Tag Archives: Economics

News

Angela Merkel opposes spending, China stimulates solar energy production

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Story here, from the always-on-target Investors Business Daily. If you prefer a podcast, then here is your podcast.

Angela Merkel is the Chancellor of Germany. She also has a Ph.D in Physics.

First a little background:

British Prime Minister Gordon Brown’s idea for a “global stimulus plan” has met with resolute opposition from Germany’s leader, Angela Merkel. Good to see that common sense isn’t dead, at least in Europe.

Brown, who’ll be hosting the leaders of the G-20 nations later this week as they seek a way out of the global financial crisis, has pushed what he calls a “global New Deal” of up to $2 trillion in added spending.

But he’s had trouble selling his idea to others — to put it mildly. Czech Prime Minister and EU President Mirek Topolanek called it “a way to hell.” Even Bank of England Governor Mervyn King trashed the idea.

And then Merkel jumps on the pile:

Now comes Merkel, who, as head of the world’s third-largest economy, has probably killed Brown’s big idea.

“I will not let anyone tell me that we must spend more money,” she said over the weekend. “We must look at the causes of this crisis. It happened because we were living beyond our means. . . . We cannot repeat this mistake.”

We need to listen to Merkel, because she knows what she is talking about. She has a perspective we don’t because of Germany’s tragic history in the 20th century.

After World War I, Germany tried to spend its way out of a recession brought on in large part by the onerous war reparations.

As Weimar Germany printed money, inflation soared (in 1918, $1 bought 4.2 German marks but by 1923, $1 fetched 4.2 trillion marks) and unemployment surged.

If you want a real stimulus, try being like the communist Chinese. I blogged about their sales tax cuts on automobiles before, and about how worried they are about our deficit spending, (along with everyone else in the G20). But look what I found over on Ace of Spades HQ.

They cite an article from semiconductor.net, and here is an excerpt:

…The Chinese government alerted all silicon, ingot, wafer, cell, and panel manufactures that it intends to announced a very aggressive Solar subsidy that is equivalent to $3 USD per installed watt, in cash, as an incentive to aid the Chinese population to install solar. Currently in China non UL, non CE, and non TUV panels can be purchased for under $2 per watt…

…With the combination of lower panel prices, renewed Federal and State incentives, utility rebates, the finance freeze thawing out, and oil prices moving up, Solar is once again looking awfully attractive. When you take into consideration the increased value of your home upon a solar installation and the tremendous credits and rebates available, you can literally install solar for 20 cents on the dollar….

Why did we elect a socialist ACORN lawyer from the party that got us into to this mess in the first place?

News

John Campbell takes a shot at Obama’s budget

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This is Representative John Campbell letting the Democrats have it with both barrels.

I found the video linked on his blog, where he has some advice for how to explain to your neighbors what this budget will really cost taxpayers.

Excerpt:

If you want to see what a 30% tax increase looks like, take your paycheck and multiply the total taxes deducted by 1.3.  Then, subtract that from your gross income and that will be close to your new net income. So, if you made $3,000 gross and $2,000 net, you will now only net $1,700. Oh, and that won’t include the cuts your employer has to make in order to pay for their tax increases. By the way, this budget includes all kinds of things that are minor in the grand scheme of things, but big to certain people. For instance, it would repeal the use of the ‘Last In, First Out’ (LIFO) inventory accounting method.  This will dramatically raise taxes on all retail businesses who carry inventory.

Gateway Pundit has a list of the top 10 facts about the budget here. On economist Robert P. Murphy’s blog, I found a link to this story in Bloomberg.

Excerpt:

The U.S. government and the Federal Reserve have spent, lent or committed $12.8 trillion, an amount that approaches the value of everything produced in the country last year, to stem the longest recession since the 1930s.

New pledges from the Fed, the Treasury Department and the Federal Deposit Insurance Corp. include $1 trillion for the Public-Private Investment Program, designed to help investors buy distressed loans and other assets from U.S. banks. The money works out to $42,105 for every man, woman and child in the U.S. and 14 times the $899.8 billion of currency in circulation. The nation’s gross domestic product was $14.2 trillion in 2008.

Representative John Shadegg has a list of the taxing/spending records that Obama’s budget is breaking in a post on Red County. And remember, the Democrats caused this mess and the Republicans tried to stop them. More details from John Boehner and Mike Pence about what’s in Obama’s budget here. The Republican alternative budget is here.

Commentary

Mark Sanford interviewed by the Acton Institute

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Governor Mark Sanford
Governor Mark Sanford

Acton Institute blog posted this interview with Governor Mark Sanford of South Carolina. Sanford is my runner-up for the 2012 Republican nomination. The Acton Institute is the think tank that best expresses my deepest concern – the concern for freedom of religious expression. And they believe that certain public policies, such as fiscal conservatism, protect that freedom.

The interview with Sanford is enlightening and encouraging, because it talks about ideas and ideals, in detail. I was particularly interested to see if he would make the connection between free market capitalism and liberty. Here is a relevant excerpt:

I would say that we got to go back to the basics. And the vision would be for a prosperous, competitive America in what has become a very, very competitive global world. It needs to be based on an advance and adherence to free market capitalistic principles, and on maximizing the sphere of individual freedom.

And that includes religious freedom. And I was also interested to see how Sanford connected his faith to the public policies that he advocates. The interviewer asks him: “When it’s convenient, many politicians say they can’t bring their own religious views to bear on important issues because they represent all the people. What’s your view?”

Here is his reply to the question, in full:

I don’t agree with that. What people are sick of is that no one will make a stand. The bottom line in politics is, I think, at the end of the day to be effective in standing for both the convictions that drove you into office and the principles that you outlined in running. And that is not restrained to simply the world of Caesar, it applies to what you think is right and wrong and every thing in between.

Now we all get nervous about the people who simply wear it on their arm sleeve to sort of prove that they’ve got that merit badge. But I think the Bible says, “Let your light so shine be fore men that they may see your good works and give glory to your Father that’s in heaven.” Hopefully, by the way in which you act. The way in which you make decisions. They’re going to see that something’s there.

I would also say the Bible says in Revelation, “Be hot. Be cold. But don’t be lukewarm” [Rev. 3:15]. And there’s too many political candidates who walk around completely in the middle—completely in neutral. With regard not only to faith, but with regard to policy. And that’s what people are sick of. Everything’s gotten so watered down. So I have people come to me frequently saying, “Look, I voted for you. In fact, I completely disagree with you on these different stands over here. But at least I know where you stand.”

And so I would say it’s a mistake to confine one’s belief to only matters of government. If you have a religious view, it’s incumbent upon you and it’s real to have that. The Bible talks about the fruit of the spirit: love, joy, peace, patience, kindness, goodness, gentleness, faithfulness, self-control. There ought to be certain things that are clearly observable by your actions.

I remember when I first gave a Christmas address, a candle lighting event on the state house capitol. And people were freaking because they said, “You can’t say Jesus.” I said, “Look, I’m not trying to offend anybody. But if that’s my personal faith, I can say what I want to say. I’m going to say what I want to say.” I’m not going to be rubbing anybody’s face in it. But I say you can’t dance around that which you really believe. And so I’d say we need people who are more bold in taking stands on all kinds of different things.

Now, you know what to do: read the whole thing!