Faced with the news that more than half a million jobs were lost last month, politicians in Congress and both the Bush and Obama administrations have been jolted into action on a bill to bailout the auto industry, whose collapse, experts say, could result in more than three million lost jobs.

In testimonies last Friday, the CEOs of Chevrolet and GM said that without an immediate cash infusion they would not make it through the New Year. Ford, while not in such dire straits, still requires a nine billion dollar line of credit to avoid catastrophic collapse.

Congressional Democrats and the Bush administration have come to an agreement regarding the general shape of auto-aid legislation. These two camps had been in disagreement over where any money would come from, with Congressional Dems calling for the money to come from TARP, the $700 billion financial bailout, and the Bush administration insisting that the money be drawn from the $25 billion in federal loans from the Department of Energy intended for use in developing more fuel-efficient vehicles. While no legislation has been drafted yet, it appears that the money will come from the DoE funds. This is a major setback for clean/low carbon energy advocates, although Speaker Nancy Pelosi has only agreed to this method of funding on the condition that the money can be paid back "within weeks."

All parties also seem to be in agreement that these loans are a temporary fix, and that, upon assuming office, President Obama will swoop in to save the day, rolling out a plan for the long term. From a story on thehill.com:

"The auto package would support the car industry through March and envisions a longer restructuring process carried out in part under President-elect Obama's administration. Obama, appearing on "Meet the Press," said he is hopeful that Bush and Congress will find "some short-term progress" in coming days."

It is unclear how Republican Senators will react to the legislation. No official statement will be made until the bill has actually been drafted, but Senator Richard Shelby of Alabama hinted Sunday that the minority party might consider filibustering the forthcoming legislation. Standing in the way of a potential filibuster is a block of GOP senators from the rust belt where many automobile plants are located.

As it stands, Congress is poised to give up to $25 billion to the Big Three with no strings attached. Pelosi wants to make sure this money ends up back with the DoE so it can be used for its intended purpose, but it is hard to imagine when an industry that needs cash infusions to stay in business for the next 23 days is going to be able to pay this loan back. Let's be under no illusions: this $25 billion payment is a band-aid for a bullet wound. We will not get that money back.

Chris Dodd, who referred to the bailout as a "bridge," echoed the sentiments of many Congressional Democrats in saying that the immediate funds were to keep the Big Three from collapse, while the Obama administration would embark on a serious restructuring of the auto industry. But if these provisions are not included in the impending bailout, then it will just be one more bridge to nowhere.

The Big Three are getting a bailout, and yet nothing about the status quo is changing. We are not asking for anything in return. If it is true that GM, Chrysler and Ford will submit to strict government oversight from a "car czar" in the next administration that will supposedly ensure the companies make good on the restructuring plans they offered to Congress this week. But the tepid plans proposed by the Big Three are hardly sufficient to usher in the rebirth of a vibrant and innovative auto industry - government oversight or not.

When the Big Three came to Washington asking for a bailout, Congress had the opportunity to reinvent the American auto industry, remaking into a lean, innovative and profitable source of fuel-efficient and plug-in hybrid electric vehicles, as we suggested last Thursday. Instead, it looks like Congress and President Bush will be signing yet another blank check.

Wait a second. We are about to give billions of dollars to an industry that has mismanaged itself into failure. Sound familiar?