The bailout boondoggle: Why was the bailout bad for America?
From the email inbox, we got this question:
why were you against the bailout?  I definitely think it’s going to create major problems in the long run, but has our government ever looked down the road?  Not usually.  They look for the quick fix, then leave the mess for the next generation to clean up. 
Actually it’s more of a “bribe” than a “quick fix”…. “Look how much money I’m spending on you! Vote for me!” As for why it’s bad:
The short answer: true freedom is freedom to succeed and freedom to fail. Capitalism without failure is like religion without sin.
The long answer: (more…)

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Minimum wage and the free market

One of the common “causes” of liberals/progressives/Democrats is the minimum wage. Recent developments in Congress as well as several states have mandated raises in the minimum wage. The argument for this legislation is that the minimum wage is too low to be a “living wage”, and that we need a minimum wage to prevent evil, greedy corporations from paying people $1.25 an hour; the argument against is that people earning minimum wage are by and large teenagers living at home with their parents, and that enforcing a minimum wage is superfluous in a country with a free market system.

This story is a case in point to illustrate how the free market works: 

Peruvian Ivan Arias said he was happy just to have a job when he came to New York and found himself working as a busboy at the Redeye Grill, an eatery in midtown Manhattan where eight of its signature “dancing shrimp” cost $39.

But Arias, 36, said he soon realized he was being cheated out of overtime, breaks and promotions, and denied a fair share of tips.

“The conditions were not OK. They did not pay me tips. They did not pay me overtime,” Arias told Reuters.

[...]

Arias, married with a young daughter, now works as a busboy at Craftbar, an offshoot of one of the citys top restaurants, Craft. Whereas at the Redeye Grill he earned $400 for up to 60 hours a week, he now earns around $600 for 35 to 40 hours, he said.

“Now I am happy, with my tips, with my check, every time,” he said.

If left alone by legislators, the free market works: people will leave low-paying jobs with poor benefits for higher-paying jobs with better benefits. To stay competitive (and thus, stay in business), companies need to have a skilled and motivated workforce, and in order to attract top talent, companies need pay and benefits that attract — and keep — this talent.

Federal — and state — interference in the free market hurts everyone. Rather than a rising tide lifting all boats, governmental interference in the free market results in sinking all boats in the name of equality.

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Cause and Effect, and the Do-Nothing 110th Congress

With energy prices soaring and the Farmer’s Almanac predicting a cold winter, one would think that the top issue for the returning 110th Congress would be our energy policy.

One would be wrong.

With all indicators pointing towards gains in both the House and the Senate and the potential of a Congress so packed with Democrats that Republicans would be unable to filibuster, Congress has put on the cruise control. They are hoping for an Obama win in November, which will ensure that whatever crazy, socialistic, cap-and-trade energy plan they come up with they can just push on through without opposition and without compromise. No matter how crazy it may be, no matter how much it hurts the United States and our economy, they’ll be able to ram it down our throats.

How crazy could they get about energy? How about nationalizing the oil industry crazy.

Yes, the same people who can’t make the Senate cafeteria run without losing over $1 million taxpayer dollars per year are floating the possibility of nationalizing the resource that fuels our economy.

So what are they doing?

Buying your votes with borrowed dollars, of course!

According to Forbes:

Senate Appropriations Committee Chairman Robert Byrd is peddling a $24.1 billion stimulus bill that includes $10 billion for infrastructure and energy investments, like $100 million for Amtrak and $52 million in additional funding for the Federal Housing Administration. Democratic presidential nominee Barack Obama is pitching a $50 billion stimulus plan.

The only way it could be more of a bribe would be if they personally handed you your “stimulus check” while escorting you to the voting booth.

Congress’ approval ratings hit an all-time low of 9% in July. Is it any wonder as to why?

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