Archive for the 'Economics' Category

29
Jan
09

Running Government Like A Business

Too often we hear the mantra that, “government should be run like a business.”  This conjures up images of government running on a cost-effective basis.  Everyone, regardless of party affiliation wants this.

Why do businesses aspire to run on a cost-effective basis?  Businesses need to be cost-effective so that they c0mpete with other businesses.  There is a problem when this is applied to government, because government does not compete.

Businesses strive to lower cost so that they can make money in the face off competition.  Without competition, businesses have no incentive to lower costs.  This is one of the main problems with monopolies.

Elected officals and voters too often defer to the business community to judge what is best for the economy.  Beware.  Businesses exist for one purpose: to make money.  Deferring to business in directing government policy can lead to business using government to create a monopoly for itself.

When government gets involved in business, beware of government being used to render the competitive business environment inert.  That usually means taxpayers are about to get robbed.

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28
Jan
09

Bulova Has Nothing

Democrat Sharon Bulova wants to distract Fiarfax County voters from the $650 million Fairfax County budget shortfall she presided over as Chairwoman of the Fairfax County budget committee.

Bulova claims to have voted to cut property tax rates and reduce spending BUT under her:

  1. taxes have doubled
  2. Fairfax County has a $650 Million shortfall, larger than the shortfalls of Alexandria, Arlington, Loudoun, PrinceWilliam and the District of Columbia, COMBINED!
  3. Fairfax County has a $650 Million shortfall larger than the total budget of its Police, Fire & Rescue, Sheriff, Libraries, Parks, and Health Departments, COMBINED

The best Bulova can do is impute inexperiance on Pat Herrity by citing a 2007 Washington Post article from  BEFORE Herrity was elected Springfield Supervisor.

Bulova also falsely claims that Herrity missed votes on the Fairfax County Board of Supervisors when the official minutes of the Board of Supervisors show that Herrity has NEVER MISSED a Board of Supervisors meeting while in office.  On top of that, Herrity has cast more votes in the last year than several other Supervisors, including former Chairman of the Board, Gerry Connolly.

Herrity has never missed a vote, and introduced a complete alternative budget in 2008 that included an actual tax cut.  Also, Herrity’s budget made sure to direct Fairfax tax dollars to the classrom instead of to a wasteful (but luxurious) $130 million school administration building.

Bulova has nothing but misrepresentations and the experience to tax waste those tax dollars.  On the February 3, 2009 special election in Fairfax County, vote for Pat Herrity.

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27
Jan
09

Obama Seeks Republican Support for Porkulus Bill

FoxNEWS reports that President Obama visited Capitol Hill to rally support from Republicans for his $830 million stimulus package:

Speaking to reporters on Capitol Hill after meeting with the House GOP caucus, Obama said he is “absolutely confident” that compromises can be reached, “but the key right now is to make sure we keep politics to a minimum.”

“There is some legitimate philosophical differences with parts of my plans that the Republicans have, and I respect that. In some cases, they just may not be as familiar with what is in the package as I would like. I don’t expect 100 percent agreement but I do hope that we can all put politics aside and do the American people’s business right now,” he said.

Huh?  What sort of compromise is Obama seeking?  From who?  Republicans?

Democrats control Congress.  That is the result of the politics from the last election.  Obama does not really need the support of Congressional Republicans to push his pork-laden “stimulus” bill through.

Does he?

Obama is actually seeking political cover for a bill everyone knows will not help the recovery of the national economy.  Getting Republicans to go along with this abominable plan defuses it as a political issue so that it cannot be used against Democrats.

So far, Republicans appear to be opposed.  House Minority Leader Boehner voices some criticism:

“We have concerns that the plan that House Democrats are going to bring to the floor will not work,” said House Minority Leader John Boehner before the meeting. “And at the end of the day, our big move today will be to ask the president to help us. Help us make this plan better so that it will put Americans back to work.”

while Louisiana Senator David Vitter voices even stronger criticism:

“What I am going to say is, ‘Mr. President, I like the test you’ve set, which is what works, what actually creates jobs quickly, what can pick the economy up. The problem is neither the House nor the Senate bill being worked on now meets that test. In fact, they don’t come close to meeting that test,'” he said.

“It’s line after line after line of favorite liberal spending programs and it amounts to a big government bill not a job creation,” Vitter told FOX News.

Republicans need to oppose this stimulus.  We do not want Obama to suceed in this because this bill will not suceed in bringing about an economic recovery.

10
Dec
08

The Car Czar & More Government Bailouts

According to the Washinton Post, President Bush and Congressional Democrats have come to an “agreed concept” for the auto-bailout.  The “agreed concept” calls for:

  • “…government to spe[n]d $15 billion in emergency loans to the car companies as soon as next week…”
  • “…President Bush to immediately name a car czar to oversee the bailout…”
  • “…the car czar would be required to revoke the loans unless the companies proved by March 31 that they were implementing a plan to achieve “a positive net present value…”
  • “…if the firms fail to make progress, the car czar would be required to submit to Congress a new plan to restore them to financial viability, the official said, including the option of Chapter 11 bankruptcy protection.”
  • “If no plan for the long-term survival of the companies were to emerge, the firms would be ineligible for any additional federal assistance”

Has there been any agreement as to how the auto industry has gotten into this situation?

Some say it is over-priced labor; others say it is one-sided international trade; yet others say it is cumbersome government regulations.  Perhaps all of these factors have contributed to the problem with all of these factors having 0ne thing in common: government.  Government writes the labor laws.  Government signs international trade agreements.  Government writes the regulations.

With government at the root of the problem, it is difficult to see how government can devise an adequate solution.  There may be a legitimate argument that government has harmed this vital industry; but, even if this argument is accepted, is the best remedy a bailout, coming from U.S. taxpayers, which imposes a measure of nationalization for this industry?

More importantly, what is the Republican position?  Republicans already went along with $700 billion credit bailout (with $150 billion of pork on top).

Free markets, anyone?  Of course not…no one believes in those anymore,…isn’t that what got us here in the first place?   Besides, the global economy could not take the shock if a free market correction were allowed.  Of course, we should willingly suspend disbelief brought about by the implication that allowing a free market correction implies that we are currently not operating in a free market.

So what about it Republicans?  Do we have a coherent position?  Is it based on any principle that might form the corner-stone for our Party as we propose solutions to this continuing economic nightmare or are we still “position[ing ourselves] for fancy titles associated with a losing effort”?  If Republicans are looking to go along with more bailouts, are they still just looking for the best way to pander instead of leading us back to prosperity?

Maybe Republicans should just cave-in to the media’s demands for bipartisanship, join with the majority of the country, hope for the best, and beg for Obama to save us.

Save us from what?

From ourselves.

09
Dec
08

Bailouts: The Clock is Ticking

Here’s an AP video regarding the situation in Chicago with the closing of Republic Windows & Doors:

THE SITUATION: Republic Windows & Doors is unable to secure credit from Bank of America to continue operations.  Republic Windows & Doors thus gave its union workers 3 days notice of layoffs instead of the 60 days required by law.

THE CONSEQUENCES: Union workers are demanding vacation and severance pay.

REPUBLIC WINDOWS & DOORS ARGUMENT: Bank of America will not let Republic Windows & Doors make payment.

UNION WORKERS’ ARGUMENT: Bank of America received bailout money for the purpose of extending credit to Republic Windows & Doors so that it can meet union workers‘ demands.

Do you see it coming?

The tidal waves of failing businesses and the endless demands for the bailout money to be used so that everyone can get theirs.  When is it going to end?

Will there be enough money?  Will we have to borrow more?  Will we have to print more?  Will our money even be worth anything?

Can labor laws, designed to protect workers, provide for a thriving economy?

Can government direct prosperity?  Should it?

Will we hit a point when it is too late to do anything?

05
Dec
08

$500 Million

Cross-posted from The Phoenix Caucus:

$500 million.

$500 million is the amount of the budget gap for Fairfax County.

$500 million is one number that all voters should have on their minds when voting in this February’s special election for Chairman of the Fairfax County Board of Supervisors. This $500 million budget gap is the legacy that outgoing Democrat Chairman and Congressman-elect for VA-11, Gerry Connelly, has left for Fairfax County.

Likely Democratic candidate and current Braddock District Supervisor, Sharon Bulova was the budget chair that presided over this abominable waste. In a County where homeowner taxes have doubled since 2001, ask yourself: are you better off?

Springfield Supervisor and Republican Candidate for Chairman of the Fairfax County Board of supervisors will act decisively to address the county’s $500 million shortfall by implementing sound fiscal policies and prioritized spending. Raising revenue will be based on growing the commercial tax base and not taxing homeowners. This February, the choice is clear:

03
Dec
08

Bank Affirmative Action

Here is Andrew Cuomo admitting how HUD forced banks to make bad loans:

These were ultimately the bad loans that caused the implosion of the credit market.  These are the people promising to fix the very problem that they created.




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