Category Archives: Business

The Cost Of Manna From Mount Olympus

Business, Economy, Healthcare, Labor, Regulation

Nancy can be seen in media photo opportunities smooching a gold-embossed copy of the bankrupting healthcare bill. You can’t expect the little woman to grasp that the regulation and confiscation of private property, what’s left of it, has costs.

Caterpillar, “the world’s largest maker of construction and earth-moving equipment, said Wednesday that the new healthcare legislation in the U.S. will cause the company to take a $100 million tax charge in the current quarter,” reported Fox News.

Caterpillar said the additional expense and higher taxes to come could damage the recovery efforts that began after the company lost 75% of its profit in 2009.

According to the Charleston Gazette, “In the first two days after the law was signed, three major companies – Deere & Co., Caterpillar Inc. and Valero Energy – said they expect to take a total hit of $265 million to account for smaller tax deductions in the future.”

“With more than 3,500 companies now getting the tax break as an incentive to keep providing coverage, others are almost certain to announce similar cost increases in the weeks ahead as they sort out the impact of the change.

Figuring out what it will mean for retirees will take longer, but analysts said as many as 2 million could lose the prescription drug coverage provided by their former employers, leaving them to enroll in Medicare’s program.”

The WSJ reports that,

“AT&T Inc. plans to take a noncash $1 billion charge in the first quarter in anticipating the impact of changes brought by the nation’s health-care overhaul.”

The Dallas-based telecommunications giant is the latest—and largest—company to take a charge to account for the increased costs under the new health-care plan. Specifically, the legislation prevents corporations from deducting tax-free subsidies they receive from the government for providing retirees with prescription-drug benefits.

The company will evaluate prospective changes to its active and retiree health-care benefits, according to a filing with Securities and Exchange Commission on Friday.

The size of AT&T’s charge is notable. The company employs more union workers than all of the U.S. auto makers combined, and has to support a sizeable retiree base

I FULLY EXPECT to hear shortly from our insurance company as soon as it has figured out how to nudge us over onto ObamaCare.

Toyota Shakedown Continues

Business, Government, Republicans, Technology, The State

Torquemada’s onslaught against Toyota has signaled to others in the business of shakedown to try their luck. That was what James Sikes, in his unstoppable Prius, was up to, as the malfunctioning media broadcast a blow-by-blow account of his Prius gone wild, while network bimbos looked on, shaking empty heads and tsk-tsking loudly.

Sikes was trying out the trick Rhonda Smith of Sevierville, Tenn., pioneered, and with which she won the Congressional inquisitors to her side. Smith’s run-away “Herbie” was a Lexus 350 ES sedan. You don’t want to get into one of those death traps.

Toyota Motor Corp. dismissed the story of a man [Sikes] who claimed his Prius sped out of control on the California freeway, saying Monday that its own tests found the car’s gas pedal and backup safety system were working just fine.

The automaker stopped short of saying James Sikes had staged a hoax last week but said his account did not square with a series of tests it conducted on the gas-electric hybrid.

The Regulator in the person of U.S. Rep. Darrell Issa (R-Calif) was looking over Toyota’s shoulder during the testing. We’re safe! He follows the proud tradition of the Floridian Republican, John Mica and Jason Chaffetz.

During the House Committee on Oversight and Government Reform inquisition, last month, “in florid language,” Mica blasted a Toyota official: “‘I’m embarrassed for you, sir,’ Mica shrieked, clutching his smoldering toupee. Not much better was Chaffetz. This Republican admonished Mr. Inaba for an internal Toyota brief that called ‘the American government safety agency under the Obama administration less ‘industry friendly.'”

This revelatory reality—at least to Republicans—had pushed the Toyota team into a dalliance with the regulators. Any serious student of economics knows that regulation forces an entrepreneur to substitute viable, voluntary trades and transactions with politicized decision making. But what does Chaffetz [and his fellow Republicans] know?

Updated: Toyoda Vs. Torquemada

Business, Fascism, Political Economy, Politics, Regulation, Republicans, Technology

The excerpt is from “Toyoda Vs. Torquemada,” my latest WND.COM column:

“Mr. Akio Toyoda, the president of Toyota, could have achieved the brevity much-admired in his culture (and mine) had he responded thus to the invitation to appear before the congressional committee investigating the recall of eight million of his vehicles:

House Committee on Oversight and Government Reform’s invitation to Mr. Toyoda: ‘Dear Mr. Toyoda, we will be sitting between 11:00 AM and 5:00PM on February the 24th.’

Toyoda’s putative Reply: ‘Akio Toyoda likewise.’

To complete the one-two punch, Mr. Toyoda’s second in command, Yoshimi Inaba, president of Toyota Motors North America, ought to have sent each of his would-be Democrat and Republican inquisitors a short note, in large typeface, preferably with pop-up pictures.

In it, he ought to have reminded them that his company employs over 170,000 of their countrymen; has invested billions in capitalizing its factories, and is philanthropic at a time when Americans are desperate for charity.

… Mention the unseemly specter of a government—the owner de jure of General Motors and Chrysler—strong-arming the competition, his own Free-Market Motors.

A well-worded barb about the embarrassing, timely FBI raid on a Toyota auto parts operation in Detroit would have been apropos as well. Tell them, Mr. Toyoda, that you are doing business in a country where the competition is backed by the power of the police.

In closing, Toyoda might have reminded the overweening House Committee on Oversight and Government Reform that his bosses are Toyota’s customers, and that it is to them alone that he’d be answering.

Back on terra firma, … ”

Read the complete column, “Toyoda Vs. Torquemada.”

And do read my libertarian manifesto, Broad Sides: One Woman’s Clash With A Corrupt Society.

The Second Edition features bonus material. Get your copy (or copies) now!

Update (Feb. 27): By the by, this household has never contemplated buying an American car. Gutless gas guzzlers, mostly. If the US made cars comparable in performance and economy to those of Toyota or VW—then sure. American cars are really ugly too, except for the Corvette and mustang. The first is a good car, except that it has some old-engine style oddity that requires yearly tweaking, or so I am told. The Mustang is completely gutless compared to this pocket rocket.

Update II: Akio Toyoda Should Have Sat It Out … At Home

Business, Constitution, Free Markets, IMMIGRATION, Liberty, Multiculturalism, Politics, Regulation, Socialism, Technology, War

Help me understand what hitherto no cable commentator has, and I include the formidable Judge Andrew Napolitano: Under what law or warrant does Congress get to summons Toyota executives for an inquisition? I’m curious.

So too is the “U.S. Securities and Exchange Commission (SEC) seeking documents related to unintended acceleration as well as to Toyota’s disclosure policies and practices,” says this newspaper.

Judge Napoiltano of FoxNews didn’t touch on the legal basis for Congress running interference with Toyota—and even seemed to think the first should put the second on notice.

Shouldn’t the matter of the car manufacturer’s malfunctioning accelerators fall to the courts and those harmed? Shouldn’t the injured parties hammer out a settlement in private or in the courts, rather than before our elected buffoons in Congress?

Personally, if I see one more weak, sobbing American begging for The Regulator and the burdened nation to feel her pain; I’ll explode.

(“Shame on you,” Rhonda Smith, of Sevierville, Tenn., said at a congressional hearing.)

What a nation of spineless crybabies. Get a lawyer, join a class-action lawsuit. Go to Haiti. Cry in private. But spare us your imagined near-death experience as your Lexus got ahead of you.

Akio Toyoda, president of Toyota Motor Corp., ought to have reminded the American political ponces of how many of their countrymen he employs and promised politely to fix his company’s problems.

Moreover, Toyoda could have achieved the brevity much-admired in his culture had he borrowed from that clever commie (and rapier sharp wit) Bernard Shaw, who too was forced to decline an invitation from “a collector of social scalps”:

The House Oversight committee’s invitation to Mr. Toyoda: “We will be sitting between four and six o’clock.”

Toyoda: “Akio Toyoda likewise.”

Update I (Feb. 24): Reader “ryan” echoes my thought exactly. Sean and I were discussing the point “ryan” makes. Only in America, were dumbness is elevated to an art, would a vehicle with an ignition key become a self-propelled lethal weapon.

I drive a 2006 Volkswagen GTI, with a high-tech 200-horsepower, 2.0-liter turbocharged engine. The “pocket rocket” has a spectacularly smooth six-speed manual transmission. (I won’t drive an automatic, never have; never will.) If the gas pedal took on a life of its own, I’d automatically—without even thinking—indicate, take the car off the road, put it in neutral and switch off the ignition.

If you can’t do this small thing, ryan is right: you are the lethal weapon, not the vehicle.

As for the comment postulating that Toyota might be in the business of hoodwinking the American buyer: I remind those who profess their love of freedom and markets that such utterances mean that the Demopublican Regulators are winning.

Toyota would not be in business for as long as it has, producing quality cars, if this was its purpose. The car manufacturer relies for its bread and butter on pleasing consumers, not politicians. Profit? Since when is that anything but a blessing? Profits and prices are the street signs of the economy. Without them there is nothing—no incentive to produce and invent and no signal as to when production must be accelerated or decelerated.

Well-taken too are Robert’s observations about the Japanese. Having just traveled to a mystical city named Nara, to do high-tech, Sean would second that. Modernity has not changed this homogeneous nation’s genteel nature.

“Like, what can I get you guys” is not a refrain you’ll hear in a Japanese restaurant. Sean was taken aback by the gentility and graciousness of the Japanese ladies. Sure, the youth sports all the technological and sartorial trappings; but they respect their elders. This makes for a more refined atmosphere. After all, generational demarcations are necessary to ordered liberty.

If you do the polite thing and bow slightly—no need to touch your toes like this guy does—as you enter an establishment, faces light up and the courtesy is more than returned.

I do believe that the US, a multicultural toilet, is working hard to impress upon the Japanese the need to open up their country to immigration.

Update II: To Haym (and others): The comment (hereunder) is completely off-topic and won’t be further pursued on this post. But I suppose Japanese warriors are not supposed to be as ruthless as their American enemy—also the only power to have ever, in the history of mankind, stooped to nuke innocent civilians. When will Americans apply equal thinking to all sides?!