They are still using the same tired rhetoric, about inheriting the worst economic calamity since the Great Depression. The truth is that the worst economic calamity since the Great Depression is the Obama administration. Barack Obama stands with Herbert Hoover as the only presidents with negative job growth during their administrations. As if stuck in the 1930s, Obama dusted off FDR’s playbook, since he had no personal executive experience to draw on, and that playbook didn’t work then and it’s not working now.

So along comes an opportunity for a major “shovel ready” project, backed by unions, that can create thousands of jobs, move us closer to energy independence, help us depend less on getting oil from Middle East despots, and what does Obama do? He kills it. What he wanted to do, was defer a decision on this until after the election, eleven months away. He wanted to do what he does best, vote “present”.

Congress, particularly the Republicans who seem to be the only adults working on Capital Hill, included a provision in the payroll tax holiday extension, to make a decision within sixty days. People are hurting, gas prices are creeping up, unemployment benefits have been extended to extraordinary lengths, and this incompetent president says that sixty days was not enough time to review the proposal so he had to, sadly, reject it. Perhaps if he hadn’t played all those rounds of golf, perhaps if he had studied it a little closer instead of spending all that time in Hawaii, perhaps if he put this job creating proposal on the top of the EPA’s to-do list instead of their focusing on the job killing regulations to limit power plant emissions, he would have gotten his job done. But no, sorry, I don’t have my homework, teacher, I dunno, I forgot, my dog…. Enough!

Let China make an oil deal with Canada. We can always buy the oil back from them at a premium. Why not, they probably don’t have enough of our dollars as it is now. Why not give them more? This president is making decisions that will cobble together a coalition of supporters to get him reelected. This is about appeasing the environmental movement so that they won’t abandon him.

At an event in Ottumwa, Iowa, on Dec. 31, Rick Santorum mocked the idea that the pipeline posed the threat of environmental damage, noting that there were already many other pipelines in the area it would go through. “This is just, again, pandering to radical environmentalists who don’t want energy production, who don’t want us to burn more carbon,” Mr. Santorum said.

The State Department, which has authority over this since it goes between us and Canada, “said there was not enough time to draw a new route for the pipeline and assess the environmental harm.” Bullfeathers. It’s a 1700 mile pipeline. The area in question is a fraction of that length. Agree to the pipeline, get started hiring people and building it in areas not in dispute, and work to resolve the section in question. But unless it is killed, Obama risks losing the green vote and what is more important, America or Obama’s reelection?

I’d like to ask my Congressman, Tim Bishop, to weigh in. What do you have to say about this, Tim? Or are you too busy manufacturing your own campaign issue around outsourced phone center jobs. If jobs are really important to you, you would stand up and challenge Obama for killing an opportunity for good, high paying, union jobs in America. On the other hand you can stay silent, not challenge President Obama’s error and risk his ire and possibly lose campaign funds and support. So what do you stand for, Tim? Putting America first or putting your interests right up there with President Obama’s and above America’s.

That’s my opinion; I’d like to know yours. Please comment below.

The oil companies announce their first quarter earnings and they are good news for the oil companies and their investors. Not to let an opportunity pass, Congressman Tim Bishop, against a backdrop of $4 per gallon gasoline prices, introduces legislation titled, “The Big Oil Welfare Repeal Act.” On his own website he admits that this legislation “will not impact gas prices for American consumers.” The legislation’s purpose is to eliminate a tax credit for the oil companies, not all oil companies just the five largest. It also doesn’t address subsidies to other energy companies such as ethanol, wind, solar, coal, geothermal, and a $7,500 tax credit if you buy a Chevy Volt. Why not?

Because this is political theater not policy. Bishop’s reasoning is that Big Oil is evil, pandering to the people getting squeezed at the gas pump but doing nothing to actually help them. His other reasoning is that it will save a piddling $3 billion per year. Did I just use the words piddling and billion in the same sentence? Yes, I did. When you have a one year budget deficit of $1.6 trillion, that’s 500 times larger than Mr. Bishop’s proposed savings, that savings is piddling.

Lifting the Debt Ceiling

This week Congressman Bishop voted against raising the debt ceiling in a “clean” bill, that is, no conditions attached to it; just raise the limit. This is what President Obama and other Democrats have been clamoring for, but when given the opportunity to do so, they vote against it. Profiles in courage it’s not. Here is what Mr. Bishop had to say about his vote:

“Theater belongs on Broadway, not the House floor,” Mr. Bishop, a Democrat from Southampton, said in a press release issued Wednesday. “It’s juvenile when the House leadership is engaging in political stunts while slipping a note under the desk to their friends on Wall Street.”

Juvenile? Well, junior, what do you call your “Big Oil Welfare Repeal Act”? Serious statesmanship? Serious statesmanship would be passing a budget, not looking for pocket change behind the sofa cushions. Serious statesmanship would be working on getting control over entitlements, and condemning commercials showing a Paul Ryan look alike pushing grandma in her wheelchair off a cliff. Statesmanship would be applauding Bill Clinton’s admission that he hopes Democrats don’t demogogue efforts to get entitlement spending under control, rather than letting the moment pass in silence.

But Tim Bishop has spent eight years in Washington keeping a low profile, doing Nancy Pelosi’s bidding 97% of the time, and bringing home whatever bacon scraps he could find to get himself reelected. Little does it matter that at the same time he is piling billions upon billions in debt upon his constituents to pay off in return for the table scraps that his party’s leadership have tossed his way. But with earmarks off the table, all Mr. Bishop has left is theater. Of course, Mr. Bishop’s theater is brilliant while he bristles at being put on the record voting against his own position and caustically calls that theater. Mr. Bishop won reelection by a whisker thin margin, basically by hiding his record and attacking his opponent personally. Over the next eighteen months Mr. Bishop will find that there are fewer and fewer places to hide.

That’s my opinion; I’d like to know yours. Please comment below.

The Tea Parties sprang to life after seeing cyincal politicians advance their own agenda that most Americans knew wouldn’t work, but damn the people, the politicians plowed ahead. It was about the time of the great stimulus program that we were told (and didn’t believe) the program would cap unemployment at 8% for the mere cost of nearly $1 trillion. If we didn’t act, the politicians somberly pronounced, we would face the dire situation of 9% unmployment.

New York Congressman Tim Bishop has introduced “The Big Oil Welfare Repeal Act,” which could be said is cynicism on steroids. Let’s start with the title. Does Mr. Bishop really believe that oil companies are receiving welfare? Welfare as most honest people know is where the government gives people money who are not working. It takes little questioning to figure out that is not happening in the case of the oil companies but, hey, lying works. Tim Bishop just ran his entire reelection campaign on personal attacks on his opponent rather than running on his record, so lies and distortion are his specialty. Let’s break it down.

What he wants to do is eliminate a tax break, not a subsidy, that the oil companies receive which equates to 6% of the income they get from domestic oil production. I am all for simplifying the tax code and eliminating all loopholes and at the same time reducing tax rates so on balance it is revenue neutral. But why stop with the five biggest oil companies? What about eliminating subsidies for ethanol? Wind? Solar? Crops? Electric cars? Mortgages? Uh, those wouldn’t be cool with the people Bishop needs to reelect him, but Big Oil, yeah everybody can hate Big Oil!

Bishop goes on to say that the extra revenue from the oil companies by eliminating the tax break will reduce the deficit by $13 billion over ten years or doing the math about $1.3 billion for one year which is 0.08% of the current one year deficit of $1.6 trillion. So, Mr. Bishop is cyinically trying to show he is concerned about the debt, and yet he voted against the Ryan budget proposal that would save $6 trillion; deficit reduction to Tim Bishop has to be symbolic not serious or real.

Lies, Lies and more Lies

Mr. Bishop, on his own website, says the following:

• I’m outraged that at $4 a gallon, Americans are still paying twice for gas: once at the pump and once on tax day,” said Congressman Bishop.  “Borrowing money to pay Exxon-Mobil to drill for oil they have every incentive to drill for already is Exhibit A for wasteful government spending.”
• Repealing the oil industry’s tax subsidies will not impact gas prices for American consumers.
• Bishop unveiled the bill at the Patchogue Village Department of Public Works facility on Waverly Avenue, which houses the gas pumps used by village, school, and fire district vehicles.  He was joined by Village Mayor Paul Pontieri, who described the effect high gas prices have on the Village’s budget.

These three bullets were from the same post on his website! He begins by saying he is outraged by the price of gasoline at $4 a gallon. He then says that his proposal will not affect gas prices. Then he uses the poor Patchogue Village mayor as a prop, to unveil his plan that Bishop  says won’t do a damn thing to solve the mayor’s problems. Do you wonder why Americans hate politicians?

Bishop is right about the gas prices. Exxon makes a profit of about $0.07 per gallon of gasoline. Bishop’s proposal will affect 6% of the profits they make on domestic production. It doesn’t take a mathematician to figure out at 6% of $0.07 is about half a cent per gallon. So why all the hoopla other than to create a false impression that this congressman is actually earning his $176,000 salary. That’s why Americans hate politicians.

Let’s move onto the next lie, paying the oil companies on tax day. With Memorial Day approaching we will be seeing a lot of sales from merchants. If you go to Lowe’s to buy that new grill and they advertise 10% off for Memorial Day, does the cashier reach into the drawer, take out some cash and give it to you? No. Ten percent off means you pay ten percent less. You do not come home with a grill and more money in your pocket than when you left the house. The same applies to taxes. Any tax break means you pay less in taxes, the government doesn’t pay you. The government doesn’t have any money except what it gets from you. That’s how it works. So tax cuts are where you get to keep more of your own property. It is not a payment from the government, it is not a cost to the government, IT’S NOT THE GOVERNMENT’S MONEY, it’s your money.

Okay, gas is expensive, so what do we do about that? Many on the right have said we should increase domestic production. So what does Tim Bishop do? His proposal is to remove a tax incentive on domestic production. That seems counterproductive. He also said he just voted against expediting domestic drilling permits. It would almost seem that Bishop wants to increase our dependency on foreign oil. He then goes on to say in a C-SPAN interview that domestic production is at an all time high, and that the oil companies have plenty of leases and they should just drill on the leases that they have.

The problem is that it takes about sixty leases to get one with a productive discovery of oil. What Mr. Bishop only mentions in passing is the value of the dollar as a contributing factor in the price of gasoline. I suggest that it is a more serious relationship than that and who has been destroying the value of the dollar by printing money and spending it like crazy? It was Tim Bishop who voted for the stimulus that accomplished nothing. Nancy Pelosi ran up the debt $5 trillion during her tenure as Speaker and Tim Bishop voted with her 97% of the time. Now he proposes meaningless legislation just to get some campaign sound bites, because attacking Big Oil is good politics. That’s why Americans hate politicians. They want their elected representatives to do things that work, not things that get the politicians another two years on the government’s payroll.

Here Mr. Bishop let’s his fig leaf slip and reveals his socialist leanings:

He noted that while continuing to enjoy the subsidy, the largest five oil producers have directed the lion’s share of their profits into dividends and stock buy-backs.

Think about the local green grocer. If he has a good year and he makes a profit, maybe he decides to put that profit into the bank. Would Tim Bishop object to that? Okay, who owns the oil companies? The stockholders. Mr. Bishop is basically saying that the people, maybe even a certain green grocer, who invested their hard earned money are not entitled to any of the profits from the oil companies they own in the form of dividends. They are not allowed to sell some of their stock back to the company in the form of a stock buyback so they can invest their money elsewhere. Perhaps some of those oil company owners are retirees who bought the oil company stocks for the dividends and because they believed the oil companies will be around for some time to come. Perhaps they don’t believe that Social Security is such a swell deal; few ponzi schemes are. Mr. Bishop takes exception to them getting a dividend increase now and then. In his twisted understanding of economics or lack thereof, the oil companies should be taxed more, its owners receive no profits, plow all profits back into exploration and development, and sell their product for less money, while he and his cohorts spend every last dollar that this country produces, to keep themselves in office, and have a claim on everything you own, except that which Mr. Bishop decides you can keep. But whatever you do, don’t call them socialists.

And that’s why Americans hate politicians.

That’s my opinion; I’d like to know yours. Please comment below.

With gas prices on the rise, Bill O’Reilly, is once again targeting his favorite whipping boy, The Speculators. Like a 1940′s whodunit, we are told of those evil greedy speculators and how we need more government intervention to reign them in. The question that is never asked nor answered is, where do the speculators go when gas prices fall? If their evil intent is to drive up prices so they can make obscene profits, why would they ever stop?

It was only about three years ago when gas prices were similarly on the rise. The O’Reilly Factor was all over the speculators and how they were greedy, selfish, and had to be stopped. But from June 2008 to December 2008 the price of a gallon of regular gasoline dropped from $3.99 to $1.66 and no mention was made about the speculators. Why? Did they disappear? No.

The speculators were still there, but this time they were driving prices down. Huh? Speculators don’t care if the price goes up or the price goes down. All they care about is that the price moves in the direction they predict it will. If speculators predict prices will rise because of supply and demand, which could be affected by growth in China or political upheaval in the Middle East, they will help push prices up. If they predict prices will fall because of a severe economic contraction, they will help push prices down. They are performing a legitimate market function by providing liquidity, they are not out to get “the folks,” as Bill likes to say. Economist Walter Williams explains it here using other commodities to take some of the emotion out of the discussion where oil is concerned:

Here’s a non-rocket science question: If you expect a reduced harvest of wheat, corn, rice or any other commodity some time in the future, what would be the wise thing to do about your consumption today? I bet that the average person would answer: Consume less now so that more will be available in the future.

But how in the world can people be encouraged to consume less now? Enter the futures market, which consists of a worldwide group of millions upon millions of traders, often called speculators. Speculators, betting on a future shortage, buy up wheat, corn and rice today in the hopes of making money selling it for a higher price when the bad harvest hits. As speculators buy more and more wheat, corn and rice, they drive up today’s prices. As today’s price gets higher, people consume less, but more importantly, people do the intelligent thing without bureaucratic edicts. The vital role of the futures trader, or speculator, is to allocate goods over different time periods. And, it’s not just wheat, corn and rice that must be allocated over time but all commodities including oil.

Okay, that may explain the speculators but some have also said there is ample supply of oil, so why are prices rising?  If it is not the speculators, who is at fault? To that I say turn your eyes toward Washington. Oil is an international commodity that is priced in U.S. dollars, because U.S. dollars are the world’s reserve currency. But what has our government been doing to the dollar? With the reckless spending and unprecedented borrowing and indebtedness, we are printing money like crazy which is driving down the value of the dollar. As the value of the dollar falls, you need more of them to buy the same amount of oil.

Gold vs Gasoline prices

As you can see from this chart, the trend in gasoline prices closely matches the trend in gold prices. At one time our dollar used to be backed by gold, so you can look at gold as value based money rather than fiat money. Fiat money is where a government issues paper and says it has a worth that the government determines. There isn’t any real commodity or thing of value behind it, it has value because the government says so. Let’s look at it a different way. Let’s say you could buy your gasoline by using gold instead of paper dollars. In 1990 it would have taking 0.003 ounces of gold to buy a gallon of gasoline. In April 2011 it would take 0.0025 ounces of gold to buy the same gallon of gasoline. So while we are starting to worry about gasoline costing nearly $4 a gallon nationwide, it is really relatively cheap on an historical basis, so watch out.

Price of a gallon of Regular gasoling in ounces of gold

Historically you can see a slight upward trend in the price of gasoline when using gold as the standard of value. It has been climbing, but not ridiculously so.

So lay off beating up on the speculators and start turning your firepower on Washington. If we don’t get our fiscal house in order and soon, we will be in very deep trouble indeed. This has to be fixed and it has to be fixed now; not in ten years, not in twenty years, NOW.

That’s my opinion; I’d like to know yours. Please comment below.

In the midst of rising gas prices, chaos in the Middle East, President Obama’s muddled energy policy (buy a new hybrid mini-van), we receive reports of a small lizard potentiall bringing oil production in Texas to a standstill. How is that? Yes, the Dunes Sagebrush Lizard is crawling toward the Endangered Species List and when that happens, evolution and the economy stops, just like it did with the Spotted Owl and the timber industry, and a little minnow turning much of the most productive farmland in the country into a dustbowl.

What the hell happened to evolution? Isn’t is supposed to be survival of the fittest? Well, sorry, Mr. Lizard it doesn’t look like your going to make the cut. How about we ship a bunch of you and your closest relatives to the nearest zoo, and let us continue being the fitter species. I thought it wasn’t nice to mess with Mother Nature, but the left seems to have no problem with it.

The left will fight to the death to save a lizard, but insist it is a constitutional right to abort the life of a human being the same size. What a twisted view of life.

That’s my opinion; I’d like to know yours. Please comment below.

The Dodd-Frank Act that in a mere 2,000 pages sought to put the control back in financial regulation skipped right over Fannie Mae and Freddie Mac the Government Sponsored Enterprises that were at the heart of the fiscal crisis and are bleeding red ink.  Focusing instead on those evil bankers on Wall Street the Dodd-Frank Act really put those guys in a box, until Goldman Sachs slipped its fetters faster than Houdini.  So who’s buried under the pile of rubble that is the latest masterpiece of our massive government, Betsy Jensen.  Who is Betsy Jensen?

Betsy Jensen is a farmer in southwest Minnesota.  She and her family grow wheat and soy beans.  She doesn’t have a mortgage, so she didn’t cause the housing bubble.  But she does use derivatives to control the risk in farm prices which can be rather volatile.  For example, a bushel of wheat went for $18.69 in February of 2008 whereas it was selling for $3.49 in July of 2010.  A farmer has to buy their seed and fertilizer at the beginning of the growing season and they don’t sell their product until the harvest.  If prices fluctuate wildly during that interval, it isn’t hard to imagine what that can do to your business, let alone your sleep patterns.

So where do derivatives come in?  Farmers like Betsy can negotiate a guaranteed price for their grain with their customers.  Betsy risks missing out on some profits if the prices go up as they have recently (45%) due to fires in the wheat producing region of Russia, but she also is protected against a price drop, for similar reasons beyond her control.  She recently negotiated a price of $7.15 per bushel and with that knowledge, she can manage her farm business and sleep a little more peacefully.  For her purchases she can also use derivatives to buy fuel and fertilizer, where the latter has seen price fluctuations of $435 to $685 per ton.  Then along come Barney Frank and Chris Dodd, a couple of career politicians who never worked in the private sector.

The Dodd-Frank Act says it is unlawful to enter into swaps (derivatives) “in excess of such amount as shall be fixed from time to time” by the Commodities Futures Trading Corporation (CFTC).  That doesn’t sound like a free market to me.  What if, in Betsy’s example, the CFTC didn’t get around to raising the amount on wheat above $5 per bushel?  Betsy couldn’t arrange to sell it for $7.15.  What if the grain elevator couldn’t turn around and sell Betsy’s wheat for the 45% increase in price due to the Russian fires?  Do you think with a cap on the upside they might not be willing to pay as much for Betsy’s wheat?

From Dodd-Frank to Bill O’Reilly we hear about the evils of speculators.  O’Reilly used to rail against the speculators when gas prices were rising toward $5 per gallon.  The evil, greedy speculators were driving up the price of gas!  But little mention was made of speculators when the price of gasoline fell back down?  Did the speculators retire?  Go on vacation?  The reality is that speculators don’t care if the price goes up or down, they only care it moves in the same direction on which they are betting.  They can drive the price down just as fast as they can drive it up.  But they are useful, not evil.

Speculators bring liquidity, that is, money to the market.  Betsy Jensen estimates that about one-third of the purchasers of wheat contracts are traders who never take physical control of the product.  But by adding their view and their money to the market they keep prices from fluctuating wildly.  If these traders are banned then, as she put it, one-third of her customers would disappear.  With one-third fewer customers the price swings will increase rather than decrease.  Remember, a trader who does not take delivery of the wheat can make money on small swings in the price and is likely to get in or get out on smaller moves and thus change the market price accordingly.  If only those who take physical possession of the product are in the market, then other factors such as transport, storage, spoilage, must be factored into each transaction and the price swings will be wider and wilder.

But Betsy said it best, “I may not be able to manage Mother Nature, but I can manage my risk with derivatives.”  If only our government would get out of her way and let her do so.

He looked nervous.  He curled up the corners of his two hole cards, aces.  He eased them back down on the table and scanned the other players.  Nancy Pelosi had a stack of chips totaling $25 billion and he wanted all of them.  No, he needed all of them.  Desperately.  The other three, all Japanese, sat expressionless behind their dark glasses.  At every hand all they said was “Call”.   No raise.  No drama.  Very cool.  Very dangerous.

He looks again at the four cards on the table.  Nothing to help him there.  He needs another ace. He needs the ace he calls the Volt. Pelosi turns to him. “So, what’s your plan?”  He swallows hard, trying hard not to show it and says, “All in,” and pushes his remaining chips into the center of the table.  The dealer burns another card and then peels off the “river.” And we’ll be right back for the final outcome of tonight’s game.

GM on the Precipice

That must be how Rick Wagoner feels.  It seems he’s betting everything on the Chevy Volt. If he draws that ace, he’s a hero.  If not, he’s history.  So what are his chances?

If that’s all he’s got, they’re pretty long odds.  The Volt is not due to hit the showroom floor until 2010, and at a whopping $40,000 per copy.  Not a bad price for a Cadillac, but for an untested electric car with a 40 mile range?  That’s a tough sell.  Even at that, the $40,000 might not be profitable, just break even.  But, there will be a tax credit of $7,500 to help take the sting out of it.

Without Bankruptcy

Without a major revamping of their cost structure that can probably only be achieved through the bankruptcy courts, GM is still carrying $2,000 per vehicle in labor costs that its competition doesn’t have.  And what about those three players to his right in the dark glasses, do you think they are standing pat?  Although very low key, it is reported that Toyota, Nissan and Mitsubishi are all planning to introduce electric cars in the same time frame.  If they do that and they also have the $2,000 per vehicle edge, it will be very bad for GM and any bailout will go down the drain.

The other factor is the way the Japanese do strategic planning.  They typically do not look to just the next quarter.  They are known for developing 50 and 100 year plans.  That is not a typo.  So if they introduce a vehicle they will do it for the long haul.  Believe it or not the Toyota Prius has been on the market for seven years already.  The Japanese are not afraid to introduce a pretty good model and then continuously improve it and if they believe the direction is right, they are willing to wait for the results.  The Big Three, on the other hand tend to have a shorter planning horizon.  Witness Ford’s announcement that it intended to build 250,000 hybrids and then did a market survey when gasoline was about $2.30 per gallon, and decided that they should not go forward.  When gas prices took off they were caught flatfooted while Toyota was selling Priuses at a premium and they couldn’t make them fast enough.

New Administration, New Congress, New Energy Policy

Then there is the energy issue.  Putting more and more electric cars on the road is a good idea and a way toward energy independence.  However, the new administration and the incoming Democratic Congress want to kill the coal industry.  Coal currently generates 49% of our country’s electricity and when it comes to coal reserves, the U.S. is to coal what Saudi Arabia is to oil.  But the new incoming chairman of the House Energy committee, Henry Waxman of Beverly Hills, California, is more determined than ever to implement a green agenda and kill coal.

So what do you replace the coal with?  Oil? Gas? Nuclear?  On the campaign trail, I heard Barack Obama and Joe Biden mumble some things about nuclear being okay, but it was hardly a ringing endorsement.  Do they think for a minute that wind or solar are anywhere near replacing coal?  So, they actually plan to reduce our electric generating capacity by 49% and then not only replace it but grow it to be able to handle all these electric cars.  Where’s that plan?

If you don’t have enough electricity, you can’t charge up your electric cars.  If good old supply and demand does its usual thing, the price of electricity should skyrocket and I can tell you first hand that in New York, it’s not cheap right now.  If electricity skyrockets, whatever manufacturing is left in New York and other rust belt areas will be pulling up stakes left and right and heading south.  If that population follows the jobs, does that mean more votes for the red states and a shift in Congressional seats as well?

The Democrats better re-think that plan if they want to stay in power.

I got the phone call around 7:30AM.  It was my wife and her voice was shaking, choking back tears.  She said she was in an accident and that the truck was totaled. Totaled? I thought to myself, my God, what kind of accident could have totaled a 2 ½ ton, hulking Ford Excursion SUV?  Before I could ask the next question, the one I didn’t want to ask, she said, “The girls and I are alright, just some cuts and bruises.” I was able to start breathing again.  She began to apologize for the SUV and I gently cut her off.  “I don’t care about the truck, as long as you and the girls are okay.”  The girls were my two daughters.

I got the location of the accident, briefly told the lead guy in my shop the situation, light on the details which I didn’t have anyway, and jumped in my truck to find them.  As I approached the accident scene, I saw an ambulance, with siren blaring and lights flashing, going the opposite way.  I called my wife’s cell phone and when I got her I asked, “Did you just pass me in the ambulance?”  She said, “Yes, we’re headed to the hospital to be checked out.”  So I made a U-Turn to go meet them in the emergency room.

The Accident

What had happened was that my wife was crossing an intersection when another car blew through the red light.  According to one witness it looked like he was going 60 mph, according to another it looked like he was going 100 mph.  They said the nearly 19′ long, 2 ½ ton vehicle with a massive V-10 engine that my wife was driving was lifted up in the air, turned 180 degrees and landed on its side.  My wife had to kick out the windshield to crawl out and guide our daughters out behind her to safety.  Thankfully it didn’t catch fire.

Why the other driver was driving the way he was we never found out.  He was pronounced dead at the scene. He was driving a Kia, a small Korean import, and before impact, I’m sure he was getting great gas mileage.  He went from leaving a small carbon footprint to leaving no footprints at all.

My wife was exonerated from any responsibility for the accident.  She and my daughters were completely innocent.  Had Ford been required only to build highly fuel efficient econoboxes, half my family would have been killed that morning.  In fact, the driver who was behind my wife said that if she had not been there, he was sure he would be dead, as it would have been him that was hit by the speeding car in her place.

Freedom to Choose

They are alive because I have the liberty, so far, to buy any vehicle that I choose and can afford.  The choices are many and I have made many choices through my life.  That is primarily because the government has not yet taken away that liberty and demanded what types of vehicles can be built and by whom.

My first car was a Toyota Celica, which I purchased just after graduating from college.  It was well made, well equipped, and although a little expensive at $4,700 brand new, I thought it was worth it.  That car served me well for 105,000 miles. When it was time for a replacement I bought a Plymouth Sapporo and I really liked it. Unfortunately, someone liked it as much and it was stolen when it had just 9,000 miles on it. It was a Chrysler Corporation car, but under the hood it was Japanese.  Still living in the Bronx, I decided to buy something functional but not too attractive.  I remember my friend’s rationale for buying a Subaru while living in the city.  None of the parts fit in a gypsy cab. My next vehicle was a Toyota Corolla.

Cars for a Growing Family

When my wife and I married in 1986 she brought to the marriage her Ford Mustang.  My Corolla was starting to get tired and my wife was pregnant, so it was time to get a new vehicle.  I bought a Ford Probe, with front wheel drive and turbocharged.  It was hard to decide if it was American or Japanese.  It was sold by Ford, built in the United States by Mazda which is a Japanese company, but Ford owned 25% of Mazda at the time.  It made for interesting conversation, but not worth losing any sleep over.

After our second child, the Probe and the Mustang were getting a little cramped.  So we said goodbye to the Mustang and hello to a Volvo 740 Turbo Wagon.  This was my wife’s dream car, owing somewhat to her Swedish heritage.

Things were going well for us and it was time to replace the Probe.  I leased a BMW M Roadster and had more fun behind the wheel of a car than I can remember before or since.  We both thoroughly enjoyed tooling down the road with the top down, turning heads as we went.  Life was good.

My wife and I had two more children and as they grew, the jump seat in the back of the Volvo was less than optimal.  In the winter the heat never seemed to reach back there and in the summer the kids in the back felt like a couple of tomato plants in a hothouse.  So it was time for our next vehicle, which for the first time I bought completely on the Internet.  It was a Ford Expedition.  I had seating for eight and room for some cargo as well, and heat and air conditioning all the way to the back.  The kids could each sit comfortably without bumping into each other and to reach out and smack someone next to them took some effort.  That vehicle served us well for a couple of years and then as they grew, our needs grew and when it was time for the next move, we got the Excursion, bigger, they didn’t come.

Meanwhile things became a little more challenging for us.  When the BMW’s lease was up, back it went.  I took over the Volvo for a while until I started a new construction related business and then I took over my father-in-law’s Chevy pick-up truck which he left for my son when he passed away.  After a year when the business got more established I put the Chevy aside for my son and the company bought a Ford F-350 Super Duty, dual wheel pickup truck with a diesel engine, which I still drive.

The Nest Starts to Empty

Then came the accident.  As soon as we got the insurance money for our totaled vehicle we immediately went out and bought another Excursion, with safety the foremost reason.  Ford wasn’t making them anymore so we bought a used one.  I wanted my family protected.

When my son moved out freeing up a seat on the “bus” and my wife started selling real estate and gas prices started to climb, we reevaluated the Excursion.  The Volvo was gone, and at twelve mpg and my wife driving a lot more, it didn’t make sense.  With five of us at home, at worst we could all fit into the pickup truck with its crew cab.  So she bought a Volkswagon EOS.  The savings on gas would make up for any differences in payments on it.  She now had her own convertible and was very happy.

About six months later, my older daughter got her license and wanted a car.  She didn’t have much money for purchasing it or for gas so she needed something economical.  Her choice, a Volkswagon Jetta.

Individual Liberty or Government Diktat

What’s the point of this stroll down vehicular memory lane?  To demonstrate that with liberty we have a great many choices.  We also have different needs at different times in our lives.  Through a free market I was able to select from a number of vehicles from different manufacturers, from different countries, to find what fit our needs.  Those companies decided what to build to suit the market.  The cars that I eventually chose, though not done conscientiously at the time, were from each of those manufacturer’s strengths, not their weaknesses.  I did not choose an economical car, when I needed one, from one of the Big Three.  We did however, choose some of their sporty models (Mustang, Probe) and their trucks (Excursion, Expedition, F-350, Silverado).

The market should tell them what cars to build and build at a profit.  Government should not require them to build six or eight cars that they have to sell at a loss for each vehicle they can sell at a profit, to meet some government mandate such as CAFE standards. As the market causes fuel prices to rise, the market will react with increased demand for more fuel efficient cars.  We should be able to choose when that works best for us.  If we have a distance to commute, we will more inclined to factor fuel efficiency into the equation.  However, if we want to travel in luxury two miles to our favorite restaurant, who cares if the car that gets us there only gets 8 mpg?  Many families have more than one car for that very reason.  Who is some government bureaucrat to tell us what we can choose among?

This Thanksgiving I can sit down with my family, and be thankful that I had that choice, and I can hug each one of them and pray it stays that way.