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Jeff Jacoby explains why Cash for Clunkers was a monumentally stupid piece of legislation.
…Why are used-car prices rocketing? Part of the answer is that demand is up: With unemployment high and the economy uncertain, some car buyers who might otherwise be looking for a new truck or SUV are instead shopping for a used vehicle as a way to save money.
But an even bigger part of the answer is that the supply of used cars is artificially low, because your Uncle Sam decided last year to destroy hundreds of thousands of perfectly good automobiles as part of its hare-brained Car Allowance Rebate System — or, as most of us called it, Cash for Clunkers. …
No great insight was needed to realize that Cash for Clunkers would work a hardship on people unable to afford a new car. “All this program did for them,’’ I wrote last August, “was guarantee that used cars will become more expensive. Poorer drivers will be penalized to subsidize new cars for wealthier drivers.’’ Alec Gutierrez, a senior analyst for Kelley Blue Book, predicted that used-car prices would surge by up to 10 percent. “It’s going to drive prices up on some of the most affordable vehicles we have on the road,’’ he told USA Today. In short, Washington spent nearly $3 billion to raise the price of mobility for drivers on a budget. …
Michael Barone looks at how Obama’s policies have worked to help big business and big labor, at taxpayers’ expense.
…The Obama Democrats, faced with a grave economic crisis, responded with policies appropriate to the Big Unit America that was disappearing during the president’s childhood.
Their financial policy has been to freeze the big banks into place. Their industrial policy was to preserve as much as they could of General Motors and Chrysler for the benefit of the United Auto Workers. Their health care policy was designed to benefit Big Pharma and other big players. Their housing policy has been to try to maintain existing prices. Their macroeconomic economic policy was to increase the size and scope of existing government agencies to what looks to be the bursting point.
What we see is Big Government colluding with Big Business and trying to breathe life into Big Labor. …
Liberals have long railed against big business, and conservatives have focused on the sins of big government and big labor. Each has only a piece of the puzzle, explains Warren Meyer. He looks at European states as a template to how the powerful in government and business are protecting each others’ positions, and gives a striking list of examples that show their collusion.
…In this three-way arrangement, unionized workers in key industries get high wages, guaranteed employment, rich pension systems and government protection from competition from younger and foreign workers. In return, they promise labor peace (barring the occasional strike to demonstrate their power) and tremendous election-day muscle.
Favored businesses (and by these we are talking about the top 20 to 30 largest banks and corporations in a particular country) get protection from competition, both upstart domestic entrepreneurs as well as any foreign rivals. In return, they provide monetary and political support for politicians’ pet projects–from recycling to windmills–with the understanding that politicians will give them legislative back doors to recover the costs of these programs from customers or taxpayers.
In return for granting this largess to selected corporations and unions, government officials get to remain in power. Typically this arrangement appeals to parties on both the left and the right, such that the nominal ruling party may change but the core group in power remain the same. …
…Like Europe, the ultimate price for the growing corporate state will be paid by the American consumer (in the form of higher prices, reduced choice, and foregone innovation), and the American taxpayer, who is already facing an enormous bill from the direct subsidy of favored constituents. This corporate-government-labor coalition is ready to come together in the U.S. right now, and only the political energy of the rest of the American citizenry continues to resist it.
Robert Costa interviews Patrick Caddell, a former Carter pollster, on the upcoming elections. Caddell says the anti-government sentiment is startling.
…On Monday, Gallup released a new weekly poll showing Republicans leading Democrats by an unprecedented ten-point margin, 51 to 41 percent, in congressional voting preferences — the largest gap in Gallup’s history of tracking the midterm generic ballot. “I have never seen numbers like this,” Caddell says, shaking his head. “Unless Republicans can find some way to screw it up, they will win big, even though nobody really likes them, either.”
Indeed, rather than a ringing endorsement of either major party, Caddell sees November as a broader referendum on the political class — the class, he says, to which Obama, and his political fate, are irrevocably tied.
…Caddell believes that 2010 will be a louder, more raucous moment than 1978 in American politics. “The discontent is much larger than the turnout at Glenn Beck rallies,” he says. “A sea of anger is churning — the tea parties are but the tip of the iceberg. People say they want to take their country back, and, to the Democrats’ chagrin, they’re very serious about it.” …
Jennifer Rubin comments on Robert Costa’s article.
In a fascinating interview with Robert Costa, Democratic pollster and analyst Pat Caddell zeroes in on the Democrats’ impending doom (”the general outcome is baked”) and on Obama’s failure to live up to expectations (”The killer in American politics is disappointment. When you are elected on expectations, and you fail to meet them, your decline steepens”). But his most cogent analysis focuses on Obama’s base. He writes:
“The people who own the party — George Soros, the Center for American Progress, the public-employee union bosses, rich folks flying private jets to “ideas festivals” in Aspen — they’re Obama’s base.”
Yowser. He omitted only the liberal media, but I suppose they too — along with young people, old people, Hispanics, working- and middle-class whites, and even 42 percent of Jews — have grown disillusioned as well. …
Jennifer Rubin and David Brooks liked Glenn Beck’s rally. (There’s a sentence you probably never thought you’d see.)
David Brooks couldn’t find a bad word to say about the Glenn Beck rally. Really. In his conversation with Gail Collins, she certainly tried to drag something negative out of him. But he liked what he saw:
I have to confess I really enjoyed it. I’m no Beck fan obviously, but the spirit was really warm, generous and uplifting. The only bit of unpleasantness I found emanated from some liberal gatecrashers behaving offensively, carrying anti-Beck banners and hoping to get in some televised fights. … There, at Saturday’s rally, were the most conservative people in the country, lauding Martin Luther King Jr. There they were, in the midst of their dismay, lavishly celebrating the basic institutions of American government. I have no problem with that.
…What seems to have flummoxed the left is that the Beck rally demonstrated that the populist anti-Obama faction in the country (some might use the mundane phrase “majority”) isn’t composed of wackos. They actually understand better than elites that the economic problems are in large part a function of a collapse in values. Obama likes to rail against Wall Street. Well, that’s a location. The ralliers want to talk about what went wrong with the people who populate business and government. They would say we have lost touch with essential values — thrift, persistence, responsibility, modesty, and, yes, faith in something beyond self and self-indulgence. As Brooks put it, “Every society has to engird capitalism in a restraining value system, or else it turns nihilistic and out of control.”
The chattering class should stop chattering long enough to listen to what citizens are saying. Not only is it quite reasonable; it is profound.