bail out
Understanding the weakness of the old New Deal before starting a new New Deal
Unlike my good friend Big “P”, I am not an eloquent man. If I really have something to say it takes a while to translate it into the written word and clearly get my point across. BUT I am a voracious reader. And in the great Work and writer George Will those two issues converge. Often times I form an opinion and before you know it, Mr. Will articulates it for me. Very considerate and kind of creepy.
His article in Sundays Desert News is excellent in pointing out some of the key points we may not have been aware of regarding the New Deal. So many people feel that it was the New Deal that saved us from the Great Depression when in fact it was WWII that helped us turn the corner. Quite a price to pay. Now the New Deal has had some lasting positive effects but it has also tied us up in one boondoggle after another.
I just hope that those now pulling the levers of power not only have a grasp on History but have an unbiased interpretation as well.
What are we getting into, or not into as the case may be
First off, based on its first iteration, I didn’t like that it was being labeled a “bail out of Wall Street”. Honestly, if we did nothing then it was everyone was going to take it in the shorts; Wall Street, Main Street, Blue Collar, White Collar, Capitalist, Socialist. The frame work was good, free up the capital markets. Were the details all worked out no, and the devil is in the details. Then what do you know, the politicians get involved. They want to help the families who are going through foreclosure. Then they want to help the perpetually failing Auto industry. What is next? Poorly run businesses go out of business.
In this case a major part of the problem is legacy costs. All the pension benefits being paid to two generations. Did they earn it, well yes, it was part of the contract. The worker fulfilled thier end of the bargain but guess what. The Auto Company of the 60s and 70s wrote a check that the auto company of the new meliium cant cover. And to be honest they never will. To be competitive they need to do something about legacy costs.
Another major issue is the Unions. Why is it that “foriegn” car companies are doing better buiding cars in the American south than the “domestic” car companies are doing in the American north? Besides legacy costs, Unions. They are jacking up wages. Get out of the way. Let wages settle to a market rate for the area. Let the auto companies get back on thier feet, assuming they can transition to a stable of autos for the new melinium, and deal with the fact that the good ole days of Detroit are over.
There are other options than bailing out the big three
Biofuels not to blame for high food prices, report
19th November 2008
Biofuels were not to blame for high crop and food prices during 2008, according to the president and CEO of Biotechnology Industry Organisation (BIO), Jim Greenwood.
Greenwood said, ‘American consumers should not be fooled by ongoing attempts to misplace blame for this year’s rise in food prices on biofuels. The evidence before consumers is clear: crop prices have fallen dramatically in the past few months as oil and gas prices have declined. A barrel of oil cost $140 in July but is currently less than $65. Similarly, a bushel of corn that was more than $7.50 back in July is now less than $4, even while production of biofuels and other food, feed and fibre demands have all remained consistent.’
Greenwood went onto add that agricultural technology was continually working towards increasing crop yields, resulting in greater biofuels feedstock growth on less land and labeled advanced biofuels as an opportunity for tremendous growth.
‘The nation’s current goal of producing and using 21 billion gallons of advanced biofuels by 2022 is a tremendous opportunity for jobs and growth. A 2007 U.S. Department of Commerce report projects that this amount of cellulosic ethanol would replace 4.1 per cent of U.S. oil imports, keeping $8.4bn in the US. economy rather than sending it overseas. It also shows that producing this amount of cellulosic ethanol could add $12.6bn dollars to US consumers’ pockets. Production of advanced biofuels could increase US gross domestic product by $4.7bn and, importantly, would add more than 20,000 jobs to rural economies,’ Greenwood added.
BIO represents more than 1,200 biotechnology companies, academic institutions, state biotechnology centers and related organizations across the US and in more than 30 other nations.
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