They Just Don’t Make Villains like George W. Bush Anymore

Posted by PITHOCRATES - October 6th, 2010

It’s Getting Harder to Lie These Days

The angry Left could not draw as many people to their rally in Washington as Glenn Beck did.  Why?  Byron York explains in Why Big Labor couldn’t match Glenn Beck’s rally in a Washington Examiner 10/4/2010 column.  He says Big Labor is “shrinking, aging and divided.”  No big whoop here.  I mean, the days of Big Labor are gone.  Thanks to free trade, consumers no longer have to be their bitch.  For example, once upon a time we had to buy the pieces of crap that the Big Three were selling.  Because they were the only caterer in town.  But thanks to competition from the Japanese imports, the consumers got a little more respect from the Big Three.  They no longer take us for granted.  And they’re building quality again.  Why?  Because someone else was.  That’s the beautiful thing about competition.  It makes everything better.

Included in this column is this disturbing fact:

In January, the Labor Department reported that for the first time in history, there are more union members in the public sector (7.9 million) than there are in the private sector (7.4 million). That’s despite the fact that there are five times more workers in the private sector than in federal, state, and local governments. In percentage terms, just 7.2 percent of private-sector workers belong to a union, while 37.4 percent of public-sector workers are unionized.

Think about this.  The private sector pays for its union pay and benefits with the revenue from the goods and services they sell. Competition for these goods and services provides a restraint on those union pay and benefits.  The taxpayer finances the public sector.  There is no competition for what they do.  And no restraint whatsoever on their pay and benefits.  So is it surprising that there are more union members in the public sector?

That said, the private sector still outnumbers the public sector.  For now, at least.  Yes there is a ruling elite.  And an aristocratic base (college professors, the mainstream media, unions and government workers) that supports them in exchange for their special favors. But the numbers are against them.  When times are bad, the masses will be heard.  And we heard them at Beck’s rally.  Not at the “One Nation Working Together” rally.  Where their silence was deafening.

Here’s a Thought; Try to Stand for Something

The ads for the Democrats this campaign season are interesting for what they don’t say.  They don’t trump their votes for Obamacare, financial reform, Cap and Trade, etc.  No.  The Democrats are not running on their achievements.  Just as they never campaign for higher taxes and more regulation.  Because, unless you’re a public sector union employee, you are just not for higher taxes and more regulation.  So they don’t run ads about their achievements or their policy agendas.  They just attack their opponents.  Dig up some dirt.  Or fabricate it.  Anything but run on their own record or policy agenda.

Of course, such a campaign strategy is difficult when you have the White House, the Senate and the House.  In the good old days there was George W. Bush.  Democrat enemy #1.  With him in the White House, you never had to campaign on your own record.  Or commit to a position.  Whenever asked about a position you just attacked Bush.  Life was simpler then.  Like York wrote:

Finally, the rally lacked a villain. Back in the days of George W. Bush, merely saying the president’s name could elicit angry boos over and over and over again. Every problem in every part of American life could be attributed to Bush and his gang. Now, with a Democratic president and Congress, speakers can denounce Republicans all they want, but everyone knows who is running the U.S. government. That knowledge took a little of the edge off all those denunciations.

Bush has been gone coming up on 2 years now.  And things are worse now under total Democrat rule.  The Democrats have no choice.  They’ll have to be accountable for their actions.  And this is the reason why the Left couldn’t match the Glen Beck rally.  They can no longer blame George W. Bush.  And where’s the fun in that? 

The mess we’re in is their mess.  We know it.  And they know it.  And they’re beginning to know that we know it.  Which makes the lie that much harder to sell.

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FUNDAMENTAL TRUTH #20: “It is never a consumer that complains about ‘predatory’ pricing.” -Old Pithy

Posted by PITHOCRATES - June 29th, 2010

LOW PRICES.  GOD help me, I do hate them so.  I hate them with every fiber of my body.

Who says this?  Do you?  I don’t.  Of all the times I’ve spent shopping, I have never heard anyone bitch about low prices.  I’ve heard people bitch about high prices.  But never about low prices.  When gas approached $3/gallon, people bitched about that being too high and drove 10 miles to find ‘cheap’ gas to save a few pennies per gallon.  Let it approach $4/gallon and they’ll want Congress to take action.  To attack Big Oil.  To seize their oil and their profits and give us cheap gasoline in return.  But when gas was cheap, no one ever bitched about it being ‘too’ cheap.  It just doesn’t happen that way.  People bitch about high prices.  Not low prices.

So who bitches about low prices?  Competitors.  There’s a saying that competition makes everything better.  And it does.  It lowers prices.  And raises quality.  And who is looking for lower prices and higher quality?  Consumers.  Who isn’t?  Competitors.  Especially competitors with political connections.

WHEN THE BIG 3 were putting out crap in the 1970s, they did so because they could.  I mean, who else were you going to buy a car from?  So what if your car breaks down and the fenders and quarter panels rust away?  That just means you gotta buy another car sooner rather than later.  A pretty sweet deal.  Especially when there are only three places to go to buy a car.  And each of the Big 3 is selling the same crap.

Then the Japanese had to go and ruin a good thing.  They started selling cars in America.  These cars were smaller than your typical American car.  But there were other differences.  They didn’t rust like the American cars.  They didn’t break down as much.  And the imports were cheaper than the American cars.  Lower price and higher quality.  More bang for the buck.  Exactly what consumers were demanding.

So what was the response of the Big 3?  Did they rise to the level of their new competitors and deliver what the consumer wanted?  No.  They ran to government for help.  For protection.  And they got it.  Voluntary Export Restraints (VER).  The government negotiated with the Japanese to ‘voluntarily’ limit the number of cars they exported to the United States.  Or else.  So they did.  To avoid worse protectionist policies.  Problem solved.  Competition was limited.  And the Big 3 were very profitable in the short run.  Everyone lived happily ever after.  Until the Japanese refused to play nice.

The problem was what the Big 3 did with those profits.  Or, rather, what they didn’t do with them.  They didn’t reinvest them to raise themselves up to the level of the Japanese.  Protected, they saw no incentive to change.  Not when you have Big Government on your side.  And how did that work for them?  Not good. 

So look, the Japanese said, the Americans like our cars.  If the American manufacturers won’t give them what they want, we will.  While honoring the VER.  We won’t export more cars.  We’ll just build bigger and better cars to export.  And they did.  The Big 3 were no longer up against inexpensive, higher quality subcompacts on the fringe of their market share.  Now their mid-size and large-size cars had competition.  And this wasn’t on the fringe of their market share.  This was their bread and butter.  What to do?  Build better cars and give Americans more bang for their buck?  Or run to government again?  What do you think?

The Big 3 assaulted the Japanese under the guise of ‘fair trade’.  The cry went out that unless the Japanese opened up their markets to American imports (in particular auto parts), we should restrict Japanese imports.  To protect American jobs.  To protect the American worker.  To protect the children.  This was code for please make the Japanese cars more unattractive to purchasers so they will settle for the more costly and lower quality cars we’re making.  (Let’s not forget the reason Americans were buying the Japanese cars in the first place).

The Japanese response?  They took it up a notch.  They entered the luxury markets.  They launched Acura, Lexus and Infiniti.  They competed against Cadillac and Lincoln.  And well.  The quality was so good they even affected the European luxury imports.  More attacks followed.  Americans were losing their jobs.  Soon there would be no more American manufacturing left in the country.  So the Japanese built plants in America.  And Americans were now building the Japanese cars.  The Japanese actually created American jobs.

SON OF A BITCH!  So much for the loss of American jobs.  The Japanese threw a wrench in that argument.  So now the argument became about the loss of ‘high paying’ American jobs.  For the Japanese plants were non-union.  Didn’t matter that their workers were making better pay and benefits than many in their region.  No.  What mattered was that they were building a better product.  And they didn’t want THESE jobs in America.  But if they couldn’t get rid of these new workers, they should at least unionize them so their cars cost more.  To make them a little less appealing to the American consumer.  So far they have been unsuccessful in this endeavor.  The workers are happy as they are.

Well, these cars just weren’t going away.  So the Americans surrendered car manufacturing to the Japanese.  They couldn’t beat them.  (Of course, it’s hard to do that when you don’t even try).  They, instead, focused on the higher profit truck and SUV markets.  Then the Japanese entered those markets.  And at every level they competed with the Americans, the Japanese gave more bang for the buck.  And the consumers responded.  With their hard-earned wages.  It just wasn’t fair.  The Japanese kept giving the American consumer a better product.  No matter what political action the Big 3 took or demanded.

And there’s the problem.  They sought their answers from government.  Instead of making a better car.  They wanted to stop the Japanese from giving the American consumer what they wanted so they could force Americans to pay more for less.  All the while the economy was forcing the majority of consumers to get by on less (the majority of consumers do not have the wage and benefit package the ‘select’ few had in the Big 3). 

Fast forward to 2008 and we see the ultimate consequence of their actions.  Bankruptcy.  GM and Chrysler had to grovel for a federal bailout and in the process become Washington’s bitch.  Ford survived on her own.  As did the Japanese.  You can bitch all you want about costs, but if you have the revenue you can pay your costs.  And the Americans just couldn’t sell enough cars to maintain the revenue they needed for their cost structure.  By refusing to address the core problem (they weren’t making cars Americans wanted to buy), they only made their competition stronger and more entrenched in the U.S. market.

IT’S ALL POLITICS.  Political cronyism.  And crony capitalism.  It all comes down to political spoils and patronage.  That’s what happens when politics enter capitalism.  Big Business partners with Big Government and they enter into relationships.  You scratch my back and I’ll scratch your back.  But when government protects a business for political expediency, the industry suffers in the long run.  As the U.S. automobile industry has.  Ditto for the U.S. textile industry.  And the U.S. steel industry.

So what goes wrong?  When you protect an industry you insulate it from market forces.  You can build crap.  The problem is, consumers don’t buy crap.  So, for awhile, politics intervene and makes the crap more favorable.  Whether it’s predatory pricing, monopolistic pricing or collusion, business can’t win.  Big Government is there.  If your prices are too low, government will intervene.  If prices are too high, government will intervene.  If prices are too similar, government will intervene.  To make things ‘fair’.  And by fair they mean to reward those who play the game and to punish those who don’t.  And the spoils go to those large voting blocs they need.  And in return for their votes, they can count on patronage.  Government jobs.  Political positions.  Favorable legislation and regulation.  If you got the vote out, you were rewarded quite nicely. 

And consumers be damned. .

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