Thursday, August 6, 2009

Scorched Earth.

In war, there are a lot of ways to play defense. You can fight right on the battle lines, like the fronts of World War I, where Germans were on one side of the line, Frenchmen on the other, and woe be to anyone who was in between them. You can stage a counter-attack, going straight to the enemy in an attempt to catch them off guard, as well as hoping to get your troops incensed and ready to fight to the death. You can set up an ambush, striking when the enemy least suspects it. You can take the route of the Continental Army (and the Viet Cong), and take up a policy of guerrilla warfare, striking from all angles, then quickly retreating. Or you can do Scorched Earth.

Scorched Earth is a very, very extreme way of fighting a war. It's been popularized by the Russians, as they utilized it to destroy Napoleon's Grand Armee, as well as stop Operation Barbarossa. Under Scorched Earth, when the defending army loses a battle, before they retreat, the destroy everything of value. Farmland, warehouses, all fall to the flames. When Napoleon's army marched through Russia, they were met only with slight resistance and the smell of smoke. Ordinarily, the invading forces would use the resources from their newly acquired land to 'refuel', allowing them to march forward at full strength. When the army, battered and bruised from the harsh Russian winter, reached the capital of Moscow, it was almost completely destroyed. This policy, of course, doesn't recognize the farm owners whose land--their entire life's work--was destroyed with no compensation.

Surely you will agree that this method of defense is extreme, if not completely ludicrous. Then why do we allow the Republicans to follow it? Their vehement opposition to the 'Cash for Clunkers' program is based on not solid facts and reasonable arguments, but only a deep desire to see Obama fail. This is partisan politics at its worst. The GOP doesn't agree with a program where the only thing lost is the opportunity cost from those consumers without a clunker to trade in, on the basis that it is a Democratic bill. Now, they're saying that it's "too successful", pointing to the fact that the money allocated to the program barely touched the ground before it flew into the hands of happy consumers. As if that wasn't ridiculous enough, now the Republicans (as well as their goons at FOX), are using the program's unforseen popularity to strike at Obama's call for health care reform. "If the government is so off about this, who can imagine the mess thay'll make out of healthcare?" I'll start getting worried as soon as a quick-talking sleazeball starts trying to sell me a 'used kidney'.

No, they real reason the Republicans are mad isn't because the program is a miscalculation by the government, it's because they want to see Obama crash and burn; if the nation fails, Obama fails. It is the fact that the program is working as planned that riles them up so much. The funny thing is, this is the type of government economic intervention that appeals to the conservative agenda the most, utilizing finiancial incentives instead of sweeping fiats. However, only Representative Candace Miller (R-MI) has commended it, saying it is "the best $1 billion of economic stimulus the government has ever spent." As for the rest, they have formed another attack on action, with Sen. John McCain threatening a filibuster when the bill to add another $2 billion to the program reaches the senate floor. Their desire to see Obama and the Democrats fall, however, is not their only reason for their opposition. The GOP is attempting to paint government programs as long, inefficient, and complicated, and it's hard to do that when you have a perfect example of why that is wrong.

The $3 billion that Republicans are crying over is nothing to the U.S. budget, but the $4,500 that goes to the American consumer is getting millions of people that would never have considered trading out their old gas guzzler into some fresh new wheels. Considering Bush's $700 billion dollar federal bailout plan practically flew through Congress, it's odd to see that the same Congressman that supported that massive effort of government spending with nary a filibuster attempt is now flying into a rage over Cash for Clunkers. The Wall Street Journal, when asked about the federal bailouts, said the goal was "not to control markets, but to revive them." Spending a sliver of that money on directly helping the American consumer, enviromentalism, as well as small businesses? "Crackpot economics."

Maybe it's not the spending, maybe it's the principle. The idea that governments should never be the ones to influence who the winners and losers are in the economic climate. A sound idea, but both parties have done exactly that. From the G.I. Bill, which allowed returning soldiers to get a good education as well as a home, jumpstarting the growth of the middle class, to subsidizing wool farmers in the 1800s so that they would be able to knit uniforms for soldiers in the Civil War, to adding $35 billion to troubled oil companies (as Republicans campaigned last year), government has always attempted to use control over the economy to shape society.

Cash for Clunkers isn't anything new, it's the smallest of transgressions against the purity of a free-market system. It's just simple stimulus, trying to breathe some life back into Detroit, save consumers $1,000 yearly on gas costs, and maybe help the Earth along the way.

-Tom

N.B. Last week, Speaker Nancy Pelosi warned that Republicans and insurance companies will resort to "slash and burn" to kill healthcare.

4 comments:

  1. As a matter of fact, the GOP is presenting a unified front to block any matter of liberal legislature; case and point, ObamaCare. Senator Jim DeMint didn't even attempt to conceal that when he said, “If we’re able to stop Obama on [health care]. . . It will break him.” That, combined with their resolution to force Democratic concessions, leads me to believe that, more than anything, they want to see Obama fail. The proposal to appropriate another $2bn to the program went through the senate on a 60-37 vote. Guess who those 37 were who voted against?

    As far as the influx of business traffic being a "short term solution" only, that's what it is meant to be. This money is being spent to encourage consumer spending and allow car manufacturers to do things that they would not be able to do otherwise. That's what a stimulus package is. The money used in this program will be reinvested and used to better the companies. It's not being thrown away. It's tripling showroom traffic.

    I will agree that a good number of cars sold are foreign, but four out of ten are still American-made, and Ford's Focus is the one that's sold the most. In fact, according to the Department of Transportation, the majority of foreign cars sold were made in American manufacturing plants.

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  2. Well while your Wikipedia facts can only get you so far, Stimulus packages are only making these companies worse. How life is a game of survival of the fittest, so is the stock market and the entire financial sector cannot be helped by a higher force (Governemnt) this disturbs the peace as these companies made huge mistakes and were rewarded with money.

    If these stimulus packages were to never be created all the companies that we bought out would have died and shit would have gone the way it was supposed to. Smaller companies would have had a chance to succeed and America would have gotten the slap in the face it needed to work harder and give them an incentive to learn how to use money properly.

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  3. I would hardly call the Associated Press "Wikipedia."

    I don't think you understand exactly the scope of what the bailouts prevented. According to what you have just said, your idea of "survival of the fittest" would be taking an entire continent, sinking it into the ocean, and telling its ecosystem to "deal with it." If the bailouts would not have passed, then we would plunge into another Great Depression, only this time we'd be taking the rest of the developed world with us. These smaller companies you're so attached to would never have the capacity to handle the number of accounts managed to these giant corportations. That's why they're called small businesses. That means that millions of people would watch as their entire life melted before them, as the government, with full capacity to stop it, did nothing. This is what you are saying would be better for the country.

    N.B. I would hardly call The Associated press "Wikipedia".

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  4. So much for putting something at the top of a reply to make sure I don't forget.

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