We have known for many years that Saddam Hussein is seeking and developing weapons of mass destruction. -- Edward Kennedy
It's now clear that from the very moment President Bush took office, Iraq was his highest priority as unfinished business from the first Bush Administration. His agenda was clear: find a rationale to get rid of Saddam. -- Edward Kennedy
He (Kennedy) was good company. Excellent company. I think I'm going to miss him more than I can say. -- John McCain
Ted was a big government liberal which as you know by now is the worst possible kind. I was trying to chart this week how he came to be such a communist weinie from what was a fairly normal political juggernaut. It wasn't the influence of his brothers, because as near as I can determine, JFKs conservatism and RFKs law and order persona did not translate to Teddy's world.
Maybe at some level Teddy reached the point where he needed redemption, and went to the chapel of the New York Times to get his religion.
Ever since then (and to borrow the terminology of Bostonians) he had a wicked bad voting record. He was a hypocrite, even by modern Washington standards. His manipulation of the senate succession process in 2004 and attempt to do so again in 2009 is the last final evidence of this.
Teddy's biggest triumph was in compromising people like Bush, McCain, and Hatch. He took a bunch of false progressive premises and found one sucker after another on the so-called right to act as a co-signer. The trouble is we are all now saddled with the payment book from these "bipartisan boondoggles".
RIP Teddy. You gamed the system, and the people of Massachusetts about as completely as it can be done.
Sunday, August 30, 2009
Sunday, August 02, 2009
Market Intervention and Unintended Consequences.
Beware the greedy hand of government, thrusting itself into every corner and crevice of industry. — Thomas Paine
Depressions and mass unemployment are not caused by the free market but by government interference in the economy. – Ludwig von Mises
The government solution to a problem is usually as bad as the problem. – Milton Friedman
Let's examine the Cash for Clunkers program, shall we?
A billion dollars to "retire" 250,000 so-called clunkers. Another 2-3 billion on the way.
Our government creates the conditions under which the automotive industry is nearly bankrupted; forks over a bunch of money to own the car companies. Then needs to do their own "incentive plans". It's presented as important legislation, and applauded by every lawmaker in Michigan.
As usual, there are some unintended consequences.
First, they previously created a great deal of pent up demand by sucking all the capital flow out of the markets, causing everybody to delay their next vehicle purchas another year.
Then, with this program, they cause 250,000 perfectly functional cars to be physically removed from the market. Who does this help? People who were looking for one more reason to buy a car now. Let's say their trade was worth $2000. They get 3500 for it instead. Okay, a net gain of 1500 dollars.
But guess what? Now there's $2000 car that won't go to auction, and won't be available for another buyer... perhaps a student leaving for his first semester away at school. His parents now have to pay an inflated rate. Since there are no $2000 cars (due to the government scrap program), They are forced to bid up the price of any available $2000 dollar cars.
So the government has very clearly picked a winner (new car buyer), and a loser (entry level used car buyer). For every "winner" the government picks, they have to pick losers.
Another winner: The new car dealer.
Another loser. The used car dealer. Remember, a lot of these guys WERE new car dealers until this year. Now they have to tie up more capital bidding up what few used cars actually make it to auction.
Who else wins? The vehicle manufacturers. Some car plants will run a few more weeks than they might have this fall.
Who else loses? The spare parts business - - all these decommissioned cars no longer available for scrap value.
Finally, I wonder if anyone keeps track of the resources and energy necessary to build a new car vs. the cost of the gasoline to drive the old one for another year.
I for one am very tired of the government picking winners and losers, because it eventually makes losers out of all of us.
Depressions and mass unemployment are not caused by the free market but by government interference in the economy. – Ludwig von Mises
The government solution to a problem is usually as bad as the problem. – Milton Friedman
Let's examine the Cash for Clunkers program, shall we?
A billion dollars to "retire" 250,000 so-called clunkers. Another 2-3 billion on the way.
Our government creates the conditions under which the automotive industry is nearly bankrupted; forks over a bunch of money to own the car companies. Then needs to do their own "incentive plans". It's presented as important legislation, and applauded by every lawmaker in Michigan.
As usual, there are some unintended consequences.
First, they previously created a great deal of pent up demand by sucking all the capital flow out of the markets, causing everybody to delay their next vehicle purchas another year.
Then, with this program, they cause 250,000 perfectly functional cars to be physically removed from the market. Who does this help? People who were looking for one more reason to buy a car now. Let's say their trade was worth $2000. They get 3500 for it instead. Okay, a net gain of 1500 dollars.
But guess what? Now there's $2000 car that won't go to auction, and won't be available for another buyer... perhaps a student leaving for his first semester away at school. His parents now have to pay an inflated rate. Since there are no $2000 cars (due to the government scrap program), They are forced to bid up the price of any available $2000 dollar cars.
So the government has very clearly picked a winner (new car buyer), and a loser (entry level used car buyer). For every "winner" the government picks, they have to pick losers.
Another winner: The new car dealer.
Another loser. The used car dealer. Remember, a lot of these guys WERE new car dealers until this year. Now they have to tie up more capital bidding up what few used cars actually make it to auction.
Who else wins? The vehicle manufacturers. Some car plants will run a few more weeks than they might have this fall.
Who else loses? The spare parts business - - all these decommissioned cars no longer available for scrap value.
Finally, I wonder if anyone keeps track of the resources and energy necessary to build a new car vs. the cost of the gasoline to drive the old one for another year.
I for one am very tired of the government picking winners and losers, because it eventually makes losers out of all of us.
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