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David Warren trashes Canada’s version of the auto bailout.
… Very few Canadians make as much as GM and Chrysler workers, or have pension plans as generous. Many of us don’t have pension plans at all, beyond the chump change offered by our Nanny State. The autoworkers’ plan is around $2 billion in the hole. It goes without saying that at least $2 billion of the bailout will go, directly or indirectly, to rescuing it.
That the government must deny this use of our money also goes without saying. But the plan will be rescued; and the person who thinks it will happen by a spontaneous miracle is naïve.
One of the proofs that Canadians are indeed rather stupid, is that we will stand for this sort of thing: that people who themselves face penury in old age, will agree to have their pockets picked to cover $70-an-hour auto-workers. And then actually vote at the next election for the politicians who robbed them. (For not all Canadians are basically conservative.)
Alas, until some conservatives take over the Conservative party, Canadians will be in no position to prove me wrong.
Stephen Moore laments the missing man – Milton Friedman.
… The myth that the stock-market collapse was due to a failure of Friedman’s principles could hardly be more easily refuted. No one was more critical of the Bush spending and debt binge than Friedman. The massive run up in money and easy credit that facilitated the housing and credit bubbles was precisely the foolishness that Friedman spent a lifetime warning against.
A few scholars are now properly celebrating the Friedman legacy. Andrei Shleifer, a Harvard economics professor, has just published a tribute to Friedman in the Journal of Economic Literature. He describes the period 1980-2005 as “The Age of Milton Friedman,” an era that “witnessed remarkable progress of mankind. As the world embraced free market policies, living standards rose sharply while life expectancy, educational attainment, and democracy improved and absolute poverty declined.”
So the Bernie Sanders crowd has things exactly backward: Milton’s ideas on capitalism and freedom did more to liberate humankind from poverty than the New Deal, Great Society and Obama economic stimulus plans stacked on top of each other.
At one of our dinners, Milton recalled traveling to an Asian country in the 1960s and visiting a worksite where a new canal was being built. He was shocked to see that, instead of modern tractors and earth movers, the workers had shovels. He asked why there were so few machines. The government bureaucrat explained: “You don’t understand. This is a jobs program.” To which Milton replied: “Oh, I thought you were trying to build a canal. If it’s jobs you want, then you should give these workers spoons, not shovels.”
But in the energy industry today we are trading in shovels for spoons. The Obama administration wants to power our society by spending three or four times more money to generate electricity using solar and wind power than it would cost to use coal or natural gas. The president says that this initiative will create “green jobs.” …
George Will writes on “shock and awe statism.”
… State governments, too, are expected to accept Washington’s whims, but plucky Indiana is being obdurate. Gov. Mitch Daniels, alarmed by what he calls the Obama administration’s “shock-and-awe statism,” is supporting state Treasurer Richard Mourdock’s objection to the administration’s treatment of Chrysler’s creditors, which include the pension funds for Indiana’s retired teachers and state police officers and a state construction fund. Together they own $42.5 million of Chrysler’s $6.9 billion (supposedly) secured debt.
Compliant, because dependent, banks bowed to the administration’s demand that they accept less than settled bankruptcy law would have given them as secured creditors. Next, the president denounced as “speculators” remaining secured creditors, who then folded and accepted less on the dollar than an unsecured creditor — the United Auto Workers union — is getting. This raw taking of property from secured investors penalized those “speculators” — retired Indiana teachers and state police officers who, Mourdock says, are being “ripped off by the federal government.”
He is asking a court to declare that the Obama administration’s actions have violated “more than 100 years of established law by redefining ‘secured creditors’ to mean something less” and that the actions violate the Fifth Amendment protection against the seizure of private property. Furthermore, he says, the government is guilty of “misuse” of the Troubled Assets Relief Program, which gives the Treasury authority only to aid financial institutions, not industrial companies. …
Robert Samuelson normally writes on economics, but today this subject is the media’s Obama infatuation.
The Obama infatuation is a great unreported story of our time. Has any recent president basked in so much favorable media coverage? Well, maybe John Kennedy for a moment, but no president since. On the whole, this is not healthy for America.
Our political system works best when a president faces checks on his power. But the main checks on Obama are modest. They come from congressional Democrats, who largely share his goals if not always his means. The leaderless and confused Republicans don’t provide effective opposition. And the press — on domestic, if not foreign, policy — has so far largely abdicated its role as skeptical observer.
Obama has inspired a collective fawning. What started in the campaign (the chief victim was Hillary Clinton, not John McCain) has continued, as a study by the Pew Research Center’s Project for Excellence in Journalism shows. It concludes: “President Barack Obama has enjoyed substantially more positive media coverage than either Bill Clinton or George W. Bush during their first months in the White House.” …
How long will we allow ourselves to be governed by children? NY Times has the story.
It is not every 31-year-old who, in a first government job, finds himself dismantling General Motors and rewriting the rules of American capitalism.
But that, in short, is the job description for Brian Deese, a not-quite graduate of Yale Law School who had never set foot in an automotive assembly plant until he took on his nearly unseen role in remaking the American automotive industry.
Nor, for that matter, had he given much thought to what ailed an industry that had been in decline ever since he was born. A bit laconic and looking every bit the just-out-of-graduate-school student adjusting to life in the West Wing — “he’s got this beard that appears and disappears,” says Steven Rattner, one of the leaders of President Obama’s automotive task force — Mr. Deese was thrown into the auto industry’s maelstrom as soon the election-night parties ended. …
With just another routine lie, the kid president tried to pass off the auto bailout as something the Bush folks dreamed up. Sweetness and Light has the story.
Spend $100,000,000 to save $1,000,000 a year? Cafe Hayek posts on how our government touts failure.
The Economist reports it really was pigs that started that flu.
… This new study does not answer the big questions of how, exactly, the virus crossed over to humans and why it kills some people and not others—in particular, why it hits the young (and thus, presumably, healthy) harder than the elderly. A different study by the CDC has found that nearly two-thirds of swine-flu infections in America have been in people aged between five and 24, whereas only 1% of cases affected those over 65. This is the reverse of the pattern seen in seasonal flu, which kills thousands of old people every winter. One possible explanation, according to Anne Schuchat of the CDC, is that “older adults might have been in contact a long time ago with a virus similar to the one we see now.” That, she surmises, might give them an immunity to this new menace that young people lack.
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