Category Archives: Economics

Business, Economics, Political Commentary

The Administration’s War On Business

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The head of Home Depot calls them out on it:

IBD: If you could sit down with Obama and talk to him about job creation, what would you say?

Marcus: I’m not sure Obama would understand anything that I’d say, because he’s never really worked a day outside the political or legal area. He doesn’t know how to make a payroll, he doesn’t understand the problems businesses face. I would try to explain that the plight of the businessman is very reactive to Washington. As Washington piles on regulations and mandates, the impact is tremendous. I don’t think he’s a bad guy. I just think he has no knowledge of this.

He’s being too generous. There’s little evidence that he’s a good guy.

Business, Economics, Media Criticism, Political Commentary, Popular Culture, Social Commentary

The Core Belief Of Leftism

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Robin Hanson:

The far future seems to have put Frase in full flaming far mode, declaring his undying allegience to a core ideal: he prefers the inequality that comes from a government hierarchy, over inequality that comes from voluntary trade.

Yes, he prefers a world in which everyone is equal, but some are more equal than others. And as Glenn notes:

I always figure that people who feel this way do so because they think they’re better at sucking up to authority figures than at creating value on their own. And my guess is, they’re right about that.

And the president is a canonical example.

Business, Economics, Political Commentary, Technology and Society

The Golden Age Of Drive Through

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An interesting look behind the scenes:

Go into the kitchen of a Taco Bell today, and you’ll find a strong counterargument to any notion that the U.S. has lost its manufacturing edge. Every Taco Bell, McDonald’s (MCD), Wendy’s (WEN), and Burger King is a little factory, with a manager who oversees three dozen workers, devises schedules and shifts, keeps track of inventory and the supply chain, supervises an assembly line churning out a quality-controlled, high-volume product, and takes in revenue of $1 million to $3 million a year, all with customers who show up at the front end of the factory at all hours of the day to buy the product. Taco Bell Chief Executive Officer Greg Creed, a veteran of the detergents and personal products division of Unilever (UL), puts it this way: “I think at Unilever, we had five factories. Well, at Taco Bell today I’ve got 6,000 factories, many of them running 24 hours a day.”

It’s as if the great advances of human civilization, in everything from animal husbandry to mathematics to architecture to manufacturing to information technology, have all crescendoed with the Crunchwrap Supreme, delivered via the pick-up window.

As Bill Whittle wrote a few years ago, an ancient Egyptian Pharaoh would marvel at a 7-11. We don’t realize what an age of miracles we live in, or how fragile it is.

Business, Economics, Media Criticism, Political Commentary

So Why Aren’t Businesses Hiring?

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(Democrat) Steve Wynn explains:

…this administration is the greatest wet blanket to business, and progress and job creation in my lifetime. And I can prove it and I could spend the next three hours giving you examples of all of us in this market place that are frightened to death about all the new regulations, our healthcare costs escalate, regulations coming from left and right. A President that seems, that keeps using that word redistribution. Well, my customers and the companies that provide the vitality for the hospitality and restaurant industry, in the United States of America, they are frightened of this administration. And it makes you slow down and not invest your money. Everybody complains about how much money is on the side in America.

You bet and until we change the tempo and the conversation from Washington, it’s not going to change. And those of us who have business opportunities and the capital to do it are going to sit in fear of the President. And a lot of people don’t want to say that. They’ll say, God, don’t be attacking Obama. Well, this is Obama’s deal and it’s Obama that’s responsible for this fear in America.

The guy keeps making speeches about redistribution and maybe we ought to do something to businesses that don’t invest, they’re holding too much money. We haven’t heard that kind of talk except from pure socialists. Everybody’s afraid of the government and there’s no need soft peddling it, it’s the truth. It is the truth. And that’s true of Democratic businessman and Republican businessman, and I am a Democratic businessman and I support Harry Reid. I support Democrats and Republicans. And I’m telling you that the business community in this company is frightened to death of the weird political philosophy of the President of the United States. And until he’s gone, everybody’s going to be sitting on their thumbs.

Anyone who ever imagined that Barack Obama was a “centrist” was using some pretty exotic drugs.

[Update a couple minutes later]

Why the Democrat Party is doomed:

Like it or not, Obama is not the new FDR, but the new Gorbachev: a man forced to preside over the demise of a political system he desperately wants to save.

Democrat champions in the punditocracy confidently predict that the future of the world’s oldest political party is bright. But in fact, the coalition that is the modern Democratic Party is doomed. Every pillar upholding its heavy roof is crumbling.

If so, it’s not a decade too soon. I hope he’s right.

Business, Economics, Media Criticism, Political Commentary

“A Chilling Interview”

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With tax cheat Tim Geithner.

If you are for individual liberty, and the American Dream it should be chilling. Shivers went up my spine. Geithner is a character straight out of central casting.

With regard to the debt ceiling, Geithner doesn’t offer up a compromise at all. It’s the administration’s way, or the highway. This means that there is only one way — vote out the Democrats by a significant margin in the House, Senate and get rid of Obama and his very left wing administration in 2012.

He also outright lies about what will get paid and what won’t.

Listen to his words on Dodd-Frank: “Don’t listen to the bankers because their interests aren’t aligned with the American people.” It could be a phrase right out of Atlas Shrugged.

Bankers need a healthy economy to make money. Geithner and Obama want a government directed economy where government de facto owns the banks.

Listen to him talk about the new activist “Consumer Financial Protection Agency” and avowed big government/public sector ownership advocate Elizabeth Warren. Geithner has no faith in the private sector, or the individual. He wants to trample individual rights.

Also, a bonus reference to advocates of limited government and liberty as “anarchists.”

[Update a few minutes later]

Federal expansion — the real issue in the debt-limit debate.

Business, Economics, Political Commentary

Government Fat Cats

An interview with Iain Murray (my colleague at the Competitive Enterprise Institute) on his new book.

[Update a few minutes later]

An excerpt:

LOPEZ: What do you have against the Consumer Product Safety Commission? Do you like lead in toys?

MURRAY: No, I don’t like lead in toys, but I don’t like people who make toys that have never been anywhere near lead being forced to pay $30,000 to prove that to the CPSC, which gets to almost double its budget to administer these ludicrous requirements. I don’t like the fact that libraries have had to sequester children’s books that were printed before 1985 and may have to burn them. Above all, I don’t like the fact that the people who did put lead in our children’s toys were able to lobby for and win an exemption to the testing requirements. Again, this is an issue where people who like wooden toys — often, in my experience, on the liberal end of the political spectrum — can come together with conservatives to oppose this insanity.

LOPEZ: Is anybody doing this reform right?

MURRAY: People such as Scott Walker in Wisconsin and John Kasich in Ohio have twigged that current conditions are unsustainable and have shown political courage in standing up to the government-sector special interests. It’s been a long fight so far and they may yet lose, but they’re showing the way. At the local level, there are municipalities that have done it right, essentially doing away with their government sector entirely. Sandy Springs in Georgia springs to mind. Some places, such as the Southside Fire Department, also in Georgia, have even worked out how to protect public safety without the bureaucracy.

LOPEZ: Does the Tea Party know this?

MURRAY: The Tea Party understands this can’t go on, but isn’t great when it comes to promoting workable solutions. I’m completely with the Tea Party in terms of motivation, so that’s one of the reasons I wrote the book, to give them some suggestions for workable solutions that can get us from here (Greece) to there (a functioning liberal democracy).

LOPEZ: How much of this is about the New Deal and the Great Society?

MURRAY: The New Deal showed the way, but much of this is more recent. In 1990, we spent $2 trillion in today’s dollars. By 2000 we’d only added $300 billion to that, but in the past decade that’s gone up by a further $1.4 trillion. Moreover, even at the height of the New Deal, FDR recognized that allowing government workers to unionize was asking for trouble.

Read the whole thing.