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Plastic Surgery: A Free Society Is a Beautiful Society - Doug French - Mises Daily: "The typical doctor has to devote precious office square footage to files and staff working the phones continuously, dialing for reimbursements and preauthorizations from insurance companies or Medicare, because that's where the doctor receives payment. As a result, the typical doctor's office waiting room is cramped and dingy with tattered, months-old magazines lying about and a TV in the corner turned up too loud so the older patients can hear.
Cosmetic surgeons treat people like they are the ones paying the bills (because they are). The waiting rooms I've been in are clean, roomy, and serene, even though you don't spend as much time there waiting for overbooked physicians as in the paid-from-insurance doctors' offices."
Monday, February 28, 2011
The Political Economy of Government Employee Unions - Thomas J. DiLorenzo - Mises Daily
The Political Economy of Government Employee Unions - Thomas J. DiLorenzo - Mises Daily: "Government-employee unions have vastly more power than do private-sector unions because the entities they work for are typically monopolies.
When the employees of a grocery store, for example, go on strike and shut down the store, consumers can simply shop elsewhere, and the grocery-store management is perfectly free to hire replacement workers. In contrast, when a city teachers' or garbage-truck drivers' union goes on strike, there is no school and no garbage collection as long as the strike goes on. In addition, teachers' tenure (typically after two or three years in government schools) and civil-service regulations make it extremely costly if not virtually impossible to hire replacement workers.
Thus, when government bureaucrats go on strike they have the ability to completely shut down the entire 'industry' they 'work' in indefinitely. The taxpayers will complain bitterly about the absence of schools and garbage collection, forcing the mayor, governor, or city councillors to quickly cave in to the union's demands to avoid risking the loss of their own jobs due to voter dissatisfaction."
"For decades, researchers have noted that the more money that is spent per pupil in the government schools, the worse is the performance of the students. Similar outcomes are prevalent in all other areas of government 'service.' As Milton Friedman once wrote, government bureaucracies — especially unionized ones — are like economic black holes where increased 'inputs' lead to declining 'outputs.' The more that is spent on government schools, the less educated are the students. The more that is spent on welfare, the more poverty there is, and so on. This of course is the exact opposite of normal economic life in the private sector, where increased inputs lead to more products and services, not fewer."
When the employees of a grocery store, for example, go on strike and shut down the store, consumers can simply shop elsewhere, and the grocery-store management is perfectly free to hire replacement workers. In contrast, when a city teachers' or garbage-truck drivers' union goes on strike, there is no school and no garbage collection as long as the strike goes on. In addition, teachers' tenure (typically after two or three years in government schools) and civil-service regulations make it extremely costly if not virtually impossible to hire replacement workers.
Thus, when government bureaucrats go on strike they have the ability to completely shut down the entire 'industry' they 'work' in indefinitely. The taxpayers will complain bitterly about the absence of schools and garbage collection, forcing the mayor, governor, or city councillors to quickly cave in to the union's demands to avoid risking the loss of their own jobs due to voter dissatisfaction."
"For decades, researchers have noted that the more money that is spent per pupil in the government schools, the worse is the performance of the students. Similar outcomes are prevalent in all other areas of government 'service.' As Milton Friedman once wrote, government bureaucracies — especially unionized ones — are like economic black holes where increased 'inputs' lead to declining 'outputs.' The more that is spent on government schools, the less educated are the students. The more that is spent on welfare, the more poverty there is, and so on. This of course is the exact opposite of normal economic life in the private sector, where increased inputs lead to more products and services, not fewer."
Stay Unreasonable | Michael D. Tanner | Cato Institute: Commentary
Stay Unreasonable | Michael D. Tanner | Cato Institute: Commentary: "The spending cuts were a reduction from 2010 spending levels, the same levels that were contained in the 'continuing resolution' that Congress passed in December to fund the government through March 4. In 2010, the federal government spent $3.46 trillion. Assuming a 2010 baseline for this year's budget makes those 'draconian' budget cuts equal to just 1.7 percent of this year's federal spending.
Or look at it another way. The administration just announced that it expects this year's budget deficit to be $1.65 trillion. Thus, the House's budget cuts amounted to 3.6 percent of the deficit. Think about that: Republicans just cut less than 4 percent of the spending that we don't have the money to pay for. Heck, our budget deficit for last month was $48 billion, so apparently we've covered January. Whew!"
"This is like taking a cupcake away from the world's fattest man and having somebody scream that he's starving."
Or look at it another way. The administration just announced that it expects this year's budget deficit to be $1.65 trillion. Thus, the House's budget cuts amounted to 3.6 percent of the deficit. Think about that: Republicans just cut less than 4 percent of the spending that we don't have the money to pay for. Heck, our budget deficit for last month was $48 billion, so apparently we've covered January. Whew!"
"This is like taking a cupcake away from the world's fattest man and having somebody scream that he's starving."
Collective Bargaining is a Fiscal Issue: Part 2 | Scott Walker for Wisconsin Governor
Collective Bargaining is a Fiscal Issue: Part 2 | Scott Walker for Wisconsin Governor: "Because of collecting bargaining, unions have included provisions in employee contracts that have a direct fiscal impact such as not allowing management to schedule workers based on operational needs and requiring notice and approval by the union prior to scheduling changes. As county executive, Walker attempted to reduce work hours based on budget pressures and workload requirements by instituting a 35-hour work week to avoid layoffs, which the union opposed. Additionally, government cannot explore privatization of functions that could save taxpayers money."
Timeline of Union & Senate Democrats Budget Related Events | Scott Walker for Wisconsin Governor
Timeline of Union & Senate Democrats Budget Related Events | Scott Walker for Wisconsin Governor: "24 hours was enough time for them to increase taxes by $1 billion dollars two years ago. Now with more than 17 hours of public testimony and a 5 day vacation to Illinois, Senate Democrats say they need more time."
Foreign Aid, or Foreign Hindrance | Doug Bandow | Cato Institute: Commentary
Foreign Aid, or Foreign Hindrance | Doug Bandow | Cato Institute: Commentary: "But despite Secretary Clinton's extravagant claims, there is little evidence that foreign assistance advances U.S. interests. After all, if America writing checks — more than a trillion dollars worth since the end of World War II — made the world a better place, the globe should be at peace, the poor should be fed, and the Second Coming should be history.
Consider Egypt. Secretary Clinton argued that events in Egypt require Americans to subsidize the new military rulers. For what purpose? The U.S. provided some $30 billion to Egypt over the last three decades but the country remains poor and undemocratic. Indeed, underwriting the corrupt Mubarak dictatorship helped turn Egypt into popular volcano."
"The aid dynamic is similar to that of Pakistan's war against insurgents: as long as the United States is willing to pay Pakistan ever more to eradicate extremists, Pakistan will not decisively defeat them; the graft that counterterrorism aid brings outweighs the political cost of some continuing violence"
"Since the end of World War II the U.S. and other wealthy nations have spent trillions of dollars trying to raise poor nations out of poverty. These outlays have had no discernible impact on Third World economic growth."
"Detailed cross-national studies find neither correlation nor causation between aid and growth. Indeed, generous financial transfers to corrupt dictators often have impeded necessary reforms. Political elites in foreign countries disagree on many things, but all want to preserve their power and position. Observed Flores and Smith: 'Autocratic governments' disregard for public welfare is exacerbated by international relief assistance.'"
"U.S. 'Food for Peace' shipments, used to dump farmers' domestic surpluses, is notorious for ruining local farmers and thus undermining local production. This problem continues in Haiti. On returning from a private aid mission, Don Slesnick, the mayor of Coral Gables, Florida, complained: 'We were saddened to see rice bags travel no more than 20 yards from the gates of the distribution site before ending up in the back of a pickup truck presumably headed for the black market. To our further dismay, we returned home to read news stories that those very same donations were undercutting Haitian rice farmers who needed income to support their own families.'"
"Separately we'd arrived at the conclusion that the relief program was probably killing as many people as it was saving, and the net result was that Somali soldiers were supplementing their income by selling food, while the [insurgent force] — often indistinguishable from the army — was using the food as rations to fuel their attacks into Ethiopia."
"While it's hard to criticize humanitarian aid properly delivered, private money spent by private organizations is the best way to help those in need around the world. Any assistance from Washington should be focused on temporary disasters where the U.S. government has unique logistical advantages — such as using an otherwise unemployed aircraft carrier to assist tsunami victims.
As for development assistance, American officials should focus on accelerating economic growth in America and easing access of other nations to the international marketplace. That means reducing trade barriers.
For instance, the U.S. limits sugar imports from Caribbean. Pakistanis would benefit far more from lower textile tariffs than from additional subsidies to their ineffective government. One of the most important roadblocks to international trade liberalization is American and European agricultural subsidies."
Consider Egypt. Secretary Clinton argued that events in Egypt require Americans to subsidize the new military rulers. For what purpose? The U.S. provided some $30 billion to Egypt over the last three decades but the country remains poor and undemocratic. Indeed, underwriting the corrupt Mubarak dictatorship helped turn Egypt into popular volcano."
"The aid dynamic is similar to that of Pakistan's war against insurgents: as long as the United States is willing to pay Pakistan ever more to eradicate extremists, Pakistan will not decisively defeat them; the graft that counterterrorism aid brings outweighs the political cost of some continuing violence"
"Since the end of World War II the U.S. and other wealthy nations have spent trillions of dollars trying to raise poor nations out of poverty. These outlays have had no discernible impact on Third World economic growth."
"Detailed cross-national studies find neither correlation nor causation between aid and growth. Indeed, generous financial transfers to corrupt dictators often have impeded necessary reforms. Political elites in foreign countries disagree on many things, but all want to preserve their power and position. Observed Flores and Smith: 'Autocratic governments' disregard for public welfare is exacerbated by international relief assistance.'"
"U.S. 'Food for Peace' shipments, used to dump farmers' domestic surpluses, is notorious for ruining local farmers and thus undermining local production. This problem continues in Haiti. On returning from a private aid mission, Don Slesnick, the mayor of Coral Gables, Florida, complained: 'We were saddened to see rice bags travel no more than 20 yards from the gates of the distribution site before ending up in the back of a pickup truck presumably headed for the black market. To our further dismay, we returned home to read news stories that those very same donations were undercutting Haitian rice farmers who needed income to support their own families.'"
"Separately we'd arrived at the conclusion that the relief program was probably killing as many people as it was saving, and the net result was that Somali soldiers were supplementing their income by selling food, while the [insurgent force] — often indistinguishable from the army — was using the food as rations to fuel their attacks into Ethiopia."
"While it's hard to criticize humanitarian aid properly delivered, private money spent by private organizations is the best way to help those in need around the world. Any assistance from Washington should be focused on temporary disasters where the U.S. government has unique logistical advantages — such as using an otherwise unemployed aircraft carrier to assist tsunami victims.
As for development assistance, American officials should focus on accelerating economic growth in America and easing access of other nations to the international marketplace. That means reducing trade barriers.
For instance, the U.S. limits sugar imports from Caribbean. Pakistanis would benefit far more from lower textile tariffs than from additional subsidies to their ineffective government. One of the most important roadblocks to international trade liberalization is American and European agricultural subsidies."
The Myth of Corporate Cash Hoarding | Alan Reynolds | Cato Institute: Commentary
The Myth of Corporate Cash Hoarding | Alan Reynolds | Cato Institute: Commentary: "Point No. 2, about safety cushions, alerts us to the fact that $1.93 trillion of liquid assets would not begin to cover $3.67 trillion of short-term debts, let alone ongoing expenses such as payroll. To describe the liquid assets as 'hoarding' (regardless of debts) is witless. The recession in 2008-09 would have been far less painful if nonfinancial corporations in 2007 had been 'hoarding' more liquid assets (they had $1.53 trillion)."
Fannie, Freddie Lose Relevance | Arnold Kling | Cato Institute: Commentary
Fannie, Freddie Lose Relevance | Arnold Kling | Cato Institute: Commentary: "To achieve this gradual phase-out, the provision of government mortgage support will need to be rationed in some way. It can be rationed by price, with the agencies raising their fees until private firms are able to compete. It can be rationed by quantity, with limits imposed on the market share of the agencies. And it can be rationed by market segment, with the agencies prevented from purchasing certain types of mortgages.
The administration report includes suggestions for all three types of rationing."
The administration report includes suggestions for all three types of rationing."
A Tortured History Pursues George W. Bush | Nat Hentoff | Cato Institute: Commentary
A Tortured History Pursues George W. Bush | Nat Hentoff | Cato Institute: Commentary: "Switzerland, like the United States, is a signatory to the international Convention Against Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment. And every nation signing this treaty is required to prosecute anyone, including government officials, who have been involved in 'complicity or participation in torture.'
Moreover, the Convention makes it unmistakably clear that 'no exceptional circumstances whatsoever, whether a state of war or a threat of war ... or any other public emergency, may be invoked as a justification of torture.'"
Moreover, the Convention makes it unmistakably clear that 'no exceptional circumstances whatsoever, whether a state of war or a threat of war ... or any other public emergency, may be invoked as a justification of torture.'"
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