Solyndra Goes Bankrupt
Debra Saunders has written an interesting article highlighting the Solyndra energy debacle. Essentially, this was one of Obama’s examples of “investing in the future” in order to create “green jobs”. I’m sure it all looked good on paper, and solar panels are a sexy technology that politicians love. The only problem is that the firm, which was given a $535 million dollar federal loan, is now bankrupt. The article nicely points on the weaknesses inherit in governments making these kinds of investments. The main one being that these decisions are made for political (solar panels are sexy, investing in a new broom factory isn’t) purposes, not economic ones. What it misses, though, I think, is the real harm to the economy that these kind of decisions cause.
When investments are made like this it uses up resources that might have been used profitably elsewhere. If the $535 million dollars (that amount the feds invested in Solyndra) had been left in the private sector, what new products or services might have been bought or created? If Solyndra had been allowed to go bankrupt sooner, how would its human capital been used? Is it possible that some of its talented engineers etc might have started new companies on their own? Or perhaps help existing companies grow and prosper? We’ll never know, as that money is now gone and that time has been wasted. And people wonder why the US economy is limping along?
Why False Charges Of Racism Hurt Obama
Peter Wehner, as usual, has a good article in “Contentions” this morning. Entitled “A Racism Charge Without Evidence”, it talks about how many media commenters are now routinely and all too casually smearing opponents of the Obama administration with charges of racism. Racism, real racism, is a terrible and horrendous thing, which is why it should only be used against the real thing. When it is used as a baseless accusation against legitimate political disagreements it robs it of any meaning. What’s more I wonder if these commentators understand how much damage they are doing to Obama by engaging in these tactics. One of Obama’s big selling points was that he was “post racial”. That was his brand and a large part of his appeal. By attempting to defend him in this way they are unwittingly undermining one of the great raison d’être’s for his presidency.
What Obama Can Learn From Gilligan’s Island
If you take an Economics 101 class in college at some point you are going to encounter what is called “Crusoe Economics”. Crusoe economics teaches basic economic principles by creating a very simple economy, one in which there is only one actor, namely Robinson Crusoe. With President Obama planning a major jobs speech in the upcoming week it got me to thinking what he could learn from such a simple economy. It seems to me that Obama’s economic team could use some help on basic economic principles, as everything he’s tried so far hasn’t really worked out. Having never read Robinson Crusoe, however, I will use another group of famous castaways that I (and I bet, Obama as well) is very familiar with. Namely, Gilligan’s Island.
Imagine we drop Obama right into the middle of Gilligan’s Island. Right away he’s faced with an enormous unemployment problem. In fact, unemployment is at 100%. At the moment, everyone is just standing around. What can Obama do?
Consulting his Keynesian economic playbook, he immediately sees the need for an economic stimulus plan. But how can he do this? He has no money, as government has no money of its own. Thinking quickly, he quickly taxes the Skipper by literally taking the shirt of his back. In an act of even greater Harvard cleverness, he decides to create a “Green Job”. He hires Mary Ann to create a flag for the island made from the Skipper’s shirt. Mary Ann gets to work and at least temporally the unemployment rate drops. But very quickly the job is done and the environmentally friendly flag is hoisted. Obama looks around to see what the results from his actions are, and realizes things are actually worse off than before. The flag, although it looks nice, doesn’t really help anyone. What’s worse though is that everyone is now eyeing him suspiciously, worried Obama may try and steal the shirt from their back! And this doesn’t even mention the fact that the Skipper is now walking around shirtless, which isn’t pleasant for anyone.
Undaunted, Obama thinks back through his multi million dollar education and decides that what the island needs is some regulation. Promising to pay him next week, he hires Gilligan to be the islands first environmental inspector. Flush with his new and unspecified authority, Gilligan starts to harass the Professor, who has been trying to turn the radio into a transmitter. Gilligan has no idea what the Professor is trying to do, so he makes a series of arbitrary rules and attempts to impose them. The Professor, who is having a tough enough time turning the radio into a transmitter, just gives up.
With new regulations not helping, Obama hits on a new plan. He need to increase taxes on the wealthy! And whose wealthier than the Howell’s! Everyone knows they brought great amount of cash on the 3 hour tour, for some reason. He starts to give speech after speech telling the rest of the castaways how he plans to impose taxes on millionaires and billionaires. The result? The Howell’s didn’t become rich by being dumb. They can see where this is headed. When no one is looking they decide to hide their wealth near the cave at the back of the island. Whatever wealth they do have is now unavailable to the castaways.
Obama is exasperated. He’s tried everything he knows how to do and yet the island’s unemployment rate remains stubbornly stuck at 100%. He walk forlornly to the shade of one of the many coconut trees on the island and sits down. What can he do?
And that’s when the miracle happens.
Free from his hectoring, the castaways get to work. Gilligan goes to the lagoon and starts fishing. The Skipper starts to gather the material needed for new huts. Ginger and Mary Ann start to gather coconuts in order to make coconut pies. The Professor gets back to work fixing the radio with the hope of turning it into a transmitter. The Howell’s, not really being the manual labor type, get their money from the cave and hire others to do little tasks for them. Very quickly, the island has gone from 100% unemployment to a booming economy.
From under his coconut tree Obama rubs his eyes in disbelief. How is this possible? When he tried to direct people everything fell apart. But now, left to their own devices and without his meddling, things are humming.
And that’s the lesson that Gilligan’s Island economics presents for Team Obama.
Strip everything away, what is the prime mover that actually gets an economy going? Anything the government does can only be done if it first takes away from someone else. The government, or Obama, in this little tale, is never a wealth generator. Wealth is only generated when someone you’ve never met or even heard of decides to create a product or service that someone else is willing to pay for. To the extent that a government helps this or hinders this goes a long way in determining how well an economy does, whether on Gilligan’s Island, or a nation as a whole. Politicians like to put on a grand show like the mighty Wizard of Oz, proclaiming how their policies are indispensable to the nation’s well being. In reality, though, this is a sideshow put on for the sole purpose of getting elected. When it comes to real wealth creation, governments have very little to do with it at all.
Obama’s Magical Misery Bus Tour
Obama’s bus tour is an example of just how nervous Team Obama is about their election chances. To start campaigning now, and then to deny it, when it’s obvious to everyone what you’re doing, is stunning.
I also don’t think it will work. In fact, I think it’s impressing on people why Obama is not up to the job.
America is looking for leadership. When you’re President, this is what you have to demonstrate, and what Obama has consistently not shown. To go on a bus tour and then announce that you’re going to have some sort of plan later in September is just pathetic. You’ve been president for the past 3 years. How do you think this helps you?
By stepping down from the Presidency to campaign puts him on the same level as the other Republican candidates who are running. This weakens him. The Republican candidates are campaigning because they want his job. Obama already has the job. He needs to prove that he’s worthy of keeping it with action. Campaigning at this point is a waste of time.
Here’s my favorite line he’s given, from the New York Times:
“It’s time to put country first,” he said, recycling a line used by his Republican opponent in the 2008 presidential race, Senator John McCain of Arizona.
Put country first? Is he serious about this? Then why not present his own budget and deficit reduction plan? If he thinks taxes needs to be raised, campaign on which specific taxes should be raised. If he’s in favor of entitlement reform, then explain how you’d do it and why. This is what leaders do.
The American people are looking for a Commander in Chief, but so far all they’ve seen from Obama is a Campaigner in Chief. It’s just not good enough.
Obama: The Hollow Colossus
It’s amusing to me to read and watch as lefties discover just what an empty shell Obama really is.
Here’s Cenk Uygur from the Huffington Post
Jennifer Rubin, a rightie, provides much the same analysis from a different perspective.
Here’s Jennifer Rubin’s take from the Washington Post
In the end what they’ll all realizing is what I’ve thought from the beginning. With no record of accomplishment Obama was able to present himself as being all things to all people. Voters could project their wants and desires onto him, seeing whatever they wanted to see. This has been the secret of Obama’s whole career. Doing nothing as he wafted up like a feather to ever higher positions. This, of course, has all come to a crashing halt. You can’t vote “present” when your president.
Is Obama A Liar?
I’m not entirely sure if Obama lies deliberately. My take is that he’s gotten by for so long with people just believing anything he says it just comes naturally to him now. Being president is the first time in his life where his words actually mean something. Its the first time he’s actually had to match his words to deeds. I think the collision that is occurring between his fantasy world and reality is really beginning to take a toll on him. Thankfully for him though most of the press is willing to sacrifice their credibility to cover for him (with the exception of this article below).
Related articles
- Is Obama a Serial Liar? (gunnyg.wordpress.com)
- Why is Our Leader Such a Liar? (hiwaychristian.wordpress.com)
