Led by Senators Mitch McConnell and Bob Corker, the Republicans in the Senate began to reclaim lost political ground on Thursday when they held firm against a bailout that was devoid of meaningful corporate restructuring requirements. The Wall Street Journal writes:

Thursday’s showdown marked an important political moment for the Republican Party. By refusing to write a blank check to Detroit, Senate Republicans have started to reclaim some credibility on fiscal policy and the role of government in the economy. They did so standing up to a Republican President who doesn’t want any more bad headlines, as well as to Democrats who will blame the GOP if the auto makers collapse.

They also stood up for the right reasons. No bailout will ever restore the car companies to profitability without a restructuring. Yet an explicit UAW goal is to use the bailout to avoid any such thing. The union and their Democratic protectors want to avoid the discipline that a bankruptcy could impose under Chapter 11. A government-directed salvation would also give environmentalists huge leverage over the cars Detroit builds, a power they and Democrats have wanted for decades.

In this regard, it doesn’t much matter if President Bush foolishly caves into the UAW. The Republicans still in office didn’t. This is how, inch by inch, a party reclaims its self-respect and, in turn, the respect of the voters. Republicans made it very clear that they are the fiscal grown-ups and they intend to stand up against bad deals. They will lose more than they win next year, but that hardly matters. What does matter is to conform their conduct to their rhetoric, act soberly when everyone else is not and expose the irrationality and malfeasance of the other side. That is how a minority party makes an impression — and claws back to majority status.