Daily Update: Curb Euphoria Weekend Edition

The AP, via Miami Herald, reports that Republicans are stunned, just stunned, and seeking a way forward after the Democrats managed to gain more control of the government. These debates always come down to "more Reagan, less government, and taxes " versus  "bigger tent, less dogma"

Within hours of election returns that expanded Democratic congressional majorities and delivered a historic presidential victory to Barack Obama, Republicans began searching for a new way forward.

Just as quickly, a split emerged between Republican loyalists advocating a purer form of conservative ideology and those urging a less-dogmatic flexibility.

We are of the belief that a few new ideas (as in, less Reagan, and Reagan worship) might be nice, without abandoning the entire social platform.  How about expanding the morality based arguments to include helping the poor, or adjusting healthcare in a truly radical way, while pushing for tax reform and financial solvency? Yea, we should should probably keep dreaming. Assessments like this are not promising:

"In order for the social conservatives to succeed, they will need to have something to mobilise against. It could be an issue or the congressional leadership," said Michael Lindsay, a political sociologist at Rice University in Houston.

(Reuters)

A "Long Road Ahead" for social conservatives may indeed be accurate, if positive affirmation of new ideas that address broad issues are not part of any changes.

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Having already been approved for $25 billion in loans, the auto industry is pushing for more assistance, with the support of Congressional Democrats, led by House Speaker Nancy Pelosi and Senate majority leader Harry Reid. 

They are urging that a portion of the $700 billion approved for bailouts go to the struggling GM, Ford, and Chrysler companies, in a somewhat quixotic effort, it seems to us, to put the near terminal body with smushed head on life support in order to induce a miraculous recovery.  How is it that foreign (Japanese) automakers can best American producers in quality year after year, and maintain a level of profitability to boot? 

The only possible way this assistance will be worthwhile is if the car companies (and their unions) are forced to radically change how they do business from an accounting standpoint, in additon to changing the types of cars they produce. If you are serious about energy intiatives and global warming, why not now demand that the companies produce cars that don't get all their power from oil? What can the industry say? No? If so, pull the plug.

Wethinks the TARP (Troubled Asset Relief Program) should be used primarily to fix systemic damage in the financial sector and not to help private industry reverse years of faulty decision making.

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It seems we are kind of all over the place on how to allocate the TARP, but don't let that stop China in its efforts. China has moved forward with a dometically oriented bailout plan of $586 billion to help stimulate its still "more robust than everyone elses for now" economy.

The stimulus plan would be enormous for any country, let alone one whose gross domestic product is lower than most other major industrialized countries, estimated to be around $3.5 trillion this year. Earlier this year, the United States Congress passed a $700 billion bailout package in a country with an economy whose size is close to $14 trillion.

(N.Y.Times)

Beyond what this tells you, it should tell you even more. Perhaps something about the importance of the United States getting its financial house in order to remain competitive.

Wisdom of the Day:
Curb your euphoria and build your base.