Liberal triple play fail of the day
Leftists, be they journalists, economists, or especially politicos don’t understand the world, nor do many ever willingly open their eyes.
First case in point, Broncobama on Michigan voting to become a right-to-work state:
But President Obama, ever the demagogue of dishonesty, took to the stump Monday in Redford, Mich., claiming the measure takes “away your right to bargain for better wages and working conditions.” That‘s a shameful lie from a shameless president who regularly affirms his shamelessness with such deceit.
And despite the blinders worn by so many, the evidence is clear that right-to-work laws benefit companies, their employees and their states‘ coffers.
The left fails to understand that the economy—and just about everything else—responds to all sorts of inputs (including idiotic “inputs” like forcing people to join unions and involuntarily pay union dues) by taking action. “Action” in such a case includes things like building automobile plants in Tennessee, Alabama, and Georgia (among others) where labor costs are lower.
But it seems the left would rather see car building in Michigan go the way of the Edmund Fitzgerald. (I thought libs were mainly secular humanists, with Charles Darwin as one of their gods; if so, why can’t they see right-to-work as a case of economic adapt or die? The answer is pride: they foolishly think they can write self-beneficial laws, practice crony capitalism, and have a centrally managed economy that works. History disagrees.)
Second, it seems there is great progressive angst and gnashing of teeth when libs hear Google has routed $10 billion in profits through a Bermuda sub-headquarters in order to avoid paying about $3.5 billion in taxes to Uncle Sugar. Avoiding taxes is legal, evading taxes is what brought Al Capone down (that and syphilis). Google is making a rational response to maximize their company’s financial power and it turns out Google is just the tip of the iceberg:
J.P. Morgan JPM +1.15% estimates that American companies currently hold a cool $1.7 trillion in profits outside the U.S. They keep them there because if they brought them home, they’d be taxed at 35%. Hewlett-Packard HPQ +1.47% has told its shareholders that “substantially all of HP’s total cash balances are held outside the U.S.” Two-thirds of Apple’s $121 billion in cash is held outside the U.S. Most other multinationals can tell a similar story, and a substantial number hold those profits in subsidiaries based in Bermuda.
(A cool $1.7 trillion? Just think: that could cover a whole year of the Obamanomics driven Obamadeficit.)
When liberals avoid paying taxes, they shrug it off as “something everyone does.” When an American-based company does the same, libs go apoplectic (and imagine if it had been Wal-Mart). Want to drive these now-American companies towards an ever-greater overseas presence? Keep writing laws that induce them to do just that.
Finally, lefties fail to see that by removing barriers to competition, jobs and wages should both increase. It’s a basic reflection of supply and demand, and if there were fewer impediments to starting a business, there might just be more business and more employment options available to workers. But in our regulatory state, a place of ever-increasing larding on of new legislation, who will be willing to fight city hall, county governments, state governments, the Department of Labor, the EPA, et al.?
We don’t really know the answer to that, but all else being equal, we can reasonably say fewer entrepreneurs will emerge when government builds such barriers to competition. That means fewer entrepreneurs which means fewer start-ups and small businesses and that’s where most jobs are created (except in today’s environs where most jobs created are government jobs and don’t create value nearly commensurate with their costs).
Instead America is stuck with—by its own choice—an Executive who appears to understand nothing about basic economics (or for that matter, truth), supported by a mainstream court-eunuch media who is dedicated to this Executive, madly (and angrily) scribbling economists who are out of their depth and deny reality, politicos with fatal levels of hubris and self-deception. Mistakes have consequences and that’s why the country is headed in the wrong direction.