Rational Thought » Economics

On Crony Capitalism and Serving Political Masters

technologist — Sun, 25 Apr 2010 20:37:17 +0000

Ms. Docherty:

Please, spare me the victory lap! Being a wholly owned subsidiary of the Federal Government and their UAW cronies, it seems GM Management has picked up the politician’s predilection for lying by omission while insulting our intelligence. What arrogance!

Regarding the GM balance sheet, those of us paying attention know that the U.S. and Canadian governments decided, more or less arbitrarily, to classify some $6.7 billion of its aid as debt and an estimate of $52 billion in equity. That $52 billion represents nearly 90% of the government money given to General Motors. None of that has been repaid.

According to TARP Special Inspector General Neil Barofsky: “I think the one thing that a lot of people overlook with this is where they got the money to pay back the loan. And it isn’t from earnings….It’s actually from another pool of TARP money that they’ve already received. I don’t think we should exaggerate it too much. Remember that the source of this money is just other TARP money.”

Understanding that the last real, private company CEO was summarily dismissed by the current administration’s Mandarins, it’s obvious why you would lick the hands of your masters by carrying out their political directives. Pretending it is otherwise is disingenuous and only adds to the fury of taxpayers funding this outrageous crony capitalism. You know there’s only one real way for GM to regain respect of the cognoscenti.

Sincerely,

Ron Bischof

On Apr 24, 2010, at 1:27 PM, Your GM Team wrote:

Dear Ron,

We are proud to announce we have repaid our government loan – in full, with interest, five years ahead of the original schedule. We realize we still have more to do. Our goal is to exceed every expectation you’ve set for us. We’re designing, building and selling the best cars and trucks in the world. Like the award-winning Chevy Malibu, the all-new Buick LaCrosse, the versatile Cadillac CTS Sport Wagon and the innovative GMC Terrain, just to name a few. We invite you to learn more about the new GM and join our community, by visiting gm.com.

Susan E. Docherty
Vice President, U.S. Marketing

Swiss Health Care

technologist — Wed, 06 Jan 2010 17:38:40 +0000

“The law [in Switzerland], finally approved in a 1994 national referendum, guaranteed health care for everyone by requiring everyone to have insurance. It amounted to a law recognizing health care as a human right…. They choose their own doctors and their own insurance company, and the whole country is covered. True to its national reputation, Switzerland devised a health care system that’s been praised as efficient and neutral. Basic insurance is the same price for everyone. Also true to the Swiss reputation, it’s turned out to be expensive. … Given an aging population and high-tech medicine, some say costs are bound to rise three percent or four percent a year. Health care reform [in Switzerland] has been more expensive than reformers predicted.” –CBS’s Richard Roth

Copenhagen Theater

technologist — Mon, 07 Dec 2009 17:16:40 +0000

“With 20,000 delegates, advocates and journalists jetting to Copenhagen for planet Earth’s last chance, the carbon footprint of the global warming summit will be the only impressive consequence of the climate change meeting. Its organizers had hoped it would produce binding caps on emissions, global taxation to redistribute trillions of dollars, and micromanagement of everyone’s choices. China, nimble at the politics of pretending that is characteristic of climate change theater, promises only to reduce its ‘carbon intensity’ — carbon emissions per unit of production. So China’s emissions will rise. Barack Obama, understanding the histrionics required in climate change debates, promises that U.S. emissions in 2050 will be 83 percent below 2005 levels. If so, 2050 emissions will equal those in 1910, when there were 92 million Americans. But there will be 420 million in 2050, so Obama’s promise means that per capita emissions then will be about what they were in 1875. That. Will. Not. Happen.” –columnist George Will

We Pay Them to Lie to Us

technologist — Mon, 30 Nov 2009 16:37:26 +0000

“When you knowingly pay someone to lie to you, we call the deceiver an illusionist or a magician. When you unwittingly pay someone to do the same thing, I call him a politician. President Obama insists that health care ‘reform’ not ‘add a dime’ to the budget deficit, which daily grows to ever more frightening levels. So the House-passed bill and the one the Senate now deliberates both claim to cost less than $900 billion. Somehow ‘$900 billion over 10 years’ has been decreed to be a magical figure that will not increase the deficit. It’s amazing how precise government gets when estimating the cost of 10 years of subsidized medical care. Senate Majority Leader Harry Reid’s bill was scored not at $850 billion, but $849 billion. House Speaker Nancy Pelosi said her bill would cost $871 billion. How do they do that? The key to magic is misdirection, fooling the audience into looking in the wrong direction. I happily suspend disbelief when a magician says he’ll saw a woman in half. That’s entertainment. But when Harry Reid says he’ll give 30 million additional people health coverage while cutting the deficit, improving health care and reducing its cost, it’s not entertaining. It’s incredible.” –columnist John Stossel

US Health Care Reform

technologist — Fri, 20 Nov 2009 19:24:42 +0000

Sent via email to the Hon. Senators Landrieu, Lincoln and Nelson:

I strongly urge you not to support the “Patient Protection and Affordable Care Act” for the following reasons:

1. Government has a very poor record of controlling real costs of goods and services. A review of projected verses actual Medicare costs is assuredly relevant.

2. A centrally planned rewrite of the entire Heath Care System that serves the majority of Americans well (supported by all polling data) is not the optimal approach to ensuring health care services for all.

3. It’s a budget buster and we all know it. One need look no further than my State of California to note how out of control government spending leads to a never ending miasma.

4. There is no Constitutional authority for the Federal Government to require the purchase of a good or service by individual citizens. It’s unprecedented and will no doubt be challenged in court.

5. Moderates should not have to pay at the election booth for the grandiose schemes of their party leaders.

I invite you to consider carefully and rationally what the unintended consequences of this legislation would be. Far better for Congress to consider incremental reform such as:

- Decoupling health insurance and tax benefits from employer provided plans.

- Allow deregulation of interstate insurance purchases to enhance competition.

- Malpractice tort reform to reduce practice of defensive medicine.

- Non-cancel clauses in insurance policies for utilization of contracted benefits.

- Guaranteed issue of catastrophic medical insurance coverage.

Thank you for your consideration of these points.

Respectfully,

Ron Bischof

Marxism Redux

technologist — Thu, 19 Nov 2009 04:12:54 +0000

“The administration has taken the steps to make sure that we can solidify our economy,” Shelton said, adding that Obama “inherited eight years of bad economic planning and has stepped into an initiative in which we find our country losing jobs at an astronomical rate.” — Hilary Shelton, senior vice president of the NAACP

When did the US Economy become centrally planned?

Perhaps Ms. Shelton meant we’re in need of such. I recommend a history lesson.

Unlimited Government?

technologist — Mon, 16 Nov 2009 17:30:21 +0000

“They are not to do anything they please to provide for the general welfare…. [G]iving a distinct and independent power to do any act they please which may be good for the Union, would render all the preceding and subsequent enumerations of power completely useless. It would reduce the whole instrument to a single phrase, that of instituting a Congress with power to do whatever would be for the good of the United States; and as they sole judges of the good or evil, it would be also a power to do whatever evil they please.” –Thomas Jefferson

Health Insurance “Reform”

technologist — Fri, 13 Nov 2009 19:02:27 +0000

Interstate Commerce Clause: Ramirez illustrates.

Confidence In Man

technologist — Thu, 29 Oct 2009 17:47:41 +0000

“In questions of power, then, let no more be heard of confidence in man, but bind him down from mischief by the chains of the Constitution.” –Thomas Jefferson

Security

technologist — Wed, 28 Oct 2009 18:19:49 +0000

“If you want total security, go to prison. There you’re fed, clothed, given medical care, and so on. The only thing lacking … is freedom.” –5-Star General and U.S. President Dwight D. Eisenhower (1890-1969)