It looks obvious

The american cars industry problem didn’t start from the rising oil price, they started because the auto makers are less competitive than their rivals - mostly the corporations based in Japan. In order to sell more cars, and increase their profit, the auto makers need to become more competitive by selling better cars for less money. This is obviously easier said than done, but it happened in the past and if the car manufactures can’t do it again they should disappear. One sure way for not helping is by handing them money they didn’t earn:

Presumed Democratic Presidential candidate Barack Obama told the UAW in a letter that he supports the $4B in federal aid, stating that he would “provide real solutions necessary to help this industry compete and win in the global economy.”

I don’t really think that Obama, or any other candidate, misunderstanding this basic economic. But what we see here isn’t economic rather than a bribe, and the question of the long term effect is only measured as far as November 2008. 

(via the club of growth)

Windfall profit Tax is as stupid and as populist idea as its twin monster the gas tax holiday. It was quite obvious from the beginning that the suggestion to impose the windfall profit tax was made as a counter offer to the gas tax holiday. Therefore it shouldn’t be surprising that the democrat majority was blocked so easily. Both Republicans and Democrats scored points with their potential voters and cause no real harm.

Now lets see how much fun can it be if someone will suggest windfall tax on the farmers who enjoy the rise of food prices. After all it make as much sense as windfall tax on oil companies - none.

Aside from the obvious questions about the wisdom of arresting illegal immigrants when they are leaving the country I think that this story indicates something that we often overlook. Many of those we now call illegal immigrants are seasonal workers that use to come work in the US for many years. Obviously seasonal workers aren’t as interesting as a “Problem” or a “Threat” so they are being labeled as Illegal immigrants. The advantage of such labeling, along with arresting them when they are going back home, is that its help people like Duncan Hunter or Lou Dobbs to build a very successful career. And than they argue that immigrant “takes” jobs from US citizens

Are you familiar with the Nigerian Scam? You should be aware of its newest form:

CONFIDENTIAL/URGENT POLITICAL PROPOSAL

Dear Sir

First we must solicit your confidence in this issue. This is by virtue as being utterly confidential and “top secret”.

We are SENATOR HILLARY CLINTON, the wife of the former United States head of state, PRESIDENT BILL CLINTON, and also SENATOR JOHN MCCAIN, friend and associate of current head of state PRESIDENT GEORGE W BUSH. We got your contact through business inquiries as we were searching for contacts of a citizen who can help save our and our family’s political careers since our country has been frustrating us.

We are top officials of the United States Senate Government who are interested in importation of oil into our country with funds that are presently trapped in the FEDERAL TRANSPORTATION TRUST FUND dedicated to improving transportation. We wish to send this money to overseas accounts in the MIDDLE EAST but cannot due to restrictions in Congress Transportation Equity Act requiring that this money must be spent to build roads, bridges and high speed trains.

If you accept we will deliver to your a sum of 30 DOLLARS in the summer 2008 in form of a “GAS TAX HOLIDAY”. You will then deliver this money to accounts of our friends in Middle East by taking it to your nearby gasoline station where they have information to forward the money. Please supply your bank account, social security number, address and your vote in DEMOCRATIC PRIMARIES AND NOVEMBER GENERAL ELECTION.

But bear in mind that this transaction requires absolute confidentiality. Do not visit WWW.GASTAXSCAM.COM where there is information about dangers of our proposal and a petition to stop us from this diversion of funds.

PLEASE NOTIFY US URGENTLY OF YOUR ACCEPTANCE OF THIS PROPOSAL

Awaiting your rapid response

Yours truly

SENATORS HILLARY CLINTON AND JOHN MCCAIN

Ideally the election process should help voters make an informed decision. The process should expose the different candidates, their experience, values and agenda. In reality the candidates try to disguise their real agenda, and to smooth problematic issues, in order to appeal to as many voters as possible.

I was, naively, hopping that the long primaries will force the candidates to get out of their armored campaign talking points and tackle real issues. The reality is, obviously, much different. As the campaign progress and the stakes are higher candidates tend to be more populist and say things there is no way they believe, or intend to follow if elected. And since Clinton is the trailing candidates she producing the most populist gems:

This morning, George Stephanopoulos began his televised interview with Senator Hillary Rodham Clinton by asking if she could name a single economist who supported her plan for a gas-tax suspension.

Mrs. Clinton did not. “I’m not going to put in my lot with economists,” she said on the ABC program “This Week.” A few moments later, she added, “Elite opinion is always on the side of doing things that really disadvantages the vast majority of Americans.”

But I guess voters prefer to be lied and making their decision based on populist slogans, other wise this kind of statements wouldn’t work:

Hillary Clinton, speaking at the Indiana J-J dinner, may have taken this white, working-class populism thing to a Cross-of-Gold rhetorical extreme (the authentic WJ Bryan is above). Speaking of the mortgage crisis, Clinton asked the crowd: “Why don’t we hold these Wall St money grubbers responsible for their role in this recession?”

It should be noted that many (presumably non-grubbing) Wall Streeters are her biggest fund raisers and she’s a big investor in a pair of hedge funds.