Category: Crony capitalism

Do no harm?

Mere “harm” cannot be the nebulous standard by which we invoke the necessity of state intervention. If five people apply for a job then the four that did not get the job are arguably harmed, so, should the state step in and penalize the person who got the job by making him or her share it with the others? When two sports teams play each other is not the losing team “harmed”? Upset fans, potential decreased ticket sales, lower potential ad revenue – all these things constitute types of harm, yet no one is (yet) screaming for the state to step in.

Zombieland

When the pundits and critics blame the “free” market for this sort of ridiculous outcome I am left to ponder what an odd definition they must have for the word “free”. Does “free” mean to be influenced and controlled by an implicitly violent cartel of bureaucrats that restricts, regulates, licenses, subsidizes, and outlaws in favor of the few at the expense of the many?

Paddling in Circles

[Trump’s view] presumes trade is a zero-sum game where one side always “wins” and the other side “loses” in the exchange. Indeed this mindset would mean every time we buy groceries the store has “won” and we have “lost.” Trade is always a win-win game; both parties have gained more than they gave up, otherwise they would not have made the exchange.

Boulders in the Stream

Supposedly this [law] would help the underdogs: small booksellers and new authors. Ironically it does the exact opposite. It is the unknown author that has the greatest incentive to discount heavily in order to entice someone unfamiliar with their work. It is small book sellers that are most likely to haggle or “make a deal” when someone makes a substantial purchase.

Shortages the Spawn of Short-Circuited Prices

High prices are the market’s method of eliciting an economic immune response. As swarms of people respond to the wailing klaxons of above average profit, supply swells until prices begin to fall. It is this natural up/down demand/supply equilibrium that lets a market know where to devote more or fewer resources.

Blind Lines

But the arbitrariness of the outcome, insofar as it rests solely upon the subjective opinion of 12 jurors, is not a failure of the judicial system itself or of the jurors. Jurors in such a case are tasked with the intellectual equivalent of deciding if that now infamous Internet dress is gold and white or black and blue. The failure is in the legislative system. Ambiguity and arbitrariness in law breads ambiguity and arbitrariness in outcomes.

March 16 / 2015
Author Greg Morin
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Medicaid Expansion: Compassion or Trojan Horse?

This nationwide network of rural hospitals was established in the 1940s by the federal government. For the most part they were quite successful with few closures, that is, until the first year of Obamacare regulations came on line – 2010. Obamacare then began to smother these community hospitals with shortsighted regulations that do nothing to limit costs. These regulations included penalties for patient re-admittance if done too soon after initial release, mandates to establish electronic medical records, as well as cuts in Medicare reimbursements to hospitals. While one hand of Obamacare beats these hospitals with a stick (regulation), the other hand offers a Band-Aid (Medicaid expansion); truly a case of governmental cognitive dissonance.

Not Neutrality, Part 3

To “fix” the issues Net Neutrality proponents fear, we must reduce, not expand, the scope of government intrusion in the market. We need fewer grants of monopoly privilege for both private and “public” interests. Municipalities should have no rights to grant charters or licenses to any business. This removes the whole notion of “public” utilities. With that antiquated framework swept away, we would witness competition between electric, gas, water, sewage, phone, and Internet providers solve an array of problems that are intractable under the current “public” system.

November 24 / 2014
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