Category Archives: Economics

Business, Economics, Political Commentary

Economic Insanity

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From the guy who runs Medicare:

In other words, Berwick’s column accidentally teaches us an important lesson. When consumers are in charge and responsible for paying their own bills, markets are very efficient and costs come down. But when government policies cause third-party payer, consumers have little if any incentive to spend money wisely – leading to high costs and inefficiency.

Defenders of the status quo argue that the market for healthcare somehow is different than the market for things such as computers. But here’s a chart (click to enlarge) showing that relative prices are falling in one of the few areas of the healthcare system where consumers spend their own money. And I’ve previously noted that the same thing applies with abortion, where prices have been remarkably stable for decades. Regardless of one’s views on the procedure, it does show that costs don’t rise when people spend their own money.

That’s common sense and basic economics. But it’s not a good description of Obama’s healthcare plan, which is explicitly designed to increase the share of medical care financed by third-party payer.

It’s almost as though they have a hidden agenda to increase the scope of government power.

Business, Economics, Media Criticism, Political Commentary

Demagoguery

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The president is now trying to distract from his own policies by blaming the oil companies for high gas prices, and he wants to increase their taxes, by taking away “subsidies.”

a) Does he really think that increasing oil companies’ costs will reduce gas prices? Apparently the question tied Jay Carney up in verbal knots.

b) Do oil companies get much in the way of “subsidies” that other companies don’t? If he’s talking about things like accelerated depreciation and R&D tax credits, this is helpful to any company, not just an oil company. If he is proposing to take it away from them alone, isn’t he simply punishing a vital industry because it’s making him look bad?

Ramesh Ponnoru makes a good point:

The big energy subsidies, on a per-unit-of-energy basis, are for ethanol, solar, and wind power. Get rid of the oil subsidies — and the “oil subsidies” — and nothing much changes. Get rid of the subsidies for those other energy sources, and those industries disappear. Just ask their lobbyists.

And good riddance, too, if they can’t make it without Uncle Sugar.

[Update mid afternoon]

“The president doesn’t know squat about energy production.” Which, unfortunately, doesn’t distinguish it in any way from most other subjects.

Business, Economics, Media Criticism, Political Commentary, Popular Culture

The Politics Of Star Trek

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Thoughts from Ilya Somin:

Instead, it is the Federation that turns out to be a sort of kinder, gentler Soviet Union. Both are multicultural, federal, socialist states with an official ideology of egalitarianism. But the Federation lacks the Gulags, secret police, and mass murder (or at least we never see them on-screen!). Meanwhile, the Romulans represent several of the negative qualities that many leftists associate with the present-day West: elitism, arrogance, and intolerance for other cultures. The same can be said of many other Star Trek villains, such as the Ferengi, who represent the supposed evils of capitalism. At some level, of course, Star Trek is a projection of Western values. After all, egalitarian socialism is a Western ideology. However, Trek is far more hostile to the present-day West than Nussbaum and some other left of center critics recognize.

Some say Roddenberry was a dreamer. But (sadly) he’s not the only one. Imagine.

Business, Economics, Political Commentary, Science And Society

The Climate Coverup Continues

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Also, there’s a double standard in Virginia when it comes to releasing emails:

UVA and the interest groups have been in Mann’s corner, fighting Ken Cuccinelli’s request for documents for months. But it was that Greenpeace request of UVA for Pat Michaels’ work product that has legs. The environmental group filed similar requests with other institutions seeking the records of climate skeptics, and in a couple of cases, mounted campaigns to have those skeptics fired from their positions. Where were the voices of academic freedom of expression during those campaigns? Sitting on their hands.

Now, though, they have sprung into action because Michael Mann, who shares their climate change beliefs, is under what they deem to be attack. Horner says these groups are “a little bit late to the party,” because, as noted above, UVA has already said it’s willing to release an academic’s emails, “so long as he’s a climate skeptic.”

As Norman Leahy writes, we now have half a million reasons to want to see them.