Category Archives: Economics

Business, Economics, Political Commentary

“Essential” Air Service

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Here’s just one more example of why we have trillion-dollar deficits:

…the EAS program has mushroomed into a airline routing program based on political favors. And the subsidy doesn’t go to the traveling public; it goes to the air carriers. The $3,700 per passenger subsidy, for example, has been championed by Senate Majority Leader Harry Reid (D-NV), who fought and won the earmark for keeping open air service for Ely, Nevada (population: 4,000).

How inefficient is the EAS program? While the Feds pay out $3,700 per passenger to airlines to fly from Ely to Las Vegas, Southwest Airlines sells tickets for Las Vegas to Chicago nonstop for as little as $153 one-way — about 10 cents per mile.

And no matter how much they claim to be in favor of small government, you can always find someone who will defend their own pet program:

Faye Malarkey Black, a vice president for the Regional Airline Association, said she believes few federal programs are worth it.

“They call it essential for a reason,” she told the Associated Press. She said her industry group supports “common sense adjustments” for eligibility, but added that rural communities already face many struggles to keep people from leaving.”If you take away air service, who wants to live in those communities?” she asked.

How and when did it become the responsibility of the federal taxpayer to ensure that rural communities don’t die? The American west is dotted with towns that came, and then, when there was no longer any economic justification for them, went. What is the benefit to someone in Florida to make sure that Muskegon, Michigan has air service, or that it exist at all (not that Muskegon is likely to go away for the lack of it — as the article notes, it’s only forty miles from Grand Rapids)? If we are going to solve our fiscal problems, we need to completely rethink the role of the federal government. That is the core of what next year’s election, now barely thirteen months away, should be about.

Business, Economics, Media Criticism, Political Commentary

Obama’s Hail Mary

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Thoughts on the desperation of the collapsing presidency:

Once again, the president, who earlier extended President George W. Bush’s “tax cuts for millionaires,” is entering self-parody mode. Mr. Obama is like an Apple iPhone commercial but not in a good way. Need jobs? There’s a tax for that. Want health care? There’s a tax for that. Support energy reform? There’s a tax for that. Feel guilty about your success? There’s a big tax for that.

Assuaging liberals’ guilt is never easy, but assuaging billionaire liberals’ guilt is darn near impossible, at least in the case of Warren Buffett. The Oracle of Omaha is the namesake of Mr. Obama’s so-called “Buffett Rule,” which, simply stated, is this: Billionaires like Mr. Buffett who refuse to pay their own billion-dollar tax bills can proclaim moral superiority by calling for increased taxes on hardworking, job-producing Americans who dare to earn $200,000 a year.

Leaving aside the unbelievably poor judgment of naming a tax-increase rule after a billionaire who is in a dispute with the Internal Revenue Service over back taxes (was “Timothy F. Geithner TurboTax Rule” already taken?) the plan is based on the outright false claim that millionaires pay less in taxes than middle-class earners. That claim is “nothing more than an urban legend,” according to an Associated Press fact check. This election ploy will not be mistaken for a serious economic plan. Heck, it won’t even be mistaken for a competent election ploy.

He was mistaken for being competent once, though never by me, but I think the rubes have caught on.

Business, Economics, Media Criticism, Political Commentary

Obama’s Fascist Economy

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Observations over at The American Thinker:

A key characteristic of the reality of fascist thinking is rampant cronyism and corruption. Certain capitalists, wishing to ingratiate themselves with the state, are willing to fund the election of those in power in exchange for favorable government contracts and avoidance of regulatory wrath. Recently, much of Wall Street, Hollywood, the unions, major companies such as General Electric, and the super-wealthy such as Warren Buffett are willing to sleep with those in power and be used as props in any propaganda campaign initiated by the Obama regime.

The Obama administration has, through the Justice Department and other agencies, behaved exactly as many quasi-fascist regimes in the past — almost all of whom have been governed by groups of friends and associates who appoint each other to government positions and use governmental power and authority to protect themselves and their friends from accountability.

The term “fascism” has been redefined by the horrendous acts of Mussolini and Hitler, actions spurred by their megalomania and nationalism. However, the economic philosophy that is fascism is alive and well and being pursued in the United States by those whose desire it is to control the people of the country and reinforce their domestic power base, not to conquer the world. Yet the pursuit of the same tenets that motivated Franklin Roosevelt has prolonged and exacerbated the current economic disaster facing the United States.

Sadly, the crony capitalism inherent in the Senate Launch System is part of it. It’s bipartisan.

Business, Economics, Humor, Political Commentary

Compassionate Conservatism

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Frank J. takes pity on politicians:

I have to admit: I laughed the first time Obama said he was going to “pivot to jobs.” And the second time. And the third time. But by the sixth time, it was getting pretty sad.

And when he proposed his new “jobs bill,” he was so earnest about it that I found myself rooting for the poor guy. It’s just a desperate mishmash of ideas — like he knows that one button on the keyboard starts a program, so he’s going to mash all of them with his palm — and as funny as it is, I’m starting to worry that his blundering like this is getting in the way of people who actually do create jobs (namely, business owners and such).

So this has gone on long enough. I know some people don’t feel any sympathy for the politicians; much like reality-show contestants, they selected themselves for this mockery. Still, this is no way to treat fellow human beings or even lawyers.

Plus, what if eventually the politicians become so frustrated that one of them says, “I have a brilliant idea! Let’s drop an atomic bomb on our own country! The rebuilding it will require will create lots of jobs! We’ll call it the ‘Nuclear Deal.’” It wouldn’t even be their dumbest idea. (Actually, has anyone read through Obama’s entire proposal yet to make sure that’s not in there?)

That would be the Paul Krugman plan.