Wednesday, October 5, 2011

I Support Bank of America

Another great blast by John Hinderaker at Powerline (bold emphasis mine)

"Obama’s ignorance of economics is impressive in its comprehensiveness. We need a Consumer Finance Protection Bureau to 'prevent this kind of stuff from happening.' What kind of stuff? Banks charging money for their services, like everyone else does? Banks 'don’t have some inherent right just to get a certain amount of profit.' Of course not. It is only government that is entitled to your money, regardless of how well or poorly government serves you. But banks certainly do have an inherent right to charge prices that are set by them, not by a government agency, as long as those prices are not collusive.

2012 can’t come soon enough."

Indeed it can't. Again, I fear government far more than I fear banks and the private sector. Government has a monopoly on power. Bank of America has to operate within the rule of law and compete for my business. Obama et al, get my money regardless of competition. Who's more dangerous?? Again, this is another classic example of Democrats and other garden variety class warriors and private sector haters being unable to understand dynamic analysis. Just like with Obama's 2008 promises to raise taxes on oil companies and other villains, these people seem unable to comprehend some basic truths.

First, no matter how much it bothers you people on the Left, business go into business for the bottom line. Not for the community. Not to create jobs. Not to provide a service. I don't care how many commercials you see with an insurance agent in a bathrobe and slippers handing a a teddy bear and a check to a downtrodden family whose house was blown into a lake yada yada... at the end of the day, companies of all sizes are in business to make money. You eat into their bottom line, they're going find ways to compensate for your intrusion. You can hate that all you want, its just the way it is.

Second, given this truth, when you raise their taxes, they're going to change their behavior to protect their bottom line. Its not immoral. Not evil. Not wrong. You can bitch all you want about this being unjust - at the end of the day, remember, they're in business to make money.

Now, of course, the beauty of that is, in their quest to make money (that means "get rich" for those of you who attended the University of Miami), they provide services and jobs that benefit the community. But pretending like they're not in business to profit and that if you raise taxes and increase regulation that they're just going to say "oh well, it was fun while it lasted" and grab their ankles and hand you more money.... its dangerous stupidity.