GE CEO Immelt slams Obama

According to the financial times Immet was addressing a group of Italian CEOs.

"Mr Immelt also had harsh words for Barack Obama, US president, lamenting what he called a “terrible” national mood and expressing concern that over-regulation in response to the global financial crisis would damp a “tepid” US economic recovery. Business did not like the US president, and the president did not like business, he said, making a point of praising Angela Merkel, Germany’s chancellor, for her defence of German industry."

He latter hedged his comments by stating they were made at a private dinner and taken out of context.  Its understandable that he didn't want to expose GE to the ire of this administrations overzealous regulators, but we need more leaders to speak out and explain why a new course is needed.

Respect and Leadership

Leaders are not born they are made. The private sector understands this lesson. Look at all emphasis companies place developing their people.

"If our country is going to get back on track, we need to redevelop confidence in and respect for our leaders and institutions. This means first and foremost electing and appointing people who command this respect by virtue of their bona fide achievements and not simply their paper credentials. In recent years, far too many people with prestigious degrees and titles have made far too many horrible decisions that have caused great harm to Americans everywhere. We need people who have shown through their actual performance in business, the military, government or academia (preferably in multiple areas that pertain to the problems we face) that they can and will handle pressure and act at all times with integrity and good judgment. "

Great credentials might get your foot in the door, but you have to produce. Those achievements help earn you the respect of your peers. It is this accrued respect you leverage when making the tough calls as a leader.
People who disagree with you still execute because they respect your judgment enough to give your plan a chance.

Contrast the private sector with Washington today:

• We currently see a Supreme Court nominee with virtually no experience in the law, outside academia and the White House, and none as a judge.

• We have the ranking Republican on the Senate Judiciary Committee considering the Elena Kagan nomination focusing ad nauseam on her handling of the gays in the military issue years ago at Harvard Law School, and largely disregarding issues that are of real significance to Americans today -- such as her views on the implications of the Constitution's Commerce Clause for the new health care law.

• In House hearings on the Gulf of Mexico oil spill, we have noted experts in petroleum engineering -- Reps. Henry Waxman and Edward Markey -- making determinations as to which well-drilling method was preferable.

• We have a treasury secretary with no private sector experience and who had trouble filing an accurate tax return.

• And last year we saw our president -- with no experience running a business -- deciding to oust the CEO of General Motors.

The Business Perspective on Dodd-Frank

Not a real shocker here it's a disaster that will create all sorts of compliance nightmares, and reduce US competitiveness vs overseas banking hubs like London and Zurich.  Worst of all it totally ignores Freddie and Fannie.

"Today, Fannie and Freddie are larger and weaker than ever, accounting for some 95% of all newly-written mortgages, and representing a $5 trillion asset base that, investors understand, is now fully if implicitly guaranteed by US taxpayers. US housing is still in such a fragile state that Congress dared not expose Fannie and Freddie to market forces or to force them to restructure. From September 2008 until today, they’ve sucked down about $145 billion in bailout funds, and each continues to lose about $10 billion per quarter. This is the ongoing cost to taxpayers of artificially supporting US housing. Nothing has changed, and the abusive and hyper-risky behaviors of the bubble years continue to this day, albeit in attenuated form."

Wonderful, Washington imposes massive regulation that it admits no one understands, grabs even more power and ignore key culprits in the crisis.  Then it has the audacity to call it Reform!

One way to solve the Immigration crises

Wall Street Journal: Spanish Downturn Sparks Immigrant Exodus 

When Spain's construction-dependant economy cratered amid the global financial crisis, the government sharply curtailed foreign-worker recruitment programs, limited family reunifications and stiffened penalties on employers of illegal immigrants. Spain created a Voluntary Return Program, paying accumulated unemployment benefits as an incentive to get legal immigrants to go home.
Immigrants have borne the brunt of job losses and their unemployment rate has shot up to 30%, from 12% in 2007, compared with the 20% national average.
Ecuadoran fisherman Gustavo Luzuriaga had been in Spain seven years, but he returned home last year after he couldn't find work on a boat. "Everything had gone sour there, and there was not much hope for the future," he said.

Immigrants come to a new country because they seek opportunity driven by the demand for their labor.  We often loose sight of this fact when discussing the issue here in America.  Most of the debate is centered around language and culture.  But it's often superficial I'm not concerned if people enjoy soccer and eat burritos but rather if they subscribe to the American tradition of liberty and are willing to work to become productive citizens.

I do think its important to enforce the law but lets ensure the law meets the needs of the country.  We shouldn't force talented engineers educated in American universities to migrate to Canada or Australia if they are willing to pledge the fidelity to the republic.  Nor should we allow crops to rot in the fields or migrants trampling private property in boarder communities when when we could create an orderly process.  What we desperately need in Washington is leadership and debate that is not focused on platitudes and fear.

Appetite for Profit: All Aboard for Ice Cream: Nestle Peddling Junk Food on Amazon River to Reach Brazil's Slums

Some progressive foodies are incessant about Nestle selling their product in remote areas in the amazon it posted the comment bellow:

"The Swiss company has a team of 7,000 saleswomen who peddle packs of Nestle goods door-to-door in Brazilian slums."

A company makes a investment in a poor rural area, trains a work force providing jobs and innovates a distribution method to deliver the new product and you sanctimoniously declare it an outrage. I guess only food lawyers have the wisdom and insight to know what’s good for the people, they couldn’t possibly make the choice themselves.

The arrogance here is stunning, poverty is preferable to development.

G20's deaf ear towards Obama

Why aren't the Europeans listening to the US's call to continue "stimulating" the economy through massive deficit spending? The obvious wrong headedness of was never an obstacle in the past, but the difference this time is Greece.

The sovereign debt crises has scared governments so much that they are forced to address the reality. The social democratic model is not sustainable programs & spending must be cut. The big question is will Obama head figure this out before it's too late?

Going on the domestic offensive

Pejman lays out the case and I could not agree more.

The Bush Administration should seize on the issue of tax reform, draft a package, and push along with Congressional Republicans for approval. In doing so, the Administration and Congressional Republicans will both help their political prospects and can significantly improve the nature of tax policy.

Tax reform has the best chance of being adopted it is easier to understand a simplification of the code, than Social Security reform or how school choice would work to produce a better system. Plus Pejman is correct in pointing out the broad popular support for tax reform does cut into dem leaning voting blocks.

In theory I agree with Mr. Yousefzadeh that a consumption tax would be the optimal choice however politically it would much harder to enact. A move to a Flat tax would also greatly simplify the tax system and reams of data exist as other nations have adopted this model it seems more likely to pass the congress. I only hope the administration has the stamina to push though this reform agenda.

Personnel-wise, the current situation is a sort of perfect storm for the Bush Administration, one that may make it easier to pass a comprehensive tax reform package. The White House Chief of Staff, Josh Bolten, was Director of the Office of Management and Budget prior to taking the Chief of Staff position, and was a Deputy Chief of Staff for Policy before that. The Bush Administration has added a major player to its economic policy team in Hank Paulson, who left a lucrative and influential position as the CEO of Goldman Sachs to become Treasury Secretary. And the Administration now has former Congressman and Trade Representative Rob Portman heading up the Office of Management and Budget.
All three officials are heavyweights, well-versed in economic policy. They also know their way around political obstacles and pitfalls and can deal effectively and credibly with Congress on policy issues. In short, the President has in place a team that is primed to push for the successful enactment of a path-breaking and constructive economic policy package.

Gavin Becker on "Big Box" retailers

Becker has Great post on his blog about an attempt by the Chicago City council last month to impose more restrictions on Wal-Mart. Thankfully mayor Daily vetoed the bill.

To the left commerce is evil

Democratic leaders have found a new rallying cry that many of them say could prove powerful in the midterm elections and into 2008: denouncing Wal-Mart for what they say are substandard wages and health care benefits.

This is absolute insanity the ire this company engenders in people is now being used as a major campaign platform. Just further illustration how devout of serious ideas the left has become. How can any retailer offer comprehensive health care and 15 dollars an hour and stay in business? Why it is always Wall-Mart they target rather then IKEA, Target, and the Gap all retailers with comparable pay and benefits structure, all of which import manufactured goods from China.

Wall-marts sin is that it caters to lower income & rural consumers effectively giving them a raise by increasing their purchasing power. By focusing on these often neglected consumers the company has grown profitable and increased the living standards of those who shop there. The left views that success as heretical only the government is capable of providing this relief not the private sector. This is leading to a growing apostasy among an important voting block, and is forcing even “Moderate” Democrats to denounce Wal-Mart.

Senator Hillary Rodham Clinton of New York, who was a member of Wal-Mart’s board when she lived in Arkansas, the corporation’s home state, returned a $5,000 campaign contribution from the company last year. Mrs. Clinton said she did so to protest Wal-Mart’s health care benefits, and she has continued to distance herself from the policies of a company she was close to when she was the first lady of Arkansas.

“It’s not anti-business,” said Senator Evan Bayh of Indiana, a former head of the moderate Democratic Leadership Council, appearing at an anti-Wal-Mart rally on Tuesday. “Wal-Mart has become emblematic of the anxiety around the country, and the middle-class squeeze.”

They should think long and hard about the short sightedness of this line of attack. The Dems really need to go back to the drawing board and come up with some sort of governing platform. I am sure executives at the company are scratching their heads at all of this. Don't expect the companies response however true to appease the critics.

Wal-Mart counters that its average wage is more than $10 an hour, and that more than 150,000 Americans who had no health insurance now have it through the company. It also says it has saved consumers billions of dollars by squeezing costs.

The Roaring Naughts!

Brian Wesbury lays out the case for limited government. I wish the current members of congress would read this article and head its lessons to stop spending and expanding government at a torrid pace. Finally he has message for the Fed.

Lastly, strong economic growth does not cause inflation.
Inflation is a monetary phenomenon. Inflation can exist in a strong or weak
economy. However, inflation erodes living standards and undermines the
foundation of the economy. A stable currency is essential to long-term economic
success.

Thankfully Bernanke understands this, and is reining in the excess expansion of the money supply after the 9/11 attacks.