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Accountability free trade & free markets general freedom nannyism national politics & policies

You’re Fired! Hillary-style

“I’m the only candidate,” Hillary Clinton boasted at a town hall back in March, with “a policy about how to bring economic opportunity — using clean renewable energy as the key — into coal country. Because we’re going put a lot of coal miners and coal companies out of business, right Tim?”

First, who is this “Tim” fellow? Aren’t you curious? The news media, typically unhelpful, provides no context.

Clearly, Mrs. Clinton supports the Obama Administration polices that have been disastrous for the coal industry. “Now we’ve got to move away from coal and all the other fossil fuels,” she explained.

Monday, in West Virginia, Clinton met unemployed coal worker Bo Copley, who teared-​up talking about his family and being out of work. He asked Hillary, “I just want to know how you could say you are going to put a lot of coal miners out of jobs and then come in here and tell us how you’re going to be our friend?”

Mrs. Clinton told Copley that it was “a misstatement.” And that what she said was “totally out of context” from what she meant … whatever that means.

“[T]he way things are going now, we will continue to lose jobs,” she explained. “I didn’t mean that we were going to do it. What I said was, that is going to happen unless we take action to try to and help and prevent it.”

Yes, Hillary has a plan — not to “prevent” losing coal jobs, but, instead, to spend $30 billion in tax dollars to help those her policies hurt.

As one West Virginian passionately put it: “We don’t want your handouts; we want work.”

This is Common Sense. I’m Paul Jacob.


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free trade & free markets general freedom ideological culture nannyism national politics & policies responsibility

Too Much of a Good Thing

Once upon a time, over-​indulgence was considered a sin, a vice.

Not so much, nowadays.

Somewhere along the line, the idea that a little of a good thing was good, that general abundance is good, but that there can be too much of a good thing for any particular person … this latter common sense idea got lost.

I was reminded of this while reading the latest from the nation’s most famous investor: “Warren Buffett set himself on a potential collision course with public health campaigners when he said it was ‘quite spurious’ to lay the blame for obesity and diabetes at the door of fizzy drinks companies, such as his part-​owned Coca-Cola.”

The octogenarian multi-​billionaire Buffet, described as a “renowned Cherry Coke drinker,” defended not only his habit but the company that produced it. He emphasized choice, consumer choice. And he said, “I make a choice to get 700 calories from Coke, I like fudge a lot, too, and peanut brittle and I am a very happy guy.”

It came up because a university study had “linked fizzy drinks to 184,000 deaths annually worldwide.”

Well, name your poison. Some folks over-​indulge in alcohol; others, food; others, fizzy drinks. But Buffet limits his Cherry Coke intake, as common sense would indicate.

Gluttony used to be a vice. It was preached against. The morality of common sense held sway in our culture.

At some point hedonism in the unrestrained sense took hold of many consumers, who can pay a heavy price — if not at the grocery, at the doctor’s office.

No new laws or regulations are needed. Let everyone, billionaire or not, add up their costs and choose.

This is Common Sense. I’m Paul Jacob.


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ideological culture media and media people moral hazard nannyism national politics & policies

Austan Antic, Hey!

The other day, Fox News Network’s Bill O’Reilly asked University of Chicago economist Austan Goolsbee a question.  The subject was the socialistic gimme-​gimme attitude of youthful Bernie Sanders supporters. The previous segment, “Watters’ World,” had paraded interviews with a handful of college students, asking them to clarify just how much free stuff they wanted.

It was a funny segment, if you think young people talking foolishly about government is funny.

Calling Sanders “the Giveaway King,” O’Reilly asked Goolsbee his general impression of the gimme-​gimme attitude. It was the softest of softball questions. “What do you think about that?”

Talk about open-​ended. Any response given thus says a lot about the interviewee, seeing how broad he may answer.

“Well, look, I’ve told you I’ve never been a big fan of socialism,” spake President Obama’s famed advisor. “I’m an economics professor.” Chuckling, he went on. “I’ve got the sense you don’t want these people getting free air to breathe. You’d like them to mail in their checks to make sure they work for it.”

Goolsbee could have started off as sensibly as he ended: “I’m against free stuff. Socialism doesn’t work.…

He didn’t. He immediately reduced O’Reilly’s position to that of a straw man, using the reductio ad absurdum.

Why? For levity’s sake? Well, both O’Reilly and Goolsbee were jovial.…

But his nasty quip fulfilled a purpose, making sure that ideologues on the left continued to have license to think the worst about their opponents.

Thus Austan Goolsbee, despite his protests, carried water for crazed socialism.

This is Common Sense. I’m Paul Jacob.


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Austan Goolsbee , Bill O’Reilly, Bernie Sanders, free stuff

 


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Accountability folly free trade & free markets general freedom moral hazard nannyism national politics & policies

Bailed — Before Bailout

Last Wednesday, UnitedHealthcare Group Incorporated (UNH) announced that it will drop coverage of plans under Obamacare in all but a few states by 2017.

The market signaled a thumb’s up: UNH stock prices shot up over 2 percent.

The company, described in the news, somewhat vaguely, as the country’s largest insurer, is sending us a signal: the Affordable Health Care Act and its “Obamacare”?

Not affordable.

An insurance policy must make sense to both parties, the insured and the insurer. The insured gets peace of mind … and coverage when the rare events insured-​for take place. The insurer has written enough insurance contracts out there, prices based on actuarial risk, to allow it to make a profit even with payouts.

The problem with the ACA is that it raised costs (in part by forcing insurers to take on patients with pre-​existing conditions) while regulating terms of policies offered … and prices, too.

Plus, face it: the idea that one should insure for regular checkups is just one of the many absurdities built into the system.

It’s just too much meddling to work, in the long run. Bailouts and subsidies of those insurance companies that stick with the plan will then make the program unaffordable … for America’s taxpayers.

Over-​regulated and over-​subsidized, Obamacare suffers from the preposterous idea that a bird’s eye view of the economy from the politicians’ perch gives enough information to run complex systems servicing millions of people with diverse needs.

Expect more big stories with tags lines ballyhooing a “serious blow to Obamacare.”

This is Common Sense. I’m Paul Jacob.


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folly general freedom ideological culture nannyism national politics & policies too much government

The Hypocrisy Gap

You may have missed it. I wasn’t so lucky. This past Tuesday was “Equal Pay Day.”

“[T]he typical woman who works full-​time earns 79-​cents for every dollar that a typical man makes,” President Barack Obama said, repeating what we have already been told ad nauseum about the “wage gap” between men and women.

The “detailed calculation” used to determine this “gender wage gap”?

“Experts” simply added up all the money earned by all the men and all the women (subcategoried) and then divided by the number of men and women, respectively. No accounting for

  • the actual jobs performed,
  • hours worked,
  • education,
  • risk,
  • work history

… or any other factor.

Using this statistic make sense if all people — brain surgeons and taxi drivers alike, having worked every day for the last 40 years or re-​entering the workforce after decades away — should earn the exact same amount.

Communism.

It is already illegal to pay a woman less than a man for the same work. Yet, on the WhiteHouse​.gov page entitled, “This Is Why Today is Equal Pay Day,” the prez says “we must rid our society of the injustice that is pay discrimination.” The website insists that, Obama “has made equal pay a top priority.”

Then, why does a pay gap exist between the men and women working for Mr. Obama? According to the Washington Post, “The White House has not narrowed the gap between the average pay of male and female employees since President Obama’s first year in office …”

The good news? Equal Pay Day is over.

This is Common Sense. I’m Paul Jacob.


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Categories
folly free trade & free markets moral hazard nannyism national politics & policies responsibility

Auto Destruct

Just when you thought it safe to go back into the loan market.…

Yes, you guessed it: a bubble may be about to pop.

There are actually several, but here’s one you might not expect: the automobile loan market.

Though less regulated and tampered with than the housing market, auto loans aren’t immune to “moral hazard” and other government-​induced dangers. The Fed’s low interest rates are almost certainly stimulating the new car market. “Subprime” car loans are way up and so are delinquencies. Do the bankers making these decreasingly solvent loans expect a bailout?

As Eric Peters notes at his immensely fascinating automobile website, the average car loan is now $32,000, “a record high.” And then there’s the “ever-​increasing duration of new cars loans. They are now on average six years long — and seven year loans are becoming pretty common.”

Why? “In order to spread out payments (now averaging almost $500 a month) that have become simply too much to manage for most people.”

But then of course car prices are rising. And not just because of simple inflation. It’s the result of government regulations, mandates, and … general craziness. Many buyers now finance used car purchases, too, as Mr. Peters explains. That used to be fairly uncommon. The used-​car market has been unduly affected by government insanity as well. Remember Cash for Clunkers? Politicians boasted about their managed destruction of millions of used autos.

What they really achieved was a tighter-​than-​ever supply of usable older cars.

Cruising toward the auto-​destruct of the auto-​loan markets.

This is Common Sense. I’m Paul Jacob.


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