Tag Archives: Economics

Twinkies company liquidates due to demands of greedy labor union

The Wall Street Journal explains.

Excerpt:

Hostess Brands is going to liquidate, a blow to lovers of Twinkies, Wonder Bread and Drake’s Coffee Cakes all around the globe.

But CEO Gregory Rayburn told CNBC today that as the company winds down its operations after failing to reach an agreement with a union, it will try to sell its various brands. There are 30 separate brands under the companies sugary umbrella.

[…]Rayburn, a restructuring veteran brought in for the bankruptcy, did not shy away from blaming the striking bakers’ union for the liquidation after the company put out an ultimatum earlier this week for them to return to work or face this consequence. He told the television network the union hasn’t “returned our calls in a couple of months.”

There is a silver lining to this story, though:

The reason: insurmountable (and unfundable) difference in the firm’s collective bargaining agreements and pension obligations, which resulted in a crippling strike that basically shut down the company… [the company] was unable to survive empowered labor unions who thought they had all the negotiating leverage…  until they led their bankrupt employer right off liquidation cliff.

[…]Hostess’ numerous brands will be bought in a stalking horse auction by willing private buyers, however completely free and clear of all legacy labor and pension agreements which ultimately led to the company’s liquidation.

Now that’s progress. But what causes union bosses to be so uninformed and ignorant of basic economics? How is it that they do not understand how businesses work?

Consider this quote from Richard Trumka about the looming fiscal crisis:

AFL-CIO President Richard Trumka has declared there’s no fiscal cliff and any address of runaway government spending is just “a manufactured crisis.”

[…]”‘Take what the media are calling ‘the fiscal cliff.’ There is no fiscal cliff!” Trumka thundered at a National Mediation Board Conference Thursday, sounding like an alcoholic pleading for one last swig well before he hits rock bottom.

[…]”What we’re facing,” he said Thursday, “is an obstacle course within a manufactured crisis that was hastily thrown together in response to inflated rhetoric about our federal deficit.

“But all the deficit chatter has distracted us from our real crisis — the immediate crisis of 23 million unemployed or underemployed workers. It’s time to protect Social Security benefits. It’s time to protect Medicare and Medicaid benefits. And it’s time to raise taxes for the richest 2%,” he went on.

In short, Trumka is arguing that there’s no such thing as too much government spending, that deficits don’t matter and that entitlements cannot be cut. Such denialist thinking is beyond irresponsible in the face of a $16 trillion debt, highest on global record and a sign of an irrational agenda often followed by would-be tyrants.

Trumka is trying to intimidate congressional Democrats into intransigence on a debt deal with Republicans to restore the solvency of the U.S. Instead, he wants them to stand fast on the idea that the debt, deficit and entitlements can be addressed simply by taxing higher-income earners who already account for more than half of federal income-tax revenue.

This is the kind of irresponsible thinking that has triggered riots in Greece and Spain — a belief that the money is there and only the meanness of austerity is keeping the common man from his share.

In reality, the money is not there — the pot is empty. Medicare and Social Security are now on “unsustainable paths,” paying out more in benefits than they take in, with their trust funds projected to run dry by 2024 and 2033, according to their own trustees.

Socialism is meeting its natural end — which, in the words of former U.K. Prime Minister Margaret Thatcher, is when it “runs out of other people’s money.”

Unions don’t make anything on their own, only businesses do. And they just don’t understand that. They don’t understand that at some point it is possible to suck too much blood from the host so that the host dies.

I feel bad for the conservatives who are forced to join these labor unions and pay dues to greedy union bosses who don’t understand capitalism or economics. My recommendation is that individual states pass right-to-work laws. Right-to-work states have created FOUR TIMES as many jobs as forced unionization states, since 2009. That’s what happens when you embrace freedom and capitalism.

Walter Williams explains why capitalism is moral in 5 minutes

Who is Walter Williams?

Dr. Walter E. Williams holds a B.A. in economics from California State University, Los Angeles, and M.A. and Ph.D. degrees in economics from UCLA. He has served on the faculty of George Mason University in Fairfax, Virginia, as John M. Olin Distinguished Professor of Economics, since 1980.

Williams was born into an African-American family. His family during childhood consisted of himself, his mother, and his sister. His father played no role in raising either child. He grew up in Philadelphia. The family initially lived in West Philadelphia, moving to North Philadelphia and the Richard Allen housing projects when Williams was ten. In 1959 he was drafted into the military, and served as a Private in the United States Army. Following his military service, he re-entered college as a far more motivated student.

While at UCLA, Thomas Sowell arrived on campus in 1969 as a visiting professor. Though he never took a class from Dr. Sowell, the two met and began a friendship that has lasted to this day.

Watch this 5-minute video where he explains why capitalism is more moral than socialism:

And here’s another 5-minute video where he explains the profit motive:

Now let’s consider another economist, Thomas Sowell:

Thomas Sowell (born June 30, 1930) is an American economist, social theorist, political philosopher, and author. A National Humanities Medal winner, he advocates laissez-faire economics and writes from a conservative and libertarian perspective. He is currently the Rose and Milton Friedman Senior Fellow on Public Policy at the Hoover Institution, Stanford University. He is considered a leading representative of the Chicago school of economics.

Sowell was born in North Carolina, but grew up in Harlem, New York. He dropped out of high school, and served in the United States Marine Corps during the Korean War. He received a bachelor’s degree from Harvard University in 1958 and a master’s degree from Columbia University in 1959. In 1968, he earned his doctorate degree in Economics from the University of Chicago.

Sowell has served on the faculties of several universities, including Cornell University and University of California, Los Angeles, and worked for think tanks such as the Urban Institute. Since 1980 he has worked at the Hoover Institution. He is the author of more than 30 books.

Here is a 33-minute interview with Thomas Sowell on basic economics:

Lately, I have been thinking a lot about Christians who focus on only one issue during elections, typically abortion. I consider this to be a weak and short-sighted approach. Even if the main goal you desire is to stop the murder of unborn babies, you would do well to consider your opponent and use every tool available to defeat them in elections. Our opponent on the abortion issue is the Democrat voter. A Democrat is a person who is liberal on social policy – who supports abortion and gay marriage. If you want to defeat the Democrat candidate in an election, then you need to appeal to as many voters as possible on as many issues as possible – not just on social policy. You need to defeat Democrat fiscal policy with arguments and evidence. You need to defeat Democrat foreign policy with arguments and evidence. If you engage every target using every argument and every piece of evidence, you will get more success and win the battle for public opinion.

Let’s face it. We are not going to win elections if we turn only to people who call themselves Christians and try to get them to vote pro-life. There are not enough Christians – and not every person who calls himself a Christians is one. Focusing only on Christians is not going to get the pro-life majority we are looking for. It may be easier to avoid confronting people outside of our church, but it won’t work. A much better idea is to use every argument against every person – Christian or not. And to be able to address objections on every issue – not just one social issue. If the voters don’t care about one issue, then you can argue on another issue. You must be all things to all people so that you can win some by knowing what to say when they ask you for reasons and evidence. Now where have I heard that before?

Here is a full audio course on economics from famous Christian philosopher Ron Nash which I recommend to those who have not yet learned to integrate their Christian faith with economics. His two favorite economists are Walter Williams and Thomas Sowell – he says so in the lectures. In fact, he actually quotes a lot of Walter Williams material from his public lectures on economics, and Thomas Sowell material from his books on economics.

Note: for those who want MP3s of the Thomas Sowell lecture I posted above, here they are:

These are low-quality so they could be smaller for downloading.

Where are all the Christian women? Are Christian women ready for marriage?

I have noticed some very alarming things about single Christian women lately, and I want to write about some of them.

I think that the main thrust of courting from the man’s perspective is that you want to 1) communicate your plan to make the marriage and the children have a positive impact for Christ and his kingdom, 2) you want to demonstrate that you understand the needs of women and that you are capable of meeting those needs, especially the needs for love and companionship, 3) that you understand the roles of a man and you have made preparations and decisions to be ready to fulfill those roles, and 4) you want to ask the kinds of questions that will allow you to ensure that the woman you are courting is ready to fulfill her roles – because she has also made preparations and good decisions.

Well, the problem I wanted to talk about has to do with objective 1). I have communicated my plan to many women and I find that there are particular parts where they resist. The main thing I would like to do is to have four children who all go into different interesting fields and make an impact for Christ. Here are some of the areas I think would be most useful:

  • cosmologist or astrophysicist
  • biochemist/bioinformatics
  • economist to research marriage and parenting
  • lawyer to join the Alliance Defense Fund

The goal here is that the children will be able to pursue their field of study without being persecuted by secular leftists, and be able to earn a living, and be able to make a contribution in an area that matters.

So what I normally do is lay out this plan to the woman and then see if she is supportive and helpful and starts to take action to help with that. But I have had some alarming reactions and I want to talk about some of those below.

1) Several women have told me that children can have as much impact for Christ as a ballet dancer or poet as they could as a Chief Justice of the Supreme Court or as a President. The part of this objection that I find most alarming is not that it is obviously false, but that my authority to lead, which is secured by my role as provider and saver of money, is being denied. I am still expected to bring savings and income into the family, but without any of the decision making authority about how hard the children should study and what fields they should be steered towards.

For me, the whole point of getting married is to serve the Lord – and if my plans to serve are threatened by marriage, then I will not do it. I would rather use the fortune I have to make donations to individual events than to be married and have those resources wasted on ballet dancers and poets. Further on this point about education and careers, I feel that one of the things that a man struggles with is the fear that his children will not be able to grow up and be prosperous and independent in the world. I especially worry that they will feel pressure to compromise their faith because of financial concerns.

Many people think that there is this Santa Claus in the sky who will magically provide money no matter how reckless they are – but I don’t think God is like that. I think he values stewardship, wisdom and prudence – and that’s what I intend to teach my children. I want my children to have enough money so that they can be independent of the state, and resilient against peer pressure. I see many many people who get degrees in fields where they fall under pressure to adopt viewpoints that are non-Christian simply because of financial concerns. Money matters a lot to keeping your convictions, especially when you get married and have children – it’s something that needs to be planned for.

I am afraid of getting overruled by someone who thinks that the world is a safe place for Christians, or that any field is as good as any other for serving Christ. There is a reason why people know who William Lane Craig and Michele Bachmann are – they have the skills. But what I am seeing from Christian women is that Christianity can be reduced to just reading the Bible, singing in church and praying to hear the voice of their emotions. (Which they call the voice of God) There is no thought being put into how to make children achieve at a high level by setting goals and funneling them into areas that matter.

It’s like Christian women think that the children’s happiness is more authoritative in the family than my knowledge and experience about how to build up children who will retain their faith, maintain their financial independence and have an influence in the world. Often, the women who tell me that the choice of career doesn’t matter are themselves riddled with credit card debt. And the ones who tell me that science apologetics doesn’t matter are the ones whose parents and siblings are becoming apostates after reading Richard Dawkins books. If I am the one who is earning the money and providing the savings up front, then I am the one who should be leading on things like education, careers, jobs and so forth. If I was smart enough to study the right things, to work and to save before I got married, then I shouldn’t be overloaded after the marriage by someone else’s feelings, emotions and desire to be her children’s “friend”.

2) Another concern I have is about how these Christian women are moved by liberal sob stories so that they vote against a strong foreign policy, self-defense, deterrence, capital punishment, and men using force to punish evildoers in general. On the foreign policy front, one woman complained to me that American helicopter gunships had used excessive force by attacking Islamic terrorist infantry with the gunship’s machine gun. Now some of you will have caught on that military issues and platforms are an interest of mine because I am a war gamer. I play military simulations ranging from squad-level infantry combat right up to full-scale carrier strike groups. So I am informed about tactics, strategy, weapons, vehicles and so on.

Anyway, I took a look at the full guncam footage she linked me and read the AARs and noticed that there was a convoy of BLUFOR Humvees coming into range of the OPFOR infantry, and that the OPFOR infantry was armed with RPGs. I asked her to tell me what she thought an RPG could do to a Humvee. She had no idea what an RPG was or what it could do to a Humvee. I explained that RPGs are ROCKETS that explode and it would kill all the occupants of Humvees. It seemed to me that her only reason for complaining about it was that her friends had sent it to her, and she felt pressured to agree with them. She had no understanding of the capabilities of the arms and vehicles at all, yet she felt qualified to make judgments about unnecessary violence. In fact, it became clear that she was taking this position because she thought that it made her look morally superior. She felt “compassion” for the poor Islamic terrorists. It’s so easy to second guess American military forces when you know nothing at all about war in general, or Islamic extremism in the Middle East in particular.

This terrifies me. I do not want to be overruled by someone who makes decisions based on ignorance, emotions, intuitions and peer pressure. This person went on to assure me that shooting terrorists was the same as blowing up busloads of children, and that killing convicted serial killers was the same as killing unborn babies. Because killing is killing, right? That scares me. Who would want to be a passenger in a car with someone who was drunk and color-blind? Not me. It’s hard to consider someone for marriage who can’t see the difference between good and evil or guilt and innocence, but instead tries to lift up evil and bash down good. (Not only was she anti-capital punishment but also anti-self-defense – all without having done a moment’s worth of research on the peer-reviewed studies showing how capital punishment deters crime, and how concealed-carry laws reduce rates of violent crime).

Should I marry someone who is uncomfortable with the male role of making moral judgments and exercising force against evil? Someone who takes positions without knowing anything about the details of what she is talking about? Of course not. No one can be happy married to someone who takes positions on moral issues based on ignorance, emotions, vanity and peer pressure. And some Christian women are unwilling to learn anything about war, or even to come to the firing range to fire a handgun. They have opinions, they make pronouncements about how they will overrule you if you get married to them, they vote to undermine national security and world peace by emboldening aggressors and then they refuse to learn anything about the issues. All they need to know are their feelings. And they vote based on those feelings, not based on studies or history or anything factual.

3) A final example has to do with Christian women embracing socialism because it is “compassionate”. Believe it or not, some women do not really understand the effect of having the government spend more and more money equalizing life outcomes. Most of the Christian women I spoke to had enormous difficulty understanding how single motherhood by choice creates child poverty. They wanted to believe that child poverty was just spilled milk – it just happened, and wasn’t anyone’s fault, and that subsidizing it wouldn’t create more of it.

One Christian pro-life activist wrote to me that she was “great with kids” and was going to have one out of wedlock and raise it with money from the government. This woman never finished college and had not held any sort of serious job. She complained that no men were marrying her (note: this woman was completely irresponsible and penniless and unsuitable for marriage) and blamed the men. I told her that the reason why men were not marrying her was because they were paying a third of their income in taxes and looking at the 1.65 trillion deficits and 14.5 trillion national debt. She said that men didn’t really care about money and numbers and that if they loved her, they would marry her anyway, but they were just selfish lazy cowards. She was willing to inflict fatherlessness and day care on a child, but she was “great with kids”.

Another Christian woman told me that the government should provide free meals to children so that they were all equal regardless of whether their mothers had married or not. I explained that every time that government takes a responsibility away from men, that our household income would go down because of higher taxes, and my job would be put in jeopardy because of government debt. I also explained that the more government does, the less control there is inside the family – like when Christians have to pay for public schools so that all the children will be equal. Equally illiterate and innumerate. Instead of proposing free market solutions to poverty that retain family integrity – like school voucher programs – they always seem to leap to the big government solutions first.

But you can see how this idea of economic equality captures the emotions of some Christian women and they don’t even realize how they are undermining men’s desire and ability to achieve their goals for the marriage. They don’t read economics and they don’t realize that Christian marriage plans cost money. Men need money in order to put their own children through college. Men need money for homeschooling, stay-at-home moms and private schools. And men need money for apologetics books and to take children to apologetics conferences. It’s amazing because this woman expected me to keep her at home as a stay-at-home mom, but she wanted my salary to go to subsidize the single mothers by choice in the next neighborhood over.

That is the level of self-destructive economic ignorance I am seeing from some Christian women. They look at social problems like child poverty, and the only solution they can come up with to these problems is government-controlled redistribution of wealth by a secular government. (Together with all the high unemployment that this deficit spending creates). Why are they so opposed to men and marriage and family? Because they have never taken the time to read even a basic book on economics. Newsflash: free market capitalism is better for the poor than socialism – that’s why the poor are wealthier in the United States than in any other country, and their standard of living has gone up over time.

For example, take health care. I know another Christian woman who complained to me about some poor child of a single mother who could not get treatment for some condition or other. Notice how there was no emphasis on what this single mother chose to study, whether she chose to work, whether she chose to save, or whether she married a good provider. No. The problem is taken as is – as a case of spilled milk and all questions of responsibility and accountability are dismissed. I was asked how capitalism can solve the problem.

Well the first thing to point out is that her solution is to defund the family, grow government, reward irresponsibility, undermine my plan by diminishing the earnings I save that fund my plan. And why? So that she could feel better and see God’s aim of making us all happy achieved. It is very important to understand this point. Women who claim to be Christians may not actually be Christians. If a woman thinks that God’s job is to make his human pets happy, then she is not a Christian at all, but a socialist-to-be, with an unnecessary Santa Claus riding on top of her emotional delusions. These are the people who claim to be opposed to abortion and then vote for single-payer health care which provides… taxpayer-funded abortion. Don’t believe a word of it. No one can be a Christian who is a socialist, and if they don’t know anything about economics, that’s what they are. No matter what a woman says, if her solution to poverty is the secular government taxing your family and your employer, and reducing the family’s earnings and destabilizing the family’s revenue stream, then she does not have a Christian view of family, government and charity. She will undermine your role as provider because she values socialism MORE than she values marriage and family.

Secondly, there are solutions to poverty that are compatible with the Bible and capitalism that she ought to know about, if she had actually done any reading about it. The first thing that should have come into her mind is private charity. If the government has any role at all, it should be to provide tax credits for private charity. It is important for government not to crowd out the virtuous character of the people by taking over the job of helping neighbors. But even more than that, every Christian woman should be familiar with the horrors of socialized medicine in countries like Canada and the UK, and the alternative to socialized medicine – consumer-driven health care. If a woman is not well-read on consumer-driven health care policy, then she is at risk for being taken in by this socialist undermining of the family. Real Christian women choose policy based on economics, not based on their emotions and their ridiculous theology of God making his human pets happy regardless of what they believe about him. Our job as Christians is not primarily to make people have equal net worths regardless of their personal decisions. Our job is to make them know about God’s existence and character, and we can do that better with private charity – certainly better than any secular government can. Your money is your voice. Don’t give it to a SECULAR government that will turn around and enact taxpayer-funded abortion, taxpayer-funded IVF, taxpayer-funded day care, taxpayer-funded fatherlessness welfare, and so on.

And more

I’m going to stop now, but I could go on and on about how some Christian women neglect to study Christian apologetics or theology, but instead learn about trendy secular practices like yoga, vegetarianism, recycling, etc. Or how they think there is no Hell. Or how they think that the Bible was written by men and that they can just pick the verses they like. Or how they think that science is not worth studying to confirm the Bible. Or how they know nothing at all about how premarital sex and cohabitation decrease the stability of marriage. Or how they think that same-sex unions are no different than married couples when comparing stability, domestic violence, promiscuity, and so on. Or how they want to subsidize single motherhood by choice because fathers are not really important to children and can easily be replaced by taxpayer-funded welfare and taxpayer-funded IVF. Or how they think that single-payer payer health care is good, even though it means taxpayer-funded abortion, in practice. Or how they think that taxpayer-funded day care is good for children. Or how they think that public schools need to be funded with more family money, so that all children will be “equal”.

I could go on forever with examples of how woefully unprepared some single Christian women are for marriage. But I’m going to end by explaining what the underlying problem for all of these symptoms is, and then you can leave your comments.

Conclusion

Basically the underlying problem is this: when some Christian women say they want marriage, they actually don’t want marriage at all – not a marriage to a man who is going to take on the traditional male roles anyway. The reason why men work is so that they are the sole or primary breadwinners – so that they have the authority to make decisions and lead in the home. Men want to have children who are self-sufficient and morally upright, and who can have an influence for Christ and his Kingdom. And they know that although the compassion of their wives is useful in the early years of a child’s development, that moral responsibility and accountability are needed later on to change children into adults.

Men need to be providers SO THAT they can be respected as protectors, when they set out moral boundaries and push their children to know truth from lie, right from wrong, and practical from impractical. Men also need to be able to make arguments about theology and apologetics using evidence, and not to be overruled by emotions, intuitions, and even e-mails that are debunked on snopes.com (yes, one woman told me that Splenda was not safe – I sent her 100 peer-reviewed studies from the NCI web site and she responded with a CONSPIRACY E-MAIL that was debunked on snopes.com).

So the real problem is that some Christian women say they want marriage, but what they actually want is a Stepford husband who will perform none of the traditional roles of a man, which they find icky and mean. They want the money to be brought into the home and the wedding to be photographed and the babies to play with, but they don’t want the men to act in the traditional male role of protector, provider and moral/spiritual leader. It is very important for men to get this out there and in the clear during the courting process. And I also really recommend that men avoid sex before marriage, because sex makes you stop caring about male roles and serving God. If you want to serve God by executing a plan, then stay away from premarital sex. I have had to play defense against women trying to push me too far physically when I was not satisfied with them from a Christian point of view. Just say NO.

Please see this post for questions you can ask a woman to verify whether a woman is an authentic Christian. And the most important thing to do is to give her books to read and tasks to perform to see if she is willing to follow your lead. Science apologetics and fiscal conservativism are key. If the person is not talking about the Big Bang, the fine-tuning and biological information, you cannot even be sure she is a Christian – it could all just be emotions and youth. Some women I know just give the name “Christianity” to their feelings of happiness and goodness and pacifism and postmodernism and relativism and socialism and universalism. They do not actually KNOW that there is a Creator and Designer of the universe who raised Jesus from the dead independent of their feelings of happiness and goodness and pacifism and postmodernism and relativism and socialism and universalism. They just think that the world is a place where people feel good and only good things ever happen and they agree with everyone else’s religion so that more people will like them. The thing about Christian women that you need to fear most is this emotional happy-clappy intuition they have that the world is a happy, safe place and that people can do whatever they want and that God’s job, (and later government, as they drift into atheism), is to make everyone happy and prosperous. That is completely incompatible with a marriage designed to serve God.

Note: for those who think I am too critical of Christian women, Michele Bachmann has none of these flaws and I am backing her to be President. So there are Christian women who do know what they are doing, and I would like them to run for President and win. There is nothing in what I wrote that opposes smart, strong women being in control at the very top.

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