Certainty of decline, probability of catastrophe 245

Read only a few pages of HR3200,The Affordable Health Care Choices Act 2009, and once you’ve got the gist of what they’re saying let your eye wander over a hundred or so more, and you’ll know beyond all doubt that you are now owned by the government. The link:

http://thomas.loc.gov/

To put it bluntly, this act has changed the USA into the USSA – the United Socialist States of America:

Here is part of Mark Steyn’s must-read article on the immediate and future costs of it:

On the day President Barack Obama signed Obamacare into law, Verizon sent an e-mail to all its employees, warning that the company’s costs “will increase in the short term.” And in the medium term? Well, U.S. corporations that are able to do so will get out of their prescription drugs plans and toss their retirees onto the Medicare pile. So far just three companies – Deere, Caterpillar and Valero Energy – have calculated that the loss of the deduction will add a combined $265 million to their costs. There are an additional 3,500 businesses presently claiming the break. The cost to taxpayers of that 28 percent benefit is about $665 per person. The cost to taxpayers of equivalent Medicare coverage is about $1,200 per person.

So we’re roughly doubling the cost of covering an estimated 5 million retirees.

Now admittedly the above scenario has not been, as they say, officially “scored” by the Congressional Budget Office, by comparison with whom Little Orphan Annie singing “The Sun’ll Come Out Tomorrow” sounds like Morrisey covering “Gloomy Sunday.” Incidentally, has the CBO ever run the numbers for projected savings if the entire CBO were laid off and replaced by a children’s magician with an assistant in spangled tights from whose cleavage he plucked entirely random numbers? Just a thought.

This single component of “health” “care” “reform” neatly encompasses all the broader trends about where we’re headed – not just in terms of increased costs (both to businesses and individual taxpayers) and worse care (for those retirees bounced from company plans into Medicare), but also in the remorseless governmentalization of American life and the disincentivization of the private sector. As we see, even the very modest attempts made by Congress to constrain the 2003 prescription drug plan prove unable to prevent its expansion and metastasization. The one thing that can be said for certain is that, whatever claims are made for Obamacare, it will lead to more people depending on government for their health arrangements. Those 5 million retirees are only the advance guard. And, if you’re one of those optimistic souls whose confidence in the CBO is unbounded, let’s meet up in three years’ time and see who was correct – the bureaucrats passing out the federal happy juice, or the real businesses already making real business decisions about Obamacare.

Can we afford this? No. Even on the official numbers, we’re projected to add to the existing $8 trillion in debt another $12 trillion over the next decade. What could we do? Tax those big bad corporations a bit more? Medtronic has just announced that the new Obamacare taxes on its products could force it to lay off 1,000 workers. What do those guys do? Well, they develop products such as the recently approved pacemaker that’s safe for MRI scans or the InterStim bladder control device. So that’s a thousand fewer people who’ll be working on new stuff. Well, so what? The public won’t miss what they never knew they had. So, again, the effect is one of disincentivization – in this case, of innovation.

If existing tax structures can’t cover the costs, what can we do? Start a new tax! The VATman cometh. VAT is Euro-speak for “value added tax.” … This is yet another imposition on businesses, taking time away from wealth creation and reallocating it to government paperwork. If the Democrats hold Congress this fall, I would figure on VAT sooner rather than later.

All of the above is pretty much a safe bet. What about the imponderables? Even Obama hasn’t yet asked the CBO to cost out, say, what happens to the price of oil when the Straits of Hormuz are under a de facto Iranian nuclear umbrella – as they will be soon, because the former global hyperpower, which now gets mad over a few hundred housing units in Jerusalem, is blasé and insouciant about the wilder shores of the mullahs’ dreams. Or suppose, as seems to be happening, the Sino-Iranian alliance were to result in a reorientation of global oil relationships, or the Russo-Iranian friendship bloomed to such a degree that, between Moscow’s control of Europe’s gas supply and Tehran’s new role as Middle Eastern superpower, the economy of the entire developed world becomes dependent on an alliance profoundly hostile to it.

Which is to say that right now the future lies somewhere between the certainty of decline and the probability of catastrophe. What can stop it? Not a lot. But now that your “pro-life” Democratic congressman has sold out, you might want to quit calling Washington and try your state capital. If the Commerce Clause can legitimize the “individual mandate,” then there is no republic, not in any meaningful sense. If you don’t like the sound of that, maybe it’s time for a constitutional convention.

A transparently cynical ploy 113

It seems that Obama continues to take conservatives for fools, believing that he can easily trick or bribe them into acting against their own interest and the interest of the nation as they understand it.

From The Heritage Foundation:

Facing new polling showing that 52% of the American people believe that he does not deserve a second term in office, President Barack Obama attempted to reach out to conservatives yesterday by promising $8.33 billion in federal loan guarantees for a pair of nuclear reactors in Georgia. The President told an enthusiastic audience of union officials in Lanham, MD: “Those who have long advocated for nuclear power — including many Republicans — have to recognize that we will not achieve a big boost in nuclear capacity unless we also create a system of incentives to make clean energy profitable.”

In other words, as newspapers across the country have noted this morning, President Obama’s nuclear loan guarantee announcement is really nothing more than a transparently cynical attempt to revive his moribund cap-and-trade/energy tax proposals currently languishing in the Senate. In reality, the $8.3 billion announced yesterday is actually just a first down payment on the $18.5 billion in loan guarantees that were authorized under the Energy Policy Act of 2005. While the administration should be applauded for following the law, loan guarantees are not enough to recreate a robust nuclear industry in the United States. Indeed, an expansion of the program could do much more to stifle the industry’s growth than to help it.

And expanding the nuclear loan guarantee program is exactly the approach the Obama administration plans to pursue. Their 2011 budget provides an additional $36 billion in loan guarantee authority to nuclear energy projects. When added to the $18.5 billion previously authorized under the Energy Policy Act of 2005, the American taxpayer will now be subsidizing $54.5 billion in loans to the nuclear industry. But just as conservatives do not support subsidies for wind, solar or biomass energies, conservatives should not support subsidies for nuclear power, either. …

President Obama’s bureaucratic/special interest/Washington approach to energy policy is clear: tax and regulate those energies unpopular with his political base while subsidizing and mandating the use of those energies that his supporters favor. This is the same approach the United States tried in the 1970s under President Jimmy Carter, and it was a colossal failure.

What America really needs is a true free market approach to the energy sector, and the nuclear industry is a great place to start. Specifically, the federal government should: limit the loan subsidies of Energy Policy Act of 2005 to existing law; avoid creating a government-dependent nuclear industry; remain committed to scientific conclusion on Yucca Mountain; introduce market principles into nuclear waste management reform; and focus the government on key responsibilities like establishing predictable and effective regulation that will ensure safety and security.

Just as with the health care debate, the White House seems to believe they can win conservative support for their big government policies by buying off selected industries. What the White House continues to fail to realize is that true conservatives are pro-market, not pro-business. Subsidies and mandates are never the answer to an ill-functioning market. A predictable and reliable regulatory framework where firms and consumers can find the best solutions through undistorted price signals is the better approach for energy, health care … and really just about everything.

A thing of spit and cobwebs 152

Man-made Global Warming was a thing built with the spit and cobwebs of cynical political manipulation and ingenuous credulity.

Warmists are struggling ever more frantically to defend their myth. No wonder. Not only reputations but whole industries have been built on it and TRILLIONS  have been invested in them. Governments have distorted economies because of it. Untold millions of people have been so convinced of it they cannot swallow the fact that it has been exposed as untrue. It is  believed in by many as a religious faith, and like any religious faith it may long continue to hold them in its spell.

The great economist Walter Williams writes about this at Investor’s Business Daily:

John Coleman, founder of the Weather Channel, in an hourlong television documentary five-part series titled “Global Warming: The Other Side,” presents evidence that our National Climatic Data Center has been manipulating weather data in the same way as the now-disgraced and under-investigation University of East Anglia Climate Research Unit. The NCDC is a division of the National Oceanic and Atmospheric Administration. Its manipulated climate data are used by the Goddard Institute of Space Studies, a division of the National Aeronautics and Space Administration. …

Mounting evidence of scientific fraud might make little difference in terms of the response to man-made global warming hysteria. Why? Vested economic and political interests have emerged where trillions of dollars and social control are at stake. Therefore, many people who recognize the scientific fraud underlying global warming claims are likely to defend it anyway.

• Automobile companies have invested billions in research and investment in producing “green cars.”

• General Electric and Philips have spent millions lobbying Congress to outlaw incandescent bulbs so that they can force us to buy costly compact fluorescent light bulbs (CFL).

• Farmers and ethanol manufacturers have gotten Congress to enact laws mandating greater use of their product, not to mention massive subsidies.

• Thousands of major corporations around the world have taken steps to reduce carbon emissions, including giants like IBM, Nike, Coca-Cola and BP, the oil company. Companies like Google, Yahoo and Dell have vowed to become “carbon neutral.”

Then there’s the Chicago Climate Futures Exchange that plans to trade in billions of dollars of greenhouse gas emission allowances. Corporate America and labor unions, as well as their international counterparts have a huge multitrillion-dollar financial stake in the perpetuation of the global warming fraud. Federal, state and local agencies have spent billions of dollars and created millions of jobs to deal with one aspect or another of global warming.

It’s deeper than just money. Schoolteachers have created polar-bear-dying lectures to frighten and indoctrinate our children when in fact there are more polar bears now than in 1950. They’ve taught children about melting glaciers.

Just recently, the International Panel on Climate Change was forced to admit that its Himalayan glacier-melting fraud was done to “impact policymakers and politicians and encourage them to take some concrete action.”

What would all the beneficiaries of the global warming hype do if it became widely known and accepted that mankind’s activities have very little to do with the Earth’s temperature? I don’t know, but a lot of people would feel and look like idiots.

I bet that even if the permafrost returned as far south as New Jersey, as it once did, the warmers and their congressional stooges would still call for measures to fight global warming.

See now the naked tyrant 16

Obama is prepared to damage the economy even more than he has already. He threatens through his officials that if he doesn’t get his way with cap-and-trade, he will take steps that will ‘deter investment’. But then if he does get his way with cap-and-trade, the economy will be grossly harmed anyway. Whose economy is it that he’s threatening? Is it not the economy of the country he leads? So why would he want to wreck it?  The answer is not hard to find. Look to Copenhagen, where the rampaging Left is using false science to try and impose ‘world governance’.  This was to be the moment when international socialism triumphed. It’s been spoilt by exposure of the scientists’ deceptions. The global warmists/global government conspirers are fighting mad. They’ll wreck anything, everything, to achieve their hellish aim.

From Fox News:

The Obama administration is warning Congress that if it doesn’t move to regulate greenhouse gases, the Environmental Protection Agency will take a “command-and-control” role over the process in a way that could hurt business.

The warning, from a top White House economic official who spoke Tuesday on condition of anonymity, came on the eve of EPA Administrator Lisa Jackson’s address to the international conference on climate change in Copenhagen, Denmark.

Jackson, however, tried to strike a tone of cooperation in her address Wednesday, explaining that the EPA’s new powers to regulate greenhouse gases will be used to complement legislation pending in Congress, not replace it.”This is not an ‘either-or’ moment. It’s a ‘both-and’ moment,” she said. But while administration officials have long said they prefer Congress take action on climate change, the economic official who spoke with reporters Tuesday night made clear that the EPA will not wait and is prepared to act on its own.

And it won’t be pretty.

“If you don’t pass this legislation, then … the EPA is going to have to regulate in this area,” the official said. “And it is not going to be able to regulate on a market-based way, so it’s going to have to regulate in a command-and-control way, which will probably generate even more uncertainty.”

Climate change legislation that passed the House is stuck in the Senate, but the EPA finding Monday was seen as a boost to the U.S. delegation in Denmark trying to convince other countries that Washington is capable of taking action to follow through with any global commitments.

The economic official explained that congressional action could be better for the economy, since it would provide “compensation” for higher energy prices, especially for small businesses dealing with those higher energy costs. Otherwise, the official warned that the kind of “uncertainty” generated by unilateral EPA action would be a huge “deterrent to investment,” in an economy already desperate for jobs.

“So, passing the right kind of legislation with the right kind of compensations seems to us to be the best way to reduce uncertainty and actually to encourage investment,” the official said.

Republicans fear that the EPA will ultimately end up stepping in to regulate emissions — though many oppose the congressional legislation as well. They had urged Jackson to withdraw the finding in light of leaked e-mails from a British research center that appeared to show scientists discussing the manipulation of climate data.

Rep. James Sensenbrenner, R-Wis., ranking Republican on the House Select Committee for Energy Independence and Global Warming, said Tuesday he is going to attend the Copenhagen conference to inform world leaders that despite any promises made by President Obama, no new laws will be passed in the United States until the “scientific fascism” ends.

Go, James, go!

Why Detroit died 6

Since we don’t expect to find much that is useful to us in Time magazine we seldom visit it. But when we went searching for good articles on the decline of Detroit, it was there that we found a quotable one.

Our search was prompted by tc, one of our readers (see comments on our post of November 21, 2009: Death city). Our thanks to tc.

The primary reason for the decline of Detroit was the decline of the US auto industry. This article by Daniel Okrent says so, and also talks about related contributory causes. We think it’s a good overview, and although we don’t like everything in it, particularly the ‘green’ opinions on its last page, we recommend it.

Here are the extracts:

Detroit fell victim not to one malign actor but to a whole cast of them. For more than two decades, the insensate auto companies and their union partners and the elected officials who served at their pleasure continued to gun their engines while foreign competitors siphoned away their market share. …

Detroit became a majority-black city, and in 1973 it elected its first black mayor. Coleman Young was a talented politician who spent much of his 20 years in office devoting his talents to the politics of revenge. He called himself the “MFIC” — the IC stood for “in charge,” the MF for exactly what you think. Young was at first fairly effective, when he wasn’t insulting suburban political leaders and alienating most of the city’s remaining white residents with a posture that could have been summed up in the phrase Now it’s our turn. But by his third term, Young was governing more by rhetoric than by action. These were the years of a local phenomenon known as Devil’s Night, a nihilistic orgy of arson that in one especially explosive year saw 800 houses burn to the ground in 72 hours. Violent crime soared under Young. The school system began to cave in on itself. When jobs disappeared with the small businesses boarding up their doors and abandoning the city, the mayor seemed to find it more useful to bid the business owners good riddance than to address the job losses. Detroit was dying, and its mayor chose to preside over the funeral rather than find a way to work with the suburban and state officials who now detested him every bit as much as he had demonized them.

When Young finally left office in 1993, he bragged that Detroit had achieved a “level of autonomy … that no other city can match.” He apparently didn’t care that it was the autonomy of a man in a rowboat, in the middle of the ocean, without oars.

But Young isn’t the only politician to blame. In 1956, when I was 8 years old, my Congressman was John D. Dingell. There are people in southeastern Michigan who are still represented by Dingell, the longest-serving member in the history of the House of Representatives. “The working men and women of Michigan and their families have always been Congressman Dingell’s top priority,” his website declares, and I suppose he thinks he has served them well — by resisting, in succession, tougher safety regulations, more-stringent mileage standards, relaxed trade restrictions and virtually any other measure that might have forced the American automobile industry to make cars that could stand up to foreign competition.

By so ably satisfying the wishes of the auto industry — by encouraging southeastern Michigan’s reliance on this single, lumbering mastodon — Dingell has in fact played a signal role in destroying Detroit. He was hardly alone; if you wanted to get elected in southeastern Michigan, you had to support the party line dictated by the Big Four — GM, Ford, Chrysler and their co-conspirator the United Auto Workers. Anything that might limit the industry’s income was bad for the auto industry, and anything bad for the auto industry was deemed dangerous to Detroit.

The UAW had once been the most visionary of American unions. As early as the 1940s, UAW president Walter Reuther was urging the auto companies to produce small, inexpensive cars for the average American. In 1947 and ’48 the union even offered to cut wages if the Big Three would reduce the price of their cars. But by the early 1980s, the UAW had entered into a nakedly self-interested pact with the auto companies. After the union’s president joined GM’s chief congressional lobbyist to defeat a tougher mileage standard in 1990, the lobbyist declared that “we would not have won without the UAW.” It was, he said, “one of the proudest days of my life.”

The union really can’t be blamed for pushing for fabulous wages and lush benefits for its members — that game required two players, and the automakers knew only how to say yes. But the union leadership’s fatal mistake was insisting that workers with comparable skills and comparable seniority be paid comparable wages, irrespective of who employed them. If a machinist at a prosperous GM deserved $25 an hour, so did a machinist who worked for a barely profitable Chrysler or for a just-holding-its-own supplier plant that made axles or wheels or windshield wipers.

This defiant inattention to market reality not only placed the less healthy firms in peril, but by pricing labor so uniformly high, it also closed off Detroit to any possible diversification of its industrial base. When the automakers’ inattention to engineering, style and quality caused them to crash into a wall of consumer indifference, there was no other industry that could step forward and employ workers who would have been thrilled to make even a fraction of what they once earned. Now nearly 1 in 3 Detroit residents is out of work — and not many of the unemployed have a prayer of finding a job anytime soon. …

Most particularly we urge our readers to follow the 2 links on the Time pages to the eloquent pictures of buildings abandoned and decayed. Once seen, they can haunt the imagination, not only as images of an historic industrial and human disaster, but as portents of what can befall a whole triumphant civilization when a few people who arrogantly believe they know best impose their vision on millions of other lives. The car industry managers were guilty, unwilling as they were to change and adapt, to make what consumers would buy. Union bosses were guilty, blindly demanding more than the industry could bear. Politicians were guilty, as our extracts demonstrate. And now another bunch are coming up to try and order our world to fit their hearts’ desire: the greens.

Posted under Commentary, Environmentalism, Industry, United States by Jillian Becker on Sunday, December 6, 2009

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