David Foster

More Micromanagement

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Investors Business Daily (6/15) has an item on proposed legislation which would force the reduction of the interchange/discount fees which are charged by credit card companies to retailers. The legislation would “let merchants collectively negotiate take-it-or-leave-it fees with issuers”–something that would surely be a violation of the antitrust laws if not specifically enabled by legislation.

The proposal would be harmful to banks which are MasterCard and Visa issuers, but would be particularly harmful to American Express because of the way in which its business is structured. (Disclosure: I’m both an Amex shareholder and an Amex bondholder, although these positions do not represent a very substantial portion of my overall portfolio.)

What this legislation will do, if passed, is to transfer wealth/income from the investors, executives, and employees of American Express to the investors, executives, and employees of retail companies. If passed, if would reinforce again the growing impression that the most important single factor in the success or failure of an American business lies in the strength of its relationship with the politicians.

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Ruler of the Auto Industree

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A little song in honor of Brian Deese, Obama’s point man on auto industry restructuring issues and especially General Motors…with apologies to Gilbert & Sullivan.

When I was a lad, I was smart you see
So I went to Yale to get a law degree
I studied hard and I impressed some profs
But I thought I could do better so I blew it off

(he thought he could do better so he blew it off)

I quit and went to work for Hillary’s campaign
And they were really quite impressed with my most excellent brain
When Clinton dropped out Obama wanted me
And now I rule the U.S. auto industree

(when Clinton dropped out Obama wanted he
That’s why he rules the U.S. auto industree)

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Educating Obama

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Thomas Sowell has been re-reading the works of Edmund Burke, and finds the words of this philosopher to be very relevant to our current era.

I wonder if Obama, during his much-heralded passage through the university system, ever found time to read Burke and other writers (Hayek, for example) who are outside of the “progressive” worldview?

(via Common Sense & Wonder)

And Victor Davis Hanson suggests that Obama might have a little more depth in his understanding of the world had he ever owned a small farm with a difficult neighbor.

Dresden, “Dresden,” and Obama’s Visit

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Dresden, once known as “Florence on the Elbe” because of its beauty and culture, is now best known for its destruction by British and American bombers in February of 1945. “Dresden” is the name of a haunting movie, originally made for German television, about a love affair in the doomed city.

Dresden is of course also the German city that Barack Obama intends to visit–for reasons best known to himself–during his current trip to Europe. It seems like this would be an appropriate time to review the film (which I watched a couple of months ago via Netflix) and to use it as a springboard for discussion of the Dresden bombing and of the WWII strategic bombing campaign in general.

Here’s a brief synopsis of the film. I’ve tried to minimize the spoilers, but some are inevitable.

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Worthwhile Reading

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Here are some items I thought might be of interest to Chicago Boyz and Chicago Grrlz and Readerz.

Megan McCardle on the moral infrastructure of capitalism.

via the Assistant Village Idiot, who adds thoughts of his own.

The seen and the unseen–an important article on political decision-making, written by a law school professor and drawing on the work of Frederic Bastiat. Highly relevant to the discussion over Obama’s Supreme Court nominee.

via Betsy

A long and well-written comment on my post the age of blather by kathteach. I am (sadly) willing to believe her when she says that few students now learn the art of reading carefully and analytically: however, I remain unconvinced that jargon such as “self-to-self connections” really helps in addressing the problem. Anyhow, the comment (at the end of the thread, at least at the moment) deserves to be read.

Bill Waddell has a baseball analogy for the way in which certain F500 manufacturing companies are run. But after reading about the backround of Obama’s point man on General Motors, I’ve been racking my brains trying to extend the analogy. Maybe someone who was selected as manager of a baseball team after impressing the owner while working on his (the owner’s) campaign for the city council?

Or maybe another analogy entirely.

Now, Brian Deese is probably–unlike the political appointees mocked by Gilbert & Sullivan in the above song–a very bright guy. He may even be a briliant guy. But I venture to say he would never have been selected for this job if his career path had actually been centered around working for companies that actually make things and sell them. Nor, of course, if he had the precise background and skills that he does have but had been working for the losing campaign.