Tag Archives: economics

Teachers Unions and Online Education

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Oregon’s public schools are closed down due to the Wuhan Virus situation, as are most of our nation’s school systems.  As a result of that, parents started flocking their children to online charter schools so as to continue their education.  The Oregon Education Association, among others, object to that, though. They’d rather the kids sit around at home (because Oregon, like many States, has instituted a stay-home policy for all the State’s citizens and others living there) twiddling their thumbs, making pests of themselves, and otherwise being bored out of their minds rather than continue their schooling. So:

Under pressure from the unions, the Oregon Department of Education stopped allowing transfers on March 27. At Oregon Connections Academy, this means some 1,600 students who had sought to transfer won’t be able to….

Whatever happened to “It’s for the children?”

Oh, wait–these are teachers unions.

Government Aid and Government Stakes

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The current version of the Federal assistance to American airlines contemplates the government taking stakes—in the form of warrants convertible to (voting) common stock—in return for sending money to the airlines to help tide them over the disruptions resulting from the current Wuhan Virus situation. There are a number of objections to such a condition, most of them valid. Flight attendant unions have their own objection. They’ve

urged federal officials not to make grants to airlines contingent on government stakes, saying they believe executives would refuse—costing jobs in an industry hard hit by the coronavirus pandemic.

I have a couple of thoughts on the flight attendants’ objection; I’ve already expressed my objections to the government taking stakes in private business.

One thought is that the jobs supposedly to be lost would be, primarily, union jobs, and that can only be good for the airlines’ bottom lines as labor costs come down, especially if replacement hires on the turn-around are not from unions, and that would be terrific for the traveling public.

The other thought is that it’s not a foregone conclusion that the airlines, or very many of them, actually need government assistance, for all that airline management would like to have such bailouts.  Recall the Panic of 2008, wherein three auto companies of the American auto industry, supposedly needed government bailouts. GM and Chrysler jumped on those bailouts with both feet. Ford, though, despite pressure to take the bailout, refused to take the money; it said it would stand on its own feet (it did take a credit line against a potential need, but it never did tap even that).  Ford is thriving today, even playing a leading role in producing badly needed medical equipment.

So it will be for competently managed airlines centered in the US.

What Are They Going to Do?

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Cut us off?

The chairman of Huawei Technologies Co warned the US to expect countermeasures from the Chinese government if it further restricts the technology giant’s access to suppliers….
Eric Xu, Huawei’s chairman, said he believes Beijing would respond with restrictions of its own on American companies operating in China if the US.

In addition to the draconian restrictions already inflicted on American companies—and other nations’ companies—operating in the People’s Republic of China. These restrictions include demands for government-controlled backdoors into companies’ operating software and transfer of companies’ technologies to domestic partner companies—which are required for most foreign companies in order to operate in the PRC.

With the PRC’s threat to cut us off from needed medicines, intermediate medical chemicals, and medical equipment, and the PRC’s recent attempt to restrict access to rare earth elements, it’s become clear that our manufacturers—and Europe’s, come to that—need to revamp their supply chains to vastly reduce their dependence on PRC intermediaries and suppliers, if not eliminate that dependency altogether.

Xu’s threat only emphasizes that need.

State Governments and Socialism

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A current government move to control the means of production—classic socialism when the controls are widespread—is this, involving what’s left of our nation’s insurance industry, at the State level.

In at least three states, lawmakers have proposed legislation to force insurers to pay billions of dollars for business losses tied to government-ordered shutdowns.

Never mind what already agreed policies say. To Hell with signed contracts. Government men Know Better, and being above petty commitments themselves, can’t conceive the idea that commitments actually matter in a free society, in a free market economy.

Some regulators have declared moratoriums on cancellations and nonrenewals of policies.

This is Government assuming control of the insurance companies and dictating what they will produce.

Here is the blatantness of the power grab made manifest:

In Massachusetts, state Senator James [Jamie] Eldridge (d) said that the depth of the coronavirus pandemic has made bold legislative action a necessity. A bill he has proposed would require insurers to pay so-called business-interruption claims to small businesses even if policies contain virus exclusions.

Insurers get reimbursed later? No, they’ll have to apply to Massachusetts’ Progressive-Democratic government-appointed insurance commissioner for that, and the commissioner would be authorized to bill those same insurers, “possibly over years,” to cover the payouts. I am altering the deal; pray I don’t alter it any further.

Of course, all of this is for the best of reasons and soundest of motives. For some politicians, that’s actually true, too, regardless of the misguided nature of their actions.

For most, though, this is just another implementation of Progressive-Democrats’ mantra of never letting a crisis go to waste; they’re just too useful for expanding government power.

Progressive-Democrats and the Law

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And contracts.  Since the SARS epidemic of some years ago, insurers have declined to cover losses related to virus or bacteria damage, and they wrote their policies to that effect. State regulators—who controlled and still control the structure of insurance policies and the premiums allowed to be charged for those policies outside Obamacare—agreed.

However.

New Jersey Assemblyman Roy Freiman, a Democrat, introduced a bill that would retroactively rewrite interruption coverage contracts and force insurers to foot some losses for any policyholder with fewer than 100 full-time employees.

Contracts be damned. They don’t fit the Progressive-Democrat agenda, so by Progressive-Democrat-run Government fiat, they must be tossed.

Here’s the kicker, though.

Mr Freiman says he doesn’t know if he has the legal authority to do this, but he says he doesn’t care.

The law be damned too—it’s in the Progressive-Democrat’s way. Don’t get enough of his fellows in the legislature to agree with him and change the law. Don’t get actual voters to agree with him and so get legislators to stand with him to change the law.

No. The Progressive-Democrat already Knows Better; everyone should just get out of his way so he can toss the law without any silly delays from the ignorant unwashed.