The most important thing in life is
not the triumph
but the struggle.
The essential thing is
not to have conquered
but to have fought well.
Pierre de Courbertin
Congratulations, Candice Glover, American Idol 2013!
Yes, you are....
North Carolina, Tesla, the GOP and Economic Liberty
This is a textbook case for free market economists in distinguishing between pro-market and pro-business (I haven't read Don Boudreaux of Cafe Hayek comment yet on this example, but I'm sure he'll pen one of his classic letters to the editor.)
Tesla is a Silicon Valley-based manufacturer of electric cars. I wish I bought a few shares some time back, but I have seen GM struggle with its Volt roll-out, the big issues always been per-charge driving range, the technology, infrastructure and duration for away-from-home recharging. I have been skeptical of Tesla's ability to roll out nation-wide auto service, recharge stations: how could they make enough profit on the sales of a few thousand cars to fund operations across the US? How many cars can they sell with list prices ranging from $60-90K-plus, even with Obama's taxpayer-funded $7500 tax subsidy giveaway to yuppie purchasers? They may have come up with the highest rating for any luxury car model ever from Consumer Reports, but in a stagnant-growth economy and in a highly-competitive luxury car market, what's the upside? Someone who can afford to spend more than $50K on a car probably doesn't blink over a $50 tank of gas, a fraction of his monthly car payment. But what do I know? As I write, the stock is up 172% this year vs. GM which, despite a 52-week high, is still far below taxpayer break-even.
Tesla has decided to bypass the traditional auto dealer model and market directly to consumers, not unlike Ikea (furniture) or Apple stores. (Of course, Apple also sells through other retailers.) This is not sitting well with politically well-connected auto dealers whom are exerting pressure on the GOP-controlled state legislature in North Carolina to prohibit no-dealer distribution. This is, of course, anti-competitive at its core, and anti-free enterprise in principle. This is exactly the kind of thing that leads independents and moderates to see the GOP as unprincipled. It is up to Tesla to come up with a distribution and service scheme that works to customer satisfaction or its sales will be at best limited. But the legislature should kill this bill, and if it does pass, I call on the governor to veto it. If the bill is passed into law, I call on libertarian think tanks to go to court and have it struck down as unconstitutional; Todd Ganos in a Forbes piece makes an excellent case based on precedence (interstate ferry service).
Picture of the Day:
Eagles' Offensive Guard Evan Mathis:
Got any Government Relief?
Apparently the IRS pisses off a few people. Mathis decided to make a deposit in person at the IRS. (His message to the IRS: "Audit this.." Maybe the IRS asked him to take a drug test...)
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| Courtesy Evan Mathis via Instagram |
Recipe for State Economic Growth:
Do Not Restrict the Right to Work; Don't Penalize (Tax) Labor
The Anti-Business Interior Department Denies Oyster Farming Permit Renewal
Special-interest environmentalists and federal bureaucrats prevail over your right to consume delicious seafood...
Political Humor
A lot of critics are comparing President Obama to President Richard Nixon, which is unfair. Nixon's unemployment rate was only 5 percent. - Jay Leno
[Nixon ran the biggest deficits since FDR, bombed Cambodia, violated the intent of the Fourth Amendment to spy on the political opposition, and allegedly abused his discretionary authority over the IRS with respect to enemy lists,... Nope, don't see it.]
Since President Obama took office, the Democratic Party has lost nine governorships, 56 members of Congress, and two Senate seats. In his defense, Obama said, "Well, I did promise change." - Conan O'Brien
[Plus, the purchasing power of your dollars is down over 30%--that's change!]
A town in Minnesota has appointed a 4-year-old boy to be its mayor. People got pretty annoyed when he said his first plan was "waising taxes." - Jimmy Fallon
[No, but Robert Tufts has added ice cream to the school lunch program, and if a city councilman gets out of line, he gets sent to stand in the naughty corner for 20 minutes.]
Political Cartoon
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| Courtesy of Michael Ramirez and Townhall |
Bruce Springsteen & the E-Street Band, "I'm on Fire". A distinctive mesmerizing arrangement; once again, I think Bruce is trying to channel his inner Elvis.
