Horror Stories are the Tip of the Rationed Care Iceberg

Americans have been discussing concerns about rationed (or government driven) health care for years. In the early 1990s, when Bill Clinton pursued such a program, we heard daily about the problems of long lines and lack of doctors that were common in government programs. Now we are hearing stories about the much lower success rates in countries with government care when it comes to combating major diseases. This goes against one of the fundamental reasons people argue for government care -- without fear of cost, people will go to the doctor quicker, get diagnosed earlier (or better still do the things that will prevent disease), and live longer and healthier lives. The facts are not supporting this hypothesis:

• The average time frame between a general practitioner and treatment in Canada's socialized health care program is more than 4 months (17.3 weeks) according to the Frazier Institute.


• 20% of curable lung cancer patients in the UK die due to long waiting lists, according to the Manhattan Institute. This is also the case in other conditions as I can speak from my own personal circumstances in which I lost my grandfather and an aunt due to Britain's famous lines.


• According to Investors Business Daily: "In France, the supply of doctors is so limited that during an August 2003 heat wave — when many doctors were on vacation and hospitals were stretched beyond capacity — 15,000 elderly citizens died."


• According to Forbes Magazine, the prostate cancer survival rate in the US is 80 percent, in the UK it is 44 percent.

These areas are huge in and of themselves, but the bigger issue is the impact rationed care will have on the development of new drugs, technology, and other innovations in health care. The poor quality of service seen in socialized systems cited above are largely would be even worse if not for the innovations created by the US system. Imagine how much more difficult quality care will be to achieve when all but the most altruistic incentives for improvements disappear. The profit driven health care system of the US drives innovation.

The Federal Reserve Bank did an evaluation of the ten leading innovations of 2001. These included improvements and discoveries in several areas, such as changess in MRIs, development of drugs for high blood pressure and heart disease, cholesterol reducing drugs, innovations in breast cancer diagnosis, surgery for heart failure, eye surgery, and more. In the ten different major areas of discovery, the United States dominated the list with its involvement in eight. The only other countries that played a role were the United Kingdom and Japan, each having only two innovations each.

Self interest has always driven innovation. The US has stood alone as a country that has made such a primary driver in changes in health care. It makes sense to wonder what the effects of worldwide health care socialism has already had on health care. Imagine what it will be like when the last bastion of innovation, the United States, loses the profit motive that has made this country the leader in health care discoveries for decades.

Kevin Price is Host of the Price of Business, the longest running show on AM 650 (M-F at 11 am) in Houston, Texas and on AOL Radio. His articles often appear in Chicago Sun Times, Reuters, USA Today, and other national media. Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com. You can also find Price on Strategy Room at FoxNews.com.

It is time for Economic Triage

You know medical triage, the idea of a procedure used in emergency rooms to determine who gets treated first. When Barack Obama was running for President and, shortly after he was elected, we were daily lectured about the urgency of the situation facing our economy.

What we have seen is a massive subsidy primarily benefitting the richest corporations in America passed first by Bush in the fall of last year and part 2 (arguably worse) in January of 2009. It was interesting that the very liberal and very conservative Members of Congress voted against this legislation. The left clearly saw the corporate welfare involved and the right saw both that and the obvious disregard of the Constitution. We were told that action was needed "now!" If not, we were looking at unemployment of around 8.5 percent in 2009. We have that unemployment rate and more with "stimulus" and the situation is getting worse.

There are several serious challenges facing Americans today:

• The largest unemployment rate in recent history. Forget about the 9.5 percent touted by the Obama Administration, economists on both the right and left say it is more, much more. Bill Clinton's former Secretary of Labor and a huge fan of Obama, Robert Reich, says the actual uemployment is closer to 15 percent.


• Excessive taxation of the job creators. The vast majority of jobs comes from people who make $250,000 a year or more, yet this group is being singled out to pay more taxes as a form of economic genocide. It has never been easier to move capital and with US tax rates the second highest among industrial countries in the world, you can expect a flight of capital and jobs that comes with such.


• Hyperinflation. On one day, the federal government pumped $1.4 trillion in the money supply in order to pay some of its recent bills and to "jump start" the economy. This type of policy leads to hyperinflation as too much money chases too few goods.

Obama should approach our situation with these realities in mind, and as a doctor in triage, he should be driven by the mandate to "do no harm."

• Eliminate barriers between people and jobs. This isn't through temporary government jobs that will run out with the subsidies, but through real jobs that create revenue for them to grow in number and in quality. The federal government should mandate the states to have a minimum wage law in each state of the union and allow them to set them based on the needs of the people and the cities. This would not cost the federal government a penny, but would spur economic activity immediately.


• Eliminate taxes on corporations because they do not pay taxes, they are tax collectors. Taxes are a fixed cost for doing business, plain and simple. If taxes are too high, businesses have no choice, but move to places where the rate is less so they can lower prices and be competitive. This would have a profound impact on high quality job creation. This policy would also encourage an increase in productivity and soften the blow of inflation.


• They should end taxes on wealth creation and replace income tax with a sales tax. This would eliminate the economic genocide against job creators and would more fairly spread the financial burden of government on all economic groups.

Our situation is dire, the answers to our problems are in the market place and not in the halls of government. These kind of actions would encourage problem solving where it belongs -- in the hands of the people.

Kevin Price is Host of the Price of Business, the longest running show on AM 650 (M-F at 11 am) in Houston, Texas and on AOL Radio. His articles often appear in Chicago Sun Times, Reuters, USA Today, and other national media. Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com. You can also find Price on Strategy Room at FoxNews.com.

Herb Allison: The Man of TARP

The first in an series of articles on Barack Obma's Czars.

Upon being elected President -- and during his State of the Union Address -- Barack Obama made it clear that his priorities were "reforming" health care, expanding education, and changing the way people get their energy. These three areas also reflect the earliest appointments Obama made of "Czars." Little did we know, it was only the beginning. The President has since gone on to make 28 such choices covering an equal number of areas, and there appears to be no end in sight of how many more he might have.

Presidents have appointed Czars for years. They are controversial because they do things, in terms of developing policy, without direct Congressional scrutiny. Historically, Czars were separate from the department that covers the same policy issues. This is not the case in the Obama Administration, who has three Czars who are also serve under other cabinet members. One of those is Herb Allison, who is the Assistant Secretary of the Treasury for Financial Stability or affectionately called the "TARP Czar."

Allison was appointed in April and was just confirmed this month to oversee the bailout program. Born in 1946, Allison graduated from Yale University with a degree in philosophy and went on to get a MBA from Stanford after serving four years in the Navy.

Highlights of his career include:

• Allison started his professional career in 1971 in the investment industry at Merrill Lynch in New York and worked his way up to COO in 1997.


• In mid-1999 Allison left to become National Finance Chairman of the McCain for President campaign. In spite of this, Allison has long hedged his political bets, with the Federal Elections Commission showing contributions to both Democrats and Republicans.


• Next, Mr. Allison became President and Chief Executive Officer of the Alliance for Lifelong Learning, Inc. from 2000 to 2002, a joint venture of Oxford, Stanford and Yale Universities, offering online, college-level courses to adults.


• In addition, Allison has been a director of Time Warner, on the Advisory Board of the Yale School of Management, on the Advisory Council of the Stanford Graduate School of Business, and the Federal Reserve Bank of New York's International Advisory Committee.


• He was a director of the New York Stock Exchange from 2003-2005. Recently, Allison also chaired the Business-Higher Education Forum and the Vietnam Education Foundation and served on the Business Roundtable, and the Financial Services Roundtable. Furthermore, he served on the Board of Directors of The Conference Board, the Board of Trustees of The Economic Club of New York, the New York State Commission to Modernize the Regulation of Financial Services, the New York State Commission on Education Reform, and the Council of Graduate Schools Advisory Committee.


• Former CEO of Fannie Mae during the financial crises of September 2009, until he was approved by the Senate for his new position.

The accountability issues surrounding the duties of a position such as this are vast, ranging to measures on how well TARP is working to questions on how the dollars are being spent. There are also the many constitutional issues that have largely been ignored when it comes to the spending of these dollars. In the end, this position demands Congressional scrutiny, the Administration believes it should be hiding in the White House. Is it any wonder why many are concerned about the rise of the Czars?

Kevin Price is Host of the Price of Business, the longest running show on AM 650 (M-F at 11 am) in Houston, Texas and on AOL Radio. His articles often appear in Chicago Sun Times, Reuters, USA Today, and other national media. Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com. You can also find Price on Strategy Room at FoxNews.com.

Meet Obama's Czars

Barack Obama has pursued a radical change in the way our nation is governed in virtually every area. These changes have not only been in the area of policy -- such as the increase in the government's role on business, the pursuit of socialized medicine, and the restoration of the welfare state -- but in the way politics and governing are conducted. This includes the stated objective of moving the Census Bureau from the Commerce Department to the White House and the dramatic increase in what are called "Czars."

Czars are nothing new and have been seen by many Presidents over several decades. These individuals could be described as "super administrators" who work directly with the President and, in many previous Administrations, dictate policy to the various Departments. What is unique about the Obama's Czars is the number of them: 28. More than all previous Administrations combined and more than all the Czars of the Romanov family that covered a span of 300 years (18 over 3 centuries). The biggest concern is the lack of Congressional accountability that these Czars have.

One of President Barack Obama's most natural supporters, Sen. Robert Byrd (D-WV) has been one of the most critical when it comes to the issue of Czars, sending a press release back in February about writing to President Barack Obama expressing his concerns over the increasing appointments of White House 'Czars,' and the relationship between these new White House positions and their executive branch counterparts, noting that 'too often, I have seen these lines of authority and responsibility become tangled and blurred, sometimes purposely, to shield information and to obscure the decision-making process."

It appears that Obama is trying to get as much accomplished as fast as possible, with as little Congressional oversight as possible, and this is reflected in the large number of Czars he has chosen.

• Herb Allison - TARP Czar (Assistant Secretary of the Treasury for Financial Stability)



• Alan Bersin - Border Czar (Assistant Secretary for International Affairs and Special Representative for Border Affairs)



• Dennis Blair - Intelligence Czar (Director of National Intelligence)



• John Brennan - Terrorism Czar (Deputy National Security Adviser for Homeland Security)



• Carol Browner - Energy Czar (Assistant to the President for Energy and Climate Change)



• Adolfo Carrion, Jr - Urban Affairs Czar (Director of the White House Office of Urban Affairs)



• Ashton Carter - Weapons Czar (Under Secretary of Defense for Acquisition, Technology, and Logistics)



• Aneesh Chopra - Technology Czar (Chief Technology Officer)



• Jeffrey Crowley - AIDS Czar (Director of the Office of National AIDS Policy)



• Cameron Davis - Great Lakes Czar (Special advisor to the U.S. EPA overseeing its Great Lakes restoration plan)



• Nancy-Ann DeParle - Health Czar (Director of the White House Office of Health Reform)



• Earl Devaney -Stimulus Accountability Czar (Chair of the Recovery Act Transparency and Accountability Board)



• Joshua DuBois - Faith-based Czar (Director of the Office of Faith Based and Neighborhood Partnerships)



• Kenneth Feinberg - Pay Czar (Special Master on executive pay)



• Danny Fried Guantanamo Closure Czar Special envoy to oversee the closure of the detention center at Guantanamo Bay



• J. Scott Gration - Sudan Czar (Special Envoy to Sudan)



• Richard Holbrooke - Afghanistan Czar (Special Representative for Afghanistan and Pakistan)



• John Holdren - Science Czar (Assistant to the President for Science and Technology, Director of the White House Office of Science and Technology Policy, and Co-Chair of the President’s Council of Advisers on Science and Technology)



• Van Jones - Green Jobs Czar (Special Adviser for Green Jobs, Enterprise and Innovation at the White House Council on Environmental Quality)



• Gil Kerlikowske - Drug Czar (Director of the Office of National Drug Control Policy)



• Vivek Kundra - Information Czar (Federal Chief Information Officer)



• George Mitchell - Mideast Peace Czar (Special Envoy to the Middle East)



• Ed Montgomery - Car Czar (Director of Recovery for Auto Communities and Workers)



• Dennis Ross - Mideast Policy Czar (Special Adviser for the Persian Gulf and Southwest Asia)



• Gary Samore - WMD Czar (Coordinator for the Prevention of WMD Proliferation and Terrorism)



• Todd Stern - Climate Czar (Special Envoy for Climate Change)



• Cass Sunstein - Regulatory Czar (Director of the White House Office of Information and Regulatory Affairs)



• Paul Volcker - Economic Czar (Chairman of the Economic Recovery Advisory Board)

Who are these Czars that are dictating policy in the Obama Administration? More to follow.

Kevin Price is Host of the Price of Business, the longest running show on AM 650 (M-F at 11 am) in Houston, Texas and on AOL Radio. His articles often appear in Chicago Sun Times, Reuters, USA Today, and other national media. Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com. You can also find Price on Strategy Room at FoxNews.com.

As Conservatives Ponder the Future of the GOP

There is a raging debate going on in conservative circles that the future of the Republican Party is doubtful, at best. After years of feeling left out in the cold, many are declaring the GOP is dead. For several years the Republican Party has chosen to be a "light" form of the Democrat Party. You might even call it a "diet" alternative. Like diet soda, nothing can beat the purest form. Sales are always higher for the original. The fact is, Democrats are not significant winners, but the GOP are serious losers.

Let's look at the Presidential races alone since Ronald Reagan. In 1988 a "converted" George HW Bush assured voters that he wasn't no longer calling for tax policies that encouraged economic growth "Voodoo Economics," he was committed to being responsible when it comes to regulations, and he had even "matured" when it came to the issue of abortion and declared himself "pro-life." In one of those rarely inspiring moments in his first campaign, Bush declared "Read my lips, no new taxes." By the end of that first term he had instituted a massive tax increase and made unreasonable regulations on the environment that wiped out mom and pop shops (e.g., the modification of gas pumps that cost over $10,000 each). The real Bush had stood up and the voters were ready to let him go.


Fast forward to the next GOP president, George W. Bush. He had something of a reputation as a moderate conservative in Texas, but said all the right things on the campaign trail in 2000. As President, his first term was noted for standing strong against terror, providing a massive supply-side oriented "tax cut" that allowed us to quickly recover from the stock market struggles at the beginning of the decade and to rebound from September 11th. By 2004, a fairly conservative candidate in a couple crucial areas that mattered, found himself as the first Presidential candidate to win by a true majority since 1988. He had won 2.5 (out of 3 million) square miles of ballot boxes around the country and proved that someone with a conservative message could win reelection.


Unfortunately, by 2006 Bush had largely abandoned that message and we had the Democrats taking over both Houses of Congress. When a moderate like John McCain got the nomination, he found himself forced to defend (and even agreeing) with a President who was actively and aggressively socializing the country in the name of TARP. Bush and company supported "consumer driven tax cuts" that did nothing to stimulate real job growth and contributed to a perfect stage for the slaughter of anyone affiliated with the GOP.

We are now quickly approaching the 2010 elections and there is a great deal of apprehension about the future of the Republican Party. Many are crying it is time to abandon it and are seriously discussing a third party alternative. The problem with that is that the GOP is little more than a vehicle, a "car" that needs to be fixed. As we get closer to 2012, the car that needs to be repaired has instant ballot approval in every state of the union, more dollars than all the other third parties combined, and a political structure through out the country. Those who are ready to abandon the GOP must weigh the obvious weaknesses in the party with the fact that starting from scratch or using a preexisting third party will take years to create a serious challenge against the left. I doubt the Republic has years. It is time to make that vehicle work for conservatives and Americans. Taking the GOP back is an important step in bringing the country back to the values that made it great.


Kevin Price is Host of the Price of Business, the longest running show on AM 650 (M-F at 11 am) in Houston, Texas and on AOL Radio. His articles often appear in Chicago Sun Times, Reuters, USA Today, and other national media. Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com. You can also find Price on Strategy Room at FoxNews.com.

Why We Can Expect Another Jump in Unemployment

Unemployment is about to experience another significant jump in the next few weeks. This isn't the speculation of an Obama critic, but the simple observation of someone who has been watching economics for years. The contributing factor to the next jump is the increase of minimum wage from $6.55 (an increase we had in July of 2008) to $7.25 in July of this year.

We are all familiar with the high unemployment that we have experienced over the last year. We can discuss the economic collapse of financial institutions all day long, but the first big jump that we had seen in years began in June of 2008. According to the Bureau of Labor Statistics, unemployment had largely been below 5 percent for years until the summer of 2008. What happened then? The Congress had raised the largest increase in the minimum wage in 16 years. In July of 2009, that minimum wage will jump again to over $7 an hour.

These incremental increases were passed in May of 2007. At that time we had near full employment (considering seasonal, new entrepreneurs, and other factors) as unemployment was only 4.5 percent. Today, it is doubtful the economy can sustain such an increase and as a result, the federal government should consider an alternative approach, which is to eliminate the federal minimum wage entirely because it is an obvious drag on job creation. Our current unemployment is more than twice the rate it was when the increase passed (current unemployment is 9.4 percent). Unemployment has changed and so should the policy.

The federal government should immediately mandate the states to have its own minimum wage without a mandated basement...let the state determine the level. Smart states should, in turn, let cities have minimum wages at a lower level if they desire (which would be particularly helpful to cities like Detroit, Camden, and East St. Louis). There is an old saying, "when your neighbor loses his job it is a recession, when you lose your job it is a depression." The number in the latter category has doubled in just two years. This is urgent and unlike many policies from Washington today, this is an action that won't cost the taxpayer a penny.

Kevin Price is Host of the Price of Business, the longest running show on AM 650 (M-F at 11 am) in Houston, Texas and on AOL Radio. His articles often appear in Chicago Sun Times, Reuters, USA Today, and other national media. Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com. You can also find Price on Strategy Room at FoxNews.com.

The Democrats Rural Problems

For years we have heard about "red state" vs. "blue state." Red States are suppose to be Republican or Conservative and blue states are suppose to be Democrat or liberal. This trend was recognized by Tim Russert and other news people and there are things to learn from this, but the big message is that it isn't so much "Republican" or "Democrat" as it is "rural" and "urban."

At the end of a Presidential election, the states are defined as large blocks of red and blue based on the winner of the party, but don't give an accurate picture of how it actually looks demographically. A county by county overview is far more helpful.

For example, when you look at this map, you see that there are huge territories that voted Republican (red) and large pockets of blue (Democrat). Those pockets are virtually always in the urban areas. This is not without exceptions (especially in 2008), where entire states voted predominantly Democrat, (see, in particular, New England states), but the rule largely holds true.

Democrats who were elected to the US House and Senate in "red" areas are finding life rather difficult, according to Politico.com. In fact, many of these Democrats are organizing a rebellion against an Administration and Congressional leadership that seems to have a dim view of anything but the needs of urban areas.

The Politico reports: "Angered by White House decisions on everything from greenhouse gases to car dealerships, congressional Democrats from rural districts are threatening to revolt against parts of President Barack Obama’s ambitious first-year agenda."

“'They don’t get rural America,' said Rep. Dennis Cardoza, a Democrat who represents California’s agriculture-rich Central Valley. 'They form their views of the world in large cities.'
Cardoza’s critique was aimed at Obama’s Environmental Protection Agency, but it echoes complaints rural-district Democrats have about a number of Obama administration decisions."

A great example is the demise of auto dealerships, which are not only an important job creator, but a support for community organizations. Little league teams, parks, and parades are often branded with the local car dealers name and when they disappear the towns themselves begin to fade away.

Politico notes: “'In rural jurisdictions, your dealerships are pretty big employers. If you knock out four dealerships, the ripple effects of that are substantial,' said Rep. Frank Kratovil (D-Md.), who represents a largely rural Eastern Shore district and is co-sponsoring a bill that could force the auto companies to honor their contracts with the rejected dealerships."

Furthermore, "Sen. Kay Hagan (D-N.C.) questioned how independent owned and operated businesses have any financial impact on automakers. 'None of us can quite understand why they consider dealerships a drag when they are the ones that buy the cars, that take the financial risks. Many of the dealerships that are being closed are profitable.'”

The Democratic leadership seems to be banking on the idea that they can win without the rural areas, failing to learn the lessons from George Bush in 2004. This is also why you hear the Democrats want to see the end of the Electoral College. Without that element in our political process, rural voters would not have a voice (because Democrats spending all of their money in the ten largest cities in ads would obliterate a GOP challenge). This is why those who created this republic wanted an Electoral College and why they want two Houses of Congress (so small states would have an equal voice). The Founding Fathers understood the need of representing minorities long before the "diversity" crowd.

Kevin Price is Host of the Price of Business, the longest running show on AM 650 (M-F at 11 am) in Houston, Texas and on AOL Radio. His articles often appear in Chicago Sun Times, Reuters, USA Today, and other national media. Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com. You can also find Price on Strategy Room at FoxNews.com.

Reasons You Should be Furious about "Stimulus"

Senator Tom Coburn (R-OK), the Medical Doctor turned politician has a reputation of being "Dr. No." Coburn does not take this as an insult, but sees it as a badge of honor. This fiscal conservative has been angry about waste in government and has championed responsibility for since winning his seat. The Senator has released a report examining the 100 worse projects to come from President Obama's stimulus package.

The study is must reading, the following are just a few of the worst examples of waste:

• "Free" stimulus money results in higher utility rates for residents in Perkins, Oklahoma. The Perkins Journal notes "The good news: Perkins is receiving money from the American Recovery and Reinvestment Act for its new waste water treatment plant. The bad news: ARRA funds come with strings that will increase project costs by 25 percent." Perkins was "shovel ready" when they applied for its grant to get $1.5 million of the $5 million to renovate the plant. To get the money, the city would have to comply with new regulations. The Journal notes those requirements include: "ARRA requires that projects use American-made materials rather than the lowest cost materials and pay workers based on a prevailing wage survey that can result in higher than average wages in certain areas. The total cost of the project has increased from $5.26 million to $7.2 million, offsetting any benefit from the grant with higher overall costs."



• FutureGen: The Stimulus Earmark that Wasn't, Becomes the Costliest Pork Project in History. In spite of assurances that the stimulus was about the economy growing and not political pay back, there was something amiss with FutureGen. The Washington Post notes that "Deep inside the economic stimulus package is a $1 billion prize that, in five short words, shows the benefits of being in power in Washington...The funding, for 'fossil energy research and development,' is likely to go to a power plant in a small Illinois town, a project whose longtime backers include a group of powerful lawmakers from the state, among them President Obama."



• Little-Used "Shovel Ready" Bridges in Rural Wisconsin Given Priority over Widely Used Structurally Deficient Bridges. Coburn's study reports: "Wisconsin has 1,256 structurally deficient bridges, which more than the number in Florida, Colorado, Arizona and Alaska – combined. Instead of repairing these bridges, $15.8 million in transportation stimulus money will be used repair 37 rural bridges that hardly anyone uses. On average, the 37 rural bridges carry little more than 500 vehicles a piece each day, with several that typically see fewer than 100. One bridge along River Road in Iowa County carries no more than 10 cars a day, but will receive nearly $430,000 for repairs."

As stated earlier, the study reviews 100 different projects, at a total cost of $5.5 billion. Coburn doesn't attempt to judge the worthiness of all the projects, instead he points out their fatal flaws. This "worst" 100 provides great information to anyone who wants to pursue the government as a solution to our economic woes. Reading it will make anyone think twice.

Kevin Price is Host of the Price of Business, the longest running show on AM 650 (M-F at 11 am) in Houston, Texas and on AOL Radio. His articles often appear in Chicago Sun Times, Reuters, USA Today, and other national media. Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com. You can also find Price on Strategy Room at FoxNews.com.

The Eclectic Format of Strategy Room Biz Hour

Every time I am a guest on FoxNews.com's Strategy Room, I am amazed about how much territory we cover. The Biz Hour, hosted by Eric Bolling, is an eclectic program that, on the surface, would make people wonder, "What does this have to do with business?" Having been on the program several times, here are just a few of the topics we have covered:

* The demise of the domestic auto industry

* Somali pirates

* The volatile stock market

* The Iran and North Korea nuclear threat

* and socialized medicine

This some what "scattered" approach is one that I have long taken when it comes to the Price of Business show that I have hosted since 2001. All of these issues are our business and if one is not aware of them, it could greatly affect cash flow. That is why my radio program spends so much time dealing with politics. Government is increasingly the "meddling partner" who is regulating and taxing many entrepreneurs out of business. They need to know what is coming from Washington, DC and what it will do to their enterprises.

Same is true with the many other headlines we address. How does the threat of nuclear war between India and Pakistan effect business owners here in the US? Thomas Friedman points out, "plenty," in his book The World is Flat. In 2001 those two nations appeared very close to engaging in such a war and business owners in the West were concerned how this would disrupt their inventory of goods they depend on. US business owners got on the phone with Indian vendors and said, "sorry, but we are going to have to look at the Pacific Rim for sources, your potential nuclear war is placing a strain on my business." This seemed to be happening all over the country and business owners got on the phone and gave the Indian government a reality check, which contributed to cooling heads prevailing and a toning down on the rhetoric. Who would have thought, "nuclear war and your business" as a show theme. That is the reality that we live in today. The "Biz Hour" of Strategy Room understands the link between the headlines and your business more than the vast majority of shows in any media.

Another essential element to the success of Strategy Room is how the program draws heavily on its audience for its direction. The audience tells Bolling and the other hosts what they want and they expect it now. Being a guest on that program, therefore, is not for the faint of heart. It is a program that attracts generalists who are comfortable covering many different areas, a dying breed in a world of specialists.

I believe that Strategy Room in general and the Biz Hour in particular are trendsetters that will profoundly affect all news programming. Recognizing the big picture, hearing the interest of the audience, accompanied by solid generalists who understand the larger context, make for an excellent business show.

Kevin Price is Host of the Price of Business, the longest running show on AM 650 (M-F at 11 am) in Houston, Texas and on AOL Radio. His articles often appear in Chicago Sun Times, Reuters, USA Today, and other national media. Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com. You can also find Price on Strategy Room at FoxNews.com.

Social Networking: The Good, the Bad, and the Ugly

It took me a long time to even get interested in social networking. However, many people I respected in both business and politics were telling me I was way behind the curve. Furthermore, it gets a little old to have your kids constantly call you a "dinosaur" because you are not up to speed with this or that current trend. This is all the more so the case when it deals with the Internet.

I started my MySpace and Twitter accounts a couple of years ago, but did very little with any of them. I started a Facebook account later, but sat on it for months as well. Today, I use Facebook more than any, Twitter is catching on, and I have no idea how to even log in to my MySpace account. That is okay though, because my kids keep assuring me that MySpace "is so high school." Who wants that?

Facebook

I update my Facebook account several times a day. If it is midday and there is a few hours between my last update, I get a little stressed out. I have to find something to post! I often go to Fox News and other websites and glance at the headlines and try to give them my own unique spin. I also post articles of mine from BizPlusBlog.com, AmericanDailyReview.com, Reuters.com, ChicagoSunTimes, or one of the many other sources that are out there. Placing those articles on my Facebook "wall" leads them being found all over the place after that. This is one of the strengths to Facebook.

Facebook has enabled me to fast track relationships and find new friends all over the country. It allows me to test ideas before they become an article or give me some feedback that I use on my radio show, the Price of Business. If my 1,000 plus friends didn't like it on Facebook, why force the thousands who listen to my show to be subject to it? Many new people who have become my friends on Facebook have told me they have done so in order to influence some of my content on the radio and else where, which is great.

Twitter

Twitter has been harder for me to warm up to. I understood the value of Facebook almost immediately. You can place your articles, promote, your ideas, do more detailed searches for friends and potential friends, and more. This is not the case with Twitter or, it was not nearly as easy to ramp up.

One of my biggest concerns is that I am a writer as well as a radio host, and it is so challenging to put anything of interest or value in 140 characters. Who are they trying to kid? To me, I get paid by the word, so the type of word economy I am learning is amazing.

I have, however, seen Twitter work. The circulation value of events, interviews, ideas, etc., is amazing. I have just over 200 followers at this time, so when I write something and it is "Retweeted" to others, you enjoy the multiplier effect. My friend Felicia Cravens, who is one of the more sophisticated individuals I know at the art of the Twitter (and a leader of the Houston Tea Party effort) has over 2,000 followers. Once she gets hold of something I write, it flies from there. I have had a few questions answered to news stories or people have given me sources for shows or articles. I am beginning to see the power.

To sum up...

I enjoy Facebook and Twitter and even see their practical value. My use of both, I am sure, will only grow. On the other hand, as a writer, I find it a little distracting. The pressure to convey a powerful idea in 140 characters, has made me economize in words, even when I should let it out a little. I will have to learn to balance Facebook and Twitter with my other media responsibilities, but I feel confident that social networking are here to stay.

Kevin Price is Host of the Price of Business, the longest running show on AM 650 (M-F at 11 am) in Houston, Texas and on AOL Radio. Eric Bolling of Fox News and Fox Business says that Price’s Blog “is very influential and moves the blogosphere.” Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com. You can also find Price on Strategy Room at FoxNews.com.

Nancy Pelosi Visits Houston

Nancy Pelosi recently visited Houston, Texas and she received a rude awakening. Texas is not San Francisco. Glenn Beck loves to discuss the unique way Texans think about government, economy, politics, individual responsibilities, and liberty. Nancy Pelosi represents an area that fundamentally believes that people are victims, that government is the solution, that freedom is selective, and that some people deserve better treatment than others based on income, ethnic group, gender, and other factors. In many respects, Houston is the anti-San Francisco.

The reason for Nancy's visit? Pelosi was in town to promote her book, "Know Your Power: A Message to America's Daughters" at the Progressive Forum Houston ("progressive" is a euphemism for socialism). What she found was a large group (approximately 1,000) of Texans who are members of the Tea Party Society. This group was delighted to politely remind her that Houston's values are a little different than San Francisco's.

Pelosi's values includes:

• A record of increased government growth and higher taxes. She fundamentally believes government is the solution to many problems that are best solved by people.


• Consistently voting for energy policies that directly leads to higher prices at the gas pump and increases dependence on foreign countries.


• Calling illegal aliens "patriots" for violating immigration laws in this country.


• Voting against protecting America's election process by opposing efforts to require IDs at elections.


• Being an architect of the largest take over by the government in our history through regulations, taxes, and spending. It took over 180 years to reach a trillion dollar debt. Obama, Pelosi, and company are adding that amount annually through the current budget.

The crowd in Houston -- and seen in Tea Party movements around the country -- are looking for a different agenda and they come with a completely different sense of values.

The Tea Party movement is made up of hard working Americans. moms and dads, students, employers, employees, and entrepreneurs. Many are wondering who has been at the wheel and they are believing it is time to change those at the controls.

Pelosi loves to tell people about the problems she has inherited as Speaker of the House. The reality is, she has been in Congress since 1987. During that time she has served in numerous leadership positions and has consistently voted for more government, taxes, and regulations at every turn. It is safe to say, when given the opportunity to choose budgets, she always chose the biggest. Tax rates? The highest. Regulations? More. This is why so many people are up in arms today.

"The times, they are a changing." One of the people that needs to go, is Nancy Pelosi.

Kevin Price is Host of the Price of Business, the longest running show on AM 650 (M-F at 11 am) in Houston, Texas and on AOL Radio. Eric Bolling of Fox News and Fox Business says that Price’s Blog “is very influential and moves the blogosphere.” Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com. You can also find Price on Strategy Room at FoxNews.com.

Democrats are Doing Soul Searching of Their Own

For months, and maybe years, we have heard about the Republican Party and its "soul searching." Is it the Party of moderation and John McCain? Is it the Party of the three legged Reagan stool (limited government, national security, and pro-family) epitomized by Sarah Palin? Or is it the libertarian wing, largely represented by Ron Paul? Well, for once, we are seeing the Democrats have an identity crisis of its own as we saw in the surprising results of the Virginia Democratic Primary for Governor.

The race included a carpetbagger former Chair (and icon) of the national Democratic Party, Terry McAuliffe, who until this election cycle had been openly discussing running for office in Florida; Brian Moran, the very liberal former state legislator from the Northern Virginia area; and the underdog, State Sen. R. Creigh Deeds (the most conservative of the Democrats) who came shockingly from very far behind, to get his party's nod. It is this "come from behind" victory that only happened in the last several weeks, that has the Democratic Party so worried.

With Barack Obama, the Democratic Party and (it is safe to say) the entire country has taken the most dramatic turn to the left in our nation's history. This left turn included the state of Virginia, which had close to 2 million votes for Obama (53%) versus 1.7 million for McCain (47%). Barely a half a year after Obama's historic election, the Democratic Party of Virginia seems to be having buyer's remorse, with Democrats choosing the most conservative candidate by far of the three choices. Deeds, in his race for Governor, proposed a $10,000 tax credit for businesses, supports the death penalty (with additional restrictions), and he received the endorsement of the National Rifle Association. It is true that he is considered a "consumer advocate," pro-green jobs environmentalist, and soft (to the disliking of the right and left) on gay marriage. On the other hand, Deeds is, without question, the most Conservative of the Democratic Candidates for Governor. Slightly over a year ago, over 60 percent of Democrats in Virginia chose Obama over the other candidates. To make matters worse for Democrats, Pollster.com is reporting that the Republican nominee (Attorney General Robert McDonnell) has a 46% to 40% lead over Deeds. None of the Democrat choices had strong numbers against Republican McDonnell.

There is a growing theory since the 2008 elections that, although Obama is personally popular, that support appears to be exclusively for him, a mile wide, and an inch deep. He will not be up for election in 2010 and if Virginia is indicative of the rest of the country, the Democrats have plenty to worry about in the next election cycle. "The Party" may already be over.

Kevin Price is Host of the Price of Business, the longest running show on AM 650 (M-F at 11 am) in Houston, Texas and on AOL Radio. Eric Bolling of Fox News and Fox Business says that Price’s Blog “is very influential and moves the blogosphere.” Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com. You can also find Price on Strategy Room at FoxNews.com.

Chuck Grassley Provides Signs of Life for GOP

For months, and maybe years, Republican rank and file have been seeking signs of life from a party that has been limping along for ages. The GOP has become the "me too" party, or "the light" version of the Democrats, or many other cliches that can be used for a party that has become dysfunctional.

Every once in a while, we see signs of hope. Many were excited when John McCain chose Gov. Sarah Palin as a running mate. Gimmick or not, it was nice for the dominant moderate force of the party to recognize that conservatives still matter. The latest cause for excitement has come from an unlikely source, Senator Chuck Grassley (R-IA).

I've known Grassley for decades and almost worked for him back in the 1980s (instead I worked for Sen. Gordon Humphrey of New Hampshire). He was then, and still today, anything but an "activist" Senator. He is very soft spoken and not particularly sharp witted or sharp tongued. He is a fairly typical "middle America" personality. Subdued, soft spoken, and matter of fact. He is one of only 28 Senators in history to have made more than 10,000 votes, something he wears as a badge of honor (something that I deem a little suspicious). The 75 year old has been in the Senate since 1981 and in the US House for six years before that. In other words, he has almost 35 years of working in DC behind him.

This unlikely hero for Conservatives is getting attention for taking President Obama on in a way that we are not use to seeing these days. Politics is too genteel for my liking and the US Senate even more so. This very elite club is known for treating its colleagues and the President with "kid gloves." Meanwhile, millions of Americans are looking for someone to speak up. Enter Chuck Grassley.

The Senator, in his 70s, has used an unlikely vehicle for getting the message out as well. Pulling a chapter out of Barack Obama's book, his platform, of all things, is Twitter. Today, the Senator gave the following status report, ignore the grammar, the Senator is taking typical Twitter liberties:

"Pres Obama you got nerve while u sightseeing in Paris to tell us 'time to deliver' on health care. We still on skedul/even workinWKEND."

This 140 characters (give or take a few) has started a social networking revolution and has gotten conservative Republicans excited again. It is time for the GOP to start drawing lines in the sand and holding this Administration and its minions accountable for its arrogance. That is the kind of thing that could revive the dying Republican brand.

This particular issue, the rationing of health care, is absolutely crucial in fighting to defend the greatest health care system in the world (warts and all). If Republicans want to be relevant again, they will speak with force and passion, use Twitter, Facebook, Myspace, YouTube and every other tool they can think of to win back the hearts and minds of the American people. Our freedoms and future hang in the balance.

Kevin Price is Host of the Price of Business, the longest running show on AM 650 (M-F at 11 am) in Houston, Texas and on AOL Radio. Eric Bolling of Fox News and Fox Business says that Price’s Blog “is very influential and moves the blogosphere.” Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com. You can also find Price on Strategy Room at FoxNews.com.

Under Obama, Ten Percent Unemployment is Described as Prosperous Economy

It seems like just yesterday when George Bush's unemployment rating of around 5 percent was described as symptomatic of a "weakening economy." Meanwhile, a CBS affiliate website just declared that the "Unemployment Rate Shows Hope" rather than the more logical slug of "Unemployment is at its worse rate in 25 Years."

The positive spin today versus the "horrible" scenario of a couple years ago simply don't make sense, especially when you look at the numbers from 2006:

• Consumer confidence stood at a 2 1/2 year high. People were buying more and feeling better about their economic future.


• Regular gasoline sold for $2.19 a gallon. This price is far too high, but less than today and certainly better than the direction it is going. "Cap and Trade" is just another name for gas taxes.


• The unemployment rate was 4.5%. Economists define this as "full employment." This economy was surprisingly strong and the demand for quality employees was at an all time high.


• The Dow Jones hit a record high. 14,000 and higher. Americans were optimistic about the future on both Wall Street and Main Street.

The raging optimism by the media about the future of the US economy is running rampant. In a story that would almost make one laugh because of how outlandish it sounds, CNN Money is reporting a headline stating that "Wal-Mart CEO: 'Our customers will stay with us.'" The subtitle goes further: "Citing a 'new normal' in shopping behavior, (Mike) Duke promises shareholders that the discounter will not lose customers even after economy rebounds." Rebounds? One recent upbeat Consumer Confidence survey and nearly ten percent unemployment translates into "rebound?"

I keep hearing from experts that, "no matter what, this economy will get better." If this Administration continues to pursue policies that tax and regulate job creation out of existence, job growth will be more of a dream than a reality. Government can either encourage job creation or deter it. This government is taking the latter approach.

The media intends to continue its course of being a cheerleader, rather than a force to hold the government and others accountable. You can see it in the headlines:

• The Kansas City Star argues that "The Good News on Jobs Cloaked in Bad News." In other words, "ignore the ten percent unemployment, the worst job numbers in a quarter of a century, and your own gut instincts...everything is fine."


• Reuters takes an odd, but up beat approach by staying that "Jobless Data Bad, But Better."


• The Houston Chronicle is even more optimistic: "Report Adds Hope to Recovery."


• Finally, the Associated Press states "Layoffs Slow as Recession Eases."

The stock market is still around half its high, unemployment is higher than it has been in a quarter of a century, and many new taxes and regulations that have a history of cooling off an economy have not yet gone into effect. Reports of an economy on the mend are quite exaggerated.

Back during the stimulus package debate, the Obama Administration warned that if the bill didn't pass, we would have 8.8 percent unemployment. With the package, we currently have 9.5 percent. It is amazing that this fact is large being ignored by the media.

The job of the media is to report, not promote. It is to ask tough questions, not be a mouth piece for those who would use it. The media today is responsible for "making history" instead of being a witness to it. As a result, it has so much invested in the Obama Administration, we will find it very unlikely that the media will hold this President accountable on the public policy front.

Kevin Price is Host of the Price of Business, the longest running show on AM 650 (M-F at 11 am) in Houston, Texas and on AOL Radio. Eric Bolling of Fox News and Fox Business says that Price’s Blog “is very influential and moves the blogosphere.” Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com. You can also find Price on Strategy Room at FoxNews.com.

The Party of Diversity should Support Diversity of Power

There is something funny going on. The "narrow minded" people on the Right are sounding more like their liberal counterparts when it comes to the issue of diversity. "Diversity" has been the battle cry of the left for decades. It has been (oddly) the driver behind multiculturalism and political correctness and has long been held among the most important of "liberal values."

Unfortunately, limiting diversity to the way we view ethnic and other social groups is only scratching the surface. Diversity is defined as "the state or fact of being diverse" "difference," "unlikeness," "variety," and "multiformity." In other words, "diversity" stands for more, much more.

Diversity can be used in the way we approach virtually every issue. In the name of diversity, we should allow each state of the Union to develop its own minimum wage policies. Michigan, for example, may want to help the city of Detroit and let them develop a minimum wage that is lower than the rest of the state in order to combat its 20 percent plus unemployment. Same with East St. Louis, Il (30 percent unemployment); Camden, NJ (32 percent), and others. I would be fine with the Federal Government ending minimum wage laws entirely. Short of that, the Feds should mandate the states to create their own minimum wage laws and let the problem solving begin. It is insane to have a federal government on the other side of the country set a minimum wage for areas that are desperate in attracting employers and opportunity.

Environmental regulations would be another great place to move back to the states. Instead of a "Super Fund" designed to clean polluted areas devised by the Feds and (according to the National Center for Policy Analysis) 80 percent of the dollars going to lawyers, or "one size fits all" regulations that put small business into bankruptcy, the states should be the leader in establishing regulations. They would set rules that would protect wildlife and nature, while placing humans and employment as the number one priority. From the competition of the states in public policy we would learn the best ways to develop sound policies.

This is exactly what the Founding Fathers had in mind. They saw the United States as a "nation of nations." This is why they developed the Tenth Amendment and limited the federal government to only seventeen powers in Article I, Section 8 of the Constitution. They believed this dispersion of power would not only protect our freedoms, but lead to the best ideas to solve problems, having the best opportunity to be developed. Other states would voluntarily adopt policies that worked and would avoid those that didn't. Furthermore, this diversity of power would protect all the states from becoming too big. If taxes became too high and regulations too oppressive, people would leave such states in mass. It is the ultimate example of "checks and balances."

Diversity should not be preserved in a monolithic federal government, but promoted through fifty unique and strong states. Advocates of diversity should be fighting for states' rights more than any other special interest group.

Kevin Price is Host of the Price of Business, the longest running show on AM 650 (M-F at 11 am) in Houston, Texas and on AOL Radio. Eric Bolling of Fox News and Fox Business says that Price’s Blog “is very influential and moves the blogosphere.” Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com. You can also find Price on Strategy Room at FoxNews.com.

If it Appears Your Member of Congress is "Out of Touch"...

It seems that our Members of Congress are "out of touch," when it comes to their constituents needs. While we are talking salary cuts and job losses, they are giving themselves pay raises. While the government is talking about making it impossible for us to afford private health insurance (in an effort to ration health care through socialized medicine) as they tax and regulate insurance policies out of existence, they have the finest health insurance in the world.

Members of the US House and Senate are each given an expense account that allows them to make purchases and leases that are designed to help them represent their constituents more effectively. The Wall Street Journal reports that "House members get a government expense allowance of $1.3 million to $1.9 million a year. Senators get $2.9 million to $4.5 million. The disparity is based on several factors, with lawmakers whose home states are far from Washington, for example, typically receiving more to cover their higher travel expenses." Yes, that is per person.

So where do these millions of dollars go? Here are a few examples cited by the Journal:

• Rep. Alcee Hastings (D-FL) spent $24,730 in taxpayer money last year to lease a 2008 luxury Lexus hybrid sedan.


• Rep. Michael Turner (R-OH) spent $1,435 on a digital camera.


• Democrat Eni Faleomavaega, the House delegate from American Samoa, purchased two 46-inch Sony TVs.


• Rep. Howard Berman (D-CA) spent $84,000 worth on personalized calendars, printed by the U.S. Capitol Historical Society, for his constituents. One could argue that this Congressman used taxpayer dollars towards his reelection efforts, since it is simply promotional material. He was not available to the Journal for comment.


• Rep. Rodney Alexander (D-LA) paid $20,000 for a 2009 lease on a Toyota Highlander, a hybrid SUV.


• Rahm Emanuel (D-IL and now President Obama's Chief of Staff) showed such expenditures included printing, recording a $33,000 printing expense in the fourth quarter of 2008.


• Rep. William Jefferson (D-LA) spent $2,793 on a Panasonic Toughbook laptop, which is marketed to the military, in September of 2008. Yes, this is the same Jefferson who was implicated in a scandal that included $90,000 found in a freezer in his office (bringing new meaning to "cold, hard, cash").

These accounts are often plagued with vague citations and are hard to monitor. Furthermore, there is an expiration date on these dollars. If they are not spent in a certain time frame, the dollars don't carry on the next year, but start with a new budget. Because of this, many found these expenditures all the more offensive in the last quarter of 2008. As many Americans were trying to buckle down and prepare for an economic storm, Members of Congress and their staff were enjoying taxpayer dollars.

The Wall Street Journal points out that "The review showed that the increased year-end spending went not only toward equipment but also to fund year-end 'bonuses' to aides. The average House aide earned 17% more in the fourth quarter of the year, when the bonuses were paid, than in previous quarters, according to an earlier Journal analysis. Payments ranged from a few hundred dollars to $14,000." It also went on to point out that "The records show that some lawmakers spent heavily in the final months of the year to draw down allowances before the end of December -- a time when U.S. households were paring their budgets and lawmakers were criticizing Detroit auto executives for taking private aircraft to Washington to plead their case for taxpayer funding."

There is talk about making these records available online and in more detail for both the House and the Senate so taxpayers can better keep track of the expenditures of their elected officials. That, and reconsidering how much they have available to spend, are reforms long over due.

Kevin Price is Host of the Price of Business, the longest running show on AM 650 (M-F at 11 am) in Houston, Texas and on AOL Radio. Eric Bolling of Fox News and Fox Business says that Price’s Blog “is very influential and moves the blogosphere.” Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com. You can also find Price on Strategy Room at FoxNews.com.

The Demise of the US Auto Industry on FoxNews.com Strategy Room

FoxNews.com Strategy Room is an eclectic marketplace of ideas, especially when Eric Bolling is at the helm. Bolling’s academic background of economics and business, accompanied by a career that has included being a professional baseball player, one of the world's largest commodity traders, and years as a business news journalists (first with CNBC and now with Fox News and Fox Business) makes him something of an adrenaline addict and one of the most enjoyable TV hosts to watch.


Bolling is intelligent, eloquent, and passionate about his convictions, although they are not easy to label. He describes himself as one who is "center/right and believes in free markets." As a man who has made a significant part of his living as a commodities broker, his passions are both pragmatic and well founded.

When I was on the Strategy Room this week (Bolling hosts 3 PM EST hour) the show covered a plethora of issues early on, but slowly began to focus on the fact that the United States automobile industry is dying and seems to be doing so quickly. This is one of the most dominant topics in business news today.

Invariably these discussions lead to "what should the government do to solve this?" My answer to that is that government has been the primary reason the industry is in such a dire situation. You can go back decades to when Michigan became a close union shop state, making labor the primary customer rather the people who buy cars. This has led to Detroit paying over $70 an hour per employee compared to Japan's $40 an hour for employees in Southern states. Addressing the auto industry situation should include:

• Ending the controversial UAW "Job Bank" program . This program has paid tens of thousands to be idle at 90 percent of salary.


• Bring auto worker wages back to the real world. According to the Heritage Foundation, when it comes to salary and benefits, the average wage of all private sector employees is $25.36 and for American based Japanese auto plants (Honda, Nissan, Toyota) is $42.95 to $47.60 on average. The big three pays $70.51 (Ford), $73.26(GM), and $75.86 (Chrysler) per hour, per employee. These six digit wages for blue collar work demand a reality check.


• End the "30 and out" practice. The Detroit auto companies allow employees to retire with very lucrative packages at the young age after 30 years. If you start working at a plant at 20, you can retire at fifty. You can see where that can be costly. 60 or 65 should have to be the standard retirement age, which is what the market clearly demands.


• Seven week vacations need to be history. Detroit auto workers receive almost two months off a year. This is another pounding cost, on a very weak industry, that needs to change.


• Finally, they should require the companies to relocate to a right to work state. This would empower these companies to lower wages and make it easier to implement the other reforms listed above. Twentytwo states are Right to Work, 28 are not. It is more than a coincidence that all but one of the ten richest states are Right to Work, while the ten poorest are closed union shops according to the American Legislative Exchange Council. The threat alone could make the Michigan government come to its senses.

So how do I think the problems of the auto industry should be solved? This can only be done through markets, less government, more freedom, and plain old business sense. These are the kind of ideas that once made the automobile industry the envy of the world.

Kevin Price is Host of the Price of Business, the longest running show on AM 650 (M-F at 11 am) in Houston, Texas and on AOL Radio. His articles often appear in Chicago Sun Times, Reuters, USA Today, and other national media. Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com. You can also find Price on Strategy Room at FoxNews.com.