Democrat Economic Illiteracy Example #4972

Here are three very smart economists and our most business-savvy politician explaining why bailing out Detroit is a terrible idea.  It should already be obvious if you understand how markets and competition are actually supposed to work, but read them anyway:

David Yermack
Mitt Romney
Jim Lindgren
Todd Zywicki

Now let’s look at the Democrats’ “solution”

Mickey Kaus summarizes it as:

The New Plan? Cripple Honda! Save Detroit with Card Check! Eliminating the secret ballot and making it easier to organize U.S. Honda and Toyota workers (and imposing contract terms via binding arbitration) would “level the playing field,” says Dem. Congressman Tim Ryan. … Then when Honda and Toyota responded by importing more cars from abroad, we could have import quotas! Eventually the whole automotive sector could be planned by Congress in conjunction with existing business and labor interest groups.

Oh, this is going to be a delightful four years.

Markets, Morality & Conflation

There’s an interesting discussion going on at the Corner on NRO about the meaning of “free market” and its defense on moral vs. empirical grounds.

You can follow some of it here:

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Post 6

Over at CATO, Roderick Long, who considers himself a member of the Libertarian Left (a term that always annoys me — but that’s a topic for another post), has an article dealing with the conflation of laissez-faire markets with corporatism. It touches on some of the same topics.

If you are at all interested in economics or economic philosophy, his article is HIGHLY recommended.