“GM sees China as a road to profit,” reports the Washington Post today. “GM last year sold more cars in China than in the United States,” ranging from “high-end Buicks” to “low-end Chevrolets.” It’s good that GM is expanding its markets overseas, because its current share of the U.S. auto market may not last.
Even GM’s own shareholders seem to recognize that, and the fact that its recent profits may only be temporary. As Mickey Kaus noted recently in the Daily Caller, General Motors’ “sales and prices are up recently in part only because competing Japanese car suppliers have been crippled by the earthquake and tsunami. GM’s stock fell today and is still below the initial IPO price” (that is, below the price of the stock when it was sold to shareholders by the U.S. government).
Before that, GM’s finances were temporarily buoyed by bad PR regarding Toyota’s alleged safety defects in its cars, which turned out to be largely bogus. (The Toyota crashes turned out to have been caused by driver error, not manufacturing defects).
These setbacks for Toyota temporarily drove buyers away from Toyota to GM, artificially propping up GM’s profitability. But devastating earthquakes like the one that hit Japan occur there only once or twice a century, and can’t keep GM profitable in the long-run.
[click to continue…]
Tragedy struck Japan this morning. It will be some time before we know just how many lives the tsunami took, and how much damage was done. But pundits are already saying dumb things.
Larry Summers, who should know better, committed the economists’ cardinal sin this morning: he fell for the broken window fallacy. The sunny side of the destruction is that it will boost the economy. Just think of all the jobs that will be created by the rebuilding process!
Over at the Daily Caller, I gently correct Summers. Natural disasters are bad for the economy. All the rebuilding activity in the next few years will only get Japan back to where it was. If the tsunami had never happened, all that energy could be put to creating new wealth. Disasters are just that: disasters.
Do green energy and green jobs mandates run counter to World Trade Organization rules? Japan says “yes” in relation to Canada’s program for renewable energy generation and green jobs in Ontario. Japan is complaining to the WTO that Canadian measures that mandate domestic content requirements for renewable energy generation equipment are inconsistent with WTO rules because they discriminate against equipment produced outside of Ontario and also represent a subsidy prohibited by the WTO. The country has asked the WTO for a formal consultation with Canada on the issues it raises in its September 13, 2010 filing. Consultations are often the first step in trying to resolve an issue before a country opens an official case with the WTO’s dispute settlement body.
Primarily Japan’s complaint hits Canada’s domestic content requirements in its “feed-in tariff” (FIT) program for Ontario, which requires that the renewable energy equipment, such as solar panels, wind turbines, biomass, and waterpower generation equipment, be produced in Ontario in whole or in part. (Feed-in tariffs are renewable energy payments that electric grid utilities obligate themselves to pay to purchase electricity generated from renewable sources.) Under the program guaranteed prices for renewable energy electricity production are provided through long-term contracts.
According to a provincial government backgrounder on FIT, the domestic content requirements are intended to support “new green jobs in Ontario”:
Domestic content requirements for both FIT and microFIT projects are intended to help support the creation of 50,000 new green jobs in Ontario. MicroFIT projects will help create new local businesses and green jobs as demand grows for technologies such as solar panels, wind turbines, biomass and waterpower generation equipment, and for Ontarians who can design, build, install, operate and maintain these technologies.
And the domestic content requirements can be very specific (and somewhat ridiculous). Here, for instance, is the one for silicon ingots and wafers:
Silicon ingots and wafer, where silicon ingots have been cast in Ontario, and wafers have been cut from the castings by a saw in Ontario.
From my quick review of the Canadian program, Japan seems to have a real cause for its complaint. Other countries looking to follow Canada’s example for green jobs creation should be wary about including their own protectionist measures.
H/T/ Julie Walsh
Japan’s Environment Ministry is encouraging its citizens to go to bed an hour earlier at night, and get up an hour earlier in the morning.
There is much wisdom in the old “early to bed, early to rise” adage. But that’s not what the Environment Ministry has in mind. They see going to bed early as a way to fight global warming.
By saving an hour’s worth of lighting and other electricity use every day, the Morning Challenge campaign says the average household can emit 85 fewer kilograms of carbon per year. Staying up late ensures mankind’s doom.
It is astounding that the Japanese regulators think that your bedtime is government business. Then again, this is the same country that has a legally allowable maximum waistline.
In Japan, it is illegal for men to have a waist larger than 33.5 inches. The limit for women is 35.4 inches. Those in violation are forced to undergo counseling (Hat tip to CEI colleague Megan McLaughlin).
The law, passed last year, is part of an effort to keep obesity rates low and avoid related health problems.
One problem with using wasitlines as the primary metric is that results can vary among measurers. According to one article, “Satoru Yamada, a doctor at Kitasato Institute Hospital in Tokyo, published a study two years ago in which several doctors measured the waist of the same person. Their results varied by as much as 7.8 centimeters.”
That’s almost ten percent of the average waistline. It is sad that Japanese regulators have a strong enough nanny-state streak to legislate allowable physical dimensions. But the lack of precision in enforcing their edict must be maddening for the people involved.
RSS Updates 
RSS E-Mail Updates 
Twitter 
Facebook 
CEI.org 
WorkPlaceChoice.org 
GlobalWarming.org 
CEI On Demand Video 
Liberty Week Podcast 