Comment to Paul Krugman’s “Facts Have a Well-Known Liberal Bias”, New York Times, 201-12-08
I think a counter-attack to these distorters of facts should be repeating over and over again their misinterpretation and misrepresentation of so many ideas.
To them, a free market means corporations are free to do what they please. But a true free market is:
Many buyers and sellers.
Both buyers and sellers are free to enter or leave the market.
Both buyers and sellers have all the information they need.
There are no externalities (all costs are paid for in the transactions
They cherry-pick “sacred” texts to suit themselves.
Adam Smith in “On the Wealth of Nations” observed the England had laws the prevent the workers from organizing to raise wages but none to prevent the masters from organizing to keep wages down.
Adam Smith warned that those who live by profit are not to be trusted.
“Originalist” judges have changed the Constitution to mean that corporations are people.
Showing posts with label free market. Show all posts
Showing posts with label free market. Show all posts
Sunday, December 10, 2017
Tuesday, July 25, 2017
Glyphosate and free market
I posted the following to
https://www.nytimes.com/2017/07/25/dining/ben-and-jerrys-ice-cream-herbicide-glyphosate.html?comments#permid=23415777
"Free marketers" too often ignore two important points of a true free market: buyers have all the information they need and there are no externalities.
If a product has any contamination from peanuts, then any buyer who is allergic to peanuts should have that information.
No externalities means that all costs are paid for in the transaction. If a manufacturer is putting anything in the air or water that could harm someone, that is an externality.
https://www.nytimes.com/2017/07/25/dining/ben-and-jerrys-ice-cream-herbicide-glyphosate.html?comments#permid=23415777
"Free marketers" too often ignore two important points of a true free market: buyers have all the information they need and there are no externalities.
If a product has any contamination from peanuts, then any buyer who is allergic to peanuts should have that information.
No externalities means that all costs are paid for in the transaction. If a manufacturer is putting anything in the air or water that could harm someone, that is an externality.
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Saturday, July 01, 2017
Modern medical care precludes a “free market”
One of the latest to call for a free market in health care is Bert Stephens, one of the New York Times “conservative” columnists. His latest column, “A Price for the G.O.P.’s Health Care Insanity”. https://www.nytimes.com/2017/06/30/opinion/congress-health-savings-accounts.html He takes on Obama for creating the mess and the Republicans for making matters worse with their “fixes”.
He blames it as the “third party problem”; the consumer of health care does not shop around for the best deal but depends on an insurance company to pay the bills.
There may still be a free market in dentistry, but there cannot be a free market in health care. Why? What is one of the criteria for a “free market”: many sellers. We have long ago lost many of our independent doctors: they are mostly in large clinic/hospital complexes.
In Duluth, Minnesota, we have two choices: Essentia Health or St. Luke’s. It may still be that if you have company-provided health insurance, then your only choice may be a given clinic. I know that we have switched clinics when we switched jobs.
Oh, sure, if we can’t get into one of these clinics or decide an out-of-town clinic is a better choice, we can drive a few hours or stay overnight to visit other clinics. My wife couldn’t get into a dermatologist in Duluth and so drove to the Twin Cities. We have had several friends who have stayed in Rochester to use the services of the Mayo Clinic.
There are certain specialties that are available outside the clinics, such as eye care.
A clinic may give you a choice of doctors, but you are often limited to those who have current openings in their schedule. If your doctor leaves the clinic, the clinic may assign you to the next available doctor I don’t remember if I chose my first cardiologist, but I know I was assigned to another when my then current cardiologist went elsewhere. When my cardiologist decided that I needed heart surgery, I was assigned all the subsequent surgeons.
Another consideration is our knowledge of the available doctors. Do we know who is available? Do we know their credentials and reputations? A free market includes having all the information to make a decision. Very few of us will take the time to get the information, or, if we get it, have enough knowledge to make a decision.
He blames it as the “third party problem”; the consumer of health care does not shop around for the best deal but depends on an insurance company to pay the bills.
There may still be a free market in dentistry, but there cannot be a free market in health care. Why? What is one of the criteria for a “free market”: many sellers. We have long ago lost many of our independent doctors: they are mostly in large clinic/hospital complexes.
In Duluth, Minnesota, we have two choices: Essentia Health or St. Luke’s. It may still be that if you have company-provided health insurance, then your only choice may be a given clinic. I know that we have switched clinics when we switched jobs.
Oh, sure, if we can’t get into one of these clinics or decide an out-of-town clinic is a better choice, we can drive a few hours or stay overnight to visit other clinics. My wife couldn’t get into a dermatologist in Duluth and so drove to the Twin Cities. We have had several friends who have stayed in Rochester to use the services of the Mayo Clinic.
There are certain specialties that are available outside the clinics, such as eye care.
A clinic may give you a choice of doctors, but you are often limited to those who have current openings in their schedule. If your doctor leaves the clinic, the clinic may assign you to the next available doctor I don’t remember if I chose my first cardiologist, but I know I was assigned to another when my then current cardiologist went elsewhere. When my cardiologist decided that I needed heart surgery, I was assigned all the subsequent surgeons.
Another consideration is our knowledge of the available doctors. Do we know who is available? Do we know their credentials and reputations? A free market includes having all the information to make a decision. Very few of us will take the time to get the information, or, if we get it, have enough knowledge to make a decision.
Saturday, May 06, 2017
Regulations are good: for our competition
So-called free-marketers are constantly complaining about regulations. Donald Trump claimed he would get rid of two regulations for every new regulation,. Gosh, do you think he would drop the regulation of concealed-carry in the White House? But that is a whole ‘nother subject.
What triggered this little outburst of mine was an article in the Reader Weekly from Wisconsin Public Radio ("Trade Dispute May Have Mixed Results for Wisconsin”). It contained a story “Wisconsin Lawmakers Consider Sales of Home-Baked Goods Once Again”. You can find the original story at https://www.wpr.org/wisconsin-lawmakers-consider-sales-home-baked-goods-once-again.
“In previous sessions, food industry advocates have brought up concerns about food safety…”
It would be interesting to know who these “food industry advocates” are and if they have ever complained about government regulations for the safety of their own products.
To be fair, many recall articles do state how a company is working with the government to improve. After all, good companies are always concerned about their reputation for quality.
What triggered this little outburst of mine was an article in the Reader Weekly from Wisconsin Public Radio ("Trade Dispute May Have Mixed Results for Wisconsin”). It contained a story “Wisconsin Lawmakers Consider Sales of Home-Baked Goods Once Again”. You can find the original story at https://www.wpr.org/wisconsin-lawmakers-consider-sales-home-baked-goods-once-again.
“In previous sessions, food industry advocates have brought up concerns about food safety…”
It would be interesting to know who these “food industry advocates” are and if they have ever complained about government regulations for the safety of their own products.
To be fair, many recall articles do state how a company is working with the government to improve. After all, good companies are always concerned about their reputation for quality.
Friday, May 05, 2017
Trump Care for Congress and President
Suggested amendment to Trump Care in the Senate:
On passage of this bill, all government health insurance for members of Congress and for the President and members of his Cabinet shall cease. If the “free market” is good enough for the people, it should be good enough for Congress and the President.
If it is good enough for us geese, then it is good enough for the ganders in Washington!
I sent the above to Sens. Al Franken and Amy Klobuchar. If you are a U.S. citizen, I hope you will send something similar to your senators. You can find their email links via www.sen.gov.
On passage of this bill, all government health insurance for members of Congress and for the President and members of his Cabinet shall cease. If the “free market” is good enough for the people, it should be good enough for Congress and the President.
If it is good enough for us geese, then it is good enough for the ganders in Washington!
I sent the above to Sens. Al Franken and Amy Klobuchar. If you are a U.S. citizen, I hope you will send something similar to your senators. You can find their email links via www.sen.gov.
Labels:
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Thursday, April 06, 2017
Is there a Common Sense Party?
A Google search put a British Common Sense Party at the top of the list.
As far as the U.S. goes, almost every link I found did not find a current Common Sense Party.
https://ballotpedia.org/Common_Sense_Party had a rather hard-nosed idea of common sense, sort of casting blame all over the map. The “Official website” link gave “Server not found”.
http://www.commonsenseparty.org/home.html has lots of common sense quotes, but the website is for sale. It is copyright by the Common Sense Party who will consider all serious offers. It can be reached through its contact page: http://www.commonsenseparty.org/contact-us.html
The Centrist Party seems like a believable alternative. Its website is http://uscentrist.org/ which is currently active. The latest blog entry is dated 2017-03-28: http://uscentrist.org/news/the-common-sense-blog-the-ins-and-outs-of-congress
Its philosophy does use unclear definitions of “free market, limited government and individual liberty” but does call for “protecting the common good”. We should consider that the balance between the two goals will always be unclear.
A Stanford student, Kyle D’Souza, gave a reasonable call, “The common sense party” http://www.stanforddaily.com/2017/01/13/the-common-sense-party/. This was in January. It only had one comment which I thought was off the wall.
The American Common Sense Party seems to be a one-person party on Facebook, the last entry being 2016-03-09.
The Common Sense Party also is on Facebook. It’s latest entry, 2017-03-22, was a link to Washington Post article of the same date: “Ex-Colo. GOP leader said only Democrats committed voter fraud. Now he’s charged with voter fraud.”
There are other recent articles about a “Common Sense Party”, but my quick scan showed that some are only local, not national or even state-wide.
Like the then moderate Republican Party arose from the Whig Party, maybe a true moderate party will arise from the current non-Lincoln Republican Party.
As far as the U.S. goes, almost every link I found did not find a current Common Sense Party.
https://ballotpedia.org/Common_Sense_Party had a rather hard-nosed idea of common sense, sort of casting blame all over the map. The “Official website” link gave “Server not found”.
http://www.commonsenseparty.org/home.html has lots of common sense quotes, but the website is for sale. It is copyright by the Common Sense Party who will consider all serious offers. It can be reached through its contact page: http://www.commonsenseparty.org/contact-us.html
The Centrist Party seems like a believable alternative. Its website is http://uscentrist.org/ which is currently active. The latest blog entry is dated 2017-03-28: http://uscentrist.org/news/the-common-sense-blog-the-ins-and-outs-of-congress
Its philosophy does use unclear definitions of “free market, limited government and individual liberty” but does call for “protecting the common good”. We should consider that the balance between the two goals will always be unclear.
A Stanford student, Kyle D’Souza, gave a reasonable call, “The common sense party” http://www.stanforddaily.com/2017/01/13/the-common-sense-party/. This was in January. It only had one comment which I thought was off the wall.
The American Common Sense Party seems to be a one-person party on Facebook, the last entry being 2016-03-09.
The Common Sense Party also is on Facebook. It’s latest entry, 2017-03-22, was a link to Washington Post article of the same date: “Ex-Colo. GOP leader said only Democrats committed voter fraud. Now he’s charged with voter fraud.”
There are other recent articles about a “Common Sense Party”, but my quick scan showed that some are only local, not national or even state-wide.
Like the then moderate Republican Party arose from the Whig Party, maybe a true moderate party will arise from the current non-Lincoln Republican Party.
Sunday, March 26, 2017
The false masters of words
“When I use a word,” Humpty Dumpty said in rather a scornful tone, “it means just what I choose it to mean — neither more nor less.”
“The question is,” said Alice, “whether you can make words mean so many different things.”
“The question is,” said Humpty Dumpty, “which is to be master – – that’s all.”
Alice in Wonderland, Lewis Carroll
We seem to have lots of Humpty Dumptys in politics, their words mean what they choose, not what most people think they mean.
Take the “Freedom Caucus”. What do they mean? It certainly doesn’t mean freedom to govern ourselves according to generally accepted rules. To them it means freedom to do what they damn well please, to hell with whoever else's freedom they tromp on.
Just what are “conservatives” conserving. It certainly isn’t resources. It certainly isn’t careful consideration before making any changes. To too many “conservatives” it means either conserving the power of large corporations or conserving a very narrow view of religion. ironically, the latter don’t hold the former to “you cannot serve both God and Mammon.” - Matthew 6:24.
As I’ve written more times than some of my readers would like, “free market” means, according to the Humpty Dumptys is again, free for the sellers to do as they please. To them the free market is not providing buyers with all the information they need and is not avoiding externalities such as pollution and worker safety. These to them are impediments to “free markets”.
“Liberals” misuse words also, but their goals tend to be more friendly to the general populace. But sometimes their “liberality” works counter to the general welfare or unnecessarily creates opposition to certain desirable goals: like letting people lead the lives they choose.
I think “gay marriage” has lost a lot of otherwise “liberal” votes because many supporters have a different view of marriage. I’ve always thought this problem should be dealt with by a “granny rule”. If two grandmothers choose to live together, is it our business whether they sleep in the same bed or in different rooms? It is “our business” if one of them dies. Does the survivor have to sell the house to pay the inheritance of the deceased’s children and grandchildren? To avoid this situation, any group of people who choose to live together should be able to have a civil contract that protects the interests of each member of the group.
“The question is,” said Alice, “whether you can make words mean so many different things.”
“The question is,” said Humpty Dumpty, “which is to be master – – that’s all.”
Alice in Wonderland, Lewis Carroll
We seem to have lots of Humpty Dumptys in politics, their words mean what they choose, not what most people think they mean.
Take the “Freedom Caucus”. What do they mean? It certainly doesn’t mean freedom to govern ourselves according to generally accepted rules. To them it means freedom to do what they damn well please, to hell with whoever else's freedom they tromp on.
Just what are “conservatives” conserving. It certainly isn’t resources. It certainly isn’t careful consideration before making any changes. To too many “conservatives” it means either conserving the power of large corporations or conserving a very narrow view of religion. ironically, the latter don’t hold the former to “you cannot serve both God and Mammon.” - Matthew 6:24.
As I’ve written more times than some of my readers would like, “free market” means, according to the Humpty Dumptys is again, free for the sellers to do as they please. To them the free market is not providing buyers with all the information they need and is not avoiding externalities such as pollution and worker safety. These to them are impediments to “free markets”.
“Liberals” misuse words also, but their goals tend to be more friendly to the general populace. But sometimes their “liberality” works counter to the general welfare or unnecessarily creates opposition to certain desirable goals: like letting people lead the lives they choose.
I think “gay marriage” has lost a lot of otherwise “liberal” votes because many supporters have a different view of marriage. I’ve always thought this problem should be dealt with by a “granny rule”. If two grandmothers choose to live together, is it our business whether they sleep in the same bed or in different rooms? It is “our business” if one of them dies. Does the survivor have to sell the house to pay the inheritance of the deceased’s children and grandchildren? To avoid this situation, any group of people who choose to live together should be able to have a civil contract that protects the interests of each member of the group.
Friday, March 24, 2017
There never can be a free market in health care
I submitted the following comment to David Brooks “The Trump Elite. Like the Old Elite, but Worse”, New York Times, 2014-03-24, http://www.nytimes.com/2017/03/24/opinion/the-trump-elite-like-the-old-elite-but-worse.html?comments#permid=21912241. (Warning, my comment is buried among several others.)
There never can be a "free market" in health care. Sure the sellers are free to leave the market, but few of the buyers are free to leave the market.
Let's hope it doesn't happen to you, but suppose you are in a car crash on a rural road. First responders find you unconscious and decide to send you to a big city hospital rather than the nearest small town hospital. Depending on the severity of your injuries, they call an ambulance (very expensive) or a helicopter (really expensive). Oh yes, there is no free market in either because there are not many sellers of either, not many being only one.
There can be a free market in insurance providers, but how free a market is there when only five or six providers in your market?
There never can be a "free market" in health care. Sure the sellers are free to leave the market, but few of the buyers are free to leave the market.
Let's hope it doesn't happen to you, but suppose you are in a car crash on a rural road. First responders find you unconscious and decide to send you to a big city hospital rather than the nearest small town hospital. Depending on the severity of your injuries, they call an ambulance (very expensive) or a helicopter (really expensive). Oh yes, there is no free market in either because there are not many sellers of either, not many being only one.
There can be a free market in insurance providers, but how free a market is there when only five or six providers in your market?
Tuesday, January 31, 2017
Quote of the Day: Pass law to say science is wrong
“I think this is a brilliant solution, if your science gives you a result that you don’t like, pass a law saying the result is illegal. Problem solved.” - Stephen Colbert
Quoted by Robert S. Young, “A Scientists’ March on Washington Is a Bad Idea”, New York Times, 2017-01-31, https://www.nytimes.com/2017/01/31/opinion/a-scientists-march-on-washington-is-a-bad-idea.html
His argument is that a march politicizes science and then gives anti-scientists opportunity to denigrate scientists yet again.
Young cited a case in which the North Carolina legislature passed a law “that barred state and local agencies from developing regulations and planning documents anticipating a rise in sea level.” This was in response to the uproar from real estate and economic development interests.
Let me guess. All these who supported the law were all for free markets. That is free to withhold crucial information from buyers who in a true free market have all the information they need.
Quoted by Robert S. Young, “A Scientists’ March on Washington Is a Bad Idea”, New York Times, 2017-01-31, https://www.nytimes.com/2017/01/31/opinion/a-scientists-march-on-washington-is-a-bad-idea.html
His argument is that a march politicizes science and then gives anti-scientists opportunity to denigrate scientists yet again.
Young cited a case in which the North Carolina legislature passed a law “that barred state and local agencies from developing regulations and planning documents anticipating a rise in sea level.” This was in response to the uproar from real estate and economic development interests.
Let me guess. All these who supported the law were all for free markets. That is free to withhold crucial information from buyers who in a true free market have all the information they need.
Friday, December 23, 2016
Adam Smith warned "Don’t trust Donald Trump’s appointees!”
"The proposal of any new law or regulation of commerce which comes from this order, ought always to be listened to with great precaution, and ought never to be adopted till after having been long and carefully examined, not only with the most scrupulous, but with the most suspicious attention. It comes from an order of men, whose interest is never exactly the same with that of the public, who have generally an interest to deceive and even to oppress the public, and who accordingly have, upon many occasions, both deceived and oppressed it." - pages 142-143, Adam Smith, PDF version of "Wealth of Nations" transcribed by the Gutenberg Project. You can download a text copy from http://www.gutenberg.org/files/3300.
Who are this "order of men”? Those who live by profit.
Who has Donald Trump appointed to be in his administration? Billionaires who have lived by profit many times over. Is this a populist government? Do pigs fly?
Given my small readership, I doubt you can make much influence. But who knows how much influence you might have by passing this on to your Senators and Representatives?
The above quote originally appeared in “The Invisible Adam Smith”, 2012-10-25 Only 146 have viewed this page to date. I feel like I’m just blowing in the wind. But, Bob Dylan wrote, “The answer is blowin’ in the wind, my friend.”
Who are this "order of men”? Those who live by profit.
Who has Donald Trump appointed to be in his administration? Billionaires who have lived by profit many times over. Is this a populist government? Do pigs fly?
Given my small readership, I doubt you can make much influence. But who knows how much influence you might have by passing this on to your Senators and Representatives?
The above quote originally appeared in “The Invisible Adam Smith”, 2012-10-25 Only 146 have viewed this page to date. I feel like I’m just blowing in the wind. But, Bob Dylan wrote, “The answer is blowin’ in the wind, my friend.”
Sunday, November 20, 2016
Misuse of "conservative" and "free market”
Letter to New York Times public editor
I wish writers would more carefully use the terms “conservative” and “free market”.
Those labeled with these terms, by self or others, are too often neither.
Are “conservatives” thoughtful and cautious about change, or are they rigid in whatever their views? For example, “conservative” religious sects are more often throwing the first stone rather than feeding the poor. Do “conservatives" really follow the Constitution as it currently exists, or are they “activists” interpreting it to suit their own views? “Persons” are corporations? “People” in the Second Amendment are now persons. “Regulate Commerce” is totally ignored.
As to “free market”, it is too often meant to mean corporations should be free to do what they please without government interference. Adam Smith must be spinning in his grave as those who live by profit (not to be trusted) buy so many politicians with money or a barrage of misleading statements.
A true free market
Has many buyers and sellers
Both buyers and sellers are free to enter or leave the market
Both buyers and sellers have all the information they need to make a decision
All costs are paid for in the transaction, that is, there are no externalities.
Too many “free marketers” want as few sellers as possible, do their best to lock buyers into the market, find out as much as possible about buyers but hide or provide false information to the buyers, and ignore all the externalities like pollution and bad diets.
See “The Invisible Adam Smith”, http://magree.blogspot.com/2012/10/the-invisible-adam-smith.html
I wish writers would more carefully use the terms “conservative” and “free market”.
Those labeled with these terms, by self or others, are too often neither.
Are “conservatives” thoughtful and cautious about change, or are they rigid in whatever their views? For example, “conservative” religious sects are more often throwing the first stone rather than feeding the poor. Do “conservatives" really follow the Constitution as it currently exists, or are they “activists” interpreting it to suit their own views? “Persons” are corporations? “People” in the Second Amendment are now persons. “Regulate Commerce” is totally ignored.
As to “free market”, it is too often meant to mean corporations should be free to do what they please without government interference. Adam Smith must be spinning in his grave as those who live by profit (not to be trusted) buy so many politicians with money or a barrage of misleading statements.
A true free market
Has many buyers and sellers
Both buyers and sellers are free to enter or leave the market
Both buyers and sellers have all the information they need to make a decision
All costs are paid for in the transaction, that is, there are no externalities.
Too many “free marketers” want as few sellers as possible, do their best to lock buyers into the market, find out as much as possible about buyers but hide or provide false information to the buyers, and ignore all the externalities like pollution and bad diets.
See “The Invisible Adam Smith”, http://magree.blogspot.com/2012/10/the-invisible-adam-smith.html
Mining and Adam Smith
If you think mining is good for northern Minnesota or anywhere else, read
http://www.nytimes.com/2016/11/19/opinion/appalachias-sacrifice.html.
Also consider what Adam Smith wrote about those who live for profit. And consider that a true free market has no externalities, like pollution that is not in the cost of a transaction.
http://www.nytimes.com/2016/11/19/opinion/appalachias-sacrifice.html.
Also consider what Adam Smith wrote about those who live for profit. And consider that a true free market has no externalities, like pollution that is not in the cost of a transaction.
Labels:
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PolyMet
Wednesday, October 26, 2016
A rebuttal of the Star Tribune misuse of the term “free market”
I submitted the following commentary to the Star Tribune a day or two after D.J. Tice’s column which I considered another misuse of the term “free market”. I have not seen it published yet. Could it be that “free marketers” don’t like reminders of true free markets?
D.J. Tice’s column “ A foolish system and your money …” leads me to believe he is one of those who knows the price of everything and the value of nothing. I wonder if he has considered the number of times in a day that he has benefitted from public goods.
Did he drive on a freeway to work? Did he pay the full cost of his share of the road, the full cost of the pollution from his car, and the cost of the loss of tax revenues from the houses that once were above the trenches that divide up our cities?
Did he take a bus to work? His fare would have only paid part of the cost. But the bus is a public good in that it reduces the number of cars on the road. If he had to pay the full cost of his bus ride, he probably wouldn’t take the bus.
Did he walk to work? Did he pay a toll for the sidewalk he used? Did he put a coin in the traffic lights so that he could cross the street?
Let’s hope that his house never catches fire. He would not be happy paying the full cost of the fire department response. If his neighbor had the misfortune of a fire, would he help pay the cost of the fire department whose response kept the fire from spreading to his house?
I am a graduate of the Cleveland Public School System. I doubt that my mother could have afforded the full cost of the schooling that qualified me to attend college. Many other people, some childless, helped pay the cost of my education.
I could not have afforded the tuition at Case Institute of Technology. A foundation paid full tuition the first year. I flunked out of Case but the foundation kept paying a fraction of my tuition at Ohio Wesleyan University. At both schools, many donors provided money to keep the tuition down somewhat. Three-percent federal loans also helped. I managed to get back to Case for graduate school with a graduate assistant position. I doubt any of the work we did paid in full for our jobs and tuition.
Companies are demanding more and more highly specialized “skills”, but they are not willing to train people. They expect the public schools and the colleges and universities to train these employees. But they don’t want to pay the taxes for the public schools and colleges, institutions that would help those who can’t afford the elite institutions. The smaller the pool of potential employees, the harder it is to find “qualified” employees.
Could he pay out of pocket for each and every medical visit he needed: office or hospital? For those of us with well-paying jobs, health insurance pays for a chunk of the care, if not all. But what about people who have jobs with no health insurance? Has he considered that their lack of health insurance benefits him with lower prices? (Or the owners with much higher profits.)
What if there were a deadly epidemic that had no respect for wealth? How might such an epidemic start? Maybe those who first became ill could not afford the health care, health care that would have reduced their chances of spreading their disease.
Modern economies run a large array of public goods: roads, schools, police, fire, and regulatory inspections. As Justice Oliver Wendell Holmes supposedly said, “I like taxes; they buy me civilization.”
D.J. Tice’s column “ A foolish system and your money …” leads me to believe he is one of those who knows the price of everything and the value of nothing. I wonder if he has considered the number of times in a day that he has benefitted from public goods.
Did he drive on a freeway to work? Did he pay the full cost of his share of the road, the full cost of the pollution from his car, and the cost of the loss of tax revenues from the houses that once were above the trenches that divide up our cities?
Did he take a bus to work? His fare would have only paid part of the cost. But the bus is a public good in that it reduces the number of cars on the road. If he had to pay the full cost of his bus ride, he probably wouldn’t take the bus.
Did he walk to work? Did he pay a toll for the sidewalk he used? Did he put a coin in the traffic lights so that he could cross the street?
Let’s hope that his house never catches fire. He would not be happy paying the full cost of the fire department response. If his neighbor had the misfortune of a fire, would he help pay the cost of the fire department whose response kept the fire from spreading to his house?
I am a graduate of the Cleveland Public School System. I doubt that my mother could have afforded the full cost of the schooling that qualified me to attend college. Many other people, some childless, helped pay the cost of my education.
I could not have afforded the tuition at Case Institute of Technology. A foundation paid full tuition the first year. I flunked out of Case but the foundation kept paying a fraction of my tuition at Ohio Wesleyan University. At both schools, many donors provided money to keep the tuition down somewhat. Three-percent federal loans also helped. I managed to get back to Case for graduate school with a graduate assistant position. I doubt any of the work we did paid in full for our jobs and tuition.
Companies are demanding more and more highly specialized “skills”, but they are not willing to train people. They expect the public schools and the colleges and universities to train these employees. But they don’t want to pay the taxes for the public schools and colleges, institutions that would help those who can’t afford the elite institutions. The smaller the pool of potential employees, the harder it is to find “qualified” employees.
Could he pay out of pocket for each and every medical visit he needed: office or hospital? For those of us with well-paying jobs, health insurance pays for a chunk of the care, if not all. But what about people who have jobs with no health insurance? Has he considered that their lack of health insurance benefits him with lower prices? (Or the owners with much higher profits.)
What if there were a deadly epidemic that had no respect for wealth? How might such an epidemic start? Maybe those who first became ill could not afford the health care, health care that would have reduced their chances of spreading their disease.
Modern economies run a large array of public goods: roads, schools, police, fire, and regulatory inspections. As Justice Oliver Wendell Holmes supposedly said, “I like taxes; they buy me civilization.”
Thursday, September 29, 2016
Quote of the day: “free market” and government
Comment to Paul Krugman's "Progressive Family Values"
Brice C. Showell, Philadephia
To ask why we need government to manage a "free market" is like asking why we need referees, rules and managers in sport.
http://www.nytimes.com/2016/09/26/opinion/progressive-family-values.html?_r=0#permid=19920631
Monday, September 26, 2016
Paul Krugman's use of "free marketer"
I'm surprised the economist Paul Krugman is using "free market" as loosely as the so-called "free marketers" do. "Free market" too often means fewer and fewer sellers doing whatever they please. A true free market has many buyers and sellers, both buyers and sellers are free to enter and leave the market, both buyers and sellers have all the information they need to make a decision, and all costs are paid for in the transaction.
How many independent pharmacies are there is our cities? You can probably count on one hand the corporate pharmacies.
How many situations like Epipen where the buyers are not really free to leave the market?
As to full information how much do the sellers know about you while fighting with dozens of lobbyists to hide information about their products. GMOs?
Externalities? These "free marketers" don't want the government to regulate worker safety and don't want government to regulate the pollutants from their smokestacks, farms, and mines going downwind or downstream.
Posted at http://www.nytimes.com/2016/09/26/opinion/progressive-family-values.html?comments#permid=19921473
How many independent pharmacies are there is our cities? You can probably count on one hand the corporate pharmacies.
How many situations like Epipen where the buyers are not really free to leave the market?
As to full information how much do the sellers know about you while fighting with dozens of lobbyists to hide information about their products. GMOs?
Externalities? These "free marketers" don't want the government to regulate worker safety and don't want government to regulate the pollutants from their smokestacks, farms, and mines going downwind or downstream.
Posted at http://www.nytimes.com/2016/09/26/opinion/progressive-family-values.html?comments#permid=19921473
Tuesday, September 20, 2016
What corporate efficiency?
“Free marketers” laud the efficiency of corporations over the inefficiency of government. I think there is no difference between the forms. What it depends on is management. A good mayor or governor can get some great things done. A lousy CEO or low-level corporate manager can make a real mess of things, such a mess as to cause death or injury.
What follows are my notes in trying to navigate vanguard.com to find a report that I was told today was available.
Vanguard site navigation
You sent me email that I had a report for Vanguard High-Yield Corporate Fund Admiral Shares Report, but you provide no direct link to it. I finally reread the message and find that there is a link to Fund Reports.
I clicked on that but did not find Vanguard High-Yield Corporate Fund Admiral Shares listed!
Oh, there is a little drop-down box in the upper right corner that toggles between regular and admiral shares.
I toggle to admiral and then I get "Please wait". I waited! I went downstairs to get a snack! I came back! The "Please wait" box was still present. I did something or another and got a page that asked me to log in. But I already had a page up that had me logged in! I am using that page, without logging in again, to send this message.
Off to try to get back to where I was ten or fifteen minutes ago.
Comment in satisfaction form
Recd msg today, 2016-09-20 of fund report for High Yield Corp Admiral. No link given in msg. Finally found my way to page with list of reports. Latest report is 2016-07-xx!?!?
Also added in another part of satisfaction request: hire some good human interface people.
Follow up after signing off ins satisfaction.
Downloaded report, but Vanguard was unhappy with my Adobe Reader XI. Report would not open, damaged. Version is 11.0.17, undated. Finder gives date modified as 2016Aug 5. Checking for updates gives “Already up to date”.
End of notes.
What follows are my notes in trying to navigate vanguard.com to find a report that I was told today was available.
Vanguard site navigation
You sent me email that I had a report for Vanguard High-Yield Corporate Fund Admiral Shares Report, but you provide no direct link to it. I finally reread the message and find that there is a link to Fund Reports.
I clicked on that but did not find Vanguard High-Yield Corporate Fund Admiral Shares listed!
Oh, there is a little drop-down box in the upper right corner that toggles between regular and admiral shares.
I toggle to admiral and then I get "Please wait". I waited! I went downstairs to get a snack! I came back! The "Please wait" box was still present. I did something or another and got a page that asked me to log in. But I already had a page up that had me logged in! I am using that page, without logging in again, to send this message.
Off to try to get back to where I was ten or fifteen minutes ago.
Comment in satisfaction form
Recd msg today, 2016-09-20 of fund report for High Yield Corp Admiral. No link given in msg. Finally found my way to page with list of reports. Latest report is 2016-07-xx!?!?
Also added in another part of satisfaction request: hire some good human interface people.
Follow up after signing off ins satisfaction.
Downloaded report, but Vanguard was unhappy with my Adobe Reader XI. Report would not open, damaged. Version is 11.0.17, undated. Finder gives date modified as 2016Aug 5. Checking for updates gives “Already up to date”.
End of notes.
Wednesday, August 10, 2016
Conservatives conserve what?
This entry was triggered by Ross Douthat’s “Trumponomics Is Reform Conservatism’s Evil Twin”, http://www.nytimes.com/2016/08/10/opinion/campaign-stops/trumponomics-is-reform-conservatisms-evil-twin.html, New York Times, 2016-08-10.
Once again, a commentator uses “free market” without clearly defining what it means. And of course, they really never define what is being conserved.
“Free markets’ generally mean that corporations are free to do what they please, no government regulation, no interference from shareholders, and no unions.
The Constitution states that Congress has the power to regulate commerce among the states. Isn’t contamination of rivers that flow into other states “commerce among the states”. Isn’t the smokestack pollution that goes into neighboring states “commerce among the states”.
But those conservatives who are so quick on the “patriotism” of
"limited government” quickly ignore the conservatism of carefully reading the Constitution. The Constitution has lots of checks and balances to have a fair government for all, but these “conservatives” only note those that fit their agenda. For example, they want legislators to attend “prayer breakfasts”. But isn’t the political pressure to attend a “prayer breakfast” a religious test for office, a test prohibited by the Constitution?
Once again, a commentator uses “free market” without clearly defining what it means. And of course, they really never define what is being conserved.
“Free markets’ generally mean that corporations are free to do what they please, no government regulation, no interference from shareholders, and no unions.
The Constitution states that Congress has the power to regulate commerce among the states. Isn’t contamination of rivers that flow into other states “commerce among the states”. Isn’t the smokestack pollution that goes into neighboring states “commerce among the states”.
But those conservatives who are so quick on the “patriotism” of
"limited government” quickly ignore the conservatism of carefully reading the Constitution. The Constitution has lots of checks and balances to have a fair government for all, but these “conservatives” only note those that fit their agenda. For example, they want legislators to attend “prayer breakfasts”. But isn’t the political pressure to attend a “prayer breakfast” a religious test for office, a test prohibited by the Constitution?
Wednesday, May 25, 2016
It makes no sense?
Some weeks ago I was in a coffee shop when one of those who has to talk to the whole room was holding forth. He repeatedly exclaimed “It makes no sense” with regard to gas prices rising after haven fallen so low.
Rather than going over to his table and joining the conversation, I just stayed where I was and kept quiet.
However, in the true free market sense, it does make perfect sense for more than one reason.
First, the number of producers of oil was way up. When a commodity becomes plentiful the price goes down. But when the price becomes too low for some to make money, they drop out. The number of producers drops and the price starts to climb.
Two, traditionally the price of gasoline rises in spring and fall as refiners switch the blends to match the season.
Three, as the price dropped, more people drove more. As they drove more, the demand for gasoline increased. As demand increases so does price. That’s the “free market”.
I don’t know whether this exclaimer was a “liberal” or a “conservative”, but this is the kind of view that some who call themselves “conservative" hold. These “conservatives” are ready to blame anybody but themselves for almost any problem.
Ironically, these up and down gasoline price movements are one of the few really free markets we have in our “free market” economy.
There are many buyers and sellers. Many sellers if we limit sellers to those extracting the oil. It is not so with refiners where we have relative few; one refinery can be producing gasoline for an entire region.
Both buyers and sellers are free to enter and leave the market. Many drivers can change their driving habits: make fewer trips or use other transportation. Drillers do turn their rigs off and on and explore more or less.
Both buyers and sellers have all the information they need to make a decision. For the most part, gasoline is a price-driven commodity. Despite what the oil companies say, the product is the same from station to station. For the station, it’s mostly is the credit card good.
All costs are covered by the transaction. This is where gasoline fails miserably. We don’t pay for the pollution and global warming caused by our “freedom” to drive when, where, and how much we drive.
I wish more of what happens made as much sense as the ups and downs of the price of gasoline.
Rather than going over to his table and joining the conversation, I just stayed where I was and kept quiet.
However, in the true free market sense, it does make perfect sense for more than one reason.
First, the number of producers of oil was way up. When a commodity becomes plentiful the price goes down. But when the price becomes too low for some to make money, they drop out. The number of producers drops and the price starts to climb.
Two, traditionally the price of gasoline rises in spring and fall as refiners switch the blends to match the season.
Three, as the price dropped, more people drove more. As they drove more, the demand for gasoline increased. As demand increases so does price. That’s the “free market”.
I don’t know whether this exclaimer was a “liberal” or a “conservative”, but this is the kind of view that some who call themselves “conservative" hold. These “conservatives” are ready to blame anybody but themselves for almost any problem.
Ironically, these up and down gasoline price movements are one of the few really free markets we have in our “free market” economy.
There are many buyers and sellers. Many sellers if we limit sellers to those extracting the oil. It is not so with refiners where we have relative few; one refinery can be producing gasoline for an entire region.
Both buyers and sellers are free to enter and leave the market. Many drivers can change their driving habits: make fewer trips or use other transportation. Drillers do turn their rigs off and on and explore more or less.
Both buyers and sellers have all the information they need to make a decision. For the most part, gasoline is a price-driven commodity. Despite what the oil companies say, the product is the same from station to station. For the station, it’s mostly is the credit card good.
All costs are covered by the transaction. This is where gasoline fails miserably. We don’t pay for the pollution and global warming caused by our “freedom” to drive when, where, and how much we drive.
I wish more of what happens made as much sense as the ups and downs of the price of gasoline.
Friday, April 29, 2016
Advice to Bernie Sanders
I sent $25 to the Bernie Sanders campaign a few weeks ago, and now I am bombarded with requests for money and volunteer calling. I decided that the campaign could use my "advice" more. So, I sent the following to info@BernieSanders.com in response to the message: "I will be with Bernie as long as he is willing to fight". I wonder if any of it will percolate up to the great man.
Bernie has a whole arsenal to use: the actual contents of documents that the billionaires and their lackeys misrepresent.
Adam Smith only used "free market" once, and that was the wool merchants kept the price of wool down by legislative means.
Adam Smith said that "This order of men is not to be trusted..." These were those who lived by profit.
Adam Smith's invisible hand really is a variation of the law of unintended consequences. He did not state that either man succeeded, only that the outcomes did not necessarily match their intentions.
The billionaires ignore much of the constitution. What part of Congress having the power to "regulate commerce" among the states don't they understand? Isn't sending pollution to another state commerce among the states?
What part of "no religious test" don't they understand?
In his "Farewell Address" George Washington warned about foreign entanglements and admonished his reader to pay their taxes.
If you can find an expert on the Federalist Papers, he or she can give you lots of ideas to counter the selfish who have no sense of community.
I can't find my reference, but a true free market is
Many buyers and sellers,
Both buyers and sellers are free to enter and leave the market,
Both buyers and sellers have all the information they need to make a decision,
There are no externalities.
Finally, avoid any questioning of the personal integrity. Providing honest definitions of their pronouncements should do quite well for "hoisting them on their own petards."
For other ideas, see mdmagree.blogspot.com.
I didn’t mention that he should also remind the Republicans of the warning given by the last great Republican President: Dwight David Eisenhower; the military-industrial complex. Now Ike’s party as been taken over by the military-industrial complex.
Bernie has a whole arsenal to use: the actual contents of documents that the billionaires and their lackeys misrepresent.
Adam Smith only used "free market" once, and that was the wool merchants kept the price of wool down by legislative means.
Adam Smith said that "This order of men is not to be trusted..." These were those who lived by profit.
Adam Smith's invisible hand really is a variation of the law of unintended consequences. He did not state that either man succeeded, only that the outcomes did not necessarily match their intentions.
The billionaires ignore much of the constitution. What part of Congress having the power to "regulate commerce" among the states don't they understand? Isn't sending pollution to another state commerce among the states?
What part of "no religious test" don't they understand?
In his "Farewell Address" George Washington warned about foreign entanglements and admonished his reader to pay their taxes.
If you can find an expert on the Federalist Papers, he or she can give you lots of ideas to counter the selfish who have no sense of community.
I can't find my reference, but a true free market is
Many buyers and sellers,
Both buyers and sellers are free to enter and leave the market,
Both buyers and sellers have all the information they need to make a decision,
There are no externalities.
Finally, avoid any questioning of the personal integrity. Providing honest definitions of their pronouncements should do quite well for "hoisting them on their own petards."
For other ideas, see mdmagree.blogspot.com.
I didn’t mention that he should also remind the Republicans of the warning given by the last great Republican President: Dwight David Eisenhower; the military-industrial complex. Now Ike’s party as been taken over by the military-industrial complex.
Friday, February 05, 2016
TRUTH or truth?
TRUTH is what some assert with certainty but with no coherent justification. TRUTH cannot be challenged.
Truth is what people strive for with questions and tests; truth may never be fully achieved but enough has been discovered to offer a guide to life or improvement of lives.
One TRUTH is that the Bible is the inerrant word of God. The truth is that the Bible offers many moral teachings even though it contains descriptions of many impossible events or even justifies bad deeds.
Did God on the sixth day create “man in his own image, … male and female created he them”? Or did he create only Adam and then when Adam grew lonely, he created Eve from Adam’s rib. I would think it would take more than a few days for Adam to grow lonely for a companion.
Is the “Great Flood” a recounting of some catastrophic flood in the Tigris-Euphrates valley in which some few had the foresight to build boats for their family and cattle, or was it a great flood to destroy all the “wickedness”, including babies? Considering that the depth of the waters was 15 cubits (22-1/2 feet), it was probably the former. Flood stages of over 20 feet are all too common even now. The truth is that it is important to be just and that it is important to prepare for disaster.
Is it TRUTH that God let Satan bring many calamities upon Job, or is it truth that bad things happen to good people? Certainly a just God would not let so many innocent people be killed to test one man, especially if God knows everything?
Is it TRUTH that heretics should be burned at the stake? It is truth that the Bible only mentions “heretic” once. “A man that is an heretick after the first and second admonition reject” (Epistle to Titus, 3:10). I don’t think “reject” meant to kill, but rather it meant to shun.
Is it TRUTH that Islam is a militant religion set on converting all to Islam? It is truth that Mohammed and his followers had to defend themselves against the polytheists of Mecca who considered the Muslims a threat. It is also truth that many Muslim-dominant cultures had a mix of Muslims, Christians, and Jews.
“Those who believe, and those who are Jewish, and the Christians, and the Sabeans - any who believe in God and the Last Day, and act righteously will have their reward with their Lord; they have nothing to fear, nor will they grieve.” - Talal Itani. “Quran In English. Modern English Translation. Clear and Easy to Understand”.
The Sabeans were a culture in South Arabia; this is supposedly where the Queen of Sheba came from, she who visited King Solomon.
You can get many versions of the Qur’an from the iBook store and other sources. However, like the Bible, it takes much reading to understand what is meant.
Consider “simple” documents like the “Declaration of Independence” and the “Constitution”.
Is it TRUTH that they are clear and unambiguous? It is truth that people are still arguing over them over two hundred years later. It is truth that what one Supreme Court decides may be overturned by another Supreme Court? For example, “Separate but Equal” was overturned by “Brown vs. Board of Education”.
Is it TRUTH that the United States is a Christian nation blessed by God? It is truth that many of the signers of the “Declaration of Independence” or the “Constitution of the United States” attended Christian Churches. It is truth that the “Declaration of Independence” mentions “Nature’s God” and the “Protection of Divine Providence”. But it is also truth that the “Constitution” uses no words or phrases involving any deity. It is truth that the United States took land from Christian Cherokees and others because white men wanted the gold that was found in Georgia. So much for the “Protection of Divine Providence” for these Christians.
Is it TRUTH that Adam Smith advocated totally free markets? It is truth that he used “free market” once and only once in “Wealth of Nations”. But it is also truth that the heavily regulated market was brought about by the woolen manufacturers. They asked for and received from Parliament many regulations that would keep the price of wool down so that their costs would be down and their profits up. It is also truth that even today “Free Marketers” lobby for laws that are beneficial to them and detrimental to others.
Is it TRUTH that voters “decided”? By the time you read this, the Iowa caucuses will have been held. It is truth that many voters cast their votes for whoever “won”, but many other voters chose somebody else. It is truth that better headlines would be that “a plurality of voters” or “a majority of voters” supported the “winner”.
It is also truth that no matter who is doing the reporting, they have a limited amount of time or space.
It is also truth that this column should end before you fall asleep.
Also published in Reader Weekly of Duluth, 2016-02-04 at http://duluthreader.com/articles/2016/02/04/6677_truth_or_truth.
Truth is what people strive for with questions and tests; truth may never be fully achieved but enough has been discovered to offer a guide to life or improvement of lives.
One TRUTH is that the Bible is the inerrant word of God. The truth is that the Bible offers many moral teachings even though it contains descriptions of many impossible events or even justifies bad deeds.
Did God on the sixth day create “man in his own image, … male and female created he them”? Or did he create only Adam and then when Adam grew lonely, he created Eve from Adam’s rib. I would think it would take more than a few days for Adam to grow lonely for a companion.
Is the “Great Flood” a recounting of some catastrophic flood in the Tigris-Euphrates valley in which some few had the foresight to build boats for their family and cattle, or was it a great flood to destroy all the “wickedness”, including babies? Considering that the depth of the waters was 15 cubits (22-1/2 feet), it was probably the former. Flood stages of over 20 feet are all too common even now. The truth is that it is important to be just and that it is important to prepare for disaster.
Is it TRUTH that God let Satan bring many calamities upon Job, or is it truth that bad things happen to good people? Certainly a just God would not let so many innocent people be killed to test one man, especially if God knows everything?
Is it TRUTH that heretics should be burned at the stake? It is truth that the Bible only mentions “heretic” once. “A man that is an heretick after the first and second admonition reject” (Epistle to Titus, 3:10). I don’t think “reject” meant to kill, but rather it meant to shun.
Is it TRUTH that Islam is a militant religion set on converting all to Islam? It is truth that Mohammed and his followers had to defend themselves against the polytheists of Mecca who considered the Muslims a threat. It is also truth that many Muslim-dominant cultures had a mix of Muslims, Christians, and Jews.
“Those who believe, and those who are Jewish, and the Christians, and the Sabeans - any who believe in God and the Last Day, and act righteously will have their reward with their Lord; they have nothing to fear, nor will they grieve.” - Talal Itani. “Quran In English. Modern English Translation. Clear and Easy to Understand”.
The Sabeans were a culture in South Arabia; this is supposedly where the Queen of Sheba came from, she who visited King Solomon.
You can get many versions of the Qur’an from the iBook store and other sources. However, like the Bible, it takes much reading to understand what is meant.
Consider “simple” documents like the “Declaration of Independence” and the “Constitution”.
Is it TRUTH that they are clear and unambiguous? It is truth that people are still arguing over them over two hundred years later. It is truth that what one Supreme Court decides may be overturned by another Supreme Court? For example, “Separate but Equal” was overturned by “Brown vs. Board of Education”.
Is it TRUTH that the United States is a Christian nation blessed by God? It is truth that many of the signers of the “Declaration of Independence” or the “Constitution of the United States” attended Christian Churches. It is truth that the “Declaration of Independence” mentions “Nature’s God” and the “Protection of Divine Providence”. But it is also truth that the “Constitution” uses no words or phrases involving any deity. It is truth that the United States took land from Christian Cherokees and others because white men wanted the gold that was found in Georgia. So much for the “Protection of Divine Providence” for these Christians.
Is it TRUTH that Adam Smith advocated totally free markets? It is truth that he used “free market” once and only once in “Wealth of Nations”. But it is also truth that the heavily regulated market was brought about by the woolen manufacturers. They asked for and received from Parliament many regulations that would keep the price of wool down so that their costs would be down and their profits up. It is also truth that even today “Free Marketers” lobby for laws that are beneficial to them and detrimental to others.
Is it TRUTH that voters “decided”? By the time you read this, the Iowa caucuses will have been held. It is truth that many voters cast their votes for whoever “won”, but many other voters chose somebody else. It is truth that better headlines would be that “a plurality of voters” or “a majority of voters” supported the “winner”.
It is also truth that no matter who is doing the reporting, they have a limited amount of time or space.
It is also truth that this column should end before you fall asleep.
Also published in Reader Weekly of Duluth, 2016-02-04 at http://duluthreader.com/articles/2016/02/04/6677_truth_or_truth.
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