ThinkProgress Logo

Economy

Romney And Perry Speak In Michigan, Epicenter Of The Auto Industry They Wanted To Let Fail

Both Texas Gov. Rick Perry (R) and former Massachusetts Gov. Mitt Romney (R) will speak before the Mackinac Republican Leadership Conference in Michigan today. Michigan, of course, is the epicenter of the United States automobile industry, which was rescued by the Obama administration.

At the time, both Perry and Romney opposed rescuing the American auto industry, preferring to watch iconic American companies topple into an uncontrolled bankruptcy, not only destroying themselves, but all of the supplier and contractors that depend on them. In a November 2008 op-ed titled “Let Detroit Go Bankrupt,” Romney wrote:

If General Motors, Ford and Chrysler get the bailout that their chief executives asked for yesterday, you can kiss the American automotive industry goodbye. It won’t go overnight, but its demise will be virtually guaranteed.

Not to be left out, Perry co-authored an op-ed in December 2008 opposing the auto rescue:

Recent government intervention is doing the opposite — taking capital generated from productive activities and throwing it at enterprises that in many cases need to reorganize their business model.

Take for example the proposed Big Three auto-maker bailout. We think it’s very telling that each of the three CEO’s flew on their own private jets to Washington to ask for a taxpayer handout. No amount of taxpayer largess could fix a business culture so fundamentally flawed.

The two Republican frontrunners would have seen the auto industry collapse, taking tens of thousands of jobs with it. Maybe that’s why Romney has since tried to scramble and claim that, when it came to saving the auto industry, he “had the idea first.”

Yglesias

Unit Labor Costs Around The World

This measure is in some ways a better gauge of inflation than looking at consumer prices. You compare productivity growth to wage growth, and get an increase in “unit labor costs.”

I think the correct interpretation of this as applied to the natural resource exporters is that you dig up the easiest to dig stuff first, and so you suffer from diminishing marginal returns and falling productivity over time absent some awesome technological advances. At the moment, we’re not seeing any technological advances in the resource-extraction field that are awesome enough to make up for the diminishing returns.

Here in the good old USA, you see something of a paradox. Wages have generally lagged productivity for a long time in the United States. But right now amidst plummeting household wealth and massive unemployment, wages for the people who are employed are holding up relatively well.

Climate Progress

We’re Poisoning the Oceans and It Threatens Our Food

by Sheril Kirshenbaum, in a Science Progress cross-post

Marine chemist Richard Feely, a senior scientist with the National Oceanic and Atmosphere Administration, has been collecting water samples in the North Pacific for over 30 years. He’s observed a decrease in pH at the upper part of the water column, notably the region where carbon dioxide from automobile exhaust, coal-fired power plants, and other human activities has collected. This surface water is now acidic enough to dissolve the shells of some marine animals such as corals, plankton, and mollusks in laboratory experiments. Feely’s findings are just one sign of a troubling global phenomenon called ocean acidification.

Read more

Newer

Switch to Mobile
ThinkProgress Signup Overlay Skip and Continue to ThinkProgress Skip and Continue to ThinkProgress

Sign Up