Author Topic: Don't Cave! [Lew Rockwell on the bailout]  (Read 3233 times)

MicroBalrog

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Don't Cave! [Lew Rockwell on the bailout]
« on: December 14, 2008, 10:49:45 AM »
If you write and follow politics enough, you eventually realize that most evil in this world is brought about by those seeking a lesser of two evils. And those who assist in this very much resent it when you point out that they are promoting evil.

My inbox has been inundated in recent days with people who think along these lines. Consider the Detroit bailout for example. Now, this idea is preposterous on the face of it. One of the glorious aspects of this recession is that it will finally deal the crippling blow to this industry that has been a decades-long drag on American productivity.

Wicked unions have thoroughly looted the capital stock of these companies, and the workers themselves are wholly focused on their own well-being rather than that of the company and the consumer. The management is deeply embedded in the regulatory structure of the state, working to effectively turn the American car industry into a public-private partnership of the sort Mussolini would applaud.

You don't have to be a technician to know that foreign makers – whether building abroad or residing in the United States – make a superior car at a better price, no matter how much the "Big 3" waste on hopped-up advertising campaigns. In fact, we should welcome their complete bankruptcy. Maybe they can regroup or maybe they can't. That's for the market to decide.

In the meantime, not cranking out these endless cars would be a welcome relief, freeing up labor and capital for more economically useful purposes.

To bail them out with tax dollars is an amazing insult to American consumers. What Americans have chosen not to buy, the government is now effectively forcing them to buy. You want a Toyota and paid for it with your money but your government is now saying that you should have bought a Pontiac, so it is tapping into your bank account to make it happen – and then not even giving you a car for your money!

But let's return to the problem of those who have caved in. I'm getting messages from people who believe in free markets saying that we have to do this bailout anyway, otherwise we will face worse consequences. The unions will strike back. There will be massive protectionism to prop up the industry. Free market people will get a bad name for not supporting the little guy. Our industrial base will further erode. Unemployment will soar and then the masses will riot and we'll get Bolshevism. And so on.

Dick Cheney himself is reported to have gone around to Republican senators to tell them to pass the bailout, even if they disagree. Otherwise, they would be like Hoover, not having done anything about the depression. Leaving aside his stupid historical point (Hoover did plenty, all of it wrong), it is never right to do evil that good may come of it.

I grant that all the predicted results of failing to pass it would be bad. They might even be worse than a bailout, who is to say? But these are speculations about the future. What we face right now is a terrible evil of a bailout, and great good comes from its failure to pass. What's more, if free market people can't bring themselves to oppose that, what good are they anyway?

People who think along these lines imagine that they personally can control the political process in clever ways, giving a bit here to get more later on. I actually heard these same arguments about the first round of bailouts back in September: we'd better support this now or else it will be worse later.

What is striking about these arguments is how tyrants always use them. Hillary Clinton used to claim that we either pay for her health care program now or pay more later. FDR said we need to support the New Deal now, or else face full-scale socialism later. Actually Hitler was the same way. He justified his entire program on the idea that only National Socialism could stop Bolshevism.

If a dystopian nightmare of the totalitarian state finally arrives in the United States, it will be a result of a compromise, and there will be people around until the very end who will insist that we should be grateful because it could be much worse.

This kind of strategizing also works as a cover for selling your soul. The temptation to do this is very great indeed. The state loves nothing more than a seeming libertarian who weighs in from time to time with a pro-state position. This allows the state and its minions to justify their oppression even from the standpoint of libertarian intellectuals. When you sell out, this is the role you are playing (and this is the role that some D.C. organizations have been appointed to play).

There is only one sure way that you can know that you are on the right side of history, and that is by saying what is true and defending what is right, without exception. It is not left to intellectuals to play political games. Intellectuals are supposed to tell the truth, regardless of the moment. That means, in these days, completely opposing all increases in state power under the cover of "countercyclical policy."

Let evil people take responsibility for their evil policies. Those who know better should stick to the right and true.

December 13, 2008

http://www.lewrockwell.com/rockwell/dont-cave.html

Micro Sez: He does get a lot of it right.
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agricola

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Re: Don't Cave! [Lew Rockwell on the bailout]
« Reply #1 on: December 14, 2008, 10:55:10 AM »
He is wrong about Hitler, but makes some good points.
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Manedwolf

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Re: Don't Cave! [Lew Rockwell on the bailout]
« Reply #2 on: December 14, 2008, 11:56:42 AM »
Quote
Actually Hitler was the same way. He justified his entire program on the idea that only National Socialism could stop Bolshevism.

Only Loony Lew could Godwin his entire argument himself in the original article. ;/

MicroBalrog

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Re: Don't Cave! [Lew Rockwell on the bailout]
« Reply #3 on: December 14, 2008, 12:05:35 PM »
Only Loony Lew could Godwin his entire argument himself in the original article. ;/

You are misapplying Godwin.
Destroy The Enemy in Hand-to-Hand Combat.

"...tradition and custom becomes intertwined and are a strong coercion which directs the society upon fixed lines, and strangles liberty. " ~ William Graham Sumner

Leatherneck

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Re: Don't Cave! [Lew Rockwell on the bailout]
« Reply #4 on: December 14, 2008, 05:59:59 PM »
His core argument--that to bail out a private enterprise at our expense is wrong--is absolutely spot on.

TC
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erik the bold

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Re: Don't Cave! [Lew Rockwell on the bailout]
« Reply #5 on: December 16, 2008, 08:45:27 PM »
His core argument--that to bail out a private enterprise at our expense is wrong--is absolutely spot on.

With the exception that it's not a bailout.  It's a proposed loan.    :mad:

Required, because our esteemed leaders killed their credit lines.    :mad: :mad: :mad:


BTW,  amble down to your local dealership for a test drive sometime. Ford and GM's products are on a par or better than any Jap brand, and simply stomp the Korean crap.

For some additional fun, check out Mike Rowe's truck test video.  You'll die laughing when you see the Toyota on the Belgian block test road. (unless, of course, you happen to own one of said Toyotas...)  http://www.fordvehicles.com/2009f150/
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Boomhauer

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Re: Don't Cave! [Lew Rockwell on the bailout]
« Reply #6 on: December 16, 2008, 08:46:32 PM »
Quote
BTW,  amble down to your local dealership for a test drive sometime. Ford and GM's products are on a par or better than any Jap brand, and simply stomp the Korean crap.

What are you smoking? There is no way Ford or GM is superior to Toyota...




Quote from: Ben
Holy hell. It's like giving a loaded gun to a chimpanzee...

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the last thing you need is rabies. You're already angry enough as it is.

OTOH, there wouldn't be a tweeker left in Georgia...

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Manedwolf

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Re: Don't Cave! [Lew Rockwell on the bailout]
« Reply #7 on: December 16, 2008, 08:59:39 PM »
BTW,  amble down to your local dealership for a test drive sometime. Ford and GM's products are on a par or better than any Jap brand, and simply stomp the Korean crap.

..."Jap brand"?

Did you just step out of a 1970's episode of Archie Bunker, or what?

And...um...no. Try shouting that 2+2=5, next. It'll make more sense. Sorry, I prefer something with more interior material quality than a Rubbermaid bin, and that doesn't need to be in the garage at least twice a year for major repairs.


Boomhauer

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Re: Don't Cave! [Lew Rockwell on the bailout]
« Reply #8 on: December 16, 2008, 09:22:58 PM »
Oh, and a good portion of "Jap brand" cars are made in the USA, using US made parts, vs the "Big Three", who make a lot of cars outside of the US...

Quote from: Ben
Holy hell. It's like giving a loaded gun to a chimpanzee...

Quote from: bluestarlizzard
the last thing you need is rabies. You're already angry enough as it is.

OTOH, there wouldn't be a tweeker left in Georgia...

Quote from: Balog
BLOOD FOR THE BLOOD GOD! SKULLS FOR THE SKULL THRONE! AND THROW SOME STEAK ON THE GRILL!

Manedwolf

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Re: Don't Cave! [Lew Rockwell on the bailout]
« Reply #9 on: December 16, 2008, 09:28:02 PM »
Oh, and a good portion of "Jap brand" cars are made in the USA, using US made parts, vs the "Big Three", who make a lot of cars outside of the US...

Yup. They even have the foundries to cast the engine blocks here.

Headless Thompson Gunner

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Re: Don't Cave! [Lew Rockwell on the bailout]
« Reply #10 on: December 17, 2008, 02:23:18 PM »
Some of Ford's new models are, in fact, superior to the equivalent Japanese offerings.  Their product line has improved tremendously in the last few years.

Ford apparently saw the writing on the wall a few years ago and began improving their product.  Those improvements are now starting to filter out of R&D and into actual production.  As a result, Ford has some products that are actually worth buying, and therefore Ford might just survive the current economic problems.  GM and Chrysler are still behind the times.  Even if they started designing good cars today, it'd take a few years to get them to market, by which time they'd both be long gone.
« Last Edit: December 17, 2008, 02:27:41 PM by Headless Thompson Gunner »

Manedwolf

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Re: Don't Cave! [Lew Rockwell on the bailout]
« Reply #11 on: December 17, 2008, 03:19:29 PM »
Some of Ford's new models are, in fact, superior to the equivalent Japanese offerings.  Their product line has improved tremendously in the last few years.

Ford apparently saw the writing on the wall a few years ago and began improving their product.  Those improvements are now starting to filter out of R&D and into actual production.  As a result, Ford has some products that are actually worth buying, and therefore Ford might just survive the current economic problems.  GM and Chrysler are still behind the times.  Even if they started designing good cars today, it'd take a few years to get them to market, by which time they'd both be long gone.

Ford is in far better shape than GM, yes. Chrylser is pretty irrelevant. GM is just completely useless.

RevDisk

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Re: Don't Cave! [Lew Rockwell on the bailout]
« Reply #12 on: December 18, 2008, 02:35:39 PM »
With the exception that it's not a bailout.  It's a proposed loan.    :mad:

Required, because our esteemed leaders killed their credit lines.    :mad: :mad: :mad:


BTW,  amble down to your local dealership for a test drive sometime. Ford and GM's products are on a par or better than any Jap brand, and simply stomp the Korean crap.

A loan at extremely favorable rates to a company that no sane banker would dare loan to is indeed a bailout.  Using our tax dollars to prop up a trio of companies that need to die is indeed a bailout.  I prefer loans over straight cash, of course, but loaning money to risky companies with a history of incompotent management and unions is a bit like loaning money to a drug addict.  The money for the loans must come from somewhere, in all ironies, the US will probably borrow the money at a higher rate than they are loaning the money at.   The Big 3 need to either die, merge or get bought out.  Let the free market and consumers' wallets judge them. 

I am an owner of "Korean crap", and note that I voted with my wallet.  My last car was a GM.  I will never buy another GM product unless they significantly change.  Because I and other Americans apparently aren't buying enough of their product for many reasons, they are resorting to stealing my money by force.  I noticed there are plenty of small business owners here on APS, none of them seem to deal with any management or labor issues with "Ignore problems, hire thugs to rob consumer at gunpoint if they stop purchasing my products or services."  That may be GM's solution, but I don't see it as a valid one.
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Nick1911

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Re: Don't Cave! [Lew Rockwell on the bailout]
« Reply #13 on: December 18, 2008, 03:02:51 PM »
I completely agree with your analysis of the situation, RevDisk.

nate.45

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Re: Don't Cave! [Lew Rockwell on the bailout]
« Reply #14 on: December 19, 2008, 11:35:58 PM »
Here is a good analogy, I go to the casino and gamble a large sum, I lose, then I use threats, intimidation and coercion to get the casino employees to reimburse my lose. They complain to their boss, but all he does is help me and tell them you better pay, or else nate won't gamble anymore and will have to lay you off.

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