Category Archives: Big government is the problem

CON Job

There are a myriad of reasons that health care costs are sky high. Every cause shares a common genesis – government. From the World War II era tax benefit of allowing tax-free employer sponsored plans to state imposed price controls (Medicare/Medicaid) to today’s outright subsidies (Obamacare), it has been a 70+ year slow motion train wreck that has annihilated anything remotely resembling a “free” market in health care. However, today I want to focus on but one sliver of that regulatory quagmire: Certificate of Need (CON) laws. When I first learned about these I honestly thought I was reading satire – this is America after all! How can such monstrosities of law exist? And yet they do. For those unaware, CON laws basically allow one or more local hospitals to have a say in whether a prospective hospital may be permitted in their “backyard.” It’s like if McDonalds had a vote in whether any new fast food restaurants could be built within say 30 miles of their location. What do you think McDonalds’ choice would be? This is nothing but state backed protectionism, pure and simple. And like all protectionism it harms consumers while benefiting the protected class (unions, taxi drivers, any tariff protected industry, etc.) But please, tell me more about this free market in health care we have.

Supporters of CON laws try to appeal to ones sense of “fairness” by claiming that if these mean old private hospitals come in why they’ll “steal” patients from our poor old public hospital by only offering the most lucrative and profitable services leaving the extant hospital with money losing care and indigent patients. Hogwash. In other words they are saying that in terms of those “lucrative” services they can’t compete because they are in fact overcharging for their “lucrative” services in order to subsidize the money losing services.  In other words they don’t know how to properly run a (hospital) business and are afraid of someone coming in and competing with them that does. 

Ludicrously, these same people will turn around and decry the “monopoly” of a company like AT&T or Microsoft or Google or Apple and claim “why we need to break them up, don’t you know monopolies are bad and that competition lowers prices and helps consumers?” But then will unironically tell you that monopolies in hospital services makes perfect sense and why don’t you just trust the guy telling you he doesn’t need competition to give you a fair price? I guess state backed monopolies are “a ok” (schools, courts, police, utilities, roads, etc.)

Ironically many of these people who support CON laws are “conservative” Republicans! Indeed there was a recent Bill 198 in the Georgia House that died in that Republican dominated chamber. One representative quipped in a local paper

“I was very happy to help kill the elimination of the CON process that would hurt local hospitals.”

David Belton
R – Buckhead, GA, District 112

Wow, give that man a Bernie Sanders medal, he is a Democratic Socialist and doesn’t even know it. Socialism claims the right of the “people” (aka the State) to own the means of production. Ownership conveys a right to control, you don’t own it, you can’t control it and vice versa. Well if the state can tell prospective investors in a new hospital what they can’t do with their own money, then what is the state doing other than asserting an ownership (control) claim over those investors’ property? I’m sorry Republicans; I must have missed the part in the Constitution (Federal or State) where it says we have a right to a livelihood unfettered by nettlesome competition. Repeat after me, just because a violation of rights can be harmful doesn’t mean anything deemed harmful is a rights violation.

In Pursuit of Exceptionalism

What is the origin of the idea “American Exceptionalism”? Most Americans’ belief in this is based on a reflexive veneration of the revolutionary war coupled with good old-fashioned team spirit. If pushed further to justify their feelings they may fall back on the claim that this exceptionalism comes from the many and superior accomplishments of its citizens in sports, science, business, warfare, and on and on. But to paraphrase Yoda, “zip codes not make one great.” History is replete with individuals from all over the globe who have achieved great deeds. 

America is not exceptional because our neighbors are nice folk or because its residents have achieved laudable feats, but rather it is exceptional because it is more than a mere country – it is an idea and ideal. It is the political incarnation of the concept that the negative rights of the individual trump all other concerns. Period. Life, liberty, and the pursuit of happiness exist only to the extent that ideal is respected. Governments and constitutions do not GRANT negative rights. They are inherent and inalienable to our being. Constitutions/governments are but mere tools to protect these rights. One does not protect something by injuring it. Regrettably the United States government has been injuring the very thing it was established to protect since its inception (see: Alien & Sedition Acts, slavery, etc.). It has only gotten worse since – “like sands through the hourglass”, so are the injuries against liberty.

Some will insist that despite these failures it is still the freest country in the world, although that is demonstrably false based on its ever-falling rank (17th) in the Cato Human Freedom Index (and similar indices). Freedom should be graded on an absolute scale, not a curve. A country that permits the practice of civil asset forfeiture, criminalizes victimless activities, requires state permission to employ or be employed, confiscates wealth solely for the punitive goal of ensuring “fairness”, and that pre-emptively invades other countries resulting in the deaths of millions of innocent civilians; such a country is not the ideal and is far from being great. 

 Indeed, even one of the most basic cherished freedoms, the freedom of speech, is under attack from the left and the right. Congress is presently trying to make it a criminal offense to boycott Israel. That pesky 1stamendment was in the way but they seem to have found a work around. Stay tuned. Meanwhile in New York City it is now a criminal offense ($250k fine) to repeatedly “mis-gender” someone by using the “wrong” pronoun when addressing them. Sure, people should be nice and respectful, but likewise it should not be a criminal offense to say mean things. Allowing speech to be criminalized because someone else does not like its content or it hurts someone’s feelings utterly disembowels the 1stAmendment.

“We don’t have freedom of speech so we can talk about the weather.  We have the 1st Amendment so that we can say very controversial things.” – Ron Paul

The greatness of the American ideal exists anywhere people acknowledge that what their neighbor does is none of their business and that when conflict arises it should be dealt with by an equivalent level of reciprocal force or mediation. Respecting this ideal means acknowledging that all interactions must be voluntary. Wherever this ideal is respected can rightfully be called “American”. In such places “America” will firmly take root and those that live there will enjoy the promise of what America should have been: a place where one is free to pursue their own happiness free of authoritarian busybodies. 

P.S. And no, the fantasy of the “social contract” does not magically make every state intrusion into our lives “voluntary”

Eyes Wide Shutdown

The current government shutdown is moving into its third week as I write this and has now won the prize for longest shutdown in history – truly America is being made great again. The longer it goes on the more Americans it affects. Already we are seeing multi-hour queues at TSA checkpoints as more and more unpaid but “essential” federal employees are quitting or calling in sick. Many IRS agents have been furloughed and that agency is operating at minimal capacity (although I think that would bolster support for the shutdown!). And for the first time ever I have been personally impacted by one of these shutdowns insofar as my genealogical hobby has been halted by the shuttering of the doors at the National Archives.

The popular stereotype of anti-government libertarians might lead one to believe libertarians are rejoicing. Although there might be a wee bit of schadenfreude, for the most part that is not the case since (a) libertarians oppose the state, not government (a critical but important distinction that even many self-described libertarians are oblivious to) and (b) temporary disruptions do nothing to advance that goal for the same reason your employer doesn’t hire a replacement every time you go on vacation. But – when a poorly performing employee does go on vacation sometimes it provides an opportunity to demonstrate to management that a temporary replacement is actually doing a better job – or that maybe we don’t need that position after all (i.e. no one noticed that the job not getting done).

For example during this shutdown many local businesses around Yellowstone National Park have banded together and voluntarily taken over the duties of the local park service (removing trash, cleaning bathrooms, maintaining roads, etc).

Why? Because it is in their mutual self-interest – all those tourists coming to Yellowstone also spend their money at those local restaurants, hotels, and shops. Indeed, this is the model that answers the perennial “but who will build the roads?” question – businesses that want to make it easy for customers to find them, that’s who.

Likewise the TSA disruption should make all question why exactly airport security is an arm of the federal government? Do we really want air travel in this country to be held hostage by the whims of those bickering children in Washington? Up until the incidents of September 11 airport security was a completely private affair. 9-11 was certainly not a failure on the part of that private system (unless of course you believe a federal TSA agent would have (a) stopped the guys with the box cutters because (b) they knew box cutter = destroyed buildings). Again, airports and airlines have aligned incentives in that both would be culpable and liable if they allowed dangerous individuals on board a flight. They should be allowed to choose the best most competent agency to handle security, rather than being forced to accept a single monopolistic agency (TSA) that can’t be fired no matter how poorly they perform. Due to the “crowding out” effect caused by nationalization (as with the TSA) there exists no viable competitors that could take over during these short-term disruptions (because by their nature they are short term – who would start a business that could only get operate once every year or two for a week or two?).

Hopefully this current shutdown will serve as a “teachable moment” amongst the general public who will begin to question why the federal government must control endeavors that can quite easily be managed by the private sector.

On Property Rights and Poop

I recently had the opportunity to visit San Francisco for the first time. Coastal towns tend to be a bit more interesting in terms of cuisine (seafood being one of the more varied palate options) as well as architecture (steep hill structures are ever a testament to human ingenuity) and San Francisco scores high in both categories. However one area where it currently scores quite low is in the aroma zone. At first I thought perhaps they had a very inefficient sewer system near the shoreline retail sector, but as we explored deeper toward the city center it became clear something was amiss. I learned shortly thereafter that San Francisco has a poop crisis. To be blunt – people are literally crapping on the sidewalks. Not the tourists mind you but the local homeless population. The situation has come to a head (or to the head to employ a nautical metaphor) primarily as a result of progressive conservatism primed with the power of centralized (governmental) authority.

The outside leftist narrative of course is that this poop crisis is inevitable results of unmitigated capitalism, which drives the eternal boogeyman of income inequality. This inequality fuels gentrification of the San Francisco housing market (no, actually property taxes are the prime driver of gentrification – if you own your home absent property tax you would never need to sell due to rising prices). So as housing becomes ever more “unaffordable” people are forced out of their homes and onto the street. This is of course complete nonsense. Prices only go up if supply is constrained while demand is rising. So in order to discover why supply is constrained we turn our attention toward the “inside” leftists (that is, the progressive liberals who live there). It turns out those that live there are in fact quit conservative (even if they don’t realize it). Any attempted new housing project must pass not only governmental hurdles but also the “local input” of current residents. These residents walk and talk like social progressives but because one of their core tenets is that they do not want the flavor, character, or architecture of the area in which they live to change – that is, they want to conserve it in perpetuity  – this by definition makes them conservatives in that arena. Their dual desire to not only keep San Francisco locked in an eternal snow globe style stasis but to also not erode the value of their homes drives them to engage in this very destructive economic protectionism: keeping new comers out by making it virtually impossible (or more costly than necessary) to build, keeps the value of their own homes artificially elevated while preserving the Norman Rockwell character of their town.

To fully appreciate the extent of the damage they are causing and why perhaps more than anywhere else in the country the homeless problem is so acute is that the median price of a modest single family home now stands at $1.6 million. A family of four with a household income of $100k is considered at the poverty line and actually qualifies for assistance from HUD (let that sink in – taxpayers across the country are subsidizing the housing of people making a $100k/year).

So what is the solution? Always the same and likewise always decried as “unrealistic” – remove all housing regulations and obstacles and let anyone build anything anywhere (works just fine in Houston, TX thank you very much). Your neighbor has no right to say what you can do with your property. Progressives (yes, I’m looking at you “townies” in Athens) should stop blocking progress when it comes to housing and development.

 

 

Are teachers underpaid?

Are teachers underpaid? No. That’s not to say there aren’t individual teachers that should be paid more, just as there are assuredly individual teachers that should be paid less (or fired). But the “national conversation” that is being continually pushed (from the left mostly, e.g. see recent Time Magazine spread on “underpaid” teachers) is not so much about worthy star teachers being passed over for raises but rather how the collective known as “teachers” is “underpaid”; identity politics now driven by profession. With credulous acceptance the public will always answer in the affirmative if asked should teachers be paid more because what we have been conditioned to hear instead is, “do these benighted souls deserve more for their selfless work?” With “more” being the unmoored comparative there is no upper bound for “worth.” Their salaries could double every year and every year if asked, “should they earn more” we would nod our heads in bobble-head synchrony.

Please do not misunderstand dear reader, teachers do indeed provide an important service to their fellow man – just as does every other working person. How do we know this? Well, if you earn a salary or income, then that demonstrates how much value you produced. Work in and of itself is not valuable – just ask the guy making mud pies all day – no one is going to pay him a dime (sorry Marx, labor theory of value was laid to rest long ago). The “hardness” of your work is irrelevant – only the result counts. Work is only valuable when subjectively judged to have value by fellow human beings, that is, an offer to trade parts of your work for theirs is made. Value is subjective and not absolute. When people say “teachers should earn more” I always wonder, “ok, what is the mathematical formula that is used to solve for pay of a teacher?” You may believe that teachers serve a more valued role in society than say the movie star or the lawyer, but the distribution of talent in society says otherwise. Labor, like any other economic good, is subject to the laws of supply and demand. The issue with teacher’s pay is summed up nicely in the following quote from the Time article,

“Hutchison’s siblings—an attorney, engineer and physical therapist—all earned graduate degrees, but now she makes half of what they do.” 

Hutchinson (the teacher) makes half of what her siblings make because her siblings all chose careers that are in much greater demand than that of the public school teacher. The path to becoming an attorney or engineer is long and arduous and very few have the skillset to complete it. The supply is thus low and it so follows that demand (and thus pay) will be high. On the flip side is the path of teacher; most people possess the skillsets needed to teach (after getting a 2 year teaching degree). It is an “easy” career (relative to other more highly paid careers), and so that low barrier to entry means many will take up that profession – supply is thus high and so demand (pay) will (all things equal) be lower when compared to professions with limited supply.

Because we are mainly focused on public school teachers this introduces either unions or the regimentation of a public sector workforce structure into the wage equation. In these systems wages are based primarily on seniority rules and have little to do with how effectively one performs their job. Being government run, raises will typically trail inflationary trends (inflation being 100% caused by the government mind you!) due to slow to act legislatures.

A more market-based approach (where teachers could be rewarded directly without concern for the “seniority” of others) would realize the top teachers earning top salaries, thus incentivizing those in other high paid professions to switch careers (if their preference had been for teaching). The end result of this process would be highly paid teachers dominating the profession and driving out the weak or ineffective teachers. If two teachers making $125k each can “out-teach” the same number of students as five teachers making $60k each, then it would be a win for the students, the teachers, and the taxpayer. If we want teachers to make more then let’s unshackle the profession’s public sector regimentation and union demands that maintain a status quo of oversupply driven by the politics of envy.

Tyranny of the Do-Gooders

In 2012 Jeffrey Dallas Gay, Jr. (age 22) died of an overdose of prescription drugs. There is little more tragic than death resulting from something so easily preventable. As a parent the instinct is strong to stamp from the face of this earth that which our child became entangled in. But just as setting a national 5 mph speed limit would be a counterproductive response to death by automobile accident, so too are the knee-jerk reaction of legislators when faced with these sorts of drug related tragedies. Senate Bill 81 was recently introduced into the Georgia General Assembly with the stated goal of trying to eliminate opioid overdoses. As with all such intrusions by the state into the lives of individuals, it leaves in its wake the collateral damage of individual lives sacrificed on the altar of the greater good.

The bill preamble first cites a scary-sounding decontextualized statistics (that roughly 30,000 die annually from opioid overdose – context: 0.008% of the US population) it then moves headlong into the “solution.” Now, if 30,000 people a year were dying because some enemy was lobbing bombs at US cities, then yes, the government should do something about that. But we aren’t dealing with an external foe, rather an internal one, ourselves. Laws on gambling, prostitution, drugs, alcohol, compulsory health insurance, etc. all share in common the well-intentioned desire to protect us from ourselves. But such laws undermine the very idea of a free nation built on individual rights. Do you sell your soul to save your life?

SB 81 purports to solve, or at least mitigate, the opioid “epidemic” by limiting first time opioid prescriptions in the state of Georgia to no more than a 5 day supply. Additionally every pharmacist is required to log all such prescriptions into a statewide database (cough, Big Brother, cough) so usage can be tracked to prevent someone buying “too much” (whatever that may be). Just as someone today can hit a wall if they try to buy “too much” Sudafed so too will the unintended consequence be that some must suffer in agonizing pain because their prescription is “too much” under the eyes of “the law.” But hey, who cares about individual suffering if we think our policy might help someone. What’s next, tracking our grocery purchases to be sure we aren’t “abusing” our bodies by buying the food that makes us less healthy and leading to higher health care costs? The greater good of “public health” would surely allow for such reasoning. Yes, laugh now, but it’s coming one day.

Of course these legislators want their cake and eat it too. The paragraph stipulating no more than a 5-day supply is quickly followed by a paragraph supporting the right of a physician to prescribe whatever they deem medically necessary. So once again politicians get to bask in the limelight of “doing something” while not actually doing anything other than adding yet another layer of bureaucracy for doctors who are already over-burdened with a mountain of regulatory paperwork they have to comply with from the local, state, and federal level.

The sad fact that no one wants to face is there no way to solve the opioid overdose problem other than getting people to follow the prescription on the bottle. And that’s not going to happen because people are people and some people just can’t follow directions. People “abuse” antibiotics as well by doing the reverse, not taking enough. This promotes antibiotic resistance. Indeed, nearly as many people (23,000) die each year due to antibiotic resistance. Why no bills designed to solve that “crisis”? Perhaps because no one is getting high off antibiotics? The desire to stamp out any possibility of artificially induced pleasure seems to be the driving force behind drug policy in this country. Anyone who needs a medication should not be made to suffer the hardship of additional hurdles just to get what they need because a handful of people can’t act responsibly. If you want to make a meaningful inroad toward ameliorating this problem, lobby the FDA to remove rules on side effect disclosures that require events with a 0.00001% chance of happening being listed. This leads to information overload and people just tune out everything. If the warning listed only actual hazards – like death from overdose – people would pay attention. Thus unintended consequence of government meddling leads to “solutions” like SB 81 which will invariably lead to more unintended consequences which can only be solved by yet more rules and legislation. The state cannot remake man through the pen. It must stop trying to do so.

Mother may I?

You walk outside one morning and witness your neighbor struggling to move a tree that has fallen across his driveway. Do you (a) ask him how you can help or (b) compose a letter to request a hearing before the town council in order to request permission to assist your neighbor? You request contains a detailed outline of your proposed methods of assistance whereupon you dutifully wait 2-3 weeks for a response back from said council. If you’re like 99.999% of people on this planet you go with (a). And that right there is what the free market is all about. People identifying a problem encountered by their fellow man, visualizing a solution, and then offering that solution If the solution is desired then people will show their acceptance by voluntarily engaging in trade in order to obtain said solution. If not desired then no such trade takes place.

But that is not the world we live in. There is no free market in the US or anywhere else in the world. There must be a defect in humanity that inflicts some with the instinct to force their ideas of what is normal or right or fair onto those that happen to be in proximity to them. In other words, we have a “permission market” – if you wish to solve a problem and offer the solution to the world you must first seek out the permission of these self-anointed guardian and kiss their ring on bended knee.

A recent example of this ring kissing involves a company “VidAngel” – a streaming service brought to market by two brothers who wanted to stream movies to their home with certain profanity or violent acts omitted. They searched high and low and when they couldn’t find anyone offering such a service, they started one! As an aside, this is how many such innovative companies get a start – unable to find a solution to a problem the entrepreneur solves the problem and then markets it to others with the same problem. CEO Neil Harmon recently explained on the Tom Woods Show podcast that when they started out they knew there would be copyright challenges to what they were attempting (witness the fall of Aereo, another innovative problem solving company) so they made sure to strictly follow the letter of the law. Their service, they contend, falls under the Family Movies Act, which gives consumers the right to filter movies they own – on videotape. So in order to comply with that antiquated provision they actually purchase on the consumer’s behalf a DVD or Blu-ray disc that is dedicated to only that consumer. Then their software allows the consumer to selectively remove certain words or content. Don’t like the “f” word – then delete away! Ok with profanity but don’t want violence? No problem! They were not secretive about their business. They requested licensing arrangements from all the studios. Some granted a license, but for those that did not, they followed the disc per consumer route. Then the big three (Disney, Warner Bros and Fox) decided to put an end to their little endeavor – not alone mind you, but with the help of the United States Federal Government. You see government is here to protect our rights, even the imaginary ones (copyright, trademark, patent and before that, slavery). VidAngel has now been shut down due to an injunction issued from U.S. District Court in California.

Even in the permission market it’s not enough to ask and get permission, you are also subject to the mercurial whims of those in power. Almost enough to make one have second thoughts about starting a business…nah… regulatory uncertainty would never have an impact on business starts and job growth.

In Defense of the Gouger

There was a recent disruption in the supply of gasoline to Georgia due to a ruptured pipeline. The resulting shortage was the predictable result not of the constrained supply but rather busybody price controls imposed by the Governor. The universal support by the public for the Governor’s actions betrays a breathtaking ignorance of basic economics. The law of supply and demand cares not one whit for your desire to maintain a constant supply of a good while forcing its price down.

Not only should “gouging” be “legal,” but in fact welcomed. Gouging ensures a supply of a good even when supplies are constrained. For example, gouging of event tickets ensures that you can get a ticket at a moment’s notice. Although the price is high would you prefer high price and ticket vs. no ticket? Rising prices due to increased demand is the market-natural rationing system. If prices stay low, then no one cuts back and the good is quickly consumed. High prices incentivize conservation so a given supply last longer and is available to those that desperately have a need of it. Hypocritically the state blocks private business from such practice but happily engages in it on a regular basis in the PeachPass toll lanes of I-85. I have personally seen prices go from 7¢ to over $11 for the same stretch. Of course this is a good thing, and the state knows it, so it is rather disingenuous for them to block it in other arenas.

The most common objection is what of the station that raises their prices during the day on the mere rumor of a disruption? They’ve already paid for the gas in the tanks in the ground – how can they possibly justify reaping these windfall gains? Easy. The higher price (and profit) ensures the station itself can buy more from their supplier at the soon to be higher prices. If the gas in the ground cost 25 and is sold for 30, then the station takes from those sales 25 and buys the same amount again. But if they are not allowed to raise prices and it soon will cost 100 to refill the station’s tanks, then they can only buy 1/3 of what is needed and so will run out that much faster each time. If they can charge 120, they can take 100 and fully replenish the tanks ensuring a steady supply.

A tertiary benefit of high prices is as economic alarm. It signals too society that resources are more urgently needed where prices are high. People then swoop in to access that higher profit potential and so the supply immediately begins to swell and prices fall. So even when such “gouging” occurs it will not last long as the market corrects itself naturally. No need for men with guns running around threatening people.

The usual objection here is that people can’t afford the higher prices. Please. No one is going to be filing bankruptcy because they spent extra on gas for a week or so. The above average amounts are no more than typical monthly discretionary spending (movies, eating out, etc.) The prospect of possibly foregoing a few luxuries doesn’t seem like the sort of essential human right that rises to a compelling state interest. Indeed, state intervention only makes matters worse – when it comes to economics, there’s no free lunch.

Never Forget

“We will never forget.” This sentiment is nearly universally applied in remembrance of the September 11 anniversary. But what does it mean? Since most do not personally know someone who perished, it is doubtful it is intended to memorialize a particular individual. Rather, it is intended as a warning to those that attacked us, “I will never forget how you hurt us; you will pay for what you have done.” It is a passive-aggressive remembrance. But when a bee stings someone perhaps it is more fruitful to try understanding why they got stung than to wage war against the hive. Yes, the bee stung me and that rightfully makes me angry, but, perhaps my buddy should not have thrown that rock at the hive five minutes earlier. Maybe, just maybe, that had something to do with it. Sometimes we pay the price for the misdeeds of others. It is not fair. It is not right. We can’t change the past. But we can change the future by learning from the past.

Instead of being led by the nose, we need to start asking the questions we’re not supposed to ask. If the 9-11 assailants did what they did because they hate us for our freedom, then why have there not been attacks on every “free” western democracy for the past two hundred years? For some reason the history books seem to be silent on jihad-style attacks in the 1920’s or 1870’s. I wonder why. It is odd that the “modern” notion of Islamic extremist only developed post 1950’s. Let’s not forget that the US and UK governments played a hand in the 1953 Iranian coup d’état that saw the democratically elected Mosaddegh ousted in favor of a puppet dictator (the Shah). Let’s not forget that the Middle East was arbitrarily carved up by European powers in the wake of World War I and II. Let’s not forget Israel was created in 1948 by the UN by forcible removal of people from their homes. There is no single cause to this mess, but, that is the nature of an abusive relationship. A multitude of transgressions, large and small, will after many years culminate in a response. An abused spouse may long endure abuse until finally one day they strike back, violently. Such events do not occur in a vacuum.

To be clear, this is not “blaming America,” unless you subscribe to the fallacy that America is its government. Consider: my neighbor repeatedly tosses his dog’s poop over his fence into another neighborhood despite their protestations to cease such behavior. Then one day those neighbors toss a grenade back which also results in my house being damaged. I’m going to darn well blame them both! My neighbor’s actions precipitated this response. Stating that my neighbor played a hand in those events does not mean I’m disloyal to my neighborhood and blaming my neighborhood. A member of the group is not the group itself. Repeat after me: blaming our government is not blaming America. That is the lesson we should never forget: the actions of those we elect have consequences.

Faith Healing

The current outrage-du-jour over the skyrocketing price of EpiPens is a perfect example of the effectiveness of a societal indoctrination that leaves us blind to the parasitic ills wrought by the state. The credulous media reports with much indignation and finger wagging over yet another example of an evil profiteering corporation charging outrageous sums for a life-sustaining drug. Clearly this fits with the media’s preconceived narrative that capitalism is bad and we need government to right such wrongs. Case closed. No need to scratch the surface and investigate the cause and effect of this phenomenon. Even those media outlets that do ask the right question and get the right answer are still somehow blind to the necessary solution. They recognize that prices are high because of a lack of competition (a result of patents), third party payment distortions, and cronyist-driven increased demand (fueled by FDA mandates). Even the likes of the Journal of the American Medical Association have admitted as much in a recent article.

“The most important factor that allows manufacturers to set high drug prices is market exclusivity, protected by monopoly rights awarded upon Food and Drug Administration approval and by patents. “

But the universal answer to solve these woes? More of the same: state intervention. If we can’t even imagine a world without state-driven influences in the market then there is only one option that remains – more state intervention. The state is entirely responsible for the current quagmire that is our health care system, but hey, maybe more regulations can fix the problem the first, second, and third set of regulations caused. As they say, if all you have is a hammer, then every problem looks like a nail.

There is no quick fix. The foundation is built upon the sand of wishes and emotion rather than the stone of the unwavering principle of liberty. To solve the problems in the health care market we must dismantle the framework of rules, laws, and regulations that can do nothing but produce this distorted market.

Step 1: Eliminate the patent system entirely. Without patents competitors can instantly respond to prices that get out of control. Novel inventions have a natural period of protection because of secrecy and first-to-market advantages. The more obvious the invention, the more easily it could be copied. Praising the patent system for rewarding inventors with monopoly pricing while simultaneously pining for the low price of generics is the height of cognitive dissonance.

Step 2: End the FDA’s monopoly privilege of being the ONLY agency allowed to review the safety and efficacy of drugs. If the FDA is going to take years to approve a drug or device (resulting in countless needless deaths and higher costs) then perhaps it is time to let competitors help them out.

Step 3: The FDA and its competitors should be financially responsible for their mistakes just like any other company. Presently the FDA bears zero responsibility if they approve a flawed drug. If there existed in any other sector of the economy such a lack of competition and accountability we would be outraged. Yet somehow this state of affairs exists with the FDA and no one bats an eye. Most curious.

It’s almost like society has been brainwashed into the credulous narrative that those in government are not mere mortals but rather angels who are immune to normal human foibles. This blind faith in the supremacy and righteousness of the state has closed our eyes to the truth no less than medieval faith in the Church blinded men to the truth of heliocentrism. Time to question that faith. Our very lives depend on it.