Post Politics Hour

Michael A. Fletcher
Washington Post White House Reporter
Friday, December 19, 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.

Washington Post White House reporter Michael A. Fletcher, was online Friday, Dec. 19 at 11 a.m. ET to take your questions about the latest transition and executive branch news.

The transcript follows.

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Archive: Post Politics Hour discussion transcripts

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Michael A. Fletcher: Good morning, everyone. Let's get started.

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East Lansing, Mich.: Hi Michael, Have you heard word on where Arne Duncan, Education Secretary nominee, stands on No Child Left Behind? It seems to pit that "haves" against the "have nots" and with little or no money supporting their needs.

Michael A. Fletcher: From what I understand Duncan supports the testing provisions in No Child Left Behind, but wants to build in more flexibility. Right now there are pretty rigorous triggers that would designate schools as not making sufficient educational progress. Some of that has painted some mostly successful schools as failing. He wants to find a way to change that. No Child Left Behind came with a big increase in school funding, but not one that was as large as many congressional Democrats had hoped. Duncan also wants more funding, which is going to be tough given the prevailing economic environment and the federal government's small role in school financing.

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Memphis, Tenn.: Regarding Rev. Warren. I am Jewish. Does Barack Obama think I will go to hell because of my religion? Do you think Obama's transition staff is pleased with the choice or does it matter?

Michael A. Fletcher: No, I think not. The president-elect yesterday said he disagrees with Warren on a number of points, but wanted to include him to promote dialogue. It is Obama's style of politics, apparently, to not freeze people out because of their views, even when they contrast with his own. In defending his selection of Warren yesterday, Obama pointed out that civil rights icon the Rev. Joseph Lowery, who will deliver the benediction, disagrees with Warren on a wide range of issues.

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This Caroline Kennedy thing...: People are saying that Caroline shouldn't be senator (the dynasty thing). May I say that this is nothing new. According to the Political Junkie Blog, Ken Rudin has listed the following kids following the family business:

Alaska: Lisa Murkowski (R) -- daughter of former Sen./Gov. Frank Murkowski (heck, he appointed her to the Senate!)

Arkansas: Mark Pryor (D) -- son of former Sen. David Pryor

Colorado: Mark Udall (D) -- son of the late Rep. Mo Udall of Arizona

Connecticut: Chris Dodd (D) -- son of the late Sen. Thomas Dodd

Indiana: Evan Bayh (D) -- son of former Sen. Birch Bayh

Louisiana: Mary Landrieu (D) -- daughter of former New Orleans Mayor/Carter Cabinet official Moon Landrieu

Massachusetts: Ted Kennedy (D) -- brother of the late President John Kennedy

New Hampshire: Both GOP senators -- Judd Gregg and John Sununu -- are sons of former governors

New Mexico: Tom Udall (D) -- son of former Rep. Stewart Udall of Arizona

Pennsylvania: Bob Casey (D) -- son of the late Gov. Bob Casey

Utah: Bob Bennett (R) -- son of the late Sen. Wallace Bennett

Plus, Iowa Gov. Chet Culver (D) is the son of former Sen. John Culver.

Michael A. Fletcher: Interesting point. But it could simply underscore the opposition some people are expressing to "the dynasty thing."

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Montgomery Village, Md.: Michael, is there any chance that Sen. Clinton will not be confirmed, given the release of the WJC Foundation list of donors? Could this side track the nomination and -- perhaps by design -- actually eliminate Mr. Obama's "Hillary problem" once and for all?

Michael A. Fletcher: To the contrary, I think the lifting of the cloak of secrecy will help her. I think people just want to know where the potential for -- or simply the appearance of -- conflicts are.

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New York Senate Seat: I find all of the hubbub about the appointment for the N.Y. Senate seat interesting. As a former N.Y.-er, I was NOT happy when Hillary Clinton decided to move to N.Y. and run for the Senate but have no problem with Caroline Kennedy (when did she drop "Schlossberg", by the way?) being appointed -- at least she's lived in N.Y. for much of her life. So many people are attacking Caroline Kennedy about the fact that she would be appointed. Your colleague Mr. Krauthammer notes that she should be elected like everyone else but the fact of the matter is NO ONE will be elected to this seat until 2010. How is CK's seeking the seat different from other wannabe public servants who did not otherwise have specific political experience before obtaining office (Reagan, Schwarzenegger, Ventura, possibly Franken)? She would ultimately face election so what's the REAL problem here?

Michael A. Fletcher: I don't know that there's a problem, but you do have to admit that whoever gets appointed to the seat would have an enormous leg up come 2010. Fund-raising advantages, Senate experience and the visibility and other perks that come with incumbency will all belong to the person Gov. Paterson puts into that seat.

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Dynasties: Don't forget Al Gore Sr. (D-Tenn.) and Al Gore Jr.

Michael A. Fletcher: We don't want to do that...

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Oak Park, Mich.: Will the incoming administration be able to change the terms of the loan given to the auto companies this morning? In other words do the terms have teeth? And why wasn't there an "Auto Czar" put in place under the Bush plan?

Michael A. Fletcher: I have not seen enough details to know the answer to that, although many of the provisions seem to dovetail with what President-elect Obama has said about what he wants to see happen in conjunction with a federally-financed restructuring of the industry. The $17.4 billion in federal loans will come along with restructuring of the industry's mountain of outstanding debt and major changes in its labor costs. Progress has to be shown by March, when we expect that the industry will be back for the remainder of the loan money they say they need to survive as they restructure.

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More Dynasties: Taft, Roosevelt, Adams

Michael A. Fletcher: They keep coming...

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Gay man in Washington, D.C.: I've been completely insulted by Obama's choice to include in his inauguration a man who has actively campaigned against my civil rights. It bothers me that Obama can be so cavalier. Rick Warren has gone on national TV saying hurtful and bigoted things, things that if it were said about any other minority group would have resulted in job loss. Instead, Obama feels that it's grounds to give him the national stage.

I don't really care about his choice for his benediction. It takes more than some closing remarks to make up for the hate speech of Warren.

Michael A. Fletcher: You are not the only one saying that.

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Washington, D.C.: Michael, who is up for the next "give me" bailout? I'm puzzled as to why corporations that have been in business for 100 years or so are now feeling like they cannot sustain their business. They have weathered the times, and seen a lot but yet for some reason they are on the brink of being extinct. This, to me, shows bad managment. Is the executive board so solely focused on profits that they don't understand that loses are also part of business 101?

Michael A. Fletcher: Who's to say who's next? But it seems that the U.S. auto industry is suffering a case of overhang from its major quality problems of the 1980s and 1990s. And while the U.S. automakers are maligned for poor designs, there have been some clear winners in recent years: Chevy Malibu, Chrysler 300, and before that, Ford Taurus, come to mind. But clearly they do not outweigh the losers. Add to that once-in-a-lifetime financial crisis, and you get what we have. It is probably notable that Toyota and Honda are suffering through significant slumps. So the thinking is if the car companies can hold on through this historic down moment in the economy, they will have a future, as will the millions of people whose livelihoods are tied to the industry in one way or another.

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Alexandria, Va.: Barack Obama wisely and correctly stated after his election that he would be president of all Americans. After so many years of hyper-partisanship, this is one of the reasons that I voted for the guy. We need someone who gets that they can't just cater to their base and neglect those that were opposed to you. I can't imagine why people are so hostile to choices that are inclusive of others. Having Rick Warren at Obama's table makes it much more likely that he will have a meaningful dialogue with people who oppose him rather than simply preaching to the converted. We've had enough of that and it hasn't served us at all well.

Your comments?

Michael A. Fletcher: I, like you, think that is part of the appeal that people see in the President-elect. People are tired of us yelling at one another over differences, when we tend to agree on so much. The problem becomes, however, in how these issues are framed. And people who see these things as matters of principle might grow weary of Obama always walking the line.

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Dynasties: Or the big Kaduna George W. Bush, son of George H.W. Bush (former V.P. and Pres.), who was son of Sen.. Prescott Bush.

Michael A. Fletcher: And the brother of, for all we know, future Florida Senate candidate, former Gov. Jeb Bush.

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Tallahassee, Fla.: With all the bailouts and the proposed $800 billion stimulus package, can you explain to me who is paying for all of this?

Michael A. Fletcher: Two words: we are. Or taxpayers are. But do bear in mind that these are loans that, if you believe Treasury officials and supporters in Congress, the government could make a profit on in the end, if all goes well. The problem, of course, is that we would pay -- and many argue much more -- if the financial system were allowed to totally fail, or if the domestic car industry -- or much of it -- were allowed to crash in an already teetering economy. And without stimulus, many argue, the massive job losses being suffered by the economy -- almost 2 million this year -- could allow this deepening recession to spiral into something much worse.

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Poplar Bluff, Mo.: What is the mood around the Post newsroom today on the passing of Mark Felt or "Deep Throat"? Thanks.

Michael A. Fletcher: It hasn't seemed to have impacted the mood of this large newsroom, at least my little corner of it. But it was all the buzz when Felt's identity was first revealed several years ago.

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Tampa, Fla.: Re: the auto bailout:

Are there any plans to make the dealers take it on the chin like the auto workers? Right now, "dealer protection" state laws make it almost impossible to terminate dealer contracts. GM had to spend $1 billion to terminate Olds dealers, and the dealers didn't pay tax on those severance payments (unlike unemployment comp).

Will the White House or Congress make the dealers share the pain?

PS: Some states have criminalized interstate car sales over the internet. That's how powerful the car dealer lobby is. The UAW has nothing on the dealers.

Michael A. Fletcher: Interesting point. The short answer is I don't know that the loan deal explicitly requires dealers to share the pain, as you put it. But one way or another, it seems that dealers would have to share the pain if the car companies are to be streamlined and restructured. Most analysts say the dealer network will have to shrink. But that is more complicated than it sounds given the multiple brands many dealerships trade in. It is going to be interesting to see how this plays out.

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Major changes in its labor costs. : Let's get the facts about auto labor costs. Labor only accounts for 10% of the price of a car. If you cut GM labor costs (wages, benefits and retirees) by 50% that would only lower the price of a car by 5% which is less than most of the discount plans.

Here are the numbers:

Base wages for Toyota and GM are the same - $30 per hour or $60,000 a year. If you add in overtime, bonuses and profit sharing, the Toyota worker takes home more. (I can't give exact numbers since Toyota won't.)

There is a difference of about $20 a hour ($70 v. $50) in total labor costs which is almost entirely due to the 432,000 retirees GM supports. The retirees get a lot less than current workers, but if you lower their support by $5 a hour and lower the base wages of current GM workers by the remaining $15 a hour, Toyota workers will be getting over twice what a GM workers gets, both the GM current workers and retirees will be destitute, and you will have lowered the price of a GM car by less than 3%.

Michael A. Fletcher: I can't speak to the total accuracy of this, but it is a fact that base wages for current employees of U.S. auto manufacturers is now close to those of the transplants (after major changes in recent years). Also, we know that among the big differences are the legacy costs carried by the Big Three.

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Michael A. Fletcher: I'm out of time. Thanks for the great questions and Happy Holidays.

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