regulation

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Fix Health Care?

Wednesday, May 20th, 2009

When the president of the United States tells us that we “can’t fix the economy without fixing health care,” what do you make of it?

If you’re like me, you want to unravel the health care mess. And making it better would surely help the economy. But do I agree with President Obama?

Well, no.

The president and his party want to increase government controls and establish new government programs, the usual whatnot.

That is, the usual stuff that is precisely “what not to do.”

Instead of increasing costs by regulation, we should decrease costs by having the government stop mandating what health insurance companies must provide. Or unentangle our hyper-expensive Food and Drug Administration, with its longest and most expensive research rules in the world.

Generally, our politicians want us to emulate various socialized systems from across the globe, while ignoring the aspects of those systems that are freer than ours.

Specifically, Obama wants to set up a tax-funded Medicare system for everybody, in competition with regulated private insurance companies. And since Medicare is one of the main drivers of high prices, you can see where this will lead.

Funny thing is, our medical costs have not been shooting up these past few years as much as they were before, while in heavily regulated-and-rationed Britain, costs have skyrocketed during this same period.

I’m reminded of the Hippocratic Oath: First, do no harm.

This is Common Sense. I’m Paul Jacob.

Is More Regulation the Answer?

Monday, February 2nd, 2009

Regulation. We’re told that it would have saved us from this and that event associated with the current economic downturn.

Well, probably not.

First off, remember that we have had regulation during this period. Clinton upped regulatory oversight of businesses; so did Bush.

Next, the mere fact that there are regulations doesn’t make them effective. Take Bernard Madoff. What Madoff engaged in was a swindle — not a hard-to-control best-intentions-turned-wrong investment fiasco but an actual, intentional fraud.

But as columnist Steve Chapman recently observed, the federal bureaucrats whose job it was to regulate investment businesses investigated Madoff “at least eight times in 16 years,” never, ever “coming close” to the fraud.

”So what,” Chapman asks, “makes you think that future bureaucrats, no matter how vast their authority, will be able to do better?”

Another thing about regulation is that there are several kinds.

When the founding fathers talked about regulating trade, they didn’t mean micromanaging trade to get specific outcomes. The founders meant “to make regular,” as in establishing standards . . . like what is the difference between sound investments and elaborate frauds.

That’s hard enough. Micromanaging a million businesses, to prevent certain unfortunate outcomes, is pretty much impossible.

Past performance is a good indicator of future performance. Just adding a bunch of regulators? That’s no help, since we haven’t discovered any new magic since the last batch failed.

This is Common Sense. I’m Paul Jacob.

Wicked Trimmers of Cost

Friday, December 5th, 2008

Robberies. Corruption. Furious government-enabled debt expansion in the name of curing the effects of prior furious government-enabled debt expansion. Murders. War.

And now, carpooling.

Yes, just when you think maybe it really is time to move to Canada to escape American insanity, you hear about how our neighbors to the north are harassing people for daring to save money on gas.

The alleged villain is an online startup called PickupPal.com. This is a website enabling people going places to hook up with other people going places. The site actively fosters collusive cooperation among travelers. My blood boils! Grr!

Two problems with this, if you live in Ontario.

First, Ontario strictly regulates ridesharing. Ontario riders can carpool only to and from work; must ride with the same person every day; may pay that person for their trouble only once a week; may not cross municipal boundaries during the ride; etcetera.

Second, Ontario bus companies are huge fans of these regulations. So the bus companies sued PickupPal. And the Ontario courts have just fined PickupPal over $11,000 Canadian dollars for making possible a $60 ride from Toronto to Montreal. PickupPal must also somehow enforce the Toronto regulations on their website.

Finally, the world is safe again for Ontario bus service.

This is Common Sense. I’m Paul Jacob.

Gateway Capitalism

Wednesday, September 17th, 2008

You’ve heard of “gateway drugs.” What about “gateway capitalism”?

The mayor of Clayton, California, apparently believes that two little girls selling zucchinis and melons by the roadside is the start of something bad.

The city cracked down on Katie and Sabrina Lewis’s veggie stand. Mayor Gregg Manning defended the bust, saying that “They may start out with a little card-table and selling a couple of things, but then who is to say what else they have. Is all the produce made there, do they make it themselves? Are they going to have eggs and chickens for sale next?”

Heavens! Capitalism run amok! Streetside vendors are to be allowed only when city governments run the show, as in the growing movement to establish old-fashioned day-markets. You know, Saturday Markets and Sunday Markets and the like.

But veggie stands, like dreaded lemonade stands, are illegal in Clayton.

You can understand the concern, I guess: Traffic problems. This police operation started off on one complaint. But most neighbors defend the stand, saying that traffic was never a problem.

So now 11-year-old Katie has gotten political. She circulated a petition to reopen the stand, and has lots of signatures. Best of luck to Katie and Sabrina, but I am afraid that the lesson you’ll really be learning isn’t about capitalism at all. It’s about bureaucracy.

And an awful void of common sense.

This is Common Sense. I’m Paul Jacob.

Bedbugs in their Bonnets

Monday, August 4th, 2008

When Congress began meddling in interstate commerce, using the most generous criteria to justify federal interference in private business and state powers, critics with common sense argued that the ultimate result would be absurdity.

If Congress wasn’t made to stick to the powers Constitutionally enumerated, then there would be nothing Congress wouldn’t do!

The proponents of big government said, in effect, “Don’t be ridiculous.”

Yet the ridiculous is now the normal business of Congress. Recently, the august members of the House have been deliberating the “Don’t Let the Bed Bugs Bite Act of 2008.” This legislation would direct the Commerce Department to provide grants to eligible states to assist in the inspection of hotel rooms.

Representative G.K. Butterfield, a North Carolina Democrat, says that bed bugs, 50 years after being nearly eliminated, are back.

Hmmm. Since hotels depend on their reputations to make money, they have every incentive to fix this problem, without taxpayer help. Hotels should be financially responsible for their own inspections. If there is a role for local and state governments, it would be to streamline the court system to make it easier for afflicted customers to get compensation.

But Congress authorizing $50 million to solve their bed bug crisis? Butterfield insists “it’s not a joke.”

But it is. On us. Congress now defines commerce as extending to the traffic of bed bugs.

Oh, it’s nice that Congress worries about us so. But let’s kill bed bugs locally.

This is Common Sense. I’m Paul Jacob.