Tag Archives: ethics

On Denying Market Forces vis-à-vis Supply and Demand

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Here’s an interesting graph from AEIDeas:

What this illustrates is the outcome of the lack of a market for organs to be transplanted, in this graph, specifically kidneys.

As Mark Perry put it in his article [emphasis his],

While the annual number of kidney transplant operations has remained relatively flat since 2005 in a range between about 16,500 and 17,000, the number of registered patients on the waiting list continues to increase.  From about 65,000 registered patients in 2005, the waiting list for a kidney transplant has increased by more than 50% over the last eight years, and by 35,000 patients, to the 100,019 patients who are currently on the kidney waiting list.

And

We know from basic economic principles that congestion, shortages, and surpluses are always caused by a failure to apply market pricing.

Perry’s conclusion should be an obvious one:

The only realistic, long-term and truly compassionate solution to address America’s worsening kidney shortage is to legalize some form of donor compensation.  That would require Congress to amend the outdated National Organ Transplant Act of 1984 so that people who give kidneys could receive a benefit, perhaps a tax credit, tuition voucher, lifetime health coverage, or a contribution to a retirement plan.

Reasonable men can argue about the nature of the price to be offered, but the fact remains that a market is necessary—with a price to be offered for the good desired.  Indeed, with the price needing to vary with fluctuations in demand and supply, a government mandated “benefit” would seem still too suboptimal.  Let the market determine the price, in dollars.

Certainly such a market would be fraught with danger and need careful controls.  But the danger for those patients in the excess represented by the present 6:1 ratio of patients needing a kidney to patients getting a kidney—2013’s 83,000 more Waiting List patients than transplant patients—is greater.  And with an actual market, the risk of unauthorized organ harvesting—in the US, a small problem currently, but not insignificant to the victims—will go down markedly.

And there will be a sharp decrease in the number of excess patients.

Sounds Like A Reason

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…to continue shedding light on this man, and on Progressivism and the Democratic Party generally.

Nevada’s Democrat Secretary of State [Ross Miller] says he’ll do all in his power to crush a conservative organization that ran ads against him in his campaign to become the state’s attorney general.

As Secretary of State, he’s also the one who oversees elections—including the one in which he’s running.

And he’s doing his “Stifle, Edith” act because he doesn’t like a political ad being run by the State Government Leadership Foundation.  If you’re curious, the ad is here, but the content isn’t particularly important.

What’s important is that this man is so terrified of a contest of ideas in the town square that he’ll do everything he can to evict from that arena any speaker saying things of which he personally disapproves.  What’s important is that this man is so terrified of a contest of ideas in the town square that he’ll do everything he can to make sure that folks in that arena can hear only the speech he deems fit for their tender ears—he won’t allow them to decide for themselves what they’ll listen to.

And this is typical of Progressives/Democrats.  See Brendan Eich and Mozilla, see Condoleezza Rice and Dropbox, see the Obama administration’s IRS.  The list is endless.

It makes me think that Progressives/Democrats know only too well that their ideas can’t survive the disinfecting sunlight of open competition.

More Failed Government

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This example isn’t a demonstration of dishonesty, and it isn’t unique to this administration.

Market-sensitive information vitally important to health-insurance companies has once again reached Wall Street before the public, and this time it appears to have come from the government itself.

On Dec 3, an official with the agency in charge of Medicare spending held a conference call for industry officials.  During the call, he provided data suggesting that federal funding for private Medicare plans would likely fall more than expected.

Word soon reached Wall Street, prompting a selloff in insurance shares.  In the subsequent 10 trading days, shares of several major health insurance firms lost between 3% and 9% of their value.  Over that same period, the S&P 500 was down 0.5%.

There’s this to color that failure:

Government departments are struggling with a fundamental tension between their duty to keep the public informed and a need to keep market-moving information from reaching investors.  The tendency toward openness has helped fuel a burgeoning business of government insiders who mine Washington for information that could affect stock prices.

There’s no need for the tension to exist, though, especially in a 21st century of online investing and trading, discount brokering, and Common Man doing much of that.  There’s also no need for the tension to exist given the falseness of the premise that market-moving information should be prevented from reaching investors.

Keep us informed.  Release all the data, to all of us simultaneously.  How to do so isn’t rocket science.  It isn’t even Internet science.  And it would eliminate a class of government insiders.

Hotel Maryland

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You can check in, but you can’t check out.

Netflix’ show, House of Cards, is about cut-throat politics at its worst, it’s hugely successful, and it’s filmed in Maryland.  And therein lies the rub.

The show’s producers, Media Rights Capital, now want a larger set of tax credits, given that success.  If they can’t get an increase, MRC says it’ll move its filming location to another state where it can get a better deal for its proven product.  Fair enough.  The filming produces income for the state’s economy and for the state, even with the current credit structure, and that success is expected to continue.

The state demurs.  That government wants to keep the credit levels where they are.  Also fair enough.  Those credits are their cost (regardless of what we might think about whose money those credits really is), and the state would like to minimize the cost of its own business-doing.

Such matters should be the stuff of negotiation between the two parties, and if they can’t agree on terms, the two parties should be able simple to part ways.

But the State of Maryland now has gone off the rails.

The House of Delegates now is threatening to seize MRC’s production studios under government’s eminent domain powers if they attempt to go somewhere else.  Never mind that there’s no public use—or even public purpose—to such a seizure; the taking would be nothing more than government-sanctioned theft of private property.

Folks might want to think twice about moving a business to Maryland, or keeping one there.  It’s a short step to a neighboring state, none of which seems inclined to keep businesses prisoner.

Last thing I remember, I was
Running for the door.
I had to find the passage back
To the place I was before.
“Relax,” said the Delegate,
“We are programmed to receive.
“You can check out any time you like,
“But you can never leave.”

 

With apologies to the Eagles.

Foreign Policy Fail

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Secretary of State John Kerry, in the aftermath of his latest failure, this time with Russia’s Foreign Minister Sergei Lavrov, on the matter of the Russian invasion and partition of Ukraine, had this to say for himself:

Any real progress in Ukraine must include a pullback of the very large Russian force that is currently amassing along Ukraine’s border.  Tonight I raised with the foreign minister our strong concern about these forces.

Notice that: not a word about pulling out of Ukraine.  Just a plea to please don’t hurt Ukraine any more.

And

The chief US diplomat and Russian Foreign Minister Sergei Lavrov also didn’t appear to reach any major common ground on discussions aimed at revamping Ukraine’s political system.

Never mind that Ukraine’s political system isn’t any concern of Russia’s or ours; it’s for the Ukrainian people to determine.  And they’ve already begun that, tossing a mendacious government that had lost the consent of the Ukrainians to govern.

How much more damage will this administration inflict on us and on our friends and allies over the next three years?  I shudder to think of it.