Archive for October 14th, 2010

Dem Governor sums up ObamaCare …

October 14, 2010

Ken’s Take: Pretty well sums up my point of view … nice that coverage got expanded, but no structural change to the system … just moves money (and paper) around … and jams gov’t bureaucrats in the middle of a very personal process.

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Excerpted from the National Review …

Tennessee governor Phil Bredesen, a Democrat who was once on the Obama administration’s short list for the job of Health and Human Services secretary, has called the Affordable Care Act “a stunning disappointment.”

“The problem isn’t that we expanded coverage,” Bredesen writes in his new book “Fresh Medicine,” referring to the millions of uninsured and under-insured people who can now either buy insurance with the help of federal vouchers and the creation of state health exchanges.

“The problem was expanding coverage is about all we did.”

It’s “about all we did,” because Bredesen thinks that expanded entitlement saddles an already burdened federal government drowning in red ink with additional – and expensive – obligations.

Government loves complexity, rules and red tape, but we may have outdone ourselves this time,” Bredesen writes.

“Reform offered a chance to clean up the baroque system we have created over the years, reduce bureaucracy, lower administrative cost and give clarity and focus to a major part of where we spend our taxpayers’ money.

“Instead, we created more complexity, more regulations and the need for more bureaucracy.”

Dem Governor: Obamacare a ‘Stunning Disappointment’, October 12, 2010
http://www.nationalreview.com/corner/249550/dem-governor-obamacare-stunning-disappointment-daniel-foster

About those folks whose taxes Obama wants to raise …

October 14, 2010

An interesting factoid from the Tax Foundation …

The scorned “wealthy” taxpayers — those earning more than $200 – $250k — work an average of 48.1 hours per week … those earning less than that amount dodge Obama’s tax arrow — they work an average of 38.8 hours per week.

In other words, on average, the wealthy tax targets work about 20% more hours than the Obama-classified non-wealthy.

Makes sense to punish them for working harder, right ?

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Tax Foundation Fiscal Fact, No. 247,  September 22, 2010
http://www.taxfoundation.org/files/ff247.pdf

Harley gets some gray hairs …

October 14, 2010

TakeAway: Times are tough at Harley-Davidson, but not just because of the economy.

The guy who comes to mind when you think of a Harley owner is getting too old to ride.

Even worse, there are not enough younger potential customers who want a Harley because it’s not as exclusive as it used to be.

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Excerpted from Fortune, “Harley-Davidson’s aging biker problem,” by Alex Taylor, September 17, 2010

Harley-Davidson was the feel-good turnaround story of the 1990s and then the poster-boy for brand values in the 2000s. How often did you read that Harley was the only consumer brand whose customers were so loyal they wore the company’s logo tattooed on their chest?

But after expanding exuberantly in the last decade, Harley has fallen on hard times. Now it is struggling against a foe that not even cost-cutting nor brand loyalty can overcome: demographics. Its current owners are getting old, and not enough younger ones are coming up behind them.

Harley’s core customer is a middle-aged white American male, a group that will contract in the coming decade. …

Bumpy roads are nothing new for Harley. … Fighting back at what it perceived as unfair competition [from Japanese manufacturers], the company won an anti-dumping ruling from the International Trade Commission in 1982, and President Reagan imposed a 45% additional tariff on super heavyweight Japanese bikes.

Given an opening, Harley used the opportunity provided by the tariffs to regroup. … Harleys became a cult item; Harley dealers packed extra charges onto list prices and compiled waiting lists for prospective customers. By the late 1990s, certain models were back-ordered for two years.

After resisting the temptation to expand, Harley belatedly added production capacity and grandiosely predicted sales would reach 400,000 by 2007. But with ample supply, Harleys began to lose their cachet. Sales peaked in 2006 at 349,000. …

Harley’s famous brand couldn’t buffer it from the downturn once owning a Harley stopped being cool.

… Harley survived earlier economic downturns when other discretionary consumer durables slumped because Harleys were in short supply. As it built capacity to meet demand, Harley became just another manufacturer, vulnerable to a cyclical economy. In the fourth quarter of 2009, it suffered its first quarterly loss in 16 years.

The days when Harleys were a fashion accessory are likely over. …The challenge for Harley-Davidson in 2010 is to adjust to the new normal.

Edit by DMG

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Full Article
http://money.cnn.com/2010/09/17/autos/harley_davidson_fall.fortune/index.htm

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