Here are two stories which should surprise nobody with even an elementary understanding of economics.
Emerson Electric Votes With Its Feet, Saying The Goverment Is Destoying American Manufacturing
One of the country’s most important industrial companies says the United States is not a good place to manufacture and it will continue moving its assets offshore.
The federal government is “doing everything in [its] manpower [and] capability to destroy U.S. manufacturing,” says David Farr, chairman and CEO of Emerson Electric Co., in a presentation at the Baird 2009 Industrial Conference in Chicago Ill., on Nov. 11. In comments reported by Bloomberg, Farr added that companies will continue adding jobs in China and India because they are “places where people want the products and where the governments welcome you to actually do something. I am not going to hire anybody in the United States. I’m moving. They are doing everything possible to destroy jobs.”
In his Powerpoint presentation available on the Emerson Electric Web site, Farr notes that the federal government is damaging prospects for U.S. economic growth with a $1.41 trillion federal deficit (10 percent of GDP); $12 trillion in government debt that will grow to $20 trillion in 10 years; a policy of printing money; a “non-targeted $800-billion stimulus”; bailouts for Wall Street and the automobile companies; the prospect for cap and trade legislation; a “government takeover” of health care to the tune of more than $1 trillion; increasing taxes and regulations; and a “lack of U.S. $ support” for manufacturing…
U.S. Democrats demand analysis of drug price rises
Congressional Democrats are seeking government investigations into recent price increases of brand-name prescription drugs, as Congress finalizes an overhaul of the healthcare system.
Lawmakers are concerned the companies are trying to reap gains ahead of reforms aimed at lowering drug prices and forcing drugmakers to partly fund changes that aim to boost the number of Americans covered by health insurance.
Drugmakers “may be artificially raising prices for certain pharmaceutical products in expectation of new reforms,” wrote Charles Rangel and Henry Waxman, the respective chairmen of the House Ways and Means Committee and the House Energy and Commerce Committee.
The Wizbang response to this story says it best…
“Well imagine that. Drug companies trying to “reap gains” by “artificially raising prices”. What’s not clear is how Congressional Democrats expect drug companies to continue the R&D necessary to bring new life-saving drugs to market if they’re to do so without “reaping gains” on popular drugs already on the market. Do they expect that these drugs will fall from the sky? Profits are what businesses depend upon to fuel development of new products. Without profits, businesses fail, and failing drug companies should be low on anybody’s wish list—even economic know-nothings like “Congressional Democrats”.
And what’s this about “artificially raising prices”? There’s a market for drugs, isn’t there? And drug companies sell drugs, don’t they? There’s nothing “artificial” about their setting prices for their product based on the public’s demand for it. It’s actually quite organic. You want “artificial”? Let the government set prices based on things OTHER than the supply of that product and the public’s demand for it. See where that gets you…
Drug companies need profits to make new drugs and to make current drugs better. The “reforms” that Congressional Democrats have in mind (price fixing, taxation, etc.) will reduce those profits, raise prices on patients and result in us all having diminished access to life saving drugs.
This is not reform. This is suicide.”