Author: Redactor

Categories
national politics & policies too much government

Volt Gives Taxpayers a Jolt

Government Motors — er, I mean General Motors — has sold approximately 6,000 Chevy Volts, its plug-in electric/hybrid gas-burner car. Is that good or bad?

Analyzing the various state and federal government subsidies to GM as well as to suppliers of batteries and other parts for the Volt, James Hohman with Michigan’s Mackinac Center for Public Policy estimates that each car sold could cost taxpayers $250,000.The Obamobile!

Hohman admits it’s hard to be certain of the precise subsidy level because of various government incentives that may or may not get triggered, but whether $50,000 per car or $250,000, a lot of taxpayer cash has been sunk into a make that still sells for over $30,000 (and usually closer to $40,000). Nor does Hohman’s analysis include a penny of the $50 billion dollars in TARP funds taxpayers put into GM, giving the federal government an ownership stake in the automaker.

Twisting the knife another turn, GM now lobbies state governments for more handouts. Justin Owen, president of the Beacon Center of Tennessee, wrote recently in the Daily Caller: “Rather than retool its business model to become competitive in the free enterprise system, GM turned to . . . another $1.7 billion in taxpayer-funded grants and tax abatements, not from the federal government, but from states across the country.”

When GM built cars without subsidies, it produced jobs and profits and wealth. That’s all good. But having auto companies sell cars at a couple hundred thousand dollar loss per vehicle sorta takes the fun out of it.

This is Common Sense. I’m Paul Jacob.

Categories
Today

Sup Ct meets 1st time, King of Portugal killed

On Feb. 1, 1790, the Supreme Court of the United States met for the first time in the Royal Exchange Building on New York City’s Broad Street, with Chief Justice John Jay of New York presiding. The U.S. Supreme Court was established by Article Three of the U.S. Constitution, which took effect in March 1789.

On Feb. 1, 1908, King Carlos I of Portugal and his eldest son, Luis Filipe, were assassinated by revolutionaries while riding in an open carriage through the streets of Lisbon, the Portuguese capital. Carlos’ second son, Manoel, succeeded him on the throne, but in October 1910 a republican revolution forced King Manoel II to abdicate and flee to England with the rest of the royal family. In the same year, Teofilo Braga, a well-known writer, was chosen the first president of the newly democratic republic of Portugal.

Categories
Thought

John Jay, Georgia v. Brailsford, 1794

“The jury has the right to judge both the law as well as the fact in controversy.”

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too much government

Down and Out and California

Barring drastic action, the Golden State will run out of cash in March.

There is no provision in the Constitution for dealing with a bankrupt state. But then, there’s nothing explicit dealing with federal bankruptcy, either. The founding fathers didn’t expect their republic to permanently accumulate debt. Indeed, Thomas Jefferson wished to foreswear all sovereign debt. He considered the practice parasitic.California's Direction

Our leaders are supposed to run our governments so to avoid debt crises.

But, because politicians do just the opposite, they run into cash flow crunches. Last year, California’s statesmen borrowed $5.4 billion to cover the lean time before Spring’s tax revenues flowed in. They had figured they would be good through June, but miscalculated. Now they’re scrambling for an extra $3.3 billion.

Time to fudge the books! Pay late. Not answer the phone or respond to dunning notices.

Of course, the real problem is over-spending. California’s politicians spend too much.

Alas, it doesn’t look like they are about to reform.

Gov. Jerry Brown still pushes the huge “investment” of high-speed rail, for the grandest example. The project’s supporters have over-estimated ridership, underestimated costs (the most realistic official accounting now puts the system at $98 billion), and have been forced to restrict the extent of the line, excluding both San Diego and the state capital. Brown’s response? Making up for cost overruns by hijacking funds from the state’s “cap-and-trade” (the nation’s only carbon-footprint-based) tax.

Ah, politicians: Spend, spend, spend, even as the institutions they are responsible for lurch into insolvency.

This is Common Sense. I’m Paul Jacob.

Categories
Today

13th Amendment sent to states, McDonald’s opens in USSR

On Jan. 31, 1865, the United States Congress proposed the Thirteenth Amendment to the U.S. Constitution, submitting it to the states for ratification. The Amendment’s main section reads: “Neither slavery nor involuntary servitude, except as a punishment for crime whereof the party shall have been duly convicted, shall exist within the United States, or any place subject to their jurisdiction.”

On Jan. 31, 1990, the first McDonald’s fast food restaurant opens in the Soviet Union. Having once traveled to Moscow, I’m exceedingly thankful for this.

Categories
ideological culture national politics & policies too much government

Food Stamp Stimulus

Yesterday, we discussed the Pennsylvania Department of Public Welfare’s new rule testing the financial assets of food stamp recipients to determine whether or not they qualify for the benefit.

Secretary of Agriculture Tom Vilsack recently traveled to the Keystone State to caution against restricting access to food stamps — officially known as the Supplemental Nutrition Assistance Program (SNAP) — on the basis of a person’s financial assets. He contended that implementing the means test would cost money and that it wouldn’t “save the Commonwealth a single dime.”Tom Vilsack points a finger

State officials suggest Secretary Vilsack is way off on the cost of implementation. Moreover, it seems odd to argue there will be no savings at a new conference stuffed full of shrill warnings that too many poor people would lose assistance.

But two of Vilsack’s other arguments really caught my attention. First, he claimed the SNAP program is an “economic extender,” which creates agricultural jobs and positions at grocery stores and convenience marts. Second, he asserted that for each food stamp dollar provided by government an additional $1.80 to $1.90 in economic activity is generated.

In other words, food stamps stimulate the economy. It’s almost as if, even if there were no folks down on their luck, we’d still want to spread around some food stamp money for all the good it does.

Vilsack made absolutely no mention of the economic activity interrupted when government took that same dollar from the person who earned it.

This is Common Sense. I’m Paul Jacob.

Categories
Thought

William Lloyd Garrison

“Enslave the liberty of but one human being and the liberties of the world are put in peril.”

“The compact which exists between the North and the South is a covenant with death and an agreement with hell.”

 

Categories
ideological culture national politics & policies

Wealth on Welfare

Should a $2 million lottery winner be heartlessly denied food stamps?

In the Philadelphia Inquirer, Jay Ostrich, public affairs director at the Commonwealth Foundation for Public Policy, tells the story of “Leroy Fick, who won a $2 million lottery jackpot, but still legally collected food stamps.”

That is, until “Michigan enacted a $5,000 asset test” for those applying for food stamps, thereby stopping “exploiters such as Fick from taking advantage of the system.”

Now the Pennsylvania Department of Public Welfare is doing likewise, implementing rules to block food stamps for anyone under 60 with $2,000 or more in assets ($3,250 if over 60 years of age) — excluding one’s home, car, a second car (if valued under $4,650) and retirement savings.

With state and federal welfare spending up 52 percent since 2002, and the friendly state facing a budget crunch, an estimated 2 percent of recipients could be affected to the tune of $50 million in annual savings.

But Philadelphia Mayor Michael Nutter calls the change “one of the most mean-spirited, asinine proposals to come out of Harrisburg in decades.” It’s “a disgrace,” according to State Sen. Shirley Kitchen (D-Philadelphia).

The Philadelphia Inquirer editorialized against the asset test on the grounds that it would “punish families for having a few dollars in a bank account.”

Punish? Not getting a handout is hardly punishment. The law just means that those with significant assets have to buy their own groceries.

This is Common Sense. I’m Paul Jacob.

Categories
Thought

Mahatma Gandhi

“You must be the change you want to see in the world.”

Categories
Today

Gandhi killed, MLK’s home bombed, Ulster’s “Bloody Sunday”

On Jan. 30, 1948, Indian leader Mohandas Gandhi, known for his non-violent, non-cooperation struggle for freedom and national independence, was assassinated by a Hindu extremist.

On Jan. 30, 1956, Martin Luther King, Jr.’s home was bombed in retaliation for his work on the Montgomery Bus Boycott.

On Jan. 30, 1972, British soldiers killed fourteen unarmed civil rights marchers in Northern Ireland in what came to be known as “Bloody Sunday.” Soldiers shot 26 unarmed protesters and bystanders – 13 males, seven of whom were teenagers, died immediately, while another man died of his injuries nearly five months later. In the immediate aftermath, an investigation by the British Government largely cleared the soldiers and British authorities of blame. A second investigation begun in 1998, released a report in 2010 declaring that all of those shot were unarmed, and that the killings were both “unjustified and unjustifiable.”