The Washington Post’s editorial celebrating the ending of ethanol subsidies iterated the same free-market positions taken by Rep. Ron Paul (R-Texas) and other Austrian school economists about those subsidies. Calling the 45-cent-per-gallon tax credit supporting U.S. corn-based ethanol production and the 54-cent-per-gallon tariff on imported ethanol “two of the most wasteful subsidies ever to clutter the Internal Revenue Code,” the Post estimated that ending those subsidies will save the U.S. taxpayer approximately $6 billion this year.
In more than half of the 50 states, a worker has the option of not joining a union in order to hold a job. In those states where such an elementary freedom exists, the economic condition is more vibrant than in states where union membership, once it is gained at a place of business, is mandatory.
Indiana legislators want to make their state the newest right to work state. But state law requires two-thirds of the 100 House members to be in session before business can be conducted. The current makeup at the Indiana state house has 60 Republicans — seven short of the two-thirds quorum mandated in state law — and 40 Democrats. So, because enough Democrats who are customarily in Labor's back pocket decided to stay away from their jobs, the plan to enact right to work legislation has been stymied. The tactic is reminiscent of Wisconsin's Democrat state senators fleeing to Illinois to stymie legislation in their state earlier this year. Eventually, the Wisconsin senators did not succeed.
Inside the Lucky Dragon van sitting by the curb at the Chinese consulate in New York is a couch, a folding chair, two Mac laptop computers and a printer running off the cigarette lighter/DC connector. On the side of the van is the name: Lucky Dragon Mobile Visa Consultants. They are serving 25 to 50 people every working day of the week.
When Adam Humphreys, a free-lance artist and member of a local band, tried to obtain the required visa for his trip to China, he found that the form he had downloaded from the embassy’s website was the wrong one. After standing in line only to find that his efforts to complete the form were in vain, Humphreys walked three-and-a-half blocks to a Burger King which had a wireless connection to download and complete the proper form, and then return to stand in line once again.
At the Burger King’s Internet café, Humphreys had a BFO (blinding flash of the obvious): every one of the computers at the café was logged onto the embassy’s website to access the proper form. Smelling an opportunity, Humphreys called his band buddy Steven Nelson and together they rented the van and started a business.
While Congress remains on winter recess, President Obama hoodwinked his Senate Republican rivals of the newly-minted Consumer Financial Protection Bureau by naming former Ohio Attorney General Richard Cordray the nation’s chief consumer watchdog, sidestepping the Senate confirmation process. Mr. Cordray boarded Marine One on Wednesday for a brief flight to Andrews Air Force Base, where he joined the President in his hometown of Cleveland for a formal announcement.
With a director now in place, the agency will have the power to establish new regulations over financial institutions, including mortgage companies, debt collectors, payday lenders, and other entities often charged with contributing to the financial crisis. Moreover, the bureau will now be able to monitor mortgage originators and servicers, which were instrumental in the financial crisis by providing subprime mortgages to individuals and families who were not able to afford them.
"There is an army of lobbyists and lawyers right now working to water down the protections and the reforms that we passed," the President said in July when he nominated Cordray to head the bureau. "They've already spent tens of millions of dollars this year to try to weaken the laws that are designed to protect consumers. And they've got allies in Congress who are trying to undo the progress that we've made."
German airline carrier Lufthansa warned passengers on Monday that the European Union’s (EU) new carbon tax on airlines will translate into higher fares, as the carrier plans to avoid shouldering new costs generated from an EU carbon trading scheme. Analysts say Lufthansa is among the airlines most influenced by the measure, along with rival carriers British Airways, United Continental (the two have merged), Air France, and Singapore Airlines.
Beginning January 1, 2012, the Emissions Trading Scheme (ETS) requires airlines to hold emission rights in the form of CO2 certificates for all flights traveling in and out of Europe. Under a directive intended to tackle alleged climate change, airlines flying in and out of the 27-nation European Union and three neighboring countries will be subjected to CO2 regulations as part of an expansion of the world’s largest carbon market. Any emissions beyond selected allowances must be paid for, while airlines are allowed to trade permits among themselves.
India, China, and a handful of other nations including the United States have protested the measure, as the Obama administration, the aviation industry, and various free market groups have expressed firm discontent. A legal challenge against the ETS, triggered by a handful of U.S. airlines, failed in December when the European Court of Justice shot it down. Some opposing countries have taken actions to combat the initiative:
What human motivation gets the most wonderful things done? It's really a silly question, because the answer is so simple. It turns out that it's human greed that gets the most wonderful things done. When I say greed, I am not talking about fraud, theft, dishonesty, lobbying for special privileges from government or other forms of despicable behavior. I'm talking about people trying to get as much as they can for themselves. Let's look at it.
This winter, Texas ranchers may have to fight the cold of night, perhaps blizzards, to run down, feed and care for stray cattle. They make the personal sacrifice of caring for their animals to ensure that New Yorkers can enjoy beef. Last summer, Idaho potato farmers toiled in blazing sun, in dust and dirt, and maybe being bitten by insects to ensure that New Yorkers had potatoes to go with their beef.
Here's my question: Do you think that Texas ranchers and Idaho potato farmers make these personal sacrifices because they love or care about the well-being of New Yorkers? The fact is whether they like New Yorkers or not, they make sure that New Yorkers are supplied with beef and potatoes every day of the week. Why? It's because ranchers and farmers want more for themselves. In a free market system, in order for one to get more for himself, he must serve his fellow man.
Republican presidential candidate Ron Paul noted on Tuesday that efforts to rein in government spending appeared to be in vain, due to an agreement reached with the White House during the recent debt ceiling negotiations. Congress would have to pass a joint resolution to oppose any extension of the debt ceiling, which President Obama is free to veto. Said Paul: “A default is becoming more mathematically unavoidable with ... every debt ceiling increase.”
Not only is the word “default” becoming commonplace but also the words “economic collapse.” A study conducted by Leflein Associates and published by EcoHealth Alliance showed that of the 1003 individuals interviewed for the survey, 63 percent — or more than six out of ten of them — feared an “economic collapse” more than a natural disaster, a terrorist attack or a global outbreak of disease. This study was picked up by Michael, the author of his Economic Collapse Blog, who piled on by adding a long list of reasons why concerned citizens should be afraid of such an event:
In kicking off the New Year, Washington has become the first state with a minimum wage of more than $9 an hour, as it joined seven other states in similar measures that index their minimum wage rates to inflation. Including workers in all industries, Washington’s minimum wage increased 37 cents to a record high of $9.04 an hour (the rate for workers who are 14 or 15 years old is $7.68), which went into effect the first day of the New Year.
According to data from the Census Bureau, more than a million low-wage U.S. workers will see their hourly wages rise, including workers in Arizona, Colorado, Florida, Montana, Ohio, Oregon, Vermont, and Washington. Based on a typical 2,000-hour work year, the wage hike will generate annual salaries for minimum-wage workers of between $15,280 and $18,080, depending on the state.
A total of 10 states currently tie their minimum wage to inflation, eight of which made adjustments for an effective date of January 1; Missouri opted to wait on a rate change and Nevada plans to make adjustments later this year. The increases per state range from $0.28 an hour in Colorado to $0.37 in Washington, and new minimum wages in the eight states now range between $7.65 and $9.04 an hour.
In her article on Monday, financial journalist Jessica Mortimer said that the euro had just set a new record low against the Japanese yen: Its value is now the lowest it’s been in 10 years. The irony wasn’t lost on her as she also noted that it was just 10 years ago that the euro was first denominated in coins and currency, three years after being introduced electronically among the member states.
And she sees further weakness in the euro, now trading below $1.30 versus the dollar, and likely to move ever lower into the New Year: “In the absence of a comprehensive European policy response to the debt crisis, the euro could test its 2010 low of $1.18.” This would imply at least another nine-percent loss in value in less than a year.
She touched on only one of the few remaining options open to keep the euro from blowing up altogether: more austerity on the backs of the citizens of the member states who took excessive advantage of lower-than-market interest rates to load up on debt that they can't pay back. She noted the survey that came out over the weekend indicating that a key European manufacturing index remains persistently below recovery levels, with further declines into a full-blown recession in Europe likely. Additional austerity measures would simply hasten that recession. Kathleen Brooks, director of research at FOREX.com, told her clients: “We remain a sell on rallies (with the euro) as we tend to think the euro zone crisis will actually get worse before it gets better.”
One of the ways that Whirlpool Corporation celebrated its 100th anniversary last year was to file petitions against two of its main South Korean competitors for “dumping” washing machines onto the market on Black Friday. Whirlpool claimed that Samsung was selling their 3.7 cubic-foot top-loading washing machines at a wholesale price of $363.18, way below the $751.46 Whirlpool says it would cost them to make the same product. Consequently, Samsung and LG Electronics sold thousands of their washers over the Black Friday weekend, taking substantial market share away from Whirlpool.
In its complaint, Whirlpool demanded an investigation into their rivals’ practice of “dumping” washers at prices that Whirlpool couldn’t match, and then demanded sanctions — tariffs — against the offending competitors and their products.
It’s worked before. Last March Whirlpool filed a similar petition about their competitors dumping high-end refrigerators and the Commerce Department agreed, applying a 37-percent duty on those refrigerators as well as forcing those competitors to post bonds if they didn’t raise their prices to “fair value.”