A law the country didn’t want and upheld by a ridiculous Supreme Court ruling is now beginning to have it’s predicted effect:
Some low-wage employers are moving toward hiring part-time workers instead of full-time ones to mitigate the health-care overhaul’s requirement that large companies provide health insurance for full-time workers or pay a fee.
Several restaurants, hotels and retailers have started or are preparing to limit schedules of hourly workers to below 30 hours a week. That is the threshold at which large employers in 2014 would have to offer workers a minimum level of insurance or pay a penalty starting at $2,000 for each worker.
The shift is one of the first significant steps by employers to avoid requirements under the health-care law, and whether the trend continues hinges on Tuesday’s election results. Republican presidential nominee Mitt Romney has pledged to overturn the Affordable Care Act, although he would face obstacles doing so.
That’s really going to help the job situation, isn’t it?
When is government ever going to learn that its intrusion into the private affairs of men always has consequences, and, when they are outside the legitimate function of government in a free society, the effect is usually negative.
Congratulations Democrats, you’ve done it again.
At least temporarily. You may remember when we pointed our the story of the monks in Louisiana who were making coffins and the state was moving to stop them. Under Louisiana law, a place must be a “licensed funeral establishment” in which only “licensed funeral directors” may sell “funeral merchandise”.
Now everyone knows that around here we equate choice with freedom. And, what the state of Louisiana had done, at the behest of the The Louisiana State Board of Embalmers and Funeral Directors is place a restriction that set the bar to entry into the “funeral merchandise” business at a place where it essentially barred entry to anyone who wasn’t a licensed member of that guild. And, of course, the The Louisiana State Board of Embalmers and Funeral Directors controlled who did or didn’t get licensed.
So when the good brothers at St. Joseph Abbey began making hand crafted wooden coffins and selling them, they were in direct violation of the law the board had helped craft. More importantly, they were in competition with the carefully crafted state granted monopoly these people enjoyed.
They were told that the only choice they had was to do the following if they wanted to sell their caskets:
[They] must either give up the casket-selling business or become a licensed funeral establishment, which would require a layout parlor for 30 people, a display area for the coffins, the employment of a licensed funeral director and an embalming room.
That’s even though they only desired to make coffins.
When they refused, the board threatened.
[T]he Louisiana Board of Embalmers and Funeral Directors sent the monks a cease-and-desist letter, threatening thousands of dollars in fines and up to 180 days in prison based on a law prohibiting the sale of coffins without a funeral director’s license.
And then sued.
In July of last year, a Federal judge ruled in the Abbey’s favor, as we reported.
The monks won round one in July, when U.S. District Judge Stanwood R. Duval Jr. ruled Louisiana’s restrictions unconstitutional, saying “the sole reason for these laws is the economic protection of the funeral industry.”
So now the 5th Circuit has ruled and guess what? The monks have won again. And the 5th was not at all kind to the State Board or the state of Louisiana in its ruling:
In a sometimes harshly worded ruling, a panel of federal appellate judges Tuesday evening smacked down the Louisiana funeral board’s continued attempts to prevent the St. Joseph Abbey monks from selling their hand-crafted caskets. “The great deference due state economic regulation (does not require) courts to accept nonsensical explanations for naked transfers of wealth,” wrote Judges Patrick Higginbotham, Catharina Haynes and Stephen A. Higginson of the 5th U.S. Circuit Court of Appeals in New Orleans. “We insist that Louisiana’s rules not be irrational.”
The appellate judges sent the case to the Louisiana Supreme Court, refusing to consider the funeral board’s appeal of a previous court’s ruling that found it unconstitutional for the state to give funeral directors exclusive rights to sell caskets.
“Simply put, there is nothing in the licensing procedures that bestows any benefit to the public in the context of the retail sale of caskets,” U.S. District Court Judge Stanwood R. Duval Jr. ruled in July 2011. “The license has no bearing on the manufacturing and sale of coffins. It appears that the sole reason for these laws is the economic protection of the funeral industry,” which he wrote is not “a valid government interest.”
Of course, there’s no telling what the LA Supreme Court will do. However until then, the monks are free to sell their significantly less costly caskets in Louisiana without having to clear the high bar of entry set by the crony state.
Oh, and here’s the irony and another reason the court found for the monks:
“To be sure, Louisiana does not regulate the use of a casket, container, or other enclosure for the burial remains; has no requirements for the construction or design of caskets; and does not require that caskets be sealed,” according to the court. “Individuals may construct their own caskets for funerals in Louisiana or purchase caskets from out-of-state suppliers via the internet. Indeed, no Louisiana law even requires a person to be buried in a casket.”
As plain and transparent state enforced cronyism as one can find. There are certainly more, as we all know, and they’re practiced by all levels of government. But all of them, each and every one of them, should be identified, challenged and dismantled – root and branch. Government has no business using its force and power to protect businesses from competition because doing so limits choice and thereby limits its citizen’s freedom.
Cronyism has no place in a free society.
“Freedom is the right to question and change the established way of doing things. It is the continuous revolution of the marketplace. It is the understanding that allows to recognize shortcomings and seek solutions.”
Ronald Reagan — Address to students at Moscow State University, May 31, 1988
Remember the Orange Revolution? Believe it or not, it’s still pretty darned important.
We’re knee-deep in a presidential election. The European Union is witnessing a slow-motion meltdown. Syria is quickly becoming a bloody nightmare, while North Africa seethes under the vicissitudes of the Arab Spring. Iran marches closer to nuclear arms, and perhaps war with Israel. And Sino-Japanese relations threaten to simmer out of control. So why care about the Ukraine?
The simple answer is because Ukrainians have had a taste of freedom, and liked it, and we should encourage that journey towards liberalization to continue. We have an interest in such development – via free and fair elections, open markets and greater legal protections in its reformed court system – because this is how individuals become personally invested in the growth of the nation, and thus how liberty spreads. As President Reagan emphasized in 1981, “only when individuals are given a personal stake in deciding economic policies and benefiting from their success — only then can societies remain economically alive, dynamic, progressive, and free.” The more societies like that in the world, and especially in the Eurasian region, the better. And this is exactly where Ukraine is poised to go.
Unfortunately, we may be taking steps to discourage further liberalization in the form of a Senate resolution essentially demanding that Ukraine act exactly like a western democracy immediately or face consequences. The reality is that the former soviet republic of nearly 50 million souls is at a crossroads. Will they continue to move towards alignment with the West, or turn back towards familiar haunts in Moscow?
To be sure, the current government has expressed great interest in being integrated into the European Union, going so far as to ink an Association Agreement in March:
The Association Agreement creates a framework for cooperation and stipulates establishing closer economic, cultural, and social ties between the signees. Moreover, Brussels officials expect the document to promote the rule of law, democracy, and human rights in Ukraine.
This first step to entering the EU (which still needs to be ratified) requires a concrete demonstration from Ukraine that it is moving towards “an independent judicial system, free and fair elections and constitutional reform.”
These are exactly the sorts of reforms that serve to expand liberty. Indeed, as Ukraine has liberalized over the past two decades since independence, it has since fits and starts of great economic growth and expanded prosperity. For example, between 2001 and 2008, the economy expanded at an average rate of 7.5%, and despite a severe downturn in 2009, it has continued to grow with exports increasing by 30% in 2010 alone. Indeed, Ukraine is ranked by CNBC.com as the second best country for long-term growth in the world, right behind the Philippines. Ukraine has also begun to institute judicial reforms that promise to train better judges, hold them accountable, and strengthen the fairness of the system that has long been burdened with rampant corruption and cronyism. And for the first time ever, outside election observers will be allowed to monitor the parliamentary elections this month.
Yet, these necessary and welcome reforms lie on a fragile bed.
Ukraine has been moving toward a market economy since it declared independence in 1991. The way has been extremely difficult and bumpy. Twenty years after the beginning of market reforms, Ukraine is still struggling to build a strong, transparent, and sustainable economic system that can provide the Ukrainian people with economic prosperity and social security.
Moving towards greater integration with the West, via the EU, will strengthen that bed. Demanding that Ukraine act as a long-established western democracy right now, today, only serves to further weaken it :
Economics 101 defines the problem of scarcity as unlimited wants with limited resources, and, to paraphrase George Shultz, the laws of economics apply as much in foreign policy as they do at home. While it may be rhetorically satisfying and politically convenient for Americans to assert an equal commitment to every priority in Ukraine, ranging from democratic development to removal of weapons-grade uranium, the reality is that some priorities are achievable, at an acceptable cost and within a realistic timeframe, while others are not.
If we cannot advance all of our values and all of our interests all of the time, then we are left with the necessity of ranking our national priorities. While it is clearly important that Ukraine put an end to politically motivated prosecutions, it bears asking whether resources and attention from Washington that have been focused exclusively on this issue are crowding out other compelling U.S. national interests.
The Orange Revolution was not a battle or a war. It was, and is, a movement. Our national interests will always be aligned with fostering greater liberty, which is what the Orange Revolution movement is all about. Instead of throwing up roadblocks in the Senate, we should be helping build road signs that lead towards further peace, prosperity and freedom.
Here’s how markets work. From Toyota:
It said today it will not release its proposed mass-market mini e-car, the eQ. The reason: there’s no demand for it, not while battery technology is failing to provide comparable range to a tank of petrol. The natural gas boom in the US has seen prices of the fuel plummet, in turn reducing the cost of electricity generated by burning it. The Japanese car maker said today it will release 21 hybrid gas-electric models in its line-up by 2015.
“The current capabilities of electric vehicles do not meet society’s needs, whether it may be the distance the cars can run, or the costs, or how it takes a long time to charge,” said, Uchiyamada, who spearheaded Toyota’s development of the Prius hybrid in the 1990s.
Here’s the market not working because of government intrusion (and ownership):
Nearly two years after the introduction of the path-breaking plug-in hybrid, GM is still losing as much as $49,000 on each Volt it builds, according to estimates provided to Reuters by industry analysts and manufacturing experts.
Cheap Volt lease offers meant to drive more customers to Chevy showrooms this summer may have pushed that loss even higher. There are some Americans paying just $5,050 to drive around for two years in a vehicle that cost as much as $89,000 to produce.
It currently costs GM “at least” $75,000 to build the Volt, including development costs, Munro said. That’s nearly twice the base price of the Volt before a $7,500 federal tax credit provided as part ofPresident Barack Obama‘s green energy policy.
A pity these things have to be continually pointed out. But, of course, it won’t stop those who want government to decide what we should be driving instead of consumers and think subsidies will foster that desired behavior.
Two non-partisan government agencies — the Congressional Budget Office in Washington, D.C. and Parliament’s Select Transport Committee — conclude that during the next decade at least, the giveaways will have little impact on sales of plug-in hybrid and all-electric vehicles, or on gasoline consumption and greenhouse-gas emissions. Their main beneficiaries: affluent purchasers who’d buy the vehicles anyway.
“… during the next decade at least …?” Love that caveat, don’t you? They never work if it is something consumers don’t want. See current example for proof. In the case of the market, it’s moved on … and much faster than government can react. As usual, government has backed a loser.
The frenzy over shale gas deep under Ohio and other states has the makings of a different kind of rush on the nation’s highways. Businesses, cities, metropolitan transit systems and even school districts across the nation are edging toward a switch from diesel and gasoline to natural gas. Converting cars and light trucks to use either gasoline or natural gas is expensive. And heavy trucks designed specifically for natural gas also cost more than conventional diesels. But at current prices, engines that can run on natural gas cut fuel bills in half or better.
And GM has the Volt. You have to laugh at the fact that the central planners invariably always get it wrong.
You’d have think we’d have learned that by now, wouldn’t you?
Did most of you know about this?
The U.S. Energy Information Administration’s (EIA) June energy report says that energy-related carbon dioxide fell to 5,473 million metric tons (MMT) in 2011.
That’s down from a high of 6,020 MMT in 2007, and only a little above 1995’s level of 5,314 MMT.
Better yet, emissions in the first quarter of 2012 fell at an even faster rate — down 7.5% from the first quarter of 2011 and 8.5% from the same time in 2010. If the rest of 2012 follows its first-quarter trend, we may see total energy-related carbon dioxide emissions drop to early-1990s levels.
Wow. Victory for the enviro crowd, yes? Regulation has succeeded, right? The government has turned the tide?
Nope. In fact it has nothing to do with the enviro crowd, government or regulation.
Two dirty words: Hydraulic fracking. Two more for good measure: Natural gas. And the dirtiest word of all: Markets.
Those three have combined, via a price point that has stimulated demand and made the conversion of coal plants economical to drive down emissions as they produce electricity more cheaply and efficiently. This trend began in 2007 and is now having a real effect:
Increasingly, power plants are turning to natural gas because it has become abundant, and therefore cheap. And though technology is improving our ability to reduce emissions from coal usage, natural gas is still a much cleaner source.
Natural gas, given the extensive finds and the exploitation, is much cheaper than coal now. In fact:
Indeed, natural gas has just passed an important milestone. As noted by John Hanger, energy expert and former secretary of the Pennsylvania Department of Environmental Protection: "As of April, gas tied coal at 32% of the electric power generation market, nearly ending coal’s 100-year reign on top of electricity markets."
That’s how it works in markets, or is supposed too. The fact that emissions are down is an actual side benefit of the process. And it is a process that has managed to work despite government and environmental groups like the Sierra Club’s interference or attempted interference in the process (the Sierra Club has declared war on natural gas and fracking after accepting millions in previous years from the natural gas industry).
It is a part of the creative destruction of the capitalist process. Coal will still have its uses, but just as it was replaced as a primary fuel for heating homes last century, it is now being replaced as a primary fuel for generating electricity for the same reason – there is a cheaper and more efficient fuel (which also happens to have fewer emissions) that is easier to produce and deliver than coal.
At some point coal producers will either have to reinvent themselves or find something else to do. And on the other side, opportunities will expand within the natural gas industry as more and more demand builds.
But shhhhh. Don’t want anyone knowing this all happened because of markets. Why that would hurt the argument that it requires government intrusion, regulation and the pressure of environmental groups to make things like this happen.
Can’t have that.
Ed Morrissey sums up the “new” GM:
Americans sunk tens of billions of dollars into General Motors in 2008 and 2009, money which they won’t see any time soon, if at all. The Obama administration strongarmed senior creditors in an unprecedented politically-engineered bankruptcy to get taxpayers to eat the costs of old pension obligations and boost the UAW. All of this was done in the name of making GM a stronger company so that they could eventually pay back the bailout and make better decisions in the future. [emphasis mine]
Remember the other day when I talked about corporate cultures and how it was important to change them when a company is going down the tubes because of their present one? And how bankruptcy – real bankruptcy – has a tendency to help make that corporate culture change a reality.
Yeah, well that didn’t happen at GM with predictable results:
Attention U.S. taxpayers: You now own a piece of a French car company that is drowning in red ink.
That’s right. In a move little noticed outside of the business pages, General Motors last week bought more than $400 million in shares of PSA Peugeot Citroen – a 7 percent stake in the company. …
Peugeot can undoubtedly use the cash. Last year, Peugeot’s auto making division lost $123 million. And on March 1 – just a day after the deal with GM was announced – Moody’s downgraded Peugeot’s credit rating to junk status with a negative outlook, citing “severe deterioration” of its finances.
In other words, General Motors essentially just dumped more than $400 million of taxpayer assets on junk bonds.
An analysis by auto industry consultants IHS said it is “somewhat baffling that GM is willing to get involved in an alliance that it frankly does not need for size or complexity, while still avoiding any public plan to rationalise its European production, cut costs, or deal with labour rates.”
Well, the investment in Solyndra was “somewhat baffling” to most analysts, but it didn’t stop the Department of Energy from guaranteeing it, did it?
GM needs a 7% stake in Peugeot like it needs the Chevy Volt. Don’t forget, it loses money every year in Europe. And now it owns 7% of another car company posting huge losses.
It hasn’t yet been able to pay the tax payers back for the “investment” they were forced to make in the company although they have found the time to pay bonuses to employees and executives, some of whose accomplishments apparently include this decision.
Trying to justify the unjustifiable with a pep-rally like political speech to the UAW, Obama points to what he contends are the favorable results of his decision to intrude into the auto market and rearrange the bankruptcy process to favor his cronies.
I know our bet was a good one because I had seen it pay off firsthand. But here’s the thing. You don’t have to take my word for it. Ask the Chrysler workers near Kokomo — (applause) — who were brought on to make sure the newest high-tech transmissions and fuel-efficient engines are made in America. Or ask the GM workers in Spring Hill, Tennessee, whose jobs were saved from being sent abroad. (Applause.) Ask the Ford workers in Kansas City coming on to make the F-150 — America’s best-selling truck, a more fuel-efficient truck. (Applause.) And you ask all the suppliers who are expanding and hiring, and the communities that rely on them, if America’s investment in you was a good bet. They’ll tell you the right answer.
Of course Chrysler is now owned by a foreign auto company, courtesy of the Obama administration, Ford took no federal money and, had normal bankruptcy proceeded, taxpayers wouldn’t be out $80 billion dollars (still unpaid despite claims to the contrary) and a leaner, more competitive GM would be in existence. Those suppliers would still be supplying and after the shakeout a more viable corporation would have come into existence.
Speaking of those GM workers in Spring Hill, TN, Kaus lays out another reality that the president doesn’t present:
Toyota and Honda are coming back online after the tsunami and Southeast Asia floods crippled production. VW is building roomy American-style cars in Tennessee using $14.50/hour non-union workers instead of $28/hour UAW workers. Hyundai is expanding rapidly. Competition is going to be vicious–it’s widely believed there’s still overcapacity in the industry. A new oil price spike could crimp sales of high-profit trucks. Will GM still be making money in 5 years? Or, I should say, will GM still be making money building cars in the U.S. (as opposed to importing them from China) in 5 years? I’m skeptical. I don’t think deficient corporate cultures change that easily. Normally we rely on the market to simply kill them off.
The two points to be made here are important. One, GM’s current “success” is a result of huge infusion of taxpayer money. Its problem was/is its corporate culture and its unions. Neither problem have been addressed or fixed. Instead, like Solyndra, they’ve simply been given an extension via the taxpayer that will eventually run out. Secondly, as competing auto companies using non-union labor continue to locate in right to work states and pay a competitive wage (but not the high end union wage), they will continue to take market share from GM, who is still stuck with that toxic corporate culture and grasping unions.
But, of course, Obama won’t care because he’ll be out of office. This is the usual short term vote buying, just on a grander scale than we’ve ever seen it before. Crony capitalism at its worst.
Long term viability?
Who cares? Certainly not President Obama.
At Powerline, John Hinderaker points to an article by Janet Daley in the Daily Telegraph and ponders the question she asks – “why has the collapse of Communism had so little impact on political discourse in the West?”
[I]n spite of the official agreement that there is no other way to organise the economic life of a free society than the present one (with a few tweaks), there are an awful lot of people implicitly behaving as if there were. Several political armies seem to be running on the assumption that there is still a viable contest between capitalism and Something Else.
If this were just the hard Left within a few trade unions and a fringe collection of Socialist Workers’ Party headbangers, it would not much matter. But the truth is that a good proportion of the population harbours a vague notion that there exists a whole other way of doing things that is inherently more benign and “fair” – in which nobody is hurt or disadvantaged – available for the choosing, if only politicians had the will or the generosity to embrace it.
Why do they believe this? Because the lesson that should have been absorbed at the tumultuous end of the last century never found its way into popular thinking – or even into the canon of educated political debate. …
he fall of the Berlin Wall and the collapse of communism which followed it are hugely important to any proper understanding of the present world and of the contemporary political economy. Why is it that they have failed to be addressed with anything like their appropriate awesome significance, let alone found their place in the sixth-form curriculum?
The failure of communism should have been, after all, not just a turning point in geo-political power – the ending of the Cold War and the break-up of the Warsaw Pact – but in modern thinking about the state and its relationship to the economy, about collectivism vs individualism, and about public vs private power. Where was the discussion, the trenchant analysis, or the fundamental debate about how and why the collectivist solutions failed, which should have been so pervasive that it would have percolated down from the educated classes to the bright 18-year-olds? Fascism is so thoroughly (and, of course, rightly) repudiated that even the use of the word as a casual slur is considered slanderous, while communism, which enslaved more people for longer (and also committed mass murder), is regarded with almost sentimental condescension. …
[I]n our everyday politics, we still seem to be unable to make up our minds about the moral superiority of the free market. We are still ambivalent about the value of competition, which remains a dirty word when applied, for example, to health care. We continue to long for some utopian formula that will rule out the possibility of inequalities of wealth, or even of social advantages such as intelligence and personal confidence.
The idea that no system – not even a totalitarian one – could ensure such a total eradication of “unfairness” without eliminating the distinguishing traits of individual human beings was one of the lessons learnt by the Soviet experiment. The attempt to abolish unfairness based on class was replaced by corruption and a new hierarchy based on party status.
If the European intellectual elite had not been so compromised by its own broad acceptance of collectivist beliefs, maybe we would have had a genuine, far-reaching re-appraisal of the entire ideological framework. [Emphasis mine].
We could spend a week discussing any of those highlighted passages, but the question remains – why? In fact, if you think about it, the collapse of communism was all but shrugged off by the left. It wasn’t, as it seemed, of any consequence to their ideology. In fact, for the most part, other than a few “good riddance” quotes, it was business as usual for the left, pushing many of the same ideological principles that underpinned communism as if they were not a reason for that horrific system’s collapse.
As Daley says, its failure should have been a turning point in geo-political power and thinking about the state and its relationship to the economy. But instead there was silence while left leaning governments both here and in Europe doubled down on state intrusion into the economies of their respective states.
The key is to be found in the last emphasized sentence. Unfortunately, there has been a sea-change in much of our thinking which has indeed seen a “broad acceptance” of “collectivist beliefs”. If ObamaCare leaped to your mind immediately, what actually makes the point is Medicare Part D. That’s the “broad acceptance” necessary – compromise of principle on the right – to carry this sort of an agenda forward.
Sure ObamaCare was passed without a single GOP vote, but it was set up by many past GOP compromises. The problem is the right has allowed the left to define both the playing field and the principles of play. It has also framed what little discussion that goes on. It has decided on envy as its vehicle and class warfare as its methodology. And the right has meekly accepted those parameters. Watch the current crop of GOP candidates spend much of their time apologizing for their success instead of celebrating it and tell me the propaganda war hasn’t gone to the left.
And on the left? Why has the result of communism’s collapse been essentially ignored? For two reasons. John Hideraker’s take on the left for one:
I think a very partial answer to the question Ms. Daley poses is that leftism has never been based on idealism. It has always been based, for the most part, on hate and envy. So when Communism was conclusively proved to be a failure, leftists (including not only leftists in politics, but more important, leftists in the media and in academia) didn’t change their minds or admit their mistake. For in their eyes, while there may have been disappointment, there was no mistake. Their resentments and hatreds remained. They merely sought other vehicles, other terminologies, other tactics to bring down the West and the free enterprise system and democratic institutions that define it. Yesterday’s socialists are today’s progressives. They barely missed a beat.
I think there is a lot of truth to that analysis, although I’d quibble somewhat on the dismissal of idealism. I’ve always said the left never viewed communism as a systemic failure but more of a failure based on the fact that the wrong people were executing the idea poorly. There’s never really been an acknowledgement on the left that communism itself was “wrong”, “bad” or even totalitarian. Just that some of those who got into power under that system were (if they’ll admit even that).
And it is hard to look at the left of today, view their ideology and conclude they’ve learned a thing by its collapse. While they’ve certainly learned that it is unwise to use certain words or phrases when pushing their agenda (you won’t see “proletariat” or “bourgeoisie” tossed around by today’s lefty, but “middle class” and “[pick your favorite class to denigrate] elite” work along with “Big this” and “Big that”.
The truth in Daley’s point is to be found in reviewing how we’ve gotten to where we are today since the collapse of the Berlin Wall. We’re much less free economically and politically. The left continues to define the debate and the right continues to accept the framing. How can you have a real discussion about the failures of communism specifically and collectivism in general when you continue to allow the collectivists to frame the discussion? Naturally they’re going to pretend that nothing untoward happened with the demise of the USSR and Warsaw pact. Why would they?
I mean think of the irony – over 20 years after its collapse, the principles of socialism and its offspring communism continue to touted as “the answer” while the system that sharply defined the West until then and made it more successful by orders of magnitude – capitalism (or a reasonable facsimile thereof) – is under constant and sustained assault.
Talk about a world upside down.
As I mentioned in an earlier post, it is frightening to read the words by this President and it is hard not be appalled by the apparent economic ignorance they contain. We’ve remarked on it several times. In particular this statement is stunning in that regard:
Factories where people thought they would retire suddenly picked up and went overseas, where workers were cheaper. Steel mills that needed 100—or 1,000 employees are now able to do the same work with 100 employees, so layoffs too often became permanent, not just a temporary part of the business cycle. And these changes didn’t just affect blue-collar workers. If you were a bank teller or a phone operator or a travel agent, you saw many in your profession replaced by ATMs and the Internet.
Richard Epstein of the Hoover Institution noticed it too. And in very blunt language, points the very same thing we’ve been talking about:
To anyone schooled in economics, these statements reveal a breathtaking ignorance about the sources of national prosperity. It is a good thing when plants can achieve the same output with less labor. Do we really want an America in which thousands of people work in dangerous occupations to turn molten lava into steel bars? Far better it is that fewer workers are doing those jobs. The jobs lost in that industry will be in part replaced by newer jobs created in the firms that build the equipment that make it possible to run steel mills at a lower cost and far lower risk of personal injury. The former workers can seek jobs in newer industries that will only expand by competing for labor.
And what about those ATM machines? Does the president really want people to have to queue up in banks to make deposits or withdraw cash in order to make a boom market for human tellers? Perhaps we should return to the days before automation, when phone calls were all connected by human operators. And why blast the Internet, which has created far more useful jobs than it has ever destroyed?
The painful ignorance that is revealed in these remarks augurs ill for the long-term recovery of America. With the president firmly determined to set himself against the tides of progress, innovation will be harder to come by. The levels of unemployment will continue to be high as the president works overtime to impose additional restrictions on the labor markets and more taxes at the top of the income distribution—both backhanded ways to reward innovation and growth.
The problem, therefore, with the president’s speech is not that it is demagogic in tone. The problem is that it is intellectually incoherent. As a matter of high principle, the president announces his fealty to markets. As a matter of practical politics, he denigrates and undermines them at every step. It is a frightening prospect to have a president who lives in a time warp that lets him believe that the failed policies of 1935 can lead this nation back from the brink. His chosen constituency, the middle class, should tremble at the prospect that his agenda might well set the course for the United States for the next four years.
Well said, but frightening. Take the time to read the rest of Epstein’s piece. It’s worth the read.
I‘ve mentioned before about the seemingly unbridgeable ideological divide confronting our federal representatives in Washington, DC. This seems to be a generational version of the same thing (my emphasis):
Young folks today appear to have the same dreams and ambitions that my generation had at the same age. We wanted an education, a good career, a home of our own and a happy life. The main difference between today’s youthful opinion is that most of us expected to stay in school, work hard and earn a good life instead of having it given to us at someone else’s expense — a point of view expressed by many young adults today.
Proof of the pudding showed up this fall in a survey conducted by Professor Jack W. Chambless at Valencia College in Florida. He asked his students to write a short essay expressing their view of The American Dream.
Most of the students responded with the familiar notions of youth expressed by my generation with one important and notable exception. Instead of taking personal responsibility for their future, they noted that the government should, “Pay my tuition, provide me with a job, give me money for a house, make sure I get free health care and pay for my retirement.” If necessary, “… raise taxes on rich people so that I can have more money …”
What else would you expect from young Americans, who, after several generations, have grown accustomed to a “Nanny State” in which the Federal Government has taken more and more license with the lives of individual Americans? This entire process has resulted in a citizenry in which one-half of wage earners pay no income tax at all and, indeed, in some cases even get a “refund” even though that refund comes from one of the other half of Americans who have paid income tax. If this is not a prime Marxist example of government, “From each according to his ability; to each according to his need,” I don’t know what is.
In fact, according to clip below, 80% of the students opined that health care, tuition, down payments and jobs should all be provided by the government at no cost to themselves. And, while this certainly isn’t a scientific poll or anything even approaching the sort, it should be noted that this was from a class of 200 college kids. So, at least 160 of them thought this way. Which is more than just pathetic and sad. It’s a harbinger of terrible things to come.
I truly pray that Valencia College has cornered the market on freeloaders, thus making this a terribly skewed sample. Or maybe the students surveyed are just a bunch of smart-asses having fun with their professor. Indeed, I’m sure that something far less than 8 in 10 college students believes that government should just provide for their every want and desire, paying for out of the pockets of the “rich” if need be (one wonders where they think all these goodies originate?).
But the number doesn’t really need to be all that high before serious issues arise. If, instead, the number is only 20% (or 1 in 5), that would be better, but still alarming. Consider that if 20% of the electorate feels this way, and that the remaining 80% are diametrically opposed on almost every issue, then pleasing that smaller cohort becomes the key to political victory. In short, giving free stuff to the 20% in exchange for their votes. Which is not at all unlike what we have now.
Of course if that number is higher that 1 in 5, the problem becomes much worse. At least, until they run out of other people’s money.
You can see a video of an interview with the professor who conducted the survey here.