The Right Side

Notes from a conservative student.

Archive for the ‘Economics’ Category

Obligatory Earth Day Blog

Posted by Cullin on April 22, 2009

Today we celebrate the destruction of man kind in hopes of saving the environment.  And, this is exactly what environmentalists want to do.

To your average environmentalists, the planet is worth more than man kind.  Some people want to say that plants and animals have a value of equal value to humans, and as such we should try to make sure they survive also.  However, your typical environmental activists actually believe that plants and animals have a value greater than their fellow people, and would gladly sacrifice us for the sake of some sole fungus in the deep reaches of South America.

Now, let me take some time to clear up my thoughts.  Yes, we should avoid waste and pollute as little as possible.  But, we also need to make sure that we don’t allow people to suffer needlessly as we do so.

A lot of people think that we can enact environmental legislation without affecting many, if any people.  However, the opposite of this is what actually happens.

The best example of this is the use of ethanol in gasoline in the United States.  The entire US, after fear of global warming caused the federal government to pass the Energy Policy Act of 2005,  is required the use of ethanol for an additive in fuel.  Since corn is the major player in American ethanol, the demand for it was pushed way up after this law.  This caused the price of corn to rise.  And, since corn is a staple crop in Mexico, when the price for corn rose as much as it did in the name of environmentalism, Mexican citizens starved.  The worst part about this is that the environmentalists who fought so hard for this law, and others like it, have never and probably never will see this effect of their goals.  Or, they just do not care that their values are causing so much pain in other parts of the world.

Beliefs of anthropocentric global warming pose to cause the same type of calamity.  As pointed out in Lomborg’s “Cool It”, even if we were able to follow Kyoto Protocol perfectly, we would waste a lot of money world wide to only delay the full effects of global warming for a short time.  We would be much better using this money to invest in infrastructure to deal with rising water, cures for malaria and other problems that are expected to arise in the area’s that would be most affected by a changing climate.  And, the free market would do this on it’s own, people would recognize the problem and find a way to fix it.  However, Kyoto Protocol is only going to cost industrialized nations millions of dollars, and LDCs millions upon millions of lives because of the aide and normal development which cannot happen due to misuse of resources.

I mean, this is if they can ever decide if it’s “global warming” or just “climate change” or whatever they’re going to call it next.

Posted in Economics, Uncategorized, Weather | Leave a Comment »

Big Labor’s Big Lies

Posted by Cullin on November 16, 2008

So, now the big three automakers in America are looking for a bailout from our ever so benevolent government.  Some may call me a mystic for being able to predict that this sort of reaction from all sectors of the economy whenever we passed the first bailout package, that so far has worked so well to fix our financial crisis.  Others will just call me not an idiot, because I was able to notice that there will be a direct creation of moral hazard caused by giving money to failing companies.  But, I digress.

Now, don’t get me wrong, I love the big three automakers.  I’ve never owned a car, or even wanted a car, that wasn’t made by General Motors.  However, no amount of bailouts and government regulation to increase fuel mileage standards is going to be able to save the American hand in this sector of the economy.

The big three didn’t just stumble into this problem after this possible recession, or even after gas prices started to rise.  American automakers have been in trouble for years now because of the shady practices of UAW.  And, if we’re going to save the American production industry, we are going to have to start regulating labor unions.

Labor unions have been doing things in the market place that would quickly land many CEOs and presidents in jail if the ever tried them with their corporations.  Unions create monopolies and force their employers to buy from their stock.  They demand artificially high wages, and do this by forcing artificially low production.  They remove the ability of any competitors in the market through terrorism, and law makers turn a blind eye.

If you look at the composition of the auto market, it’s not hard to tell that UAW is what is sinking the American automakers.  When we look at BMW, KIA, and Toyota, who are all doing fairly well, considering the market right now, we see that they are all operating plants in the south with non-unionized labor.  Yes, those who work at these non-union plants take a slight pay cut, however they make sure that they keep a job that still pays well, and they make sure that an entire sector of the economy doesn’t get come crashing to the ground.

It is only going to get worse for American industry.  The democrats will almost inevitably pass legislation that removes the secret ballot when it comes to voting for a union.  This will allowing union bosses (the only ones who actually benefit from unions) to bully workers and increase the power of their union.  We don’t allow most monopolies when it comes to goods and services, why do we allow these monopolies in the Labor market?

Posted in Economics | Leave a Comment »