GM "Success"...Read on...

"The heart of the case against the bailout is that it saps the life-blood of entrepreneurial capitalism."

 - Don Boudreaux, George Mason University economist

I've had this in my "TO BLOG" pile for ten days...but the holidays are upon us...I'm too busy having fun!!  I hope you are too. Despite our country's woes, it's okay to be happy. You are not a bad person if you are finding daily happiness. Sometimes I think our government thinks happy people are bad people...but that's not the case - we are just happy!

But back to my point...

This article by The Heritage Foundation is eye-opening and important for anyone who sincerely believes the GM bailout was a "success".  It's a quick read, but it will clarify what happened, and what would need to happen for taxpayers to get a return in full...even though it's not completely about getting a return on our investment (as my initial quote suggests). 

Direct quote...this is where we are on the money:

"Before this week, taxpayers put a net $40 billion into GM and held a majority stake in the company. The IPO allowed the Treasury to sell about a quarter of their share at $33 per share, raising $13.6 billion. That leaves taxpayers, post-IPO, with $35.9 billion “invested” and about a 37 percent stake in the company. At $33 per share, that leaves taxpayers still almost $10 billion in the hole. The shares would have to jump to $51 for taxpayers to break even, a price level considered by most analysts to be unlikely."

Direct quote...this is why bailouts are not the answer:

But perhaps the biggest danger of all is the prospect of the GM “success” being used to justify future bailouts of other firms. That would be the true catastrophe. As George Mason University economist Don Boudreaux wrote:

The chief economic case against the bailout was not that huge infusions of taxpayer funds and special exemptions from bankruptcy rules could not make G.M. and Chrysler profitable. Of course they could. Instead, the heart of the case against the bailout is that it saps the life-blood of entrepreneurial capitalism. The bailout reinforces the debilitating precedent of protecting firms deemed “too big to fail.” Capital and other resources are thus kept glued by politics to familiar lines of production, thus impeding entrepreneurial initiative that would have otherwise redeployed these resources into newer, more-dynamic, and more productive industries. The “success” of the bailout is all too easy to engineer and to see. The cost of the bailout—the industries, the jobs, and the outputs that are never created—is impossible to see, but nevertheless real.

Source: Morning Bell: Our Economy Can't Afford More GM "Success" Stories, James Gattuso

More on Pat-Downs...

"Ultimately, though, the debate over whether to use the new scanners or not isn't a choice between privacy and sercurity - because we're not getting security where we need it - we're reacting to the last type of terrorist threat, not the current one or the next one."

 - KT McFarland, Fox News 11.17.10

A GREAT follow-up to my blog post from earlier in the week...I LOVE this article...

Forget Body Scans and Pat Downs -- Let's Get Busy Profiling, Fox News 11.17.10

Al Qaeda is not stupid and they are not going to give up simply because their last attempt was thwarted. And they're smart enough to find a new way. Our task is to discover these new ways. 

And terrorists DO have a profile...why do we not use that as a way to combat their attempts?  Let's not force small children, pregnant women and 99% of other travelers to be violated via invasive pictures or physical pat-downs. 

Let's play some offense for a change...this reactionary stuff is making me crazy!  And with all the backlash and public outcry...I wonder how long it will be before these x-ray machines are scrapped...anyone want to make any guesses?????

Airport Security...gone too far?

"At the end of the day we're not the threat, and we want the TSA to concentrate on getting bad guys."

 - Capt. Sam Mayer (a Boeing 767 captain and spokesman for the Allied Pilots Association)

I was on a recent trip to the east coast and after seeing this article from The Washington Post today I thought I should share my story.

Here is the article: Scanners and Pat-Downs Upset Airline Passengers, 11.15.2010

You be the judge: Is airport screening gone too far? Is it really going to thwart terrorist attacks? 

My return flight home from the Baltimore airport brought me face to face with the x-ray machine, which has been getting a lot of attention in the press lately. I am currently pregnant and had decided well beforehand I would refuse to be screened through an x-ray machine. And sure enough, the opportunity for declining just such a screening came. Not for any reason, mind you. I didn't beep through the regular machine, nor did my bags contain anything that required a second glance. They were merely shuffling a few passengers through the regular security thingy, and then a few through the x-ray thingy.  I was one that had to go through the x-ray thingy.

I declined.
They asked me why?
I said because I was pregnant (I AM pregnant...this was not a lie, and I am noticeably pregnant).
I was not interested in exposing my fetus to unnecessary radiation.
The TSA agent assured me the machine does not emit a dangerous amount of radiation (and I should trust you because???)
I still said no.
They threatened a full-body pat-down.
I said I still wasn't going through.
So then I prepared for my pat-down.

And I'm NOT kidding when I say it was pretty invasive. They offered me a private room, which I declined, being in a hurry. She politely described the security measures are more invasive now and she shared that she would be feeling all the way up my inner thigh and around my breasts. I rolled my eyes...this was going to be interesting.

And so it commenced. It was exactly as she said. She touched every part of my backside. And as promised, all the way up my inner thighs. She felt around my chest...wow...I was surprised by that. My eyebrows were definitely raised. I think I was blushing...one word: awkward.

After it was over she tested my hands with a special wand with a piece of fabric on the end. I assume this was to check for firearm residue. That was painless...

Let's just say, the TSA screener got well beyond second base and I had no defense mechanism if I wanted to get on that plane and come home. I hate the feeling of not having a choice.

From this article in The Seattle Times yesterday, this sums up my thoughts: "In many cases, if you don't catch these issues well in advance of the airport, it's too late."(Vahid Motevalli, co-founder of the Aviation Institue at George Washington University and now a professor at Purdue University).

I'm just grateful we are staying close to home at the holidays...we won't be traveling for a while and my modesty needs some time to recover.

Message Received!

"With their voices, the American people are demanding a new way forward in Washington."

 - House Minority Leader, John Boehner

It was a success at the polls, as far as I'm concerned. Republicans taking over the House is a huge game-changing play in Washington...and it's because the people made their voices and opinions heard. 

This election is our message to Pelosi and other House members who:

(1) Rammed Obamacare down our throats,

(2) Continued to pass Stimulus packages that are having no impact on the economy, and

(3) Have grown the government and in turn our national debt to the brink of bankruptcy

And I just love how our President has been saying in recent days that should Republicans take the House, they better compromise!  Well, that's interesting, since he wasn't too interested in what Republicans had to say during the closed-door Obamacare meetings earlier this year. I hope the Republicans don't compromise. Stick to your guns, stick to your promises. It's time to make a stand.

The message to Obama and his administration is clear...we don't like what you've done, and it's time to chart a different course!

AND here in Washington state....

I'm elated on the defeat of I-1098 (the income tax initiative).

I'm elated on the passage of I-1107 (ending the candy/soda tax)

I'm elated on the passage of I-1053 (requiring 2/3 legislative majority for tax increases)

It's obvious the people, even the liberal people here in Washington, are conscious of the economy. They know Washingtonians need less taxes and more prudent spending in this State. And Governor Gregoire was doing a bit of complaining last night saying she will have to make some serious cuts. I would like to remind our Governor that IT IS YOUR JOB!  Now is the time to make the tough decisions and earn your keep...otherwise, you'll be out!

I'm off to Washington D.C. (for a personal matter), but I will probably feel a bit euphoric walking near the Capital knowing MY voice has made a difference. I hope you feel the same about yours.

More Initiative Details

I just couldn't get it done, folks. I wanted to give you my personal opinion on the referendums and initiatives for the election, but ballots must be postmarked in TWO days!!  And I've been caught up in the whirlwind of Halloween festivities, birthdays, and a few new offspring added to the family (2 in 2 days...how sweet is that!!). Plus I'm leaving my kids for a few days and the prep to get out of town without your kids is almost more than if they were going with you...

But I didn't want to leave you hanging.

A conservative friend of mine passed along Matt Shea's recommendations and I liked most of what he recommends and has to say.  Take it with a grain of salt, but if you're looking for a conservative member of our Washington State Senate for some guidance, Shea is a good one.  

Whatever you political leaning, whatever your choice, just VOTE! This election is important...and your vote is your voice.

___________________________________________________________________

Use links for full text of the Initiatives and referendums

MATT SHEA'S ANALYSIS AND RECOMMENDATIONS

Initiative 1053 - Concerns tax and fee increases imposed by state government.
This measure would restate existing statutory requirements that legislative actions raising taxes must be approved by two-thirds legislative majorities or receive voter approval, and that new or increased fees require majority legislative approval.

Vote Yes. “All power is inherent in the people…” Washington Constitution Article 1, Section 1. The people decided to put another limitation and check on an out of control government.  What’s more Republican than that?

Initiative 1082– Concerns industrial insurance.
This measure would authorize employers to purchase private industrial insurance (a/k/a workers' compensation) beginning July 1, 2012; direct the Legislature to enact conforming legislation by March 1, 2012; and eliminate the worker-paid share of medical-benefit premiums.

Vote Yes. Washington is one of only 4 states that do not allow a private option.  This measure would lower the L&I cost and provide much 
need relief to our struggling small business owners. 

Initiative 1098 - Concerns establishing a state income tax and reducing other taxes.
This measure would tax “adjusted gross income” above $200,000 (individuals) and 400,000 (joint-filers), reduce state property tax levies, reduce certain business and occupation taxes, and direct any increased revenues to education and health.

Vote No. This violates the State Constitution Article 7, Section 1 which reads “All taxes shall be uniform upon the same class of property within the territorial limits of the authority levying the tax and shall be levied and collected for public purposes only. The word "property" as used herein shall mean and include everything, whether tangible or intangible, subject to ownership.” The State Supreme Court has correctly ruled on multiple occasions that income (defined here as the fruits of one’s labor) is property.  That is consistent with the founding fathers view as well.

Initiative 1100 - Concerns liquor (beer, wine and spirits).
This measure would close state liquor stores; authorize sale, distribution, and importation of spirits by private parties; and repeal certain requirements that govern the business operations of beer and wine distributors and producers.
 

Vote Yes. The role of government is to protect our God given unalienable rights to life, liberty, and property not run liquor stores.  Like taxpayer funding of abortion clinics, it is also morally reprehensible to use tax payer dollars to distribute liquor.

Initiative 1105- Concerns liquor (beer, wine and spirits).
This measure would close all state liquor stores and license private parties to sell or distribute spirits. It would revise laws concerning regulation, taxation and government revenues from distribution and sale of spirits.

Vote No. This expands the size and scope of government through new mandates and licenses effectively trading one monopoly for another.  It also proposes two tax increases.

Initiative 1107- Concerns reversing certain 2010 amendments to state tax laws. 
This measure would end sales tax on candy; end temporary sales tax on some bottled water; end temporary excise taxes on carbonated beverages; and reduce tax rates for certain food processors.

Vote Yes. Cuts taxes and eliminates a massive regulatory burden on businesses to figure out which items are “candy” and should be taxed.

Referendum Bill 52 - Concerns authorizing and funding bonds for energy efficiency projects in school per EHB 2561 as passed by the Legislature.
This bill would authorize bonds to finance construction and repair projects increasing energy efficiency in public schools and higher education buildings, and continue the sales tax on bottled water otherwise expiring in 2013.

Vote No. This is deficit spending and dishonest.  This would allow “projected energy savings” to be the asset against  which to bond half a billion dollars at a total cost to tax payers of almost $1 billion. 

Senate Joint Resolution 8225- The Legislature has proposed a constitutional amendment concerning the limitation on state debt.
SJR 8225 would require the state to reduce the interest accounted for in calculating the constitutional debt limit, by the
amount of federal payments scheduled to be received to offset that interest.

Vote No. This is an accounting trick to allow the state to borrow more money above the current constitutional debt limit while our spending remains out-of-control.

Engrossed Substgitute House Joint Resolution 4220 - The legislature has proposed a constitutional amendment on denying bail for persons charged with certain criminal offenses.
ESHJR 4220 would authorize courts to deny bail for offenses punishable by the possibility of life in prison, on clear and convincing evidence of a propensity for violence that would likely endanger persons.

Vote Yes. This would restore the original understanding of when bail could be denied for “capital offenses.”  Had this been in place it likely would have prevented the infamous Lakewood shootings.

I-1107

"The Columbian recommends a 'Yes' vote on Initiative 1107, which would repeal the tax increases. We do so for three reasons: our belief that an economic crisis is the worst time to increase taxes, the unpardonable secrecy that ushered these tax increases to reality, and the abject silliness nestled in the details of the legislation."

 - www.stopgrocerytaxes.com, 10.28.2010

I love candy. We call it "nannies" at my house. We love soda. It's my therapy. I really do NEED Diet Coke. I just do, okay? But if you're concerned, I can assure you I'm not addicted...I recently went nine weeks without my beloved Diet Coke and managed just fine, thank you! No convulsions, withdrawals, or headaches. I know I have now alleviated all your personal concerns about my DC consumption...moving on...

Initiative 1107 is an easy one for me. I was mad about this from the get-go. I-1107 ends the recent tax on candy, soda and bottled water. This was an arbitrary tax to add revenue to our state's general fund. 

Taxing these items was a simple solution for our legislature to neglect their job, which is to prioritize spending and government services. They simply tacked on a tax to soda, bottled water and candy, but made it more arbitrary than anything else. A Snickers bar is taxed, but not a Twix. Say what? This tax also hurt local manufacturers because they previously had a lower B&O tax; this advantage was taken away.

Opponents of I-1107 are mostly unions. I say this time and time again...unions need tax dollars to keep their jobs and their amazing pensions and amazing health care. When they are voting NO on I-1107 they are essentially voting for themselves. I-1107 opponents claim community health care centers and school class sizes are all at risk if 1107 passes...and honestly, they're right...because EVERYTHING SHOULD BE ON THE TABLE. All government programs should be analyzed with a microscope because when 1107 is approved, cuts WILL need to be made. And in my opinion, it's about freakin' time.

Another easy one. Washington friends: Vote YES on I-1107.

I-1053

"We simply can't afford to have it all. With I-1053, Olympia will finally be forced to reform government, prioritize spending and re-evaluate existing programs.  Without I-1053, they'll resort to job-killing, family-budget-busting tax increases."

 - Argument For I-1053, State of Washington Voter's Pamphlet

This is to counteract what our state legislature suspended earlier this year. I blogged about my disgust when I-960 was about to be overturned here (It was overturned a short time afterwards). I-960 required a 2/3 legislative majority vote to increase taxes, and I-1053 re-instates this requirement.

This is an issue voters continue to make clear: we want the legislature to be prudent when raising taxes. 

In general, raising taxes should be a BIG deal. I want the state to make the tough decisions about what to change and where to cut back when state's revenue contracts. It's what people do in their everyday lives when times get tough. Sometimes you just have to cut your HD-programming...or cable altogether. I LOVE Project Runway (season finale tonight!), but if my husband loses his job, I know I am losing cable, and in turn, my dear, sweet Tim Gunn. (sigh!...Make it work!)

Not everything in the state budget is a priority and I refuse to accept that as an excuse for raising taxes. Three times previously, voters have approved initiatives requiring majorities to raise taxes. We are the people. This is our state...quit overturning OUR voice.

This is an easy one. My fellow Washingtonians: Vote YES on 1053.