Forbes.com
This is the discussion that increasingly is harder to make clear to folks when discussions are occurring regarding the effectiveness of business. Once government gets to a certain size or controls a sizable percentage of the market, the markets are no longer effective and thus become something else other than free. We then get complaints about how terrible business happens to be and how they aren't efficient or productive.
The problem isn't business but a corrupt government taxing business to fund crony-capitalism. When people complain about Wall St. or especially lately, about Big Banks, how can any ignore Fannie May, Freddie Mac, Sally Mae, and the supposedly independent Federal Reserve all manipulating the markets. When your government can fight you with your own energies and efforts, by effectively taxing them away, the only real choice becomes to play the game they want or go extinct.
When you look at the fact that we have bubble after bubble in our economy, it is because the government stimulates them. If you want the bubbles and graft to mostly go away, then you need to get the government out of them.
The Chevy Volt is probably the clearest and purest recent example of this. The government engineered a type of pseudo-bankruptcy/not really bankruptcy to deliver the companies to unions. Then they gave them massive loans and subsidies. Partially out of this has come the Chevy Volt, a completely ineffecient and ineffective solution but perhaps a few will sell because on top of all that "assistance" there is a $7500 tax credit attached to it.
Every step of the process has a government stamp on it but who will get the blame if it fails, why big business of course.
Why do they need a government tax credit, because union laborers/owners are building half the car at twice the price.
The "market" even with government intervention doesn't want these cars. However there are ways to solve that as well. You just engage in some more cronyism.
Forbes recently published their list or richest people in the world. They then noted that the combined assets of every billionaire and their assets on the planet, not just the United States, equaled $7 trillion dollars.
The cumulative wealth of all of them could finance just the deficit financing of the Obama administration for around one term, perhaps a bit more. We are talking about just the deficit, not the actual spending which is $3.8 trillion per year and thus the world's billionaires couldn't even fund the U.S. government for two years.
The problem isn't the rich. The problem isn't capitalism. The problem isn't caring or sharing.
The problem is the looters and the ever growing and ever more expensive "solutions" they are throwing out there to justify their looting.
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The Chevrolet Volt is beginning to look like it was manufactured by Atlas Shrugged Motors, where the government mandates everything politically correct, rewards its cronies and produces junk steel.
This is the discussion that increasingly is harder to make clear to folks when discussions are occurring regarding the effectiveness of business. Once government gets to a certain size or controls a sizable percentage of the market, the markets are no longer effective and thus become something else other than free. We then get complaints about how terrible business happens to be and how they aren't efficient or productive.
The problem isn't business but a corrupt government taxing business to fund crony-capitalism. When people complain about Wall St. or especially lately, about Big Banks, how can any ignore Fannie May, Freddie Mac, Sally Mae, and the supposedly independent Federal Reserve all manipulating the markets. When your government can fight you with your own energies and efforts, by effectively taxing them away, the only real choice becomes to play the game they want or go extinct.
When you look at the fact that we have bubble after bubble in our economy, it is because the government stimulates them. If you want the bubbles and graft to mostly go away, then you need to get the government out of them.
The Chevy Volt is probably the clearest and purest recent example of this. The government engineered a type of pseudo-bankruptcy/not really bankruptcy to deliver the companies to unions. Then they gave them massive loans and subsidies. Partially out of this has come the Chevy Volt, a completely ineffecient and ineffective solution but perhaps a few will sell because on top of all that "assistance" there is a $7500 tax credit attached to it.
Every step of the process has a government stamp on it but who will get the blame if it fails, why big business of course.
Quote:
This is the car that subsidies built. General Motors lobbied for a $7,500 tax refund for all buyers, under the shaky (if not false) promise that it was producing the first all-electric mass-production vehicle.
Why do they need a government tax credit, because union laborers/owners are building half the car at twice the price.
Quote:
In other words, GM was desperate for customers for what they perceived would be an unpopular vehicle before one even hit the road. It had hoped to lure more if buyers subtracted the $7,500 from the $41,000 sticker price. Instead, as Consumer Reports found out, the car was very pricey. The version they tested cost $43,700 plus a $5,000 dealer markup ("Don't worry," I can hear the salesperson saying, "you'll get more than that back in your tax credit!"), or a whopping $48,700 minus the credit.
This is one reason that Volt sales are anemic: 326 in December, 321 in January, and 281 in February. GM announced a production run of 100,000 in the first two years. Who is going to buy all these cars?
This is one reason that Volt sales are anemic: 326 in December, 321 in January, and 281 in February. GM announced a production run of 100,000 in the first two years. Who is going to buy all these cars?
The "market" even with government intervention doesn't want these cars. However there are ways to solve that as well. You just engage in some more cronyism.
Quote:
Recently, President Obama selected General Electric ( GE - news - people ) CEO Jeffrey Immelt to chair his Economic Advisory Board. GE is awash in windmills waiting to be subsidized so they can provide unreliable, expensive power.
Consequently, and soon after his appointment, Immelt announced that GE will buy 50,000 Volts in the next two years, or half the total produced. Assuming the corporation qualifies for the same tax credit, we (you and me) just shelled out $375,000,000 to a company to buy cars that no one else wants so that GM will not tank and produce even more cars that no one wants. And this guy is the chair of Obama's Economic Advisory Board?
Consequently, and soon after his appointment, Immelt announced that GE will buy 50,000 Volts in the next two years, or half the total produced. Assuming the corporation qualifies for the same tax credit, we (you and me) just shelled out $375,000,000 to a company to buy cars that no one else wants so that GM will not tank and produce even more cars that no one wants. And this guy is the chair of Obama's Economic Advisory Board?
Forbes recently published their list or richest people in the world. They then noted that the combined assets of every billionaire and their assets on the planet, not just the United States, equaled $7 trillion dollars.
The cumulative wealth of all of them could finance just the deficit financing of the Obama administration for around one term, perhaps a bit more. We are talking about just the deficit, not the actual spending which is $3.8 trillion per year and thus the world's billionaires couldn't even fund the U.S. government for two years.
The problem isn't the rich. The problem isn't capitalism. The problem isn't caring or sharing.
The problem is the looters and the ever growing and ever more expensive "solutions" they are throwing out there to justify their looting.
"During times of universal deceit, telling the truth becomes a revolutionary act." -George Orwell
"During times of universal deceit, telling the truth becomes a revolutionary act." -George Orwell
I've missed ya, BR.
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