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SOTU Greatest Hits Mashup

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RNC compares all three Obama SOTU to discover a consistently platitudinous repetition. If it didn't work last year, or the year before, then let's make sure it doesn't work again this year. Watch the Fed announce it does not plan to raise rates until the end of 2014, after the mid-term Elections. This is unhappy portent. Speaking to Landon Thomas, NYT, about the protracted negotiations in the Eurozone re the Greek debt due in March. The ECB wants to be paid in full. The banks and hedgies holding Greek debt will bot take less than 50% on the Euro. What does this mean for 2012 Election? It means that POTUS in SOTU skipped the European recession mention because the White House knows that this is already a year of struggles and blame-shifting. China's slowdown is because the global economies are slowing. All this aims at a sluggish jobs picture, as the employers here hesitate again in mid-Winter to hire. The excellent weather in January will help boost the jobs created number due next week. Is it enough to boost Obama re-elect to IA, AZ, NM, NV (the Western path to 270)? Unknown. Spoke Ed Lazear, Hoover: 

Wednesday, 1/25/12 - John Batchelor's Heads Up Minute:   Is the jobs picture improving, or stagnating, or deteriorating? I'm John Batchelor; this is the Heads-Up Minute. The Obama administration is delighted with the gain of 200,000 private-sector jobs in the final month of 2011. Also positive was a separate report that showed the US jobless rate is back down to 8.5%. Another positive is that first-time unemployment claims declined to about 350,000. I learn from Stanford professor and Hoover Fellow Ed Lazear, who was chairman of George W. Bush's Council of Economic Advisors, that another important measure is not so rosy. It compares the number of people fired to the number who quit in a month. At long last, the quits outnumber the fireds- but just barely. Also, the number of monthly hires today is just about the same as it was in January 2009, at the depths of the collapse. Conclusion: the jobs market still needs a long, long recuperation. I'm John Batchelor. Listen or Download this show


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38 Comments

The electric car needs to die . . .

January 25, 2012

Dear President and CEO of General Motors Mr. Obama,

As an old life guard I wonder sometimes if a liberal were drowning, and I through them a jug, half filled with water to save them, would they, right before they were about to take their last breath, would they look for the recycle logo on the jug or would they just be happy that I was saving their life with it? If the electric car was drowning I would fill it with Quikrete and sink it. At least then it could not hurt anyone and it would become provide a home to some fish. I know all of you up their have a fetish for this thing. You think that it is a panacea to our use of oil or to clean the air, or whatever, but it’s all a lie. From production to delivery, to use, to disposal, it is a bad idea. The only way ideas like this come to be is a result of forcing people to invest in failed ideas, and the takeover of companies like General Motors by the federal government.

In a sane world an entrepreneur would go to the public market or invest their own money and set out a few goals. Number one would be to build the lightest and coolest car possible. Number two would be to make a profit. Number three would be to sell as many of them as possible to the most people possible. Unfortunately, the car business has been decimated by over regulation. Good thing you people never got your hands on the cell phone industry. Apple Computer would still be making the Mac II. This mythical car company would hire people, build plants, and create a product that would get fantastic mileage. To do this it would use composites, high strength plastics and aluminum to reduce weight. The enemy in efficiency is weight and aerodynamics, not propulsion. In fact when one fixates on the that aspect they end up with too much weight and not enough bang for the buck; and like Elliot Spitzer Americans love a little extra bang for the buck:) In short, if any company took a four cylinder vehicle and used these light but strong materials a gasoline powered vehicle would do far better then a battery coal driven car from factory floor to disposal, but liberal auto executives like yourself don’t want the truth, they just want their fantasy, just like Elliot Spitzer, the problem here is all of us have to pay for it.

I drive cars that are big and powerful. I love Corvettes. You can’t beat them for the buck. I drive them less now because I can no longer afford the gasoline. The reason I can’t afford the gasoline is because the government is making it so the refineries and energy companies cannot make enough product to allow the market to clear at a price that would induce me to consume. That is why America is dieing with you as President, that is also why, President Carter failed so miserably too, you are trying to deliver the same medicine to a patient that just wants to escape the hospital. President Reagan provided that escape, and one day President Gingrich or President Romney or some other fellow will do the same. Or you could continue to run this nation, and General Motors, for that matter into the ground.

Thankfully, we get a say in that, and on November 6, 2012, we will be voting for the other guy.

Respectfully,

Joe Doakes

January 24, 2012

Joe Doakes’s Speech On The State of The Union in the form of a letter:

Dear President Obama,

I didn’t see your speech. Why should I? Why should any America hear one more syllable you utter? What purpose would it serve? Would it change what you have done in these last three years? Would it change the waste, fraud and abuse that has occurred? No. In Cuba, in the not so old days, you’d get a red star in your book if you attended a political rally, we don’t even get a sticker for our troubles, but we do get the bill. I’m tired of working for it, and so is the rest of America, all of your grand schemes and plans. To what end? Just survive. That’s it. That’s what most Americans are trying to do now and that completely sucks. Americans should not be just surviving they ought to be thriving. If I did hearing your speech or read it and the official Republican response I would want to tear my hair out, right down to the roots, I’ve little doubt I would hear the usual pap from a failed President and the next FNG who wants the job not to right the ship of state, but to continue to crash it on the rocks of fiscal insanity.

I realize my station in life, I will never exceed it, it’s not possible, too much debt and too many stupid decisions and not enough time, only those who either get in bed with people like all of you or those lucky enough to do something fantastic will ever make it. I sure as excrement know I am not one of those, I’m just a regular guy, no great mind at work here, but I can’t see how you people think we have time to end the graft from those that abuse the welfare state, fight continually for one side of the same muslim arab coin against the other and simultaneously do what must be done to meet those obligations to those who legitimately need help. Like children dieing of leukemia, or the indigent elderly, or the guy who got his arms and legs blown off because some idiot wrote an ROE so that he could not call in a mortar round or toss a grenade or even use his weapon to neutralize the threat. Only a politician could manage to make a smart bomb stupid, and spend billions of borrowed dollars on the enterprise.

Our job as Americans is simple. Stay out of trouble. Take care of our families. Do our jobs, even if we don’t like them. Then go and vote for the next set of idiots in the clear blind hope that they get this nation moving again. I wish that I could say that this isn’t a grind. I wish I could say it’s easy. I wish I could say the government was going to be your partner and not your adversary as you take each step through the deepening mud, uphill, in ice and snow, but that would be a bald face lie. I think we have had enough of that from both sides. But I can promise this. When your life is over and you look back you will look back with a sense of accomplishment that no one, no government, no person can ever deprive you of. President Reagan once said “if we lower our standards we lower the flag;” it doesn’t take a genius to see that for too long we’ve had none. Remember all positive change starts around the kitchen table, like Mr. Reagan once asked us to do we must continue this peaceful fight around that table. Make it happen. One meal at a time. We can beat this government induced Depression, we will do it by overcoming, not by getting in bed with these people, it started with an reawakening, we shoved it up their yang with an election, and we must do it again in 2012.

We will.

Respectfully,

Joe Doakes

Thanks Joe, most helpful,

President Reagan once said “if we lower our standards we lower the flag;” it doesn’t take a genius to see that for too long we’ve had none. Remember all positive change starts around the kitchen table, like Mr. Reagan once asked us to do we must continue this peaceful fight around that table. Make it happen. One meal at a time. We can beat this government induced Depression

Your SOTU was much better than Obama's -- nice job. I started to listen to The Bamster last night out of a misplaced sense of duty, but he increasingly makes me nauseous; not enough Dramamine in the house to counteract the urge to spit up, so I turned on the Military Channel instead. Far more worthwhile use of my time.

Anyway, since you're as big a fan of the electric car as I am, I thought I'd share this historical factoid with you as you might enjoy it. Folks have been trying to develop a workable electric car since the 1890s at which time the Columbia Bicycle Company was also America's leading manufacturer of "horseless carriages." These were electric cars, battery powered. But two guys we've all heard of advised Columbia to forget the electric car and go internal combustion engine instead. One of these guys was Thomas Edison who publicly stated that on grounds of pure sicence the electric car, battery driven or otherwise, was not a practical, workable idea and never would be. The other guy was at the time a young upstart named Henry Ford who denounced the electric car as an overly expensive toy fit only for the rich to use in driving around their estates. We know who was right; Columbia decided to remain all electric, and had to give up making cars altogether by about 1910 or so and stick to bicycles thereafter.

Of course, Columbia did not have the benefit of making electric cars at the same time as Barack Obama was President. Surely, all we need is a presidential ukase from the Anointed One to suspend the laws of science and of economics -- not to mention 100+ years of practical experience -- to make the electric car viable at last. It's much like how The Bamster treats the Constitution. Besides, as proof we do have the Chevy Volt -- wait, do I smell smoke?!?

I too attempted to listen to the POTUS SOTU but became too annoyed after 15 minutes. I used to be able to listen in full to Clinton's but perhaps he wasn't as unlikeable, perhaps I'm just getting cranky.
Re: Jobs, I believe it was on your show JB where I learned the magic number is 400,000. Below that and the growth is not keeping up with graduates, immigrants etc. If so I can't be pleased with the number 200,000. Although I can understand why the Administration would be pleased, it looks like a big number. Also on the same subject I see 350,000 first time filers of unemployment. OK let me do this 200,000 minus 350,000 equals...carry the one... negative 150,000. Oh Happy days! what a recovery! That's why Benjamin Desraeli said "there are lies, Damn lies, and statistics."
Finally did you notice that that Evil capitalist Mitt Romney donated 15% of his income to charity? While self appointed savior of all Obama managed a mere 1%. I bet the President would have spent more in Golf fee's than he gave to charity. (If he actually paid for his golf.) What of Joe Biden the Human Gaff Machine? He managed $369.00. Pathetic and disgraceful.

The 30% minimum tax on income over $1M isn't that different from the 28% AMT we've had for the last decade or so. The Filliger household paid an effective Federal tax rate of 25.7% for 2010 and it will probably be 26% or 27% for 2011.

Combined with an effective California tax rate of 8.1% for 2010, that put us at 33.7%. Add in Social Security and Medicare taxes and we're right around 40.0%.

Move along people, no need for any tax increases here.

all of it paid by me and none of it by my wife, I might apostrophise here ....

What about your property taxes and sales taxes?

I was tryin' to keep it simple so even a Demmy-crat could understand it ... heh heh

"As an old life guard I wonder sometimes if a liberal were drowning, and I through them a jug, half filled with water to save them, would they, right before they were about to take their last breath, would they look for the recycle logo on the jug or would they just be happy that I was saving their life with it?"

LOLOL. Great image, Joe.

I don't listen to those things for the same reason I don't listen to debates: what's said about them is much more important than what's said in them.

The f-ing jug was no joke . . . one guy put me down with one right in the head . . . I ended up in Butterfield Hospital . . . the guy that put me down, and the guy that saved me . . . both became doctors.

I hope you won't think me prying, but I don't get the relationship between a drowning man and using a half-filled jug of water to save him. What am I missing?

"PUT UP OR SHUT UP"

Is that any way to speak to Nancy Pelosi? You bet it is.

To save money my summer camp would take a bleach jug and fill it half fill with water; used properly it allows a life guard to launch a rope past a swimmer in distress. In my case, it knocked me out, lights out baby. Went down like a rock.

In my letter I guess what I'm trying to say I'm politically agnostic as to who I would save with what ever I had. I'm older now. But I can still swim like a fish. One day I'll probably get into real trouble, but I'd rather go out trying to save someone then calling out bingo at the nursing home.

Hope this clears it up for you.

I've said here before that what I remember most about Newt Gingrich is that he shut down the gov't during Clinton's administration -- and that I hated him for it. However, at that time I was not that concerned with politics or policy. I liked Clinton. Hell, why not? I was working and doing well. I didn't like the whole 'Whitewater thing'. I didn't like Ken Starr, Monica Lewinsky or any of the Foster allegations. I didn't like the Republicans.

I vaguely remember Newt resigning. But whether it's because of Romney's commercials or bad coverage by Fox, I grew to believe that Newt resigned in disgrace and was guilty of ethics violations. Yesterday on O'Reilly, I heard Krauthammer explain that Newt resigned two years after the ethics hearings. And that he resigned, basically, because of the big Republican defeat in Congress. However, it was only tonight when I heard Newt on Hannity, I understood that Newt was not guilty of any ethics violations, either.

Bottom Line: Romney is using Dem tactics -- and I don't like him or his lies.

If Newt worked for Freddie Mac after the 2008 stock market crash - fine. Crucify him. But that isn't the case. Working for Freddie Mac is as much free market capitalism as is Bain Capital. And for Romney to get on his high horse and bash Newt for his legal activities is just plain crap. I also remember the high flying time of leveraged buyouts -- and it was dirty: Just buy a company, break it up and fire people. Now I'm hearing a different story. But the perception of the former is what I remember. And I lived through it w/o much interest in doing anything but work.

I like Newt.

And the fact that he walked out of Congress w/o anyone liking him just makes me like him that much more.

Thanks. I get it now.

Did anyone mention Jim Wright and Newt's all-out campaign to unseat him as speaker, which campaign revolved, at least publicly, around a spurious book deal that was a not-so-well disguised way to funnel money to Wright? http://www.amazon.com/Ambition-Power-Wright-Story-Washington/dp/0831783028/ref=sr_1_1?s=books&ie=UTF8&qid=1327561702&sr=1-1 It was during the Wright investigation that many previous book deals for Congressmen were stripped of their fig leaves and disclosed as basically shoddy and questionable sources of campaign cash. Many recognized the irony in the excuse used to send Newt packing.

Clinton got a deal similar to Newt's and nobody batted an eye.

I hope you know by now that Newt didn't shut down the government. All Clinton had to do was sign the Republican budget bill. But the President is one guy with a bully pulpit, while Congress is 535 cats all marching to their own drummers, often more than one, and each one demanding to be heard when most of them didn't know what the hell they were talking about. It was painful watching the Republicans trying to get their word out to a media that hated them before they ever took office in Jan 1995. This is the Time cover from the issue dated the day after the 1994 election http://www.time.com/time/covers/0,16641,19941107,00.html. Their hatred was evident from the start. This haughty disdainful looking photo was how they protrayed him when the Republicans took office in Jan 1995 http://www.time.com/time/covers/0,16641,19950109,00.html. When Time named Newt man of the year in Dec 1995, they doctored the photo they used for the cover to make him look like a sinster, red-faced, bilious menace. http://www.time.com/time/covers/0,16641,19951225,00.html. That was after they'd spent a year covering the Republican Revolutionaries. It was remarked on at the time.

Newt's sin was costing the Republicans 5, count 'em f-i-v-e, seats in the 1998 elections. The backbenchers who largely had been selected via a process Gingrich set up for bringing in young talented guns to run in marginally Democratic districts rebelled against him, led by some older longer serving "traditional" Republicans like Boehner. I remember particularly Steve Largent's whiny explanation that they all chafed under Newt's "my way or the highway" attitude toward party discipline. I mean, really! They wouldn't have been in office but for him, and once there, they thought they knew how to run the place. Sound familiar? What did we get in return for his resignation? Good ol' Denny Hastert, party apparatchick of no distinction and singularly devoid of imagination, who had no idea what movement conservatism was.

I uncharacteristically listened to the SOTU, only because I downloaded the JB podcasts to my ipod, and JB was moderating. Listening to POTUS right into my ear was interesting. The undertones of his voice are those of seduction. He's alternately a combination of father-lover, and then a good dose of protector-cop-coach. He exhibits both sternness and plaintive seduction. And while he is saying what his base craves to hear, it's easy to want to be gathered under his protective verbally manipulative wing. This is why people, especially the media, swoon. He's boring, and nauseating if you can see through it, if you want to see through it. But if you get into the head of the admiring types - his lies and manipulations are obscured very well. Imagine O reaching a hand out and beckoning to his lover in some operatic aria. In fact isn't that what he did the other day when he gave some impromptu rendition of Al Green's "I am so in love with you". Oh well, time to disengage, and live my life.

He never mentioned unions, a large source of political corruption and economic interfernece.

Roads are crumbling due to the expense of construction workers. Airport projects take forever. LAX and JFK are ancient and crumbling. 10 years later the WTC is nowhere near completion.

Universities was interesting, the American Association of Universities has been tossing out members who do not use enough GOVERNMENT sponsored research. Syracuse and Nebraska are two examples. They are a lobbying group for Government paid research.

Obama's comparing Reagan to Neville Chamberlain is absolute folly. We can see his far left bigotries if we look close.

"I hope you know by now that Newt didn't shut down the government."

Great analysis. And, as always, thank you.

Unfortunately, my memory is really just perception of what happened -- which was guided by headlines of a biased NYT, which I didn't think was biased at the time. I was a faithful reader of the Sunday Times -- so I got my info from a recap of the news of the week, book reviews, the NYTimes magazine -- and especially, the real estate section. Bottom line: I really did think, until now, Newt closed down the gov't -- And never thought about it after the fact. If I were to think about it, yes, because Clinton didn't sign a bill. But, remember, my thought process was that Newt was wrong and whatever bill wasn't signed was a bad bill anyway and that Bill C was right. -- I never got into process or policy. BTW: I wasn't effected in anyway by the shutdown of the gov't. I just didn't like it. I was on Clinton's side. I especially didn't like the 'politics of personal destruction'. Hate to admit it, but I am a registered Democrat -- always have been, still am. I haven't changed my registration, even though W was the first Republican I ever voted for and will never vote Dem again. Why bother to change my registration? I now know that my vote in NY doesn't matter a whit.

I especially liked [won't touch the NYT ever again] reading the little items towards the back of the news sections of the Sunday Times. My best call was that there was going to be trouble in Iran -- because I saw a tiny 4 line report that a former head of the CIA was appointed ambassador. This while the Shah was still in power. My analysis: Why would a former head of the CIA be appointed ambassador unless there was going to be trouble?

I am always amused when people speak of "shutting down the government" as if it were a bad thing.

The only bad thing is that the shutdown isn't permanent.

If I'm repeating myself, I apologize. I was a government employee at the time, and I was still cheering for the Republicans. I knew we'd all be made whole when the govt returned to normal operations. I didn't have to line up at the unemployment office, although to this day I think that aspect, heavily covered by both national and local news, was a union publicity stunt, especially during the first shutdown. I didn't have any vacation plans that went south because 1) I couldn't get into a national park (although just for sport I drove out to Great Falls national park http://www.nps.gov/ncr/_cs_apps/fls_photoGallery/customcf/display-slideshow.cfm?gID=146279 http://www.nps.gov/ncr/_cs_apps/fls_photoGallery/customcf/display-slideshow.cfm?gID=146275 just to see if I could - I ended up driving north a couple of miles to the lovely Fairfax county park, Riverbend http://www.fairfaxcounty.gov/parks/riverbend/nature.htm), where I could get in; or 2) I couldn't get into a passport office (I've kept my passport current since 1979).

What the media spent time covering was those incidental consequences of the shutdown: angry parents with squawling kids or obviously foreign visitors standing forlornly outside a national park with a big "Closed!" banner slapped across the entrance sign; people milling around outside a closed passport office telling reporters about how they couldn't visit their dying relative in Cyprus or wherever, or the vacation they spent a lifetime planning was now forfeit to willful politicians; long lines of government workers at unemployment offices; and empty halls in cavernous government office buildings. Then they would talk about how unreasonable the Republicans were to cause all this misery, scarcely once apportioning any blame to Clinton. In fact Clinton and Reuben spread a lot of disinformation before the shut down about what they would never do to bail the country out while the impasse went on, then they went right ahead and did them anyway. Perhaps sucker punch credits the Dems with too much cunning rather than luck, but survivors of those two experiences remember well the fall out. The Republicans were lucky to lose only 5 seats in the '98 election. That's why Krauthammer always shudders at the mention of shutdown and pleads with Republicans not to provoke another round with a Democratic president.

"I never got into process or policy."

Process is strictly for junkies. I've always been one ever since I went to work for a guy in 1980 who really taught me everything I know about how legislative process really works, regardless of subject or body. People who know the process usually control the outcomes. You can watch that in two living legends: Newt and McConnell. If he'd stayed in office, Newt would have been one of the greatest and most influential speakers in the history of the office.

Every American ought to have enough interest in his life and circumstances to become familiar with the biggest policy issues affecting him. Unfortunately, most don't bother until they step into the voting booth and then they wonder why they don't get the result they hoped for.

Later I'll put up a handful of titles about Washington and Congress and how things really work there you can look at in your copious spare time. The combined result is a better understanding of why things don't change much in the short run, say, 30-40 years. JB has a nice breezy history of the Republican Party that's worth a look too. http://www.amazon.com/Aint-You-Glad-Joined-Republicans/dp/B000H2MPMC/ref=sr_1_10?s=books&ie=UTF8&qid=1327617220&sr=1-10

From The Atlantic:

The State of the Union: What Obama Doesn't Get About America

By Conor Friedersdorf

Comparing the citizenry to a military unit, he says we need to cooperate better and trust more. But prospering as diverse individuals is our greatest strength

See web-only content:
http://www.theatlantic.com/politics/archive/2012/01/the-state-of-the-union-what-obama-doesnt-get-about-america/251956/

The State of the Union Address began and ended with President Obama extolling the U.S. military. Invoking all those who served in Iraq, and especially the American men and women who died there, he said that they "made the United States safer and more respected around the world," a strange assertion coming from a man who himself insists fighting in Iraq made us less safe, campaigned on pulling out the troops, and knows the war made us less well respected. So he got off to a bad start, if we're to judge him on the truth of his words.

Thereafter it just got worse.

It ought to be self-evident that a free country neither can be run nor should be run like an army or a navy. America encompasses hundreds of millions of people with diverse values, priorities, and talents, each free to pursue happiness as he or she sees fit. The modern military is a hierarchical organization made up of self-selecting people compelled to take orders from their superiors. They're highly trained, expelled from the organization if they lack discipline, and expected to both risk their lives and kill other people to achieve the mission dictated to them.

Does Obama understand this about our warriors? "At a time when too many of our institutions have let us down, they exceed all expectations. They're not consumed with personal ambition. They don't obsess over their differences. They focus on the mission at hand. They work together," he says. "Imagine what we could accomplish if we followed their example. Think about the America within our reach: A country that leads the world in educating its people. An America that attracts a new generation of high-tech manufacturing and high-paying jobs. A future where we're in control of our own energy, and our security and prosperity aren't so tied to unstable parts of the world. An economy built to last, where hard work pays off, and responsibility is rewarded."

Forget the fact that, along with all the tremendously brave and honorable veterans, our military has some bad apples; forget too that there are decent men and women who come home armless or uncharacteristically violent or suicidal; even accepting the rosy portrait Obama paints of the military, surely he must understand that it is in fact impossible for a free people to cooperate as efficiently as the armed forces; that there are deep disagreements among principled Americans about how best achieve the civilian goals Obama mentions; that it would be tyrannical for an authority to dictate a strategy; and that it would fail too, for at the height of America's relative power, when it attracted the highest paying jobs and led the world in educating its people, the folks making it all happen weren't cooperating like a military at all. They were marshaling the power of the market, running uncoordinated educational institutions (some private, some public), and taking orders from no one. In a free country, it is difficult to think of a less apt analogy than the one Obama offers.

Unlike some hardcore conservatives and libertarians, I don't have a principled aversion to a progressive income tax, nor do I mind redistributing wealth if the purpose is a legitimate one, like compelling taxpayers to fund a basic safety net for those unable to acquire food, shelter, or medical care. Infrastructure projects, public health agencies, certain kinds of scientific research -- these are among the several things I'd prefer that the federal government help fund, and I've never thought that Obama is a socialist or a radical departure from past presidents.

In this speech, however, the president suggested a course for America that is insufficiently solicitous of its diversity; misunderstands its strengths; and presumes that the federal government can be far more nimble, effective, and incorruptible than has ever been demonstrated. Judging from Twitter, some of you are already nodding along with this critique; others are perplexed by these objections. Perhaps folks in the latter group can better understand my concerns if we depart from abstractions and delve into more of the speech's particulars.

Three quick things as preface: (1) I don't blame Obama for the bad economy. (2) I have no opinion about whether the tax rate for folks making over $250,000 per year is too high, too low, or just right, and Obama's desire to raise rates on the highest earners isn't at all a part of what I objected to in his speech. He may be right. (3) I operate from this premise: when possible (alas, it isn't always), the government should avoid imposing majority values or priorities on individuals or minority groups who don't share them.

Okay, on to some excerpts.

Let's start here:


On the day I took office, our auto industry was on the verge of collapse. Some even said we should let it die. With a million jobs at stake, I refused to let that happen. In exchange for help, we demanded responsibility. We got workers and automakers to settle their differences. We got the industry to retool and restructure. Today, General Motors is back on top as the world's number one automaker. Chrysler has grown faster in the U.S. than any major car company. Ford is investing billions in U.S. plants and factories. And together, the entire industry added nearly 160,000 jobs. We bet on American workers. We bet on American ingenuity. And tonight, the American auto industry is back.What's happening in Detroit can happen in other industries. It can happen in Cleveland and Pittsburgh and Raleigh.

If you favored the auto bailout, know this: even if it succeeded beyond anyone's imagination (a point on which I offer no judgment) it was political factors as much as sound economic analysis that caused its passage. Presume, for the sake of argument, that federal intervention worked this time: that bailing out a politically powerful industry was also the right thing to do economically. How frequently are the stars going to align so fortuitously? Especially after watching the Wall Street bankers get bailed out, does anyone really want to bet that federal attempts to bail out industries in Cleveland, Pittsburgh, and Raleigh would disinterestedly and reliably pick winners, as opposed to being captured by the most well-positioned special interests? Making a habit of industry bailouts makes it highly likely that government will be corrupted, that politicians will determine winners and losers as much as the market, and that long term growth will decline.

Then there is the energy sector.

Say that you're concerned, as I am, about climate change, and that you wish to hasten the speed at which alternatives to fossil fuels develop. You could argue that the costs that carbon actually imposes are currently underpriced, and address that market failure by instituting a carbon tax.

Or you could advance this agenda:


When Bryan Ritterby was laid off from his job making furniture, he said he worried that at 55, no one would give him a second chance. But he found work at Energetx, a wind turbine manufacturer in Michigan. Before the recession, the factory only made luxury yachts. Today, it's hiring workers like Bryan, who said, "I'm proud to be working in the industry of the future."

Our experience with shale gas shows us that the payoffs on these public investments don't always come right away. Some technologies don't pan out; some companies fail. But I will not walk away from the promise of clean energy. I will not walk away from workers like Bryan. I will not cede the wind or solar or battery industry to China or Germany because we refuse to make the same commitment here. We have subsidized oil companies for a century. That's long enough. It's time to end the taxpayer giveaways to an industry that's rarely been more profitable, and double-down on a clean energy industry that's never been more promising. Pass clean energy tax credits and create these jobs.

We can also spur energy innovation with new incentives. The differences in this chamber may be too deep right now to pass a comprehensive plan to fight climate change. But there's no reason why Congress shouldn't at least set a clean energy standard that creates a market for innovation. So far, you haven't acted. Well tonight, I will. I'm directing my Administration to allow the development of clean energy on enough public land to power three million homes.

And I'm proud to announce that the Department of Defense, the world's largest consumer of energy, will make one of the largest commitments to clean energy in history - with the Navy purchasing enough capacity to power a quarter of a million homes a year.

Of course, the easiest way to save money is to waste less energy. So here's another proposal: Help manufacturers eliminate energy waste in their factories and give businesses incentives to upgrade their buildings. Their energy bills will be $100 billion lower over the next decade, and America will have less pollution, more manufacturing, and more jobs for construction workers who need them. Send me a bill that creates these jobs.

As Yuval Levin put it, "This speech offered a vision of a profoundly technocratic and activist government, with its hands in every nook and cranny of the nation's economic life -- a government guiding particular business decisions and nudging individual choices through just the right mix of incentives and rules to reach just the right balance between fairness and growth while designing the perfect website for job retraining programs and producing exactly the proper number of 'high-tech batteries.'" It isn't enough to achieve the ends of less carbon in the atmosphere and better alternative fuels. Obama wants to dictate the means too, and that is folly. The knowledge needed to make alternative fuels viable is distributed too widely for a top down approach to work.

Another excerpt:

There's never been a better time to build, especially since the construction industry was one of the hardest-hit when the housing bubble burst. Of course, construction workers weren't the only ones hurt. So were millions of innocent Americans who've seen their home values decline. And while government can't fix the problem on its own, responsible homeowners shouldn't have to sit and wait for the housing market to hit bottom to get some relief.

That's why I'm sending this Congress a plan that gives every responsible homeowner the chance to save about $3,000 a year on their mortgage, by refinancing at historically low interest rates. No more red tape. No more runaround from the banks. A small fee on the largest financial institutions will ensure that it won't add to the deficit, and will give banks that were rescued by taxpayers a chance to repay a deficit of trust.
Did you catch the sleight of hand? Taxpayers as a whole bailed out the banks. If that justifies an initiative to repay the taxpayer, shouldn't the repayment flow back to all of us? What Obama proposes is yet another redistribution of wealth to the subset of taxpayers who own homes. It seems to me unjustified for government to decide it prefers helping homeowners to renters; nor do I want Congress defining who counts as a "responsible homeowner," a job for which it is ill-suited.

As Obama concluded his speech, he returned to the military theme, this time talking about the Bin Laden raid:

All that mattered that day was the mission. No one thought about politics. No one thought about themselves. One of the young men involved in the raid later told me that he didn't deserve credit for the mission. It only succeeded, he said, because every single member of that unit did their job -- the pilot who landed the helicopter that spun out of control; the translator who kept others from entering the compound; the troops who separated the women and children from the fight; the SEALs who charged up the stairs. More than that, the mission only succeeded because every member of that unit trusted each other -- because you can't charge up those stairs, into darkness and danger, unless you know that there's someone behind you, watching your back.

So it is with America. Each time I look at that flag, I'm reminded that our destiny is stitched together like those fifty stars and those thirteen stripes. No one built this country on their own. This nation is great because we built it together. This nation is great because we worked as a team. This nation is great because we get each other's backs. And if we hold fast to that truth, in this moment of trial, there is no challenge too great; no mission too hard. As long as we're joined in common purpose, as long as we maintain our common resolve, our journey moves forward, our future is hopeful, and the state of our Union will always be strong.
This is deeply wrongheaded.

Yes, we're bound together as Americans in certain tasks, like defending the homeland and seeing that those who cannot care for themselves are provided with what they need. And there is agreement on certain broad goals: better educated children, safer infrastructure, etc. But a nation of 300 million free people doesn't share a common purpose, nor should it; government's role is to facilitate our ability to live as we see fit, not to bind us together like Navy SEALs on a military raid ordered up by our commander-in-chief. This nation is great because it affords such a diverse polity the opportunity to pursue happiness, not because "we built it together."

(We didn't in fact build it together.)

How can Obama say that the Bin Laden mission "only succeeded because every member of that unit trusted each other -- because you can't charge up those stairs, into darkness and danger, unless you know that there's someone behind you, watching your back," and add, "so it is with America"? It just isn't that way with America. Lots of people within our polity mistrust one another, as is inevitable; in the post-WWII period of prosperity that Obama earlier invoked, there was segregation and the Red Scare and all manner of Americans short on mutual trust, and while there isn't anything wrong with calling for less unfounded paranoia, positing that only a trusting nation can succeed fundamentally misunderstands our past and our future.


The strength of our system -- the free markets, the best of our regulations, our very culture -- is that it brings about progress even if the leader doesn't himself know what energy investments will pay off; if we maintain the system, we'll prosper even if the federal government doesn't adeptly line up the economically efficient community college training program with the right applicant and employer; folks will find jobs even if we never develop the single perfect web site for job searches; we'll thrive even if our diverse passions and values create mistrust and infighting.


Obama's critics have long asserted that he doesn't understand these core strengths of the American system. His State of the Union speech suggests they're more right than I once imagined.


This article available online at:

http://www.theatlantic.com/politics/archive/2012/01/the-state-of-the-union-what-obama-doesnt-get-about-america/251956/

When I'm told that a state or national park is closing due to lack of funding, I say, "Well, that means that you won't be able to afford any rangers to patrol around making sure I'm not 'trespassing', right?" ... uh, no, somehow there's always magically funds available to keep people out, but not funds available to empty the outhouses.

Your experience with the shutdown reminds me of my reaction to the TV show my wife is watching now about people who have "died" and come back to life after 20-30 minutes outside the body. You know what? They weren't really dead. They may well have been outside the body, and they may well have experienced a bit of what death is like, but they didn't really cross the ol' River Jordan. Death means you don't come back.

Getting back to the government shutdown, a REAL government shutdown by my definition of it, would be one where entire departments were dismissed, buildings sold, and parking lots let go to seed. And never rebuilt or replaced. Now, that's Ron Paul's dream and it happens to be mine as well. We could run this country tolerably well on 1/10 the federal government employees we now have.

By my count there are exactly two people who can really be considered small-government conservatives on this blog - Hayek and myself. Maybe a few others with leanings in that direction, and please speak up if I've overlooked anyone, but I think Hayek and I are the only two who'd really be pleased to live through the consequences of a 90% reduction in the federal government. Even if it means rioting and looting (it wouldn't). Even if it meant being invaded by Iran (it wouldn't.) Even if it meant I would lose 90% of my personal wealth and maybe even an arm and a leg. I would rather suffer all these depredations and more in a free country, than live "comfortably" in our current socialist state.

And I mean it

We don't need fancy cars or computers or smart-phones or supermarkets with almost infinite selection; we don't need jewelry; we don't need different clothes for every day of the week; we don't need fancy food, or $50+ a bottle wines, or cigarettes or cigars or drugs or any of that stuff. What we need is FREEDOM.

Brian Tracy used to say, ask yourself two questions: "What is it I want most in the world", and "What am I willing to pay to get it?" My answers to those questions: "Freedom", and "My Life".

LF

"What the media spent time covering was those incidental consequences of the shutdown..."

The way you state it is exactly the way I remember it.

"Even if it means rioting and looting (it wouldn't). Even if it meant being invaded by Iran (it wouldn't.) Even if it meant I would lose 90% of my personal wealth and maybe even an arm and a leg. I would rather suffer all these depredations and more in a free country, than live "comfortably" in our current socialist state."

Methinks you suffer from a poverty of imagination as to how bad your model could be for most Americans, including you, or an exaggerated estimate of what you could do without. Big talk as long as it ain't likely to happen, Lou.

If you knew me personally and had seen me go through some hairy situations in my life, you'd know that I thrive on adversity. In fact, when everything's falling apart is when I feel the most alive. But, there's no way I could convince you of that.

Except maybe to observe the following, and if you're worth your salt you'll know this is true: You never know how someone will perform in an adverse circumstance (note I don't say crisis because I don't really believe in crises) .... until it actually happens. I've seen tough guys crumble, and I've seen wimps come to the wheelhouse to run the ship.

You can't possibly know which category I fall into, therefore, your dismissing my heartfelt words as "big talk as long as it aint' likely to happen" is really only a guess on your part, and kind of a cheap shot at that.

I could just summarize my views on point with the words of Steely Dan: "Any world that I'm welcome to is better than the one that I come from."

"But, there's no way I could convince you of that."

I take your word for it. I'm sure you have. All I mean by my remarks is that I don't think you can imagine the totality consequences your words conjure. Chaos theory makes imaginations self-limiting.

The same could be said for one's ability to imagine the consequences of maintaining the status quo. If I go out I could be hit by lightning. If I stay at my desk my arteries might clog up and I'll get a massive coronary.

Epictetus said that one should not forgot that we shouldn't treat our lives and our bodies as our property, since they are on loan from (God, Supreme Being, life force, what you will)....

The only thing we have that is truly ours is our will.

"You've come a long way I know
You've got a longer drive ahead
Through the bones of the buffalo
Through the claims of the western dead....

Just like the spokes of a wheel
You'll spin round with all the rest
You'll hear the groans and the brush of steel
And you'll hear the call of the West."

Wall of Voodoo

(BTW this is even more off-topic than usual for me, it's just been going through my head like crazy lately.)

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