Yesterday’s communiqué from the leaders of the G20 – a motley collection of democracies and dictatorships – has some good points, but in general it represents a new version of what economist Friedrich Hayek called “the fatal conceit.” It believes that government has all the answers, and demonstrates that the world’s leading governments recognize few boundaries. As such, not only does the communiqué promise far more than it can deliver – something the voters in G20 democracies should remember – but…

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The automakers have come back for more taxpayer money, which is exactly what we warned would happen when the first bailout was granted last year. The restructuring plans merely represent an attempt to acheive the results of bankruptcy, with the taxpayer picking up the costs. What is needed is not more taxpayer money, but a way to make US automakers competitive again. As I said in my recent Detroit News piece, we can do that through a simple, cost-free, program that will…

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The Bush administration’s outline of its automaker bailout package lists some seemingly sensible changes in labor practices that GM and Chrysler need to make. (Ford, to its credit, is seeking private financing instead.)

Targets: The terms and conditions established by Treasury will include additional targets that were the subject of Congressional negotiations but did not come to a vote, including:

Reduce debts by 2/3 via a debt for equity exchange.
Make one-half of VEBA payments in the form of stock.
Eliminate the jobs…

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