To respond the the following:
- Social Security: The funding arrangement is goofy, but people get their checks on time. The administrative costs are lower than for private mutual funds. It is effective at keeping those who cannot work - the elderly and the disabled - out of hopeless poverty. Social Security is a rainy day earmark slushfund. In 1981 counties surrounding Galviston Texas took opted out of their SS plan and privatized. Each person that opted out had the option of retiring early, and collecting more than their working paychecks. Privatization is more efficient than government control, but if we took it away how would Democrats scare old people??? This doesn't ever consider the fact that I have paid SS my whole life and have a pretty good chance of not receiving anything. SS is a government handout and should be stopped.
- Medicare: It is more efficient than private health insurance. Medicare has hog-tied pharaceutical and health care companies. These companies have to hire hundreds of people to manage the multi-priced structure medicare requires. There can be as much as 6 different prices - per zip code - for a single service! I wonder why healthcare costs are out of control. Its the regulation!!! The government did not go to med school, I do not want them making my healthcare decisions.
- Transportation Infrastructure: Pretty damn effective, I'd say. - This is great if you like throwing away your tax money. Some sources say the free market competition alone would reduce cost 30%.
- FDIC: When was the last run on your bank? Exactly, because the banks are private the insurance is nearly never needed. We can get rid of that too.
- Defense: Even if the government is far less efficient than the private sector, it is necessary to have a standing army and national defense spending. agreed.
- Education: Adam Smith recognized the importance of education to the public. A citizenry and work-force with basic education is a public good. Kevin went to a private school, enough said.
- FDA: Even if some things slip through the cracks, we are all well-served by this agency.
- SEC: Ditto. When did the SEC catch Worldcom, Enron, Tyco??? They didn't??? Why??? Sarbannes Oxley is the single reason why business is hurting as badly as it is now.
- Postal Service: This is an oft-cited example of bad government service. However, it is important to communication and commerce that every person have mail service. This isn't even a Government Agency.
9 comments:
"SEC: Ditto. When did the SEC catch Worldcom, Enron, Tyco??? They didn't??? Why???"
So do you think that because regulation failed to catch these bastards a lack of regulation would have done a better job?
"Sarbannes-Oxley is the single reason.."
Please explain why you think one act of legislation outweighs any and all market factors to such a degree as to qualify as "the single reason why businness is hurting..."
I think the market self regulates publicly traded business.
SOx believes that if you create processes you will not be able to cheat the system. This, of course, is bs. Criminals exist after SOx. The reason SOx hurst business is the law makes companies top heavy in accounting, non-revenue producing cost. Companies have to invest heavily into complying, preventing them from investing in technology to grow their business. SOx compliance has also turned away foreign investment. It is now less of a pain in the ass to operate a publicly traded company over seas then it is in the US. No job growth.
Social Security
You may disagree with the idea of Social Security, but that doesn't mean it isn't well run from a bureaucratic standpoint.
My county government has opted out of Social Security. It is not an option for its employees. Then the county took advantage of the opt-out to cut its contribution from that required by FICA.
What happens to those who don't save enough for retirement? I firmly believe that everyone who can work should work. I also firmly believe that we should meet the basic needs of the disabled and elderly who can't work. I don't care if he is disabled from a DUI or lost of all of his retirement money in Enron.
Medicare
Have you ever taken a look at the formulas for discounting medical services based on contracts between providers and health insurance companies? They're no less complicated than Medicare.
Your doctor makes your health care decisions. Medicare no more makes your health care decisions than Blue Cross Blue Shield.
Transportation
It seems like these road privatizers plan to rely heavily on roads built with public funds. Good luck building a new highway without eminent domain.
Private roads are a bad idea in part because they have very little competition. It allows a monopoly on access to certain parcels of land, and private owners also demand noncompete agreements from the governments they deal with.
As I've said, my county is into privatization. What if my county privatizes the road that my house is on? Now suppose the new owners of the road jack up the price. What choice do I have but to pay it? I could try to sell my house, but who's going to buy a house with such high access costs?
Also, does it make sense to have all stretches of roads operated by different companies with their own rules, fees, etc?
Toll roads here and there are fine, but private ownership is not a solution for the entire transportation infrastructure. This is where my conservatism kicks in. Privatizing all roads comes with way to many unintended consequences.
FDIC
Weren't the banks whose runs prompted the FDIC private?
Education
I went to public school. What's your point?
SEC
Fraud will happen. The failures of WorldCom, Enron, and Tyco were primarily a result of crooks, not failures of the SEC.
Besides, wasn't Sarbanes-Oxley put in place afterwards to prevent things like Enron, WorldCom, and Tyco?
It's pretty far-fetched to claim that Sarbanes-Oxley is "the single reason why business is hurting as badly as it is now." I'm sure it is an objective fact that our economic troubles have innumerable larger causes than Sarbanes-Oxley.
Postal Service
USPS is at least a quasi-govermental agency. Your link pointed out that USPS has (1) the power to sue (and be sued) under its own name; (2) the power to adopt, amend and repeal its own regulations; (3) the power to enter into and perform contracts, execute instruments, and determine the character of, and necessity for, its expenditures; (4) the power to buy, sell and lease private property; and (5) the power to build, operate, lease and maintain buildings and facilities. All governments and most quasi-governmental agencies have those powers.
The page linked to also points out that postal service is paid for primarily by stamps. Is Social Security nongovernmental because it is paid for entirely by FICA? What about the roads that are paid for in part by the gas tax?
I'm starting think these government services you complain about aren't really government services at all!
I have some things to say about some of these things but I'm on vacation. I write about them in 2 weeks. See you guys then.
"I think the market self regulates publicly traded business."
You mean like the mortgage industry?
Ryan, your criticism of SOx conflicts with this Wall Street Journal article. Compliant companies see an increase in share value that exceeds the cost of compliance.
Curt, I agree the market doesn't self-regulate.
The market rewards well-run companies, but it also rewards crooks. SOx won't stop every crook, but it will stop some of them and slow others down.
Participants in the market have one goal - maximizing their own wealth. That's fine, but it shouldn't be a substitute for public policy.
I don't think the profit motive is bad or good. Some liberals seem to think profit is somehow immoral. Some conservatives seem to think the unchecked free-market is an end in itself.
Businesses' sole focus is and should be profit, taking the public good into account only when it benefits their bottom lines.
By the same token, there is a place for regulation of businesses to protect the public interest and ensure the long-term health of the economy.
I believe the mortgage/housing industry is a text book example of a natural correction. Too much supply, not enough demand. Curt, of course the Democrats will call for more regulation. That is what they do. People are capable of making their own decisions. They are responsible for their own actions. That is the way it is. We should not bail out someone because they chose a bad mortgage. We (taxpayers) are not responsible for this. They are free to declare bankruptcy and try to get back on their feet. The bank may think twice about offering a 5-1 adjustable arm to someone that has no business having one. If the bank does not realize this, the investors leave it, and take their money. Like Wachovia.
Certainly there are situations where our society must step in an do the right thing. As a culture we are very generous. Private citizens are very generous.
BTW, funny FEMA was never mentioned.
FEMA was great under Clinton. It's remarkable how bad government can become when you trust it to people who have contempt for the very idea of government.
Bush talked about 1000 points of light. I think it's a fantasy that private charity will fill in all of the gaps if government gets out of helping people.
It's interesting that the same conservatives that decry handouts also say that philanthropy will replace government. It doesn't give me a lot of confidence that they intend to provide the handouts.
BTW Social Security is not a handout. Most of those getting checks today paid FICA for decades.
If we end Social Security, government will still take care of the poor. The difference will be that (a) we won't be funding it through FICA and (b) the funds will only go to those lazy poor people.
My thoughts on the mortgage crisis are probably long enough to warrant a blog post.
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