Tag Archives: Prosperity

News

Twinkies company liquidates due to demands of greedy labor union

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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.

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Are people who vote Democrat smarter than people who vote Republican?

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Video from Neil Simpson’s round-up.

The Pew Research Center, a liberal organization, actually did a study on this uninformed voter problem.

Excerpt:

So Republicans are more knowledgeable than Democrats, contrary to what many would like to believe.

According to whom?  None other than the Pew Research Center, a left-of-center organization.  Moreover, Pew’s latest survey only reaffirms previous surveys demonstrating the same result.

In fact, the results weren’t even close.

In a scientific survey of 1,168 adults conducted during September and October of last year, respondents were asked not only multiple-choice questions, but also queries using maps, photographs and symbols.  Among other subjects, participants identified international leaders, cabinet members, Supreme Court justices, nations on a world map, the current unemployment and poverty rates and war casualty totals.

In a 2010 Pew survey, Republicans outperformed Democrats on 10 of 12 questions, with one tie and Democrats outperforming Republicans on just 1 of the 12.  In the latest survey, however, Republicans outperformed Democrats on every single one of 19 questions.

[…]Those Pew results are confirmed by some surprising other sources.  According to a New York Times headline dated April 14, 2010, “Poll Finds Tea Party Backers Wealthier and More Educated.”  Shattering widespread myths, that survey revealed that Tea Party supporters were more likely to possess a college degree than their counterparts (23% to 15%), and also more likely to have completed post-graduate studies (14% to 10%).  Tea Partiers were also more likely to have completed “some college” by a 33% to 28% margin, and substantially less likely to have not completed high school than non-supporters (3% versus 12%), or to possess only a high school degree (26% versus 35%).

Previously, I posted about how Democrat voters understand very little about economics, whereas Republicans understand more.

Excerpt:

Who is better informed about the policy choices facing the country—liberals, conservatives or libertarians? According to a Zogby International survey that I write about in the May issue of Econ Journal Watch, the answer is unequivocal: The left flunks Econ 101.

Zogby researcher Zeljka Buturovic and I considered the 4,835 respondents’ (all American adults) answers to eight survey questions about basic economics.

The first question was “Restrictions on housing development make housing less affordable.” The unenlighted answer for that one is “disagree”, since restrictions on development reduce the supply of available housing. Demand stays the same and so there is a shortage, and prices rise. D’uh!

Here are the others:

The other questions were: 1) Mandatory licensing of professional services increases the prices of those services (unenlightened answer: disagree). 2) Overall, the standard of living is higher today than it was 30 years ago (unenlightened answer: disagree). 3) Rent control leads to housing shortages (unenlightened answer: disagree). 4) A company with the largest market share is a monopoly (unenlightened answer: agree). 5) Third World workers working for American companies overseas are being exploited (unenlightened answer: agree). 6) Free trade leads to unemployment (unenlightened answer: agree). 7) Minimum wage laws raise unemployment (unenlightened answer: disagree).

And the results:

How did the six ideological groups do overall? Here they are, best to worst, with an average number of incorrect responses from 0 to 8: Very conservative, 1.30; Libertarian, 1.38; Conservative, 1.67; Moderate, 3.67; Liberal, 4.69; Progressive/very liberal, 5.26.

It’s true, the majority of Democrat voters are people who don’t work at all, or they “work” for government, or they “work” in education, or they hold picket signs while on strike, or they are in prison, or they are chasing ambulances, or they are Hollywood celebrities. No economics knowledge is required for any of that. Republicans work in private industry, and many of us own small businesses. So we actually have to work to earn money, because we have competitors to watch out for and consumers to please. Many of us are married and many of us have to get along with our spouses and raise children. Republicans don’t need the government, we do fine making our own decisions, and making our own way without help from the government.

UPDATE: I think this ad says a lot about who votes Democrat:

Their great plan is to borrow money from our children in order to provide contraceptives to unmarried college students. Is that something to vote for? Remember the Life of Julia? Their vision is cradle-to-grave government dependency, with husbands and fathers made completely unnecessary.

News

What North Korea teaches Christians about the importance of politics and economics

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Christian apologist Frank Turek writes about it at Townhall.

Excerpt:

When I hear Christians saying we ought not get involved in politics but just “preach the Gospel,” I show them this satellite picture of the Korean peninsula. Here we see a homogenous population of mostly Koreans separated by a well-fortified border. South Korea is full of freedom, food and productivity—it’s one of the most Christianized countries in the world. North Korea is a concentration camp. They have no freedom, no food, and very little Christianity.

What’s the primary reason for the stark difference between these two countries? Politics. The South politically allows freedom, while the North does not.

Ironically, Christians who shun politics to supposedly advance the Gospel are actually allowing others to stop the Gospel. How so? Because politics and law affects one’s ability to preach the Gospel! If you think otherwise, visit some of the countries I have visited—Iran, Saudi Arabia and China. You cannot legally “preach the Gospel” in those countries—or practice other aspects of your religion freely—because politically they’ve ruled it out as they have in North Korea.

In fact, politics affects virtually every area of your life through the laws made by government. So if you care about your family, business, church, school, children, money, property, home, security, healthcare, safety, freedom, and your ability to “preach the Gospel,” then you should care about politics.

Politics affects everything, which is why leaders throughout the Bible—including Joseph, Moses, Daniel, Nehemiah, Mordecai, Esther, John the Baptist, and Paul— “went political” to influence civil governments to govern morally. Even Jesus himself got involved in politics when he publically chastised the Pharisees—the religious and political leaders of Israel—for neglecting “the more important matters of the law.”

[…]But what can Christians do? After all, we can’t legislate morality, can we? News flash: All laws legislate morality! Morality is about right and wrong and all laws declare one behavior right and the opposite behavior wrong. So the question is not whether we can legislate morality, but “Whose morality will we legislate?”

[…]When we fail to legislate morally, others impose immorality. For example, totalitarian political correctness is already imposed in states such as Massachusetts where the implications of same-sex marriage override the religious liberties of businesses, charities and even parents. As documented here and illustrated here, same sex marriage prevents you from running your business, educating your children, or practicing your religion in accord with your Conscience. And soon, as is the case in Canada, you may not be able to merely speak Biblically about homosexual behavior. That is because those who say they are fighting for “tolerance” are often the most intolerant.

Unless Christians begin to influence politics and the culture more significantly, we will continue to lose the very freedoms that enable us to live according to our beliefs and spread the Gospel all over the world. That’s why you should not vote for candidates because of their race or religion, but because they will govern morally on the more important matters of the law—life, marriage and religious freedom.

Dr. Turek says that some societies make it easier for us to carry out our responsibilities as Christians, such as evangelism. That’s true. But I want to make a different point from Dr. Turek related to the point that he made.

I get a lot of e-mails from people complaining that I spend too much time on fiscal issues, and especially on foreign policy. But I really think that Christians need to branch out and read widely about these issues, too. The more we know about everything, the better we will be able to connect what the Bible says to every area, and the smarter we will be at laying out plans for our lives and achieving the good goals we set for ourselves as part of our relationship with God.

It’s always better to know how things work. What good is it to say that you want to achieve some aim like helping the poor or making the world more peaceful unless you first study economics and foreign policy so that you will know how to achieve it? Many people try to achieve these goals by embracing policies that sound good, but they actually achieve the exact opposite ends that you set out to achieve.  If you want to drive a car to get somewhere, you must first learn how to drive a car. Why should faith be any different than anything else? Don’t take positions based on feelings or peer pressure, get informed and make a right judgment.