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What the President gets right and wrong about GM

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What the President gets right and wrong about GM

Following an announcement that General Motors intends to close American plants while keeping plants in Mexico and China open, President Trump took to Twitter to threaten ending subsidies given by the government to the largest automaker in the United States.

What the President gets right

General Motors is making a smart business move to prepare for future downtrends in both the types of cars they manufacture and any economic failures the company or the nation may suffer in the near future. As CEO Mary Barra said, they are making the cuts to “get in front of it while the company is strong and while the economy is strong.”

This may be the case, but it’s a move that spits in the face of Americans whose tax dollars have been spent on multiple occasions over the past decade to make the company successful. It was the right business move but it dismissed the effects this would have on both the economy and job markets of the areas where the plants are located. They knew this would cause a backlash and they found that backlash to be preferable to the expensive transition that would have been required to keep the plants opened.

Logistically, it makes sense to close them. The vehicles and parts manufactured at the plants happened to be the ones on the chopping block while foreign plants are producing the more profitable items. GM would have also had to repay part or all of the incentives they received from China and Mexico that enticed them to operate there in the first place.

It would have been the fiscally wrong decision in the short run to keep all the plants open or to move production from foreign plants to domestic ones, but given the nature of the President, they should have stuck it out for at least two more years. Thinking they could kill off American jobs without repercussions from the President was a gamble and it appears they might lose.

What the President gets wrong

As I’ve made clear many times in the past, I’m not a fan of tariffs. They can be bargaining tools, but that’s it. The antiquated notion that they benefit us in the long run is dead. Tariffs are a tool of the past. They only work when there are captive audiences, and in a growing world economy there are very few who are forced to bow to anyone, even the United States.

These tariffs were the primary catalyst for GM’s decision. They may or may not acknowledge it, but the increased prices of aluminum and steel make it less practical to build cars in the United States. Tariffs may help the domestic steel and aluminum industries, but they hurt companies, like automakers, who use steel and aluminum in their products.

As for cutting subsidies, the President should not use them as retribution. If anything, he should cut them across the board.

Subsidies are used for two reasons. Some give domestic companies a leg up over foreign competition. Others are designed to steer industries towards progress, as is the case for the electric car subsidies designed to encourage consumers to buy eco-friendly vehicles.

The President has an opportunity here to cut subsidies for ALL automakers. That may not seem fair, but they’re not required and do less for consumers than most realize. Invariably they go to help the automakers themselves who are able to increase prices for cars that receive government kickbacks. It’s another broken model, similar to tariffs, that does not have the same importance they once had.

But the biggest mistake the President is making is going public with threats instead of working with GM to keep the plants open. By no means am I suggesting he should be “bribing” them with assistance, more subsidies, or another bailout. His need for the jobs to stay in America is second only to the workers’ themselves. This is a political disaster if GM starts an avalanche of plant closings in the automotive and other industries because of the tariffs.

Tax cuts are good. Tariffs are bad. Instead of punishing GM for making the smart move, he should promise to end the tariffs (behind closed doors) if GM reverses their decision. This can be spun to benefit the President if he plays his cards right.

 

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Conservatism

A trillion dollar deficit is much more dangerous than the GOP acknowledges

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A trillion dollar deficit is much more dangerous than the GOP acknowledges

Spending. It’s the thing that helped me make my decision to leave the GOP a few years ago as there seemed to be very little difference between them and the Democrats when it came to fiscal responsibility. Where we spend the money is the only big deviation, but both sides of the political aisle have an addiction to spend more than the country has available. In the past, this was dangerous because of the crushing force of national debt that will eventually bring about an economic collapse. Today, the risk is much, much greater and within immediate striking distance.

What a trillion-dollar budget deficit represents today is an avenue through which Modern Monetary Theory could actually be realized in the United States. Those who are familiar with MMT may still be as complacent about it as I was a year ago; “It’ll never happen, not in America.” But as Democrats push Medicare-for-All, the Green New Deal, open borders, state-funded education, reparations, and outright socialism, there’s only one conclusion that any economist or political pundit can come to: If the new thinking of the Democratic Party gets a foothold and initiates some of their plans, then MMT is the only possible way to make it happen.

They don’t even need to initiate all of them. Just one or two will be enough for catastrophe.

In other words, they’re policy proposals are already writing checks the U.S. can’t cash, so every scenario in which a partial implementation of these policies takes place can only happen through MMT. For those who don’t want to read up on it, MMT is essentially the practice of printing the cash to pay the bills. Proponents say it will be different this time from every other failed attempt at MMT because America is responsible enough and too crucial to the world economy for it to cause hyperinflation. Reading the delusional excuses for promoting MMT reveals an uncanny ability to deny reality while simultaneously suppressing common sense. It’s the type of thing that only progressive economic scholars can truly comprehend, and that should terrify you.

By moving the budget deficit into the ten-digit arena, we’ve broken a threshold that gives MMT legs. Whether it’s Alexandria Ocasio-Cortez saying, “You just pay for it,” or Elizabeth Warren constantly saying the rich will be taxed until it’s paid for despite the basic arithmetic that demonstrates this is impossible, they’ll all latch onto the notion that if we can spend a trillion dollars in one year that we don’t have, why can’t we spend two? Ten? Fifty?

On one hand, I want to do whatever it takes to convince Republicans they need to do what they campaign to do: cut spending. It’s not as easy as just pulling the plug on frivolous programs, services, agencies, and whole departments… except that it truly is that easy. It’s not popular. Some say it’s political suicide. But considering it’s never been tried in the modern era (no real cuts have been made to spending in decades), now is the time to be bold and do what’s right for the nation. The rise of the internet in general and social media in particular gives conservatives an outlet through which they can educate the masses about the need to make cuts. It’s something we plan on doing as part of the American Conservative Movement.

But on the other hand, one thing that can’t happen in trying to convince Republicans they’re doing it wrong by allowing them to lose. The Democrats are now more than the lesser of two evils. They’re dangerous. The plans they will implement are existential threats to America. Sadly, many of them know this. The Justice Democrats, who are driving the leftward lurch within the Democratic Party, are shockingly aware of what they’re trying to accomplish. Destroying and rebuilding America in their image is the end goal. That image is not a pretty one, even to the Justice Democrats, but things are rarely pretty when radicals get their hands on it.

Modern Monetary Theory will be implemented if the Democrats get full control. Unfortunately, Republicans aren’t helping fight it as long as they’re pushing such untenable budget deficits. It’s time for a heavy dose of fiscal conservatism.

We are currently forming the American Conservative Movement. If you are interested in learning more, we will be sending out information in a few weeks.

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Conservatism

Why conservatives shouldn’t support ‘Ag-Gag’ laws

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Why conservatives shouldnt support Ag-Gag laws

For the most part, conservatism is black and white, especially when compared to progressive ideologies that dwell in contradictions and allow activists to make a living telling lies. But there are circumstances that demand a deeper examination and possibly a little soul-searching to help decide which conservative stance should prevail. One example of this is with “Ag-Gag” laws that attempt to prevent undercover filming of animal mistreatment on farms.

There have been so many undercover investigations at farms that it’s becoming hard to be shocked by what goes on at some of them. The mistreatment of animals at some farms is unambiguous; we’re not talking about poor facilities or crowded cages. We’re talking about physically harming animals while they’re alive and feeling pain. In some cases, the pain is clearly intense as some farm workers seem to get a thrill out of it.

Ag-Gag laws make it illegal for people to sneak onto farms with the intention of filming animal cruelty. Many Republicans support these laws because they help the agricultural and livestock industries that have had rough times over recent decades. Some justify it by claiming it’s easy to find abuses in any industry, and piecing together weeks or even months of footage of abuse to make ten minute videos intended to shut a farm down is unfair.

This is a case in which a conservative-backed industry has appealed to conservative lawmakers for protection against a generally progressive activism topic, fighting animal cruelty. It would seem on the surface that Ag-Gag laws are, therefore, conservative. They’re not. They’re an attack on the 1st Amendment, not to mention a preventative measure designed to stop crimes from being exposed.

Should we support American farms, their owners, and their employees? Yes. But that support does not give conservatives license to suppress a part of the 1st Amendment or to ignore crimes like animal cruelty. We must take the high road whenever it’s presented, and in this case that high road means siding with progressive activists to prevent farms and their workers from committing these crimes.

This video from John Stossel shows both sides of the Ag-Gag debate. In the end, he rightly concludes that subverting part of the 1st Amendment and enabling animal cruelty is inexcusable, even in support of the farming industry.

We are currently forming the American Conservative Movement. If you are interested in learning more, we will be sending out information in a few weeks.

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Democrats

GOP says The Squad’s goal is anarchy. They’re half correct.

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GOP says The Squads goal is anarchy Theyre half correct

I’ve seen the future. Okay, so it’s a potential future and I wasn’t granted a prophetic vision or anything. I’ve just been watching what’s said (and more importantly what’s not said) by the radical progressives of the so-called “Squad” of Alexandria Ocasio-Cortez, Ilhan Omar, Ayanna Pressley, and Rashida Tlaib. The freshmen Congresswomen have made a name for themselves in recent weeks, hitting a crescendo this week after President Trump’s “racist” attack on them.

The GOP released a video trying to tie their actions and words together to highlight a possible conclusion, that The Squad as well as other hyper-leftists in DC and across the country are pushing for anarchy. This is only half the story. Anarchy is a short-term goal that’s designed to get the people to call for their real goal: a totalitarian government that will be made necessary if the chaos The Squad and others are bringing about is allowed to flourish.

Anarchy and totalitarianism are opposites on the political spectrum, but it doesn’t take a giant leap of intellectual gymnastics to see how one can lead to the other. By promoting lawlessness through a combination of policies such as open borders, criminal justice reform, and the encouragement of violence through groups like Antifa, the Justice Democrats (who control every move made by The Squad) want things to get so bad in America, the only solution many will see is for the government to step in and take control of everything.

The path to losing our freedoms, all of them, is one that abuses these freedoms so badly, people are willing to give them away for the sake of safety and security. That’s what the Justice Democrats know to be true, which is why their pawns are promoting an agenda that leads to anarchy. They want lawlessness because through the absence of people abiding by the law comes the requests made by the people for a king. Just as Saul rose to power against God’s recommendations to the people, so too can a totalitarian state rise in America if we do not heed the warning signs pointing to anarchy today.

Anarchy is only a short-term goal. It’s a means to an end. And it’s not a goal that needs to be fully achieved in order to move towards their real goal. They only need chaos to get bad enough for the people to start calling for a crackdown. At that point, they can start implementing measures that make the Patriot Act seem patriotic. We’re already seeing it manifest in the the policies that are growing in popularity today coming from the Democrats:

  • Green New Deal is a complete government takeover of many industries, including those that have little or no connection to climate change. As Justice Democrats co-founder and AOC’s Chief of Staff Saikat Chakrabarti declared, the Green New Deal is not about climate change.
  • Medicare-for-All is a solution being proposed by a few Democratic nominees for President and that’s embraced by The Squad. This is a solution to the failure of Obamacare, which allowed the government to take too much control of the healthcare industry. Their response: Take even more control. Eliminate private health insurance. Put healthcare decisions in the hands of bureaucrats. Raise taxes on everyone, not just the rich. It’s a totalitarian dream system to keep people as sick as possible.
  • Open Borders is the element of the far-left’s plan that they won’t name directly. They want lawlessness at the border and they want it to spill over to all facets of America. But creating de facto open borders without invoking the name of it doesn’t remove the destructive qualities.
  • Gun Confiscations represent the single solution to the biggest roadblock the left has with imposing their totalitarian dreams. As long as the people are well-armed, it will be difficult for them to achieve their end goals. Firearms in the hands of citizens makes them harder to control, so taking away the firearms is an absolute must if The Squad plans to achieve their goals in their lifetime.

It’s good that the GOP is addressing this dangerous group of people, but let’s not get confused between their short term goal of anarchy and their real goal of totalitarianism. They don’t want the people in control. They want control of the people.

We are currently forming the American Conservative Movement. If you are interested in learning more, we will be sending out information in a few weeks.

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