Our friends over at Cato have a video with spot-on analysis of last night’s State of the Union address. I particularly enjoyed Dan Ikenson’s remarks on the GM bailouts and the state of manufacturing. The auto industry in America was never in danger, as the president claimed they were. A few firms like GM and Chrysler were in danger, because they made bad decisions. The other American car companies — Ford, Toyota, Honda — were and are quite healthy.
Neal McCluskey also offers a valuable insight on why college tuition has skyrocketed — massive federal subsidies. If someone else is paying most of the bill, students and parents don’t have as much incentive to be thrifty. That allows colleges to raise prices with impunity, which they certainly have.