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    TARP is Deficient Auto Savior

    My Heritage colleagues have already noted that the auto bail-out violates the terms of the TARP legislation by extending funding beyond “financial institutions.” It also appears the latest funding pledge to bail-out auto makers may have violated another Federal law, one normally taken quite seriously: the Anti-Deficiency Act. When Congress … More

    Paul Krugman Loves Wasteful Government Spending

    Krugman writes today: The biggest problem facing the Obama plan, however, is likely to be the demand of many politicians for proof that the benefits of the proposed public spending justify its costs — a burden of proof never imposed on proposals for tax cuts. This is a problem with … More

    Did Harold Meyerson Really Just Compare Toyota to a Slave Owner?

    Judge for yourself. Meyerson writes today: If Abraham Lincoln were still among the living as he prepared to turn 200 six weeks from now, he might detect in the congressional war over the automaker bailouts a strong echo of the war that defined his presidency. Now as then, the conflict … More

    Bush's Betrayal of Free-Market Principles Now Complete

    The Bush Administration’s disclosure that the Treasury Department had already transferred $5 billion in Troubled Asset Relief Program money to GMAC, and that another $1 billion had been promised to GM directly, represents a significant turning point in US economic policy. TARP has now been used, not just to restore … More

    The Bailout Needs a Bailout

    Covering the Bush Administration’s latest attempt to save the free-market by abandoning free-market principles, The Washington Post reports: The new loans push the government’s planned investments under the financial rescue beyond the $350 billion that Congress has authorized; in order to make all the investments that Treasury Secretary Henry M. … More

    Bush's Awful Auto Bailout

    This morning the President announced that his Administration, acting unilaterally after Congress declined to intervene, will bail out the auto industry to the tune of $13.4 billion now, another $4 billion in February, and who knows how much thereafter. What a terrible proposal! First of all, this is a bailout, … More

    The 411 on the Auto Bailout

    From the Detroit Free Press: Purpose: The terms and conditions of the financing provided by the Treasury Department will facilitate restructuring of our domestic auto industry, prevent disorderly bankruptcies during a time of economic difficulty, and protect the taxpayer by ensuring that only financially viable firms receive financing. Amount: Auto … More

    The Special Interest Politics Game

    From the Machinery of Freedom by David Friedman, Milton’s son. Special interest politics is a simple game. A hundred people sit in a circle, each with his pocket full of pennies. A politician walks around the outside of the circle, taking a penny from each person. No one minds; who … More

    UAW Won't Let Detroit Make Competitively Priced Cars

    Even as the Detroit automakers are asking Congress for a taxpayer bailout, the Detroit News reports that Ford Motor Co. is operating highly automated, highly integrated, and highly profitable auto plants — in Brazil. They employ state of the art technology and techniques to produce high-quality vehicles: This state-of-the-art manufacturing … More

    Now Ethanol Wants a Bailout

    Nothing gathers a crowd in Washington like the sight of money being handed out. Banks, carmakers and now ethanol? From the Wall Street Journal: The Renewable Fuels Association, a trade group for the U.S. ethanol industry, has spoken with staff members from Capitol Hill and President-elect Barack Obama’s team and … More