Showing posts with label auto industry. Show all posts
Showing posts with label auto industry. Show all posts

Saturday, November 4, 2023

How stupid an idea is the minimum wage? Let's look at California's fast food industry

 Will Swaim at National Review has an I-told-you-so piece today about the palpable effects of government interference in the microcosmic reaching of agreements beween buyers and sellers of labor:

Following Governor Gavin Newsom's decision - after some complicated political wrangling between Newsom and a furious fast-food lobby — to impose a $20 hourly minimum wage on the fast-food industry, Chipotle and McDonald’s announced on Q3 earnings calls yesterday that they’ll be raising menu prices in the state.

How big a hit will customers take – if they’re willing to take it at all?

“We’ve been studying that . . . it’s going to be a pretty significant increase to our labor,” Chipotle CFO Jack Hartung said on the company’s call. “We haven’t made a decision on exactly what level of pricing we’re going to take, but to take care of the dollar cost of that and/or the margin part of that, we haven’t decided yet where we will land. It’s going to be a mid- to high single-digit price increase, but we are definitely going to pass this on. We just haven’t made a final decision as to what level yet.”

“There is going to be a wage impact for our California franchisees. I don’t think, at this point, we can say exactly how much of that is going to work its way in through pricing,” McDonald’s CEO Chris Kempczinski said on his company’s earnings call. “Certainly, there’s going to be some element of that, that does need to be worked through with higher pricing. There’s also going to be things that I know the franchisees and our teams there are going to be looking at around productivity.”

It didn’t take an economist to predict this outcome. I called it in National Review article about Assembly Bill 257, what was called the Fast Act. “In an industry that operates on razor-thin margins,” I wrote, the Fast Act “will have two immediate predictable outcomes”:

On the worker side, higher wages, richer benefits, and more cumbersome labor laws will lead to job cuts as franchise operators seek to curb their skyrocketing labor costs. In some places, restaurant owners will rapidly automate; ATM-like ordering kiosks will replace actual people — primarily immigrants and other minority people who, by way of the fast-food business model, are just beginning their ascent on the American economic ladder. Other business owners may simply sell off to larger enterprises whose high volumes will allow them to cope with slimmer margins. That will make it harder for workers to rise into positions of management and ownership.

On the customer side, as some franchisees simply close permanently, we’ll see the expansion of what progressives have called “food deserts” in poor communities already underserved by grocery chains. Customer service in the remaining stores will decline and prices will rise.

So, in a kind of grim partnership, poor customers and rising workers, immigrants and the native-born, will suffer together.

In that January article, I called this “the iron law of California progressivism: Claim that new laws will help the poor. When the actual effect turns out to be catastrophic for the poor, blame capitalism/markets/billionaires/racism, and expand government control of the business. Rinse, repeat, and promote as a national — even global — model for equity. And if Californians have anything to say about it, AB 257 will be coming to you, no matter where you live in the United States.”

My dad, who majored in economics in college, insisted that I take at least one Econ course at the school I attended. It had an outstanding faculty in that department, and my dad pointed out that he was paying for my enrollment. Alas, I never came through on my end. To my lasting regret. Economics is an excellent field of inquiry for understanding certain things about human nature. 

Having studied economics informally on my own over the years, I have formulated a first law that I think is undeniably true no matter from what angle one approaches the subject. 

Here it is:

A good or service is worth what buyer and seller agree that it is worth. Period. If any other entity - think government - inserts itself in the process of arriving at an agreement, there is no way to know what the actual value of the good or service is.

Behold menu prices at California McDonald's and Chpotle franchises.

The case of labor negotiations is a little different from government imposition of value-setting. Actually, the case can be made that a negotiation between a union and management is a clear-cut example of this free-market reaching of agreement at work - so long as neither side enlists government in its cause.

But it does make plain what I've formulated as a second law of economics: The money has to come from somewhere.

Which is why, in the wake of the UAW agreement ending the recent strike, car costs may well go up - or the wide selection of models to choose from may dwindle:


Ford withdrew its full-year forecast last week citing "uncertainty" over its tentative deal with the UAW, and CFO John Lawler told investors during the company's third-quarter earnings call that the new agreement will add another $850 to $900 in labor costs to each vehicle made.

Those increases will either be reflected in new vehicle price tags, absorbed by the company, result in automakers reducing costs in other ways, or some combination of the three.

"The concessions the automakers have made are already being positioned as significant by the automakers themselves, which is setting the stage for those costs to be passed through to consumers," Alain Nana-Sinkam, co-founder of industry tracking firm Remarkit Automotive, told CR. "However, given that consumers are already pretty well tapped out in terms of vehicle affordability, I’m not sure how much of that is going to end up sticking."

 

Cox Automotive chief economist Jonathan Smoke said in a statement earlier this week that the new UAW contract will have both positive and negative impacts on the economy. 

Smoke continues:

He added, "Consumers will bear some of the cost burden over time but given that affordability is already a challenge for the market, the automakers will not have an easy time passing along all of the costs to buyers and will have to seek efficiencies in other ways, or further limit production to more expensive vehicles that can absorb higher labor costs."

Here's the thing about the free market. It's like grass growing through the cracks in an urban sidewalk. It will assert itself even in an atmosphere of value distortion. That's because it is the natural, ideology-free way human beings interact. 

 

 

 


 


Thursday, September 21, 2023

Another clash of competing leftist interests

 The most recent post here at LITD dove into the irony of a countercultural icon, Jann Wenner, Rolling Stone co-founder, who checks off the proper boxes right down to coming out as gay after a marriage that produced a son, getting ousted from the board of the Rock and Roll Hall of Fame (which he also co-founded) for telling a New York Times interviewer that he finds white male rock titans more substantive interviews than female or black ones.

Today we look at another deliciously ironic loggerheads: organized labor versus the climate alarmists:

If you want to understand why the United Auto Workers union is striking now, look at the three factories it chose to target for its first wave shutdowns.

The General Motors plant in Wentzville, Missouri, makes the Chevy Colorado and the GMC Savana. The Ford plant in Wayne, Michigan, makes Ford Rangers and Ford Broncos. And the Stellantis plant in Toledo, Ohio, makes Jeep Wranglers and Jeep Gladiators.

What do all these vehicles have in common? Unlike electric vehicles that lose money, these vehicles are among the Big Three’s most profitable products. They are also exactly the type of vehicle President Joe Biden wants to eliminate by 2032, when his new regulations mandate that two-thirds of all cars sold in the United States must be EVs.

Not only do EVs have fewer parts than gasoline models, which means fewer jobs for auto workers, but every plant that produces mufflers, catalytic converters, and fuel injectors will have to shutter, either permanently or long enough for a complete overhaul to make EV parts.

Biden’s obsession with EVs has essentially made all UAW-organized factories in the Midwest obsolete. Why would a car company invest there when they could build a new factory in a state where workers aren’t forced to join unions?

It's all I can do not to digress here and go on a diatribe about Biden's presumption that he can insert himself into the workings of the free market - which, to reiterate the basics, boys and girls, is merely the sum total of the millions of agreements to which buyers and sellers arrive daily, ideally without government interference - by executive diktat, no less. But let's stay focused.

Current UAW president Shawn Fain may not be collectivist enough for the Trotskyists, but he's a pretty classic figure for a labor activist.  He comes from the heart of flyover country - Kokomo, Indiana - where his dad was police chief and two of his grandparents were UAW members who worked at a Chrysler facility there. Fain himself went to work at the Chrysler castings plant as an electrician in 1994 and pretty much immediately started climbing the union ranks. 

In the current situation, he champions the position that union members ought to continue to get paid even if an automaker shutters a plant. 

I do need to digress a bit here and get into the question of what is and isn't a right

Fain and his ilk take it as a given that there is some kind of right to a livelihood. Making things that are desirable into "rights" is how we got government involvement in health care - an aspect of life that figures into the current auto industry strike situation.

It's actually understandable that he would conclude thusly. Cars, as well as self-propelling transportation generally, and communications technology, too, came on the scene at the outset of the twentieth century with such impact that by the 1920s, they were a given. And they were made in factories by people earning hourly wages. 

But just as their arrival on the cultural landscape was a manifestation of how unbridled human inventiveness could introduce drastic changes, innovation continued apace and wrought further changes. The 1980s forced the Big Three to move over to make way for foreign car makers to erect US plants. And many of those have stayed non-unionized, which should have been a sign to the UAW that its ability to make demands had limits. 

And now comes another wave of change, albeit not born of human inventiveness but the heavy hand of the state.

So who's going to blink first as the climate alarmists, backed by the coercive power of government, go toe to toe with the UAW, which is still locked in a mindset that sees the mid-twentieth-century model of the town factory guaranteeing generation after generation a secure lifestyle? 

There's a way to avoid this scenario of bad alternatives, if anyone is interested. 

Let people buy the kinds of cars they want to buy, and remove all government - and union - interference in how they're priced - which, to a considerable degree, is still based on the carmakers' costs.  Then we can see what the market says about what the cars are worth.

ADDENDUM: I don't know if this qualifies as a digression or not, but the Very Stable Genius is going to skip the second Republican presidential candidates' debate in order to address the UAW. It's pretty obvious what he's doing: striving to take some of the wind out of the sails of Biden's expression of support for the union. It's of a piece with what he recently said about Florida's six-week abortion ban. When the VSG hedges his political bets, he's not particularly sly about it.

Trump has no principles. He does anything he does in order to see if it will bring him glorification. 

Yeah, I guess that was a little bit of a digression. But it's good to know where the charlatan of Mar-a-Lago fits into the current situation. 


 

 

Monday, February 1, 2021

"These guys are losing money selling cars. They're making money selling credits."

 If you've been reading LITD for any length of time, you know that it's pretty purist in its defense of free-market economics. If a person or organization comes up with a product or service, it ought to thrive or wither based on its ability to hold its own in the marketplace. It ought to attract enough consumers who see value in the confluence of price point and appeal that it doesn't need a leg up from government.

Now, consider one Elon Musk, a very rich guy. He's mainly made his splash so far in life selling electric cars. 

But do they meet the above criterion for being economically viable?

Um, no. They continue to roll off the assembly line and the dealership lot because the company is involved in government funny business in the form of something called "regulatory credits":

Tesla posted its first full year of net income in 2020 -- but not because of sales to its customers.

Eleven states require automakers sell a certain percentage of zero-emissions vehicles by 2025. If they can't, the automakers have to buy regulatory credits from another automaker that meets those requirements -- such as Tesla, which exclusively sells electric cars.
It's a lucrative business for Tesla -- bringing in $3.3 billion over the course of the last five years, nearly half of that in 2020 alone. The $1.6 billion in regulatory credits it received last year far outweighed Tesla's net income of $721 million -- meaning Tesla would have otherwise posted a net loss in 2020.
"These guys are losing money selling cars. They're making money selling credits. And the credits are going away," said Gordon Johnson of GLJ Research and one of the biggest bears on Tesla(TSLA) shares.
Tesla top executives concede the company can't count on that source of cash continuing.

"This is always an area that's extremely difficult for us to forecast," said Tesla's Chief Financial Officer Zachary Kirkhorn. "In the long term, regulatory credit sales will not be a material part of the business, and we don't plan the business around that. It's possible that for a handful of additional quarters, it remains strong. It's also possible that it's not."

You know what I think is the most glaringly key word in the above excerpt? "Require."

What the hell is government doing requiring any manufacturer of any product to make that product according to some requirement that comes from outside the company doing the manufacturing?

Well, comes the rejoinder from the busybodies who want us to resign ourselves to a permanent state role in what is made, how it's made, and how it's sold, the global climate is in dire trouble and we have to wean ourselves off fossil fuels as soon as possible.

And if you come back by citing the ample data showing that the global climate is in no such trouble, they trot out their own pointy-heads who say it is, and everybody goes down the rabbit hole for who knows how long.

But acting on the flawed presumption that it is so leads to shenanigans like this. 

And the general public shrugs and assumes it has to be this way. 

 

Wednesday, November 28, 2018

Wednesday roundup

Yay! Hyde-Smith gets elected to the Senate seat in Mississippi in that state's runoff.

The leftist media take commentary on Melania Trump's White House Christmas decorations beyond snark into the realm of cruelty:

Vice even declared that Melania's decor resembles a "circle of hell Dante could never have dreamed up."
"It's 2018: It's well-established that we live in hell. It only makes sense that the first lady's Christmas decorations would match the bleakness of the Trump era," said Vice.
Vanity Fair said Melania Trump's Christmas decor seem to always have "a touch of menace to them."
"It wouldn’t be a Trump White House Christmas without, again, a menacing touch to what is otherwise a lavishly and beautifully wrought winter wonderland," said VF. "This year, crimson red trees dotted a long hallway, dyed with what I assume is liberal blood a-boiling."
Both Slate and The Cut made similar denunciations of varying cruelty. A Funny or Die video spoof also mocked Melania’s accent and suggested the trees were dipped in blood.

Caleb Howe at PJ Media has exactly the spot-on take on Mia Love's concession speech. It was indeed a ringing espousal of the task before actual conservatives in late 2018:

This was a great, conservative speech and told the true story of her campaign and her time in office. The remarks about Trump will make the biggest splash, so we'll start there. But there is so much more, after that.
“When President Trump took a jab at me because he thought the race was over," said Rep. Love, "I was somewhat surprised at first."
In a way, no one should have been surprised, but even so, some of us were taken aback by the pettiness and vainglory in Trump's comments. Incrementally, he gets worse and worse, and more and more open about his demand for... not loyalty, but lickspittle devotion. You can only half-blame him. After all, it's the devoted lickspittles all around him and on Fox that make him feel so comfortable with his base desires.
But here's the core of what she is about as a public figure, an American, and a human being:

. . . it's about the achievements of the beliefs and policies for which the party once stood and should again. The second part begins with four pretty important words for context: I am a Republican.
"I am a Republican. I know conservative policies work. They lift everyone. They lift the poor, the young, the vulnerable, the black, and an the white. Our conservative policies save our young, and unborn children. When the pundits tell us that we're out of luck, the deck is stacked against us, we say no. No way. Not in this country. Because under conservative policies the deck is not stacked against us and we all have a chance. Conservative policies make it so that no one in this country is predestined to be poor. I know because I've lived them. I've put them into action. I've promoted them throughout our state and across our country. The problem is not the policy. It is that we are never taken into hearts and into homes."
And she offers this reassurance:

"The good news is, I'm not going away. But now, I am unleashed. I am un-tethered, and I am unshackled, and I can say exactly what's on my mind," said Love. Then she took questions from the press.

[Can we also take a second to point out what a di*k question the very first reporter asked? Why couldn't you speak your mind before? Because, right, this is the first time we've ever encountered a politician and we need this di*k reporter to flesh out the idea that politicians carefully plan what they say so they aren't ripped apart by [checks notes] oh right, DI*K REPORTERS. Anyway, aside over.]

It was an excellent speech and, the reason is that she puts into words what is so hard to make people on the MAGA right and the media left understand. That you can believe, understand, and know that the core principles and ideas behind what makes a Republican are not only sound, but beneficial. That there are those who look at the same ills and evils in this world that every do-gooder, virtue signaler, busybody, and SJW see, and hate those evils and ills with equal passion and compassion, but believe (know) that the way to address them and make them better is our way. Not the SJW way or the Democrat way or the bureaucrat way. She gave a validation to the idea that you can be true to that understanding and right ideas, no matter who is wearing the big red hat.
Truth remains true. 
Yesterday, I saw a vomit-inducing tweet from the vomit-inducing Laura Ingraham that said that "all the cool people are praising this highly rehearsed speech," and then asserted that Love deserved to lose. This is what Howe means by lickspittles.

Two great pieces at NRO this morning.

One is an editorial on GM's latest moves:

This is a politically embarrassing development for President Trump, who has sold himself as the tribune of American manufacturing and industrial concerns, who boasts — and no doubt genuinely believes — that the success or failure of these businesses vis-á-vis foreign competitors is only a matter of negotiating deals and being “tough.” Much progress has been made in the past two years — more than Trump’s critics expected — which have seen critical reforms in the tax code and a measure of regulatory relief. But the underlying economic realities cannot be negotiated away. And while political leaders should encourage a thriving and dynamic labor market — and the job-creation and wage growth that goes with it — jobs are not a social program. Jobs are a means, not an end, and jobs dedicated to producing products that consumers do not want are jobs that are not going to last and never were. 
GM’s business is putting dividends in the pockets of its shareholders. And while it is easy (and all too common) to overstate the president’s role in the economy at large, seeing to the continuing reforms that will help to drive economic growth, employment, and wages is President Trump’s job. GM isn’t asking for Trump’s advice, and he isn’t qualified to give it. Bluster isn’t going to see a single GM worker to his next job nor change the fact that Toyota builds cars that consumers want while GM doesn’t.
The other is Jonah Goldberg's piece on how Max Boot has made a conscious decision to become a silly goose. 

Russia is sending a fresh supply of S-400 surface-to-air missiles to Crimea. This one bears close watching, folks.




Tuesday, November 27, 2018

There's only one reason GM is undertaking all these plant closings and layoffs: it has determined what it needs to do to survive

Nothing like cutting over 14,000 jobs and closing assembly plants to make for some strange bedfellows. Donald Trump, Justin Trudeau and the UAW all hate it.

As with anything of this magnitude and complexity, there are several factors leading to the decision. Trump's tariffs certainly are one, as is the fact that the company never really fully got on its feet after the 2009 bailout. Demographic trends also figure in, with consumers shifting from sedans to SUVs and trucks, and people buying fewer motor vehicles overall. Milennials aren't even getting driver's licenses until later than their forebears.

A former GM executive's take that ought to get mentioned before the thirteenth paragraph of a story about it:

Former GM Vice Chairman Bob Lutz said the automaker historically would have raised sales incentives to try to sell more cars before resorting to plant closures.
"Nowadays GM looks at the hard reality, says we've got a demand problem on cars, what are we going to do about it. We have to shut some facilities and move production to truck plants," Lutz said on CNBC's "Halftime Report." "So I think what we are seeing is a fast-acting and reality-oriented GM management."
It gets back to the LITD first law of economics: The money has to come from somewhere.

Friday, May 18, 2018

Friday roundup

Andrew Ferguson at The Weekly Standard on the upcoming get-your-minds-right sit-down Starbucks is going to make its employees - er, associates - endure:

The Starbucks event is a superior instance of American business’s approach to problem-solving. It begins with a grand gesture: the closing of the 8,000 company-owned Starbucks outlets, including those that are right across the street from each other. The ensuing program—details not yet revealed—will be presented as an act of contrition on the part of an artificial entity, the corporation, that by its very nature cannot feel contrition, or anything else. It will be an intimate and personal process staged by hired “diversity trainers” for maximum publicity. And it will be wreathed in unassailably uplifting politics to hide the creepy methods that are, we’re told, the fruit of the very finest social science. I bet the baristas can hardly wait.
Reprogramming Day was announced in a press release issued via a two-and-a-half-minute video (another sign of our times: a video is necessary in the age of tl;dr). The CEO of Starbucks, an earnest man named Kevin Johnson, stared into the camera looking woebegone and jowly. He said he felt terrible that police were called a few days earlier to haul away two black men from a Philadelphia Starbucks on the assumption that they were loitering. In pursuit of more enlightened racial attitudes, he said he will join all his partners—his genteelism for employees—in submitting to “training around unconscious bias [and] conscious inclusion.” He said that this will be “just one step in a journey.” Then he said it was the “first step in a journey.” Then he said it again.
Three of the organizers enlisted by Starbucks, from such humdinger outfits as the Equal Justice Initiative, the NAACP Legal and Education Fund, and Demos, say this can't just be a one-off, that this new level of puking all over itself must become an ongoing aspect of company culture.

We have been clear from the start that the company must build a framework for anti-bias training that extends beyond the planned May 29th training and that becomes part of the company culture. In addition to the need for an anti-discrimination curriculum—which will consist of an ongoing education for all employees, with real measures for evaluation and monitoring—we made clear that a thorough review of the company policies . . . is necessary as they move forward. We expect to issue a report to Starbucks, with recommendations about the company’s policies, a multi-phase training framework, and the ongoing work they will need to undertake in order to really move the ball.
Ferguson does a fairly deep dive into results of studies looking into whether all this diversity hoo-ha has really had any impact on the insides of the heads of employees or students or whatever comprises the body of a given organization. Results: It ain't doing zip.


Are you surprised to learn that its main impact is that it's kept management from getting sued?

John Hawkins at Townhall offers "5 Ways America's Success Is Ruining Our Culture."

South Bend mayor Pete Buttigieg has used his veto power to squelch the plans of the Women'sCare Center, which offers services to women who are incoveniently pregnant but nonetheless want to keep their babies, to open a clinic on the city's west side. Hopefully, the final chapter on this is not yet written. Per Alexandra DeSanctis at NRO.

Jonathan Lesser at Politico on how it's time and then some to give up on subsidizing electric cars, not to mention jackboot measures like what California has in mind:

If you believe the headlines, traditional automobiles are speeding toward a dead end. All those V8s, V6s and turbocharged vehicles we’ve grown to love will soon be replaced by squadrons of clean, whisper-quiet, all-electric vehicles. And if you believe the headlines, the environment will be much better off.
Policymakers at every level have done their part to push electric vehicles by creating a tankful of subsidies. Thanks to laws signed by both George W. Bush and Barack Obama, electric-vehicle buyers can feast on federal tax credits of up to $7,500 that reduce the initial purchase cost of their vehicles. Not to be outdone, many states also dangle their own mix of goodies for electric vehicle buyers, including purchase rebates as large as $5,000, additional rebates for vehicle chargers, and free use of public charging stations—which, of course, are only “free” because they’re subsidized by ratepayers and taxpayers. Some states even give electric vehicles preferential access to carpool lanes.
Then there are the electric vehicle mandates. In January, California Gov. Jerry Brown decreed that 5 million electric vehicles must be on his state’s roads by 2025, along with 250,000 charging stations. Eight other states are following California’s lead. One California lawmaker has even introduced legislation to ban all internal combustion vehicles by 2040.
He looked into the matter and found that

 . . . widespread adoption of electric vehicles nationwide will likely increase air pollution compared with new internal combustion vehicles. You read that right: more electric cars and trucks will mean more pollution. 
Speaking of electric cars, Dylan Byers at CNN on how Mr, Grandiosity, Elon Musk, is trying the patience of his benefactors:


 On a recent earnings call, he interrupted analysts who asked about capital expenditures and Tesla Model 3 production: "Boring, bonehead questions are not cool," Musk said to one. "These questions are so dry. They're killing me," he said to another. 
While Musk may be right that one Tesla crash pales in comparison to tens of thousands of fatal auto accidents, it doesn't mean it doesn't warrant coverage. As Jalopnik's Ryan Felton points out, "it'd be wholly irresponsible to avoid scrutinizing whether [autonomous] technology can perform in the real world."
Musk's dismissal of analysts' concerns is also hard to justify. Musk's visions can't be achieved without financing. Today, Goldman Sachs predicts Tesla will need $10.5 billion in new capitalover the next two-and-a-half years to keep operating and meet targets. 
Musk is a long-term thinker in a short-term world, but his runway is running out. Tesla needs to demonstrate real, tangible progress to convince everyone other than his most bullish investors that he's still a safe bet.  



A parlor game I often run in my head consists of coming up with a top-ten pantheon of figures who shaped conservatism. Most of the names I usually include are probably among yours, too: Edmund Burke, Frederic Bastiat, Herbert Spencer, Michael Oakeshott, Richard M. Weaver, James Burnham, William F. Buckley.

We'd do well to take a closer look at nineteenth-century British jurist and writer James Fitzjames Stephen. His best-known work, Liberty Equality Fraternity, derives its title from the slogan of the French revolutionaries, and is one of those literary situations in which the employ of an idea is for the purpose of showing how it's inevitably going to be distorted (sort of like Hayek dedicating Road to Serfdom to the world's socialists).

At Law and Liberty, Mark Pulliam juxtaposes Stephen's worldview with that of John Stuart Mill, whom Stephen was refuting in his book.

LITD likes the way Stephen thinks:

Stephen and Mill both embraced utilitarianism, but advocated dramatically different views of liberty, owing in substantial part to their disparate conceptions of human nature. Stephen believed that Mill — who espoused unfettered individual liberty in matters of conscience, speech, and morality — had “formed too favourable an estimate of human nature.” Unbridled liberty, Stephen complained, “would condemn every existing system of morals” (which ultimately rest on compulsion). Stephen insisted that Mill was naïve in presupposing that man’s self-control, guided by customs and reason, would protect him from his baser instincts — passion, wickedness, and weakness.
Stephen, in contrast, was a devotee of Thomas Hobbes (and especially his magnum opus, Leviathan), and had a deeply pessimistic vision of mankind, whom he regarded as prone to conflict and overwhelmingly “selfish, sensual, frivolous, idle, … and wrapped up in the smallest of petty routines.” Accordingly, Stephen felt that goodness had to be inculcated externally, by society’s promotion of virtue and religion. Left to its own devices (as envisioned by Mill’s harm principle), humanity would resemble a “stagnant marsh … putrefying and breeding fever, frogs, and gnats.” Stephen saw laws promoting morality as a desirable form of coercion, constituting (in a hydraulic metaphor that he frequently turned to) pipes, channels, and pumps, directing the “water” (humanity) to a useful purpose — “a proper water-works.”
If Stephen’s reasoning at times seems anachronistic to the modern reader, it is because we have become accustomed to the Pollyannaish view of human nature held by Mill — a utopian fallacy of modernity. If man is basically good, as modern liberals and radical individualists assume, he will independently make sound decisions and can realize his potential greatness of character entirely on his own. Stephen sharply disagreed.
Stephen defended the Calvinist notion that man is a flawed creature who struggles in choosing between good and evil. Man’s inherent vices can be overcome only by appealing to his better nature, liberating him to enjoy ordered liberty — the “freedom to be good and wise.” To this end, Stephen supported the propagation of morality, culture, tradition — and even religion — through law. To Stephen, the restraint of antisocial conduct builds character and makes liberty within civil society possible. In Stephen’s words, “Liberty means not the bare absence of restraint, but the absence of injurious restraint” (emphasis added).
By providing a context of culture and morality, and discouraging his baser instincts, civilized society allows man to exercise virtuous (i.e., true) choice. This is the essence of “ordered liberty.” Because morality is reinforced externally, through government and other institutions, Stephens believed—paradoxically to some modern readers – that “liberty…is dependent upon power.”
Stephen was a brutal realist, and an energetic instrumentalist. He believed that society can and should legislate morality; the failure to do so would lead to intemperance, debauchery, torpor, and anarchy. Stephen was anxious about the envious gaze of political majorities when it came to matters of economics (which he analyzed under the rubric of “equality”), but he felt that it was essential for a bourgeois society to reinforce its cultural norms through the apparatus of the state. Other than supporting the enforcement of morals, Stephens hewed to what is now regarded as the libertarian (or free-market) position, whereas Mill — the storied defender of liberty — advocated egalitarianism, and eventually even socialism. Ironically, Mill’s notion of laissez-faire did not extend to economic relations.
Stephen realized that the prevalence of indolence, imprudence, hedonism, and ignorance among mankind would — absent intervention — ineluctably lead to inequality of results. Left to their own devices, some people would become more prosperous than others, and Stephen felt strongly that such unequal outcomes were essential in a free society. “Human beings are not equal,” he recognized. Eschewing Mill’s egalitarianism, Stephen maintained that “Of all items of liberty, none is either so important or so universally recognized as the liberty of acquiring property. It is difficult to see what liberty you leave to a man at all if you restrict him in this matter.” Thus, to Stephen equality of results was antithetical to equality under the law (or liberty, properly understood), and to the rule of law.
Stephen emphatically rejected Mill’s view of women’s rights. Mill advocated complete equality between men and women, meaning the elimination of all privileges and disabilities based on sex. In the 19th century, this was a radical notion, which Stephen vehemently opposed. What Mill regarded as the subjugation (or “subjection”) of women Stephen (ever the instrumentalist) saw instead as arrangements necessary to preserve the bourgeois social order vital to the promotion of morality. Distinctions between the sexes, Stephen argued, are not only justified by physical differences (explaining why only men are conscripted for military service), but also to protect the institution of marriage and to foster women’s vital role as mothers and homemakers. Stephen’s views on this subject — a mixture of paternalism and pragmatism — generally mirror those of modern social conservatives.
Stephen’s view of “fraternity” — the relations among members of civil society — is misanthropic. Stephen expressed a negative view of mankind, which he regarded as being engaged in a Darwinian conflict, owing to the Hobbesian human condition:
I believe that many men are bad, a vast majority of men indifferent, and many good, and that the great mass of indifferent people sway this way or that according to circumstances…. [B]etween all classes of men there are and always will be real occasions of enmity and strife, and that even good men may be and often are compelled to treat each other as enemies either by the existence of conflicting interests which bring them into collision, or by their different ways of conceiving goodness. (Emphasis added.)
In his editor’s Foreword, Warner [editor of the 1993 edition of Stephen's book] describes Stephen’s vigorous defense of Victorian England against the challenges it faced by saying that he “lovingly cradles the high culture” of his era as the culmination of western civilization — the apogee of human progress. This state of affairs had been arrived at without universal suffrage, and Stephen was quite apprehensive about the threat that expanding democracy posed to the status quo he cherished. The threats of demagoguery and class envy — implicit in democracy — had to be resisted to preserve liberty.
Stephen provides good ammo for those arguments in which a lefty (or most breeds of libertarians) wants to say, "You conservatives talk a good game about freedom, but you sure do want to hold everybody up to your own moral standard."

Uh, yeah.

Monday, March 13, 2017

Why we call them Freedom-Haters - today's edition

The arrogance of these creatures:

A group of Senate Democrats is warning the Trump administration not to roll back the fuel economy standards that were set under the Obama administration.
The Obama administration’s Environmental Protection Agency (EPA) set the Corporate Average Fuel Economy (CAFE) standards for cars and light trucks at an average of 36 miles a gallon by the model year 2025 after originally proposing 54.5 miles per gallon. The auto industry has been pushing for a reduction in the fuel economy standards and the Trump administration will reportedly announce changes soon.
“These laws are what has unleashed the Elon Musk revolution – all of these companies being forced to now invest in new technology. They always said it was difficult to do, which is why they did not improve the standards for decades but once the law passed they found ways to be able to achieve that. We’re not talking about rocket science. We’re talking about auto mechanics,” Sen. Edward Markey (D-Mass.) said on a conference call with other Democratic senators on Tuesday.
Markey called the Obama-era CAFE standards the “largest step” America has ever taken to reduce carbon pollution, adding that the “benefits far outweigh the costs” for consumers.
“Those standards will reduce our carbon pollution by 5 to 6 billion tons over the course of the program, but Donald Trump is waging a war on the environment and he wants EPA Administrator Pruitt to make strong fuel economy emissions standards his newest victim,” he said. “We cannot let him.”
Senate Environment and Public Works ranking member Tom Carper (D-Del.) said the federal government has a “responsibility to encourage people to buy these energy efficient cars.”
“We don’t want them just to sit on the sales lot, you know, going un-purchased. We want to make sure people are buying them,” he said. “We need to use less oil from OPEC, so this is sort of a win-win – so at the end of the day, our auto companies continue to make money and that’s important too and we think they can.”
This is rank tyranny. The federal government has a responsibility to keep its damn nose out of the transactions between the consumers and producers, the buyers and and sellers, of this country. 


Markey acknowledges that CAFE standards make cars more expensive than they would be otherwise, as does some goose-stepping jackboot named Dan Becker, but not to worry, they have a long-term-savings plan all worked out for the cattle-masses:

Dan Becker, the director of the Safe Climate Campaign, agreed with Markey’s assessment.
“The technology that saves gas costs less than the gas it saves. And so consumers will pay a little bit more for the vehicle, but will more than make up for it at the gas pump. And if you lease your vehicle, as UCS studies have shown, you start saving money the minute you drive off the lot,” he said on the call. 
And Markey - by the way, it would be interesting to know if he has ever worked on the shop floor of any plant anywhere up or down the automotive supply chain - shows what he really thinks of the companies that actually produce the vehicles that allow us to get quickly, safely and affordably from Point A to Point B:

“The auto industry is crying crocodile tears about their inability to meet these standards,” the senator said. “It has nothing to do with their ability to meet these standards. They can meet them. They know they can meet them.”
These totalitarians must be kept sidelined in perpetuity. They bring nothing but ruin when they are in power.
 
 
 


Thursday, September 15, 2016

You knew Squirrel-Hair would waste no time going all protectionist on Ford

Yeah, a 35 percent tariff. That will bring down the price of the car and keep Ford jobs in post-America:

Today Ford announced that it is moving all of it’s small car production to Mexico and Trump doesn’t like it one bit.
Here’s the announcement by Ford:
DETROIT FREE PRESS – Ford plans to eventually shift all North American small-car production from the U.S. to Mexico, CEO Mark Fields told investors Tuesday, even though the company’s production investments in Mexico have become a lightning rod for controversy in the presidential election.
“Over the next two to three years, we will have migrated all of our small-car production to Mexico and out of the United States,” Fields said at a daylong investor conference in Dearborn.

Squirrel-Hair "can't believe their brazenness."

Why the hell do you think they are doing it, you economic genius?

I know Trump has said this before, but the fact that he’s declaring it again on the day Ford announces they are moving small car production to Mexico is troubling. He just doesn’t get it.
Companies move jobs to other countries because doing business here is too expensive. What he should be saying is that he will work hard to make America more competitive with other countries so that companies like Ford can move their operations back.
But no, just like an angry dictator, Trump wants to punish them for doing something he doesn’t agree with.

UPDATE: Trump just called Ford a ‘disgrace’ for making the move and said it’s also disgraceful that politicians allow companies like Ford to get away with it! 

Memo to Stephen Moore and Larry Kudlow: You're wasting your time trying to advise this clown.

Tuesday, June 2, 2015

The latest act of tyranny from the EPA jackboots

Because it's not up to consumers of heavy-duty trucks how fuel-efficient they want them, doncha know:

President Obama is expected to soon add emission rules for big-rig trucks to a growing list of regulations to combat the threat of climate change.
The president directed the Environmental Protection Agency to develop new rules for heavy-duty trucks to make them more fuel efficient, while lowering their carbon dioxide emissions to lessen the effects of global warming.
Trucking manufacturers will be looking to see if they are able to meet the standards without driving smaller trucking fleets out of business, according to industry representatives.
The rules will not only regulate the truck and the engine, but are also expected to add new efficiency and emission regulations for trailers that large tractor-trailer trucks haul. One official says it will be a "big rule" that comprises so many components of large trucks that it could easily be broken down into several separate regulations.
How I'd love to hear some Pub presidential candidate declare forthrightly that dismantling this monstrous agency was one of his or her top priorities.

Monday, March 3, 2014

Oil industry & auto industry on opposite sides of issue of taking orders from the regime

The EPA's new fuel standards seem to be just fine with Ford, Toyota and General Motors.  Why they get such a kick out of being told how to make their products, and imposing costs that cause them to have to raise their prices in the process, is something of a mystery to me.  I guess they just take ever-more cumbersome tyranny as a given.

The oil industry, on the other hand, is not pleased.

the oil industry opposed the new rule, saying it will raise costs for producers and consumers while not significantly improving air quality. Ninety percent of sulfur is already removed from gasoline under current regulations.
“This rule’s biggest impact is to increase the cost of delivering energy to Americans, making it a threat to consumers, jobs, and the economy,” the American Petroleum Institute’s Downstream and Industry Operations Group Director Bob Greco said in a statement. “But it will provide negligible, if any, environmental benefits. In fact, air quality would continue to improve with the existing standard and without additional costs.”
The EPA’s cost-estimate is also disputed by industry analysts. Charles Drevna, president of the American Fuel and Petrochemical Manufacturers lobbying group, toldthe New York Times that the price of gasoline could rise by 9 cents per gallon under the new rule.
“I don’t know what model [the EPA] uses,” Drevna said. “The math doesn’t add up.”
In addition, the oil refining industry argued that the industry will struggle to meet the 2017 deadline.
“Besides the enormous costs and negligible environmental benefit, we are also concerned about the timeline of EPA’s new rule,” Greco said. “The rushed timeframe leaves little opportunity for refiners to design, engineer, permit, construct, start up, and integrate the new machinery required. This accelerated implementation only adds costs and potentially limits our industry’s ability to supply gasoline to consumers.”

The difference in the two industries' view on this is intriguing.  Maybe it's because car companies stand a chance of survival if they show a zeal for green initiatives.  We have to get around in something, after all.  And there is an established track record of government bailing car companies out.

Oil, on the other hand, is something this regime and all Freedom-Haters in good standing want to eradicate.  Whether they're getting squeezed is of far less concern to the overlords and the Kool-Aid drinkers.


Tuesday, December 10, 2013

Sugar-coating the fact that the regime got took

Tyler Durden at Zero Hedge.com says you have to be impressed by the spin coming from the White House and its propagandists regarding the $10.5 billion loss it incurred when it sold its remaining shares in GM.

Tuesday, October 9, 2012

But to call it failure is not quite accurate; it is, as we well know now, on purpose

Compact Power is furloughing workers.

How many moribund green "companies" is that now?

And Freedom-Haters are so up to their eyeballs in Kool-Aid there's no point in playing them the tape from the MEC's 2010 visit to the Michigan battery-component company.  It's always forward with the vision, no matter how many times it's proven to be utterly at odds with the basic laws of the universe.

I just wish I had those tax dollars back.

Wednesday, August 29, 2012

All in the name of an utterly mad vision

Well, the new CAFE standards are finalized. They make our roads more dangerous, they cost everybody a lot of money, but, as always here at LITD, the main point is that it erodes freedom.  Where the hell does the government get off telling private organizations how to make their products?

All in the name of a thoroughly discredited notion about the global climate.

Wednesday, August 1, 2012

Wednesday, May 16, 2012

Funny business with the numbers

John Lott demonstrates that the MEC is blowing smoke when he says that GM is creating scads of new jobs and is once again the number-one car maker.

Tuesday, May 1, 2012

About this notion that GM has come roaring back as the preeminent symbol of American industrial prowess . . .

It's a lot of hooey.  It still owes the preopnderance of the remaining TARP money.  It still owes over half the $50 billion .  Even a significant portion of what it has paid back came from a special escrow account set up for it by the government that could only be tapped with Treaury's permission (and, guess what?, it got Treasury's permission).  Much of its supposed current profit comes from Chinese joint ventures that are not wholly owned subsidiaries.  The government is still subsidizing new product lines.

Ford, which did not take bailout money, is considerably more profitable.