The Government Subsidized Fisker Hybrid Manufacturer is Liquidating its Assets

Posted by PITHOCRATES - November 24th, 2013

Week in Review

The Boeing 787 Dreamliner has had some problems with its lithium-ion batteries.  And now there is an icing problem with its engines.  Which is a bug to fix in their radical new design that eliminated the bleed-air system from its engines.  Reducing weight and increasing the efficiencies of the engines.  Which translates into lower fuel/operating costs.  Making the Boeing 787 Dreamliner a winning economic model.  And why airlines are waiting anxiously to add it to their fleets.  Now contrast this to a losing economic model.  The electric/hybrid car (see Fisker sells its assets to Hong Kong tycoon, files for bankruptcy by Jerry Hirsch posted 11/22/2013 on the Los Angeles Times).

An investor group headed by Hong Kong tycoon Richard Li purchased the federal loan made to Karma plug-in hybrid sports car maker Fisker Automotive and acquired the assets of the nearly defunct automaker.

Fisker has voluntarily filed petitions to liquidate under the U.S. Bankruptcy code, and Li’s Hybrid Technology has committed up to $8 million in financing to fund the sale and Chapter 11 process.

The federal government, which had lent money to the Anaheim auto company under a Department of Energy clean vehicles program, will lose about $139 million on the deal.

“Because of these actions, along with the sale announced today, the Energy Department has protected nearly three-quarters of our original commitment to Fisker,” said Bill Gibbons, a department spokesman.

The all-electric car suffers from range anxiety.  The dread a person feels as they are far from home and their battery looks like it won’t have enough charge to get them home.  Hybrids are expensive.  But carrying around that extra internal combustion engine in addition the electric system makes the car heavier.  And reduces its battery range.  Meaning that if you drive more than, say, a 45-mile round-trip you’ll be using that internal combustion engine most of the time.  Which will burn more fuel than in a gasoline-only powered car.  Because they don’t have the extra weight of the electric system to drag around.

This is why there isn’t a long list of orders for these electric/hybrid cars like there is for the Dreamliner.  For the Dreamliner is what most airlines are looking for in a jetliner for solid economic reasons.  While the electric/hybrid car is more of a novelty.  Few people are buying them.  And because of this they need government subsidies to remain in business.  Whereas Boeing’s strong sales are one of the few things driving the nation’s GDP into positive territory.

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The High Cost of Living in Toronto forces Both Parents to work and forces their Children into Daycare

Posted by PITHOCRATES - November 24th, 2013

Week in Review

Once upon a time we worked so we could raise our families.  Now we find someone to raise our children so we can work (see Daycare in Toronto: ‘Parent summit’ participants tell of vastly different experiences by Marco Chown Oved posted 11/22/2013 on the star).

Diana Tarango is worried. Her 4-year-old daughter is in all-day kindergarten, but because she can’t find before- and after-school care, she can’t go back to work.

Perry Wong and Nalini Nankoo are frustrated. They have been looking for a daycare space for their 2-year-old son and have put down non-refundable deposits to get on the waiting list at a half-dozen daycares. They can’t afford to keep wasting money, and their son still doesn’t have a space.

Cynthia Zhu and Kenny Ji couldn’t be happier. They’ve been in Canada for less than a year and they’ve got both their kids in subsidized daycare spots near their home.

These stories show how ineffective our patchwork daycare system is, said Councillor Shelley Carroll.

“Child care is an issue that affects us all in different ways,” she said. “That’s why we need these meetings and why we need to get people talking across generations, too.”

Parents, grandparents and even childless adults are all affected by the high cost of daycare, said Carroll, and a better system won’t just be better for families with young children, it will be good for the economy as well.

There are 57,000 daycare spaces in Toronto, only enough for 21 per cent of the city’s children under 12. The city subsidizes 24,264 of those spaces, which only covers about 28 per cent of children in low-income families.

Making matters worse, the wait-list for a subsidized spot is more than 18,500 people long…

Tarango, newly arrived from Hungary, looked into putting her younger son into daycare, but can’t believe how much it would cost.

“I was amazed when I asked the price: $1,500 per kid (per month)!” she said. “In Hungary, after one and a half years, everything is free. The daycare even provides food free, too.”

If 21% of the total number of children under 12 equals 57,000 then the total number of children under 12 in Toronto equals 271,429 (57,000/0.21).  The total number of children who need daycare is 75,500 (57,000+18,500).   Subtracting this number from the total number of children under 12 equals 195,929 (271,429-75,500).  So the percentage of children under 12 who are raised in Toronto without daycare equals 72.2% (195,929/271,429).  In other words, the vast majority of children of daycare age DON’T use daycare.  Which is a good thing.  And one would hope that’s because they have a stay-at-home parent raising their child in a loving household.  Instead of dumping these inconvenient pains in the ass at daycare so they can do something more rewarding than parenting.

There may be many reasons why parents need daycare for their children.  Single mothers may need daycare so they can work.  There could be a married parent that prizes a career over raising children and prefers to work instead of being a stay-at-home parent.  But perhaps the greatest reason is that parents can’t raise a family on a single income because of high taxes.  Some of which are going to subsidize daycare at $1,500 per child per month.  Which creates a death spiral for daycare.

Daycare isn’t cheap.  So it takes a lot of tax dollars to subsidize.  The high unmet demand for daycare spaces requires more tax dollars to subsidize.  Which require higher tax rates.  Leaving people with less take-home pay.  Making it more difficult for parents to raise a family on a single income.  Requiring more two-income households.  And a greater demand for daycare.  Requiring more tax dollars.  And higher tax rates.  Leaving families with less take-home pay.  And so on.

The best way to provide for these children?  Tax cuts.  Allowing families to keep more of their take-home pay.  So much that they can raise a family on a single income.  Like they used to do.  Before the welfare state.  That provided cradle-to–grave benefits.  Which, ironically, leaves working people with less.  And forces their children to spend more time growing up with strangers.  And less time with their parents.

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Birth Control and Abortion a factor in Premature Births

Posted by PITHOCRATES - November 24th, 2013

Week in Review

Mitt Romney lost the 2012 election in part because of the Republican ‘war on women’.  Which started when George Stephanopoulos asked Mitt Romney out of the blue if he wanted to take away women’s birth control.  The next thing we knew there were women who said college girls couldn’t afford their birth control and needed the state to buy it for them.  Then this snowballed into Republicans wanted their women barefoot and pregnant.  And were going to turn the hands of the clock back to 1950 for women everywhere if Mitt Romney won the election.  The left warned women that this was the worst thing that could happen to them.  For they knew what women wanted.  Birth control.  And abortion.  So their lives could revolve around their vaginas.  Becoming sexual objects.  To please a lot of different men.  While avoiding the disease of pregnancy.

As it turns out, though, avoiding the disease of pregnancy could have some side effects (see Premature baby steroids ‘may raise risk of ADHD’ by James Gallagher posted 11/22/2013 on BBC News Health).

Steroids given to help premature babies develop may also be slightly increasing the risk of mental health disorders, say researchers…

Being born too soon can lead to long-term health problems and the earlier the birth the greater the problems.

One immediate issue is the baby’s lungs being unprepared to breathe air. Steroids can help accelerate lung development.

However, the study by researchers at Imperial College London and the University of Oulu in Finland showed the drugs may also be affecting the developing brain.

A premature baby has a lot more health risks than one carried to term.  We’re doing things after the birth to help these children.  Is there anything we can do to help before the birth.  Well, we can try to reduce the number of premature babies.  So what exactly causes babies to be born premature?  According to the Mayo Clinic (see Premature birth) there may be a lot of factors including but not limited to the following.  Smoking cigarettes, drinking alcohol or using illicit drugs.  Some infections, particularly of the amniotic fluid and lower genital tract.  Some chronic conditions, such as high blood pressure and diabetes.  Multiple miscarriages or abortions.

There are other risks.  But what’s interesting about these risks is that they grow greater with age.  A married woman having her children in her twenties will have smoked fewer cigarettes, drank less alcohol and used fewer illicit drugs than a woman in her thirties or forties.  She will have had a less active sex life which will reduce the number of infections in her lower genital tract.  She will be less likely to have high blood pressure or diabetes than a woman 10-20 years older than her.  And she may have fewer abortions than a woman who waits until she is in her forties to start her family.  For these reasons women having a baby when they are over 35 have a greater risk of having a premature birth.

Whenever there is another gun death the left says we need new gun control legislation.  To take guns away from law-abiding gun owners.  Even if it saves just one life.  Well, we can have more healthy babies if women choose to get married and start their families while in their twenties.  For it is what’s best for the children.  Instead of trying to have a career first and then start a family later in life.  And perhaps more would if the left wasn’t telling women that a woman should be strong, independent, enjoy her sexuality and use free birth control and abortion to avoid what they call the disease of pregnancy.

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Venezuela’s Socialist Policies cause Runaway Inflation and High Prices

Posted by PITHOCRATES - November 24th, 2013

Week in Review

Socialists who attack capitalism say they are the champion of the poor.  And yet the poorest of the poor are in socialist countries.  Where some live without indoor plumbing or electric power.  While the poor in capitalist countries can suffer from obesity.  And most if not all have indoor plumbing and electric power.  As well as refrigerators, microwaves and televisions.

Venezuela is an anti-capitalist, socialist country.  So you would think it’s a poor person’s paradise there.  But because of runaway inflation only the rich do well in this socialist paradise.  While the poor can barely afford to live (see Venezuela jails 100 ‘bourgeois’ businessmen in crackdown by Andrew Cawthorne and Deisy Buitrago, Reuters, posted 11/14/2013 on Yahoo! News).

Venezuela’s socialist government has arrested more than 100 “bourgeois” businessmen in a crackdown on alleged price-gouging at hundreds of shops and companies since the weekend, President Nicolas Maduro said on Thursday.

“They are barbaric, these capitalist parasites!” Maduro thundered in the latest of his lengthy daily speeches. “We have more than 100 of the bourgeoisie behind bars at the moment.”

The successor to the late Hugo Chavez also said his government was preparing a law to limit Venezuelan businesses’ profits to between 15 percent and 30 percent.

Officials say unscrupulous companies have been hiking prices of electronics and other goods more than 1,000 percent. Critics say failed socialist economic policies and restricted access to foreign currency are behind Venezuela’s runaway inflation.

So what’s to blame for these high prices?  Capitalism?  Or socialism?  Well, if you blame a devalued currency and a scarcity of basic goods, you have to blame socialism.

Venezuela’s official inflation, 54 percent annually, is the highest in the Americas…

Given Venezuelans’ anxiety over inflation, and scarcities of basic goods from toilet paper to milk, Maduro was risking a backlash at the December 8 nationwide municipal elections…

Critics say the moves do not tackle the roots of Venezuela’s economic malaise, like an overvalued bolivar that forces many importers to buy black-market dollars and then pass those costs on to consumers.

The government has ordered local telecom companies to block various websites showing the bolivar at 10 times the official rate of 6.3 to the greenback on the illegal market.

The socialist economy of Venezuela can’t provide the basic necessities.  So they have to import a lot of goods.  But before you buy a country’s exports you have to exchange your currency first.  And when you’ve devalued your currency by printing money to pay for a welfare state you don’t get a lot of foreign currency in exchange.  Because your money is worthless.  And no one outside the country wants it.  For what are they going to spend it on?  It’s not like Venezuela has a booming export market to shop at.  So when you can’t exchange bolivars for US dollars you have to get US dollars some other way.  On the black market.  So you have a currency that has some purchasing power to pay for those US exports.

So inflation, scarcity and the cost of black market US dollars adds a lot of costs to businesses.  Which they have to recover somehow.  And the only way they can is through higher prices.  Which hurt the poor the most.  For they’re not getting big pay raises to keep pace with rising prices.  In fact, Venezuelans don’t even want to hold on to their own currency.  Because it’s losing purchasing power at such a great rate that the longer they hold on to it the less it will buy.  Which is why they want those imports.  Because you can’t inflate manufactured goods.  So they hold their value.  Unlike a savings account full of bolivars.

It’s not the bourgeois capitalist parasites making life miserable for the poor.  It’s Venezuela’s socialist policies.  Just as similar policies caused people to flee Cuba on rickety boats to get to America.  And East Germans risked their lives to climb over the Berlin Wall.  If you put two societies close together, one socialist and one capitalist, the flow of people between the two will be from the socialist state to the capitalist state.  Which is why socialist states are often police states.  So they can prevent their people from escaping their socialist paradise.

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Lee Harvey Oswald is the Godfather of Today’s American Left

Posted by PITHOCRATES - November 24th, 2013

Week in Review

The assassination of JFK ruined this country.  Because it gave us LBJ and his liberal agenda (see If Kennedy lived: Imagining a different fate for JFK (and Johnson) 50 years later by Jeff Zeleny, Richard Coolidge and Jordyn Phelps posted 11/20/2013 on Yahoo! News).

Historian Jeff Greenfield imagines how history would have changed if Lee Harvey Oswald hadn’t been successful in firing a fatal shot to Kennedy 50 years ago. It’s the latest alternative history from Greenfield in his new book, “If Kennedy Lived: The First and Second Terms of President John F. Kennedy.”

Greenfield, who re-examined the political realities that were present prior to the assassination, told “The Fine Print” he believes that Kennedy’s survival would have likely meant the demise of then-Vice President Lyndon Johnson’s political career.

“The moment John Kennedy was shot, quite literally, LIFE Magazine — a very important medium back then — was launching a huge investigation into how this public servant had accumulated a $14 million net worth, and the answer wasn’t pretty,” Greenfield said of Johnson. “It had to do with radio and TV licenses, and something close to extortion.”

The investigation was halted once Kennedy died, Greenfield said, “Because it would’ve been too much of a shock to the system.” But in Greenfield’s alternate history, the investigation grows into a scandal for Johnson, and Kennedy ultimately replaces him in his second term.

So who gained the most with JFK’s assassination?  Liberals.  For in JFK’s December 14, 1962 speech to the Economic Club of New York he sounded more like Ronald Reagan than LBJ.  Where he championed private spending, not government spending.  He favored tax cuts over tax credits to stimulate the economy.  He talked about increasing consumer spending via personal tax cuts.  And using corporate and personal tax cuts to increase investment and profits.  Yes, he talked about businesses making more profits.  So they would hire more.  Something no liberal would say.

Instead of the Ronald Reagan-like JFK we got one of the most corrupt politicians ever to become president.  LBJ.  According to LIFE Magazine.  And the greatest explosion of the welfare state since the New Deal.  The Great Society.  Turning the U.S. away from capitalism and towards European-style social democracy.

This is the great tragedy of the JFK assassination.  Thanks to that anti-capitalist, Cuba-loving, America-hating assassin who had once defected to the Soviet Union.  A nation long admired by liberals since the day of Joseph Stalin.  This is the great tragedy the leftist communist Lee Harvey Oswald gave us.  Lee Harvey Oswald gave us LBJ, the Great Society and the rise of state-capitalism in the United States.  Everything liberals want.  And conservatives eschew.  Making Lee Harvey Oswald the godfather of today’s American left.

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