Illinois has promised to make a choice by the end of the year, at the latest. But Gov. Blagoyevich has a reputation for keeping his cards close to his vest, as he is said not to be close to any other political players in his state.
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Toronto, Ontario, Canada: When Paulson handed out the 300 billion plus to financial institutions, wasn't this to open the credit? Why is Detroit not asking the money from those who got it for exactly this purpose?
Michael A. Fletcher: No one, perhaps other than the government, is going to loan them money on favorable terms right now, given how they are hemorrhaging cash.
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Alexandria, Va.: Michael, in your answer to Vancouver, Wash., you left out Agriculture. The leadership of USDA directly impacts on food security, food safety, animal welfare, subsidy programs, foreign trade, domestic and international food assistance programs, etc. It's a big one to miss.
Michael A. Fletcher: More proof as to why I should never work from memory...Kansas Gov. Kathleen Sebelius and Texas Rep.Charles Stenholm are being mentioned for Agriculture.
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Washington, D.C.: There does not seem to be the beginnings of a plan either in Congress or in the soon-to-be-Obama administration for a focused effort to get unemployed workers back to work, or working on new things. Even if we bailout the car companies, thousands of people will be out of work. Do you expect to see a government sponsored "make-work" (without the negative connotations) project to get people working?
Michael A. Fletcher: President-elect Obama has made it clear that soon after taking office he wants to enact a stimulus plan that "saves or creates" 2.5 million new jobs over two years. Putting aside the question of how you count a "saved" job, his plan--the details of which are being worked out as we chat--would call for not just tax rebates but also significant investment in construction projects, for everything from rail lines to roads. Now, there is some question about how quickly you can get that going in a way that not only "fixes" things like congested intersections and school roofs, but also lays the foundation for future economic growth, but that is at least the plan.
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SW Nebraska: Banks and financial institution that do poorly are not named when they receive part of TARP funds, but schools that do poorly are named and are penalized by taking money from them. Where's the logic in that?
Michael A. Fletcher: Treasury officials do not want to put a "scarlet letter" on troubled institutions, thereby eroding already shaky investor confidence and making the problem worse.
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New Bedford, Mass.: Should the government bail out Detroit? What will be the consequences if we don't? If we do? If we do help, what strings should be attached? What do you think Congress will do and what approach is Obama advocating?
Michael A. Fletcher: It feels like there would be dire consequences if there is not some sort of auto bailout. There are just too many jobs tied to the industry. That said, maybe some sort of pre-packaged bankruptcy will not turn out as badly as the auto executives warn, but it seems like that is a risky gamble, particularly given the current state of the economy.
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Michael A. Fletcher: Gotta go. Thanks for the great questions. Talk to you in two weeks.
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