Privatize It

Among the proposals the Trump administration has offered for drastically restructuring and shrinking the Federal government is one for privatizing the US’ Postal Service.

Of course, the American Postal Workers Union opposes the move, but that’s just wind in the trees and nothing to take seriously.  The union claims that such a move would harm e-commerce and rural America as well as do away with regular mail and package service at affordable costs.  Because competition in the market place doesn’t drive down costs or spur innovation.  And because we all need our regular, daily fix of junk mail.

The administration’s proposal isn’t yet ready for prime time, though.

A privatized Postal Service could be structured like an investor-owned utility and continue to be regulated by the Postal Regulation Commission or another governmental body, “consistent with the existing models of privatization in Europe,” the plan said.

There’s no need for the postal entity to be a regulated monopoly, nor is there any rational reason to imitate Europe for the sake of imitating Europe.

Either privatize the USPS or don’t, but don’t waste even more money on halvesies.

Protecting US Technology

The Trump administration is moving toward a set of rules that would heavily restrict the People’s Republic of China’s ability to acquire American technology-developing companies and American technology.

Of course, there are objections to protecting our stuff.

Industry groups…are mainly concerned that the export controls could negatively affect their businesses by preventing them from using their technological edge.

If such groups were truly serious about this, they’d be truly serious about hardening their member companies’ facilities against hacking.

And

While many object to the investment restrictions, they are seen as having less practical impact because Chinese investment has fallen off so drastically.

This is short-sighted to the point of being disingenuously so.  The PRC’s investment has fallen off because, through theft, hacking, and their extortionate requirement of “sharing” technology and inserting backdoors into core software as a condition of doing business in the PRC, they’ve largely caught up.  When we get our edge back, the PRC’s “investment” efforts will pick back up.  The restriction objectors know this.

Bad Bonds?

Recall that Michigan State University agreed to pay $500 million to victims and associates of Larry Nassar’s sex abuse victims while he was pretending to treat our women gymnasts’ injuries.

Now the school intends to float bonds to raise the money to pay the bill.

Were I an investment advisor—which I’m not, nor do I play one on the radio—I’d advise against buying these bonds; I’m not satisfied Michigan State will be able to pay them off in the end, even with OPM.

Aside from their investment quality, or lack, I also think it’s immoral to bail out the school until there has been a serious cleaning house of school management, from middle management layers all the way up through the top layer.  This house-cleaning must include the athletic department as well as HR, student affairs, extracurricular affairs, and the President’s office.  Especially in the latter and in the athletic department, no one should be left but the secretaries.

And none of this gets to the fact that the bond offering is just a cynical back-door effort to get taxpayers to pay for the school’s failure.  That’s also morally unacceptable.

And this:

[The school] is in talks with its insurers and has said it expects to recover at least some funds through them.

Is the school seriously suggesting that it bought insurance against the risk that its medical personnel would engage in sexual abuse?  I can think of no other way in which insurers would be liable for a payout here.

AHPs

Association Health Plans are new plans that, by regulation, allow small businesses to band together across industries and state boundaries to form health insurance buying consortiums.  Using this larger size-generated buying power, they should be able to acquire cheaper, better tailored, more flexible plans for their employees, plans that those employees actually will want.

However.

The left says association plans are junk insurance that will blow up ObamaCare.

Some AHPs likely will be; that’s a fact of life in any market, free or centrally planned. However, a free market is self-regulating and quickly so; junk plans will be few and far between.  Blow up Obamacare?  That’s win-win.

A Proposed EU Budget

French President Emmanuel Macron and German Chancellor Angela Merkel have agreed a proposed EU budget.  As you might expect, I have a question.  One of the points of agreement is the purpose of the “single eurozone budget” they want to create:

The EU will set up a single eurozone budget to boost investment and promote economic convergence among all 19 member states.

What does this purpose statement mean, exactly?  Who will pay into the budget and in accordance with what parameters?  Who will pick the investments to be supported and on what basis?  On these two matters, details are yet to be worked out, certainly; it’s early in the process.

But the larger matter is what these two mean by “economic convergence.”  Do they seriously intend to move the successful nations—the ones fiscally responsible, that don’t tax heavily or spend profligately, that actively enforce their (tax) laws—toward those nations that are less responsible, even irresponsible, that see their tax laws as suggestions rather than requirements, in addition to seeking to move (with what enforcement mechanisms?) those less responsible, even irresponsible, nations toward the successful ones?

That is, after all, what convergence means: bringing the two sides toward each other, rather than just one side toward the other.

So: why should the successful nations, the fiscally responsible nations, be held back in favor of those nations that have chosen a lower course?  Or is that not what Macron and Merkel meant with their convergence plan?