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Miniature Golf is the New Constitutional Right

June 16th, 2008 by David Strom

This column was originally published at Townhall.com. Comments welcome there.

The Bush Administration has discovered what liberals have known all along: the Constitution is a mighty comprehensive document, giving the federal government powers over the minutest aspects of our lives.

Case in point: apparently Bush & Co. have discovered that there is a right to miniature golf defined in the U.S. Constitution.

That’s the upshot of a new set of rules updating the Americans with Disabilities Act being released for public comment this Tuesday. Other new rights include easier access to light switches in hotel rooms by moving them 6 inches lower, wheelchair lifts in courtrooms to provide easier access to the witness box, and wheelchair lifts to provide easier access to stages in auditoriums. And the miniature golf courses? Soon at least half the holes will have to be easily wheelchair accessible.

It is, of course, utterly ridiculous that such things are matters of federal regulation. Unfortunately, it is not innocuous.

Not too long ago most Americans believed in at least the concept of limited government; more recently at least conservatives and most Republicans did. But now it seems that only a few libertarians still feel bound to even consider the possibility of limits to federal powers before proposing the imposition of ever more burdensome rules from Washington.

It may seem strange at first to see great danger in the latest proposed extension of federal power. After all, who could object to making the world a better place for the disabled? And that is what these rules are intended to do.

But intentions don’t matter in the real world. Consequences do.

And as a consequence of the Bush Administration’s new proposed regulations, the federal government is now asserting a legitimate interest in the design of miniature golf courses, the placement of light switches in hotel rooms, what is broadcast when on stadium scoreboards and video monitors, and a whole host of other, equally trivial aspects of our public and private lives.

If such minute matters of our daily lives are of legitimate concern to federal regulators, it becomes hard to see just what isn’t legitimate fodder for federal regulation.

The new ethos driving the expansion of government power appears to be: as long as government officials have (or can assert) good intentions then they should be granted unlimited powers to achieve their goals.

The founding fathers, of course, would have found this attitude puzzling, to say the least. First of all, they would have considered it ridiculous to simply assume good intentions on the part of anyone in power, and they would have deeply distrusted the idea that even well-intended expansions of power wouldn’t be dangerous. The only sane form of government, in their view, would be a greatly limited government with powers constrained to those absolutely necessary to protect our natural rights. And those rights, we can safely say, don’t include a right to unobstructed miniature golf.

Americans are becoming more and more accustomed to the idea that government should have power to do “good” things, not just those things necessary to defend our lives and liberty. And as a consequence of this gradual shift in attitude our freedoms are more at risk every day.

Again, consider these new rules being proposed by the Bush Administration: in order to achieve the well-intended goals of making the lives of the disabled a bit easier they will be requiring, on pain of federal fines or prosecution, millions of private individuals and businesses to spend billions of dollars to comply. Because when it comes to federal regulations, the simple rule is comply—or else.

When You Fill Up the Tank Thank Congress for High Gas Prices

May 29th, 2008 by David Strom

This column is also published on Townhall.com

 

Americans have been treated to a lot of whining by our elected officials about the high cost of oil and gas these days, but as usual the fingers are being pointed by rather than at the guilty parties.
 
Left-wingers want to have their cake and eat it too, of course: they simultaneously insist that oil is running out, its use is ruining our environment and should stop as soon as possible, and that oil gas should still be cheap at the pump.

 
It is the evil oil companies, who keep us addicted to oil while reaping their profits off our helpless selves, who are to blame for all our current ills. Americans, however, are blessed to have plaintiff’s attorneys ready to sue the oil companies for causing global warming, Congressmen ready to rake oil executives over the coals for making money, and yet other Congressmen dedicated to keeping pristine the remaining American wilderness that has oil buried underneath.
 
How stupid do they think we are? How is it possible to simultaneously wean ourselves from oil and the carbon dioxide emissions that stems from it, keep oil cheap and abundant, drill for oil absolutely nowhere, and sue oil companies without hurting consumers? Oh, and don’t forget to slap a “windfall profits” tax on the oil companies just for good measure.
 
It’s not possible to have all these “good” things together. Instead, we are seeing the consequences of following the anti-oil policies being pushed in Congress. Gas prices have gone through the roof, oil supplies for the future are threatened, and if the lawsuits against “big oil” go through exploration for future supplies will dry up leaving the world with little option but to get poorer over the next few years.
 
And the unpleasant fact is that a poorer world will be dirtier and less healthy for human beings, and not so great for nature either. Unless we want to concede that the earth would be better off completely without human beings—and just who would judge it so anyway?—then it is time to recognize that both human beings and the earth will be better off the wealthier we become. And for the foreseeable future, that wealthier future will depend upon drilling for oil.
 
Congress has been standing in the way of that better, wealthier future. By restricting prospecting for and drilling for oil within the United States, Congress has been keeping oil prices higher than they otherwise would be. And while high oil prices will help wean America off of oil eventually, our current experience shows that in the short run they just hurt consumers and help push our economy into a 1970’s-like tailspin that will make Americans less, rather than more environmentally conscious.

Oil prices will only drop if oil supplies can increase, and oil supplies can increase only if oil companies are allowed to drill for oil and be handsomely compensated for extracting and selling it.
 
Congress should be opening up the continental shelf and the Arctic National Wildlife Refuge for oil extraction instead of raking oil company executives over the coals for not selling their product below world market price.  
 
Consumers will benefit only if oil companies can extract, sell, and handsomely profit from the sale of oil that is currently under ground. No amount of complaining by Congressmen can change the laws of economics that makes that so.

POLICY MEMO: Traffic Congestion

April 15th, 2008 by David Strom

POLICY MEMO

Traffic Congestion:
Refuting the notion that increasing the gas tax and building more transit reduces traffic congestion.

Congestion is a problem, but it is a good problem to have. Traffic congestion is the result of a vibrant economy. Policymakers must accept that congestion is a market-driven phenomenon and manage congestion to maximize “mobility” – the ability of people to get from where they are to where they want to go to do what they want to do when they want to do it. That approach is a sharp contrast to the “tax first plan later” strategy for massive, across-the-board investments in transportation – especially light rail in the seven-country metro area. It is ignorant at best and disingenuous at worst to tell Minnesotans that they will achieve any real relief from the costs of congestion by paying higher taxes, even if those taxes are dedicated to transportation. Only by grasping the multifaceted nature of congestion – considering congestion as a market-driven phenomenon in the context of Levels of Service – can we develop a coherent strategy for reducing congestion that is focused on the lowest cost/highest benefit solutions.

Download a pdf of the complete Policy Memo

How Reasonable are the Recommendations of Minnesota’s Climate Change Advisory Group?

April 10th, 2008 by David Strom

Yesterday the Minnesota Free Market Institute, Minnesota Majority, The American Property Coalition held a press conference critical of the Minnesota Climate Change Advisory Group (MCCAG) recommendations. David Strom, president of the Minnesota Free Market Institute, says that analysis shows the climate change group’s report is seriously flawed. It doesn’t provide a cost-benefit analysis of proposed actions, and doesn’t back up estimates of costs and savings with real data.

“Essentially, their proposal is a fantasy. It has no correlation to the trends that we actually see,. They assume electricity consumption’s going to go down when it’s going up, 1.5 percent a year. They assume that our biofuel use will go up 35 percent. They did no study that indicated that we even have the capacity in terms of agricultural production to do that, and they don’t know whether that’s going to ruin the soil. Looking at this report, we came to the conclusion that it simply ignored reality.”

More press coverage –

* Critics say global warming panel recommendations could increase energy costs, job losses Pioneer Press
* Critics take aim at climate change recommendations MPR
* CO2 reduction plans take some flak Star Tribune

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Policy Memo

April, 2008

How Reasonable are the Recommendations of Minnesota’s Climate Change Advisory Group?

by David Strom, President Minnesota Free Market Institute

Download full report here.

Executive Summary

The report of the Minnesota Climate Change Advisory Group (MCCAG) recommends a wide range of policies to achieve the goals set out in the Next Generation Energy Act of 2007. Even the most cursory examination of the report reveals glaring weaknesses. The report overstates the costs of CO2 emissions, overstates the benefits of reduction measures, understates the costs and difficulties of remediation measures, and calls for actions that are directly at odds with Minnesota’s recently adopted transportation policies.

* The MCCAG report is based upon gross exaggerations of the social costs of carbon emissions. They recommend a carbon trading scheme that values carbon dioxide emissions at $48/ton, which is four times the $12/ton the UN Intergovernmental Panel on Climate Change states is the peer-reviewed estimate. The cost of carbon dioxide emissions for Minnesotans would thus be four times the UN estimated social cost, 30% higher than European costs, and as much as 40 times as high as costs in the Northeast United States, which has a similar carbon trading scheme.
* The MCCAG and the Next Generation Energy Act of 2007 both set goals that are impossible to meet in the times frames set. According to the MCCAG Minnesota’s greenhouse gas emissions are rising at twice the national rate, yet they expect to reverse this trend and achieve a 15% reduction in just seven years. Doing so would require dramatic changes that would be impossible to accomplish on a short time frame without severe economic consequences.
* The MCCAG recommends drastic changes in land use in very short time frames. These changes run counter to current market trends, and there is little to no empirical support that they can be achieved. In particular the report recommends doubling the amount of new housing development required in the urbanized area and choking off suburban development. A large fraction of the committee’s greenhouse gas reduction is based upon achieving this goal, yet there is no evidence that the housing market will support mass migration back to the cities.
* One of the primary policy goals of the MCCAG report is to drastically alter the transportation market, shifting citizens from automobiles to transit in large numbers. Their method of achieving that goal to increase both the cost and inconvenience of driving. Consequently they suggest a dramatic reduction of investment in roads (contrary to the policy adopted by the Legislature to increase taxes and spending for roads and bridges) and to shift the resources
* Minnesota Free Market Institute. 2048 Old Highway 8 NW, Suite 200A, New Brighton, MN 55112
* to transit development. Further, they argue that one of the best ways to reduce greenhouse gas emissions is to “increase the cost of driving.” These policies run counter to Minnesota’s recently updated policy goals.
* The MCCAG report recommends sweeping changes to agricultural practices to reduce greenhouse gas emissions from agriculture, but the report admits that there is little current research to indicate the best methods for doing so or that the reductions can or will actually happen. Calling for further research while booking the greenhouse gas reductions is pure fantasy.
* The MCCAG report calls for a massive increase in the use of biofuels, but completely sidesteps the feasibility or total benefits of making such a massive shift in fuel use. The report states “The economical and technical feasibility of replacing conventional energy with renewable energy was not considered as a part of this analysis; it was assumed that sufficient supply was available to meet the demand set by the policy. The cost and GHG impact of replacing plant nutrients lost to harvested cellulous materials were also not considered.” The report also completely sidesteps the question of whether biofuels create a “carbon debt” that in the medium-term would increase greenhouse gas emissions.
* In short, the MCCAG report does not provide a reasonable path to addressing the potential costs of climate change. Rather it is based upon unrealistic assumptions about the actual costs of carbon dioxide emissions, the time frame in which massive social changes can take place, and what the political and economic market will bear.

If Hypocrisy Were an Energy Source We Could Drill in Congress

April 3rd, 2008 by David Strom

This was article was originally published at townhall.com. Comments welcome there.

As Congress rakes oil executives over the coals over their profits, I detect the very faint sound of millions of the world’s smallest violins playing. After all, who is in the mood to feel sorry for oil company executives, given the pain we all feel when we fill up at the pump? No politician has ever been hurt by going after the big profits of oil companies, and it is unlikely that any ever will.

The truth is that oil companies have a lot less control over their profits than most of us think. The main component in the price of gasoline is the world price of crude oil, which has skyrocketed in recent years. And however large the profit numbers appear to us, the oil companies’ return on investment is small compared to banking, making computer chips, or even bottling Coca Cola.

According to the California Energy Commission, which breaks down the components of a price of gasoline, only six cents of the price of a gallon of gasoline went for distribution costs, marketing costs, and profits for the oil companies. That is six cents out of $3.61 cents at the pump. Sixty-three cents, or ten times as much, went directly into government coffers as state and federal taxes. And that doesn’t include the income taxes the oil companies paid.

Exxon Mobil, whose profits have earned the ire of Congress, paid $27,000,000 in income taxes on those profits in 2007. That is actually more than all the income taxes paid by the bottom 50% of taxpayers. Exxon Mobil alone paid more in taxes than 65,000,000 individual taxpayers paid as a group. Of course in reality it wasn’t the oil companies who paid that tax, but you and I every time we fill up at the pump. Government makes more money off the oil companies than the shareholders do.

So however satisfying it may be to watch oil executives squirm under the tough questioning of Congressmen, the hard fact is that Congress is partly responsible for rising energy prices. Congressional grandstanding is so galling because their own policies are hurting the very consumers they pretend to champion.

Congress does everything it can to drive up the cost of energy every day. Energy companies are among the most highly taxed in the country. Billions of barrels of oil reserves are kept off limits to drilling. It is nearly impossible to build an oil refinery in the United States, meaning that theUnited States no longer just imports crude oil, but even refined oil products such as gasoline.

But all of these factors will pale in comparison to the next wave of taxes and regulations that will drive up the price of energy in the coming years.

In response to fears about global warming or “climate change” the Congress will soon begin debate about the Lieberman-Warner Climate Security Act, the main consequence of which is to raise the price of most of the energy you consume. The higher energy prices envisioned by the Act are intended to get consumers and manufacturers to cut back on energy consumption and reduce greenhouse gas emissions. Observers give the bill a 90% chance of passage by next year.

According to a study done by the American Council for Capital Formation (www.accf.org) and the National Association of Manufacturers (www.nam.org) the Climate Security Act could raise retail prices for gasoline by 77%-145%, natural gas prices by 108% to 146%, and electricity prices by 101% to 129% by 2030. These price increases won’t just hurt consumers directly, but will drive economic growth down as well. By 2030 the economy could be 8.3% to 8.5% smaller than if this bill didn’t pass.

That’s the equivalent of a pretty severe recession. One much more severe than the current economic problems we face today—and one that won’t end until energy prices are allowed to fall.

How much chutzpa does it take for Congress to bash oil companies for energy price increases mostly outside their control at the same time they are working feverishly to raise the cost of energy through laws and regulations?

Energy is the lifeblood of a modern economy, and the only current sources of energy that can feed that economy today are fossil fuels, which emit carbon dioxide when used. And while it makes sense to research and develop renewable fuels, creating and implementing viable alternatives will take decades. Until then, lower greenhouse gas emissions will only come from lower energy use.

Congress should admit that that their policies have and will raise the price of energy. Instead, they are making energy companies the whipping boy for the consequences of their own policy decisions.

Congressmen are pretending to be the sheriff riding to the rescue of consumers, but in reality they are the chief bandits who are shaking us all down.

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David Strom is President of the Minnesota Free Market Institute

Truly Scary

March 28th, 2008 by David Strom

This column was also published at townhall.com

Americans are justly worried about the long-term economic effects of the current mortgage crisis and the credit crunch that has resulted from it. Politicians are scrambling to reassure voters that everything is under control, or that at least they have a plan to deal with the crisis.

Yet the size of the current economic problems we face is dwarfed by the coming disaster that politicians of all stripes are ignoring. Barring any serious shocks to the financial system, the tools that the Federal Reserve is using (and inventing) will likely mitigate the harm to the overall economy. Unfortunately the looming fiscal crisis we face will not be so easily dealt with.

You can get a good sense of the scale of the crisis by visiting the Heritage Foundation’s 2008 Federal Revenue and Spending Book of Charts (http://www.heritage.org/research/features/BudgetChartBook/index.html). The name implies that the book will put you to sleep, but trust me, it is more likely to keep you up at night.

A quick scan of the Heritage report will turn any true conservative’s stomach. It turns out that the Federal Government is far better at creating crises than the private sector. However irresponsible people in the private sector have been at times, our fearless government leaders have beat them by a mile in that department. After all, as the executives at Bear Stearns found out, the consequences for failure can be dire. In government, it is not always so.

Federal Spending is on an unsustainable path. And it’s not earmarks, silly spending projects, or even welfare that is going to do us in. It’s the entitlement programs and the growing national debt that are on track to destroy the American economy and the American way of life unless we do something about the problem. Yet while we have heard from each of the major party candidates about schemes to deal with the current economic mess, none of them has seriously addressed this larger looming crisis.

Medicare, Medicaid, and Social Security are already eating up an enormous fraction of the Federal Budget. In fact, over the past 40 or so years Federal discretionary spending has risen by 152% in real dollars, while mandatory entitlement spending has increased by 759%. Mandatory (entitlement) spending now makes up 58% of the Federal budget—twice as much as in 1965—and because it’s on autopilot it is going to eat up more and more of the budget unless politicians make the necessary changes.

What are the consequences of not facing up to the growing entitlement problems? According to the Congressional Budget Office entitlement spending and paying interest on the debt could drive federal spending to almost 80% of the American economy in coming decades. And that is without any significant growth in discretionary federal spending. Spending on interest alone could account for up to 40% of our economy because of the deficits we will wrack up if we don’t reign in entitlement spending.

The American economy would collapse long before we reach that point. As more and more of our economic resources are diverted to federal spending on entitlements, investment will dry up and economic growth will slow to a crawl. America’s economy already depends upon huge inflows of capital from abroad. How many dollars do you think the Chinese will want to sink into an American economy that is dominated by government spending on entitlements?EuropeandCanadahave their own entitlement problems, so don’t expect any help there.

Politicians have been eager to take credit for innovative ideas to address the current credit crunch, all the while ignoring the fact that they are the true authors of the greatest economic crisis our country could ever face. Without real action soon, government policy will have undermined our economy’s ability to even maintain our current quality of life, no less grow and prosper.

We are all expected to cheer as the politicians bash the “greedy” corporate leaders who are blamed for getting us into the current financial mess, but what about the responsibility of politicians for putting America on the path to financial disaster in the coming decades? Nobody believes that we can keep things as they are, but nobody wants to talk about what it would take to reform entitlements to make them sustainable.

It is ironic to think that Americans are being sold on the idea that only government can save our economy from the recklessness of the financial industry. However mistaken, reckless, or even irresponsible private citizens have been in recent years, the scale of the problem is nothing compared to the one consciously created by our political leadership. Think about that as you listen to politicians’ promises.

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None of Your Business!

March 13th, 2008 by David Strom

by David Strom

It’s long past time for the nanny state crowd to sit down and shut up.

We’ve been hearing from them for years about the added health care costs of smoking and obesity, and have meekly submitted to ever greater regulation of our private lives in the name of promoting a greater public good, saving health care dollars.

A few hearty libertarian types have had the courage to push back against the tide based upon the quaint notion that it is nobody’s business we do or what we consume as long as it is legal.

But in an age where governments have the right to require seatbelt and helmet use and prohibit the ingestion of bad fats, the conventional wisdom is that there is no part of daily life that is beyond government regulation.

This is particularly true in matters of health. As government has assumed a greater and greater share of the cost of health care government officials have assumed a larger role in trying to cajole and regulate what and how we consume.

The intellectual backbone of the recent wars on smoking and obesity has been the contention that smoking and being fat are not truly private matters, inasmuch as our individual health status imposes costs on society at large. Being a smoker, or being fat, costs society dearly because it is more expensive to treat unhealthy people than healthy people.

By this logic literally everything we do would be a legitimate target of regulation because most choices we make directly or indirectly impact our lifespan, mental health status, or other variables that social engineers might find of interest.

As a proponent of individual freedom and responsibility, I don’t accept this premise as many do. But what if the underlying argument is false? What if smokers or fat people aren’t more expensive to society?

What if they actually are cheaper to care for than their better behaved counterparts? What then happens to the intellectual framework that has propped up the recent spate of social engineering projects aimed at changing our habits through coercive means?

Well, according to a study performed by the Netherlands National Institute for Public Health and the Environment, those unhealthy fat people and smokers turn out to be just that: actually cheaper to care for.

Healthy people, you see, live longer and cost more. And, just like their less healthy counterparts, they still get sick and die eventually.

According to this study thin and healthy people have lifetime health care costs that are nearly 30% higher than smokers, and about 12% higher than fat people. All those costs associated with being unhealthy are outweighed by the fact that people who die younger are cheaper to care for. And that doesn’t include pension costs.

Does this mean that instead of imposing health impact fees on cigarettes and fast food we should now subsidize them, due to their societal benefits? Or perhaps we should impose a tax on juice bars and running shoes?

Of course not. It is none of the government’s business whether you are a health nut or a slob. It wasn’t before when all those nonprofits and government officials were warning about the dire fiscal consequences of our unhealthy behaviors, and it isn’t now that it turns out that being unhealthy is cheaper (at least if you are Dutch). Government shouldn’t be in the business of making lifestyle choices for citizens.

Everything we do has become of legitimate interest to the state. As we have outsourced responsibility for more and more of our basic needs to an ever more powerful nanny state, we have ceded more and more of our freedom.

And as this study shows, our interests are not so clearly in line with government’s. Even if you believed it was in principle a good idea to exchange freedom for security, it turns out that our interests are not always congruent with the State’s. In fact, the State is better off if you die off as your productivity starts to decline. Should the government then shape policy and provide incentives to get your behavior in line with its interests? Of course not.

It’s time to get off the kick that government has any business shaping our individual decisions. Classical liberalism, on which our government is supposed to be based, assumes that governments are instituted among men to protect our lives, our liberty, and our pursuit of happiness. They do not exist to force, cajole, or even nudge us into behaving as some social engineer would like us to.

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David Strom is President of the Minnesota Free Market Institute

The Hidden Cost of ‘Good’ Ideas

March 10th, 2008 by David Strom

What happens when politicians and pundits succumb to the notion that it is all right to micromanage our daily lives? Well, for one thing, Daylight Savings Time. I bring this up because I am struggling to stay awake because I lost an hour of sleep to this abominable government regulation.

 

Daylight Savings Time is now and always has been a bad idea—the product of do-gooders who believe that they can tweak things from Washington to make the world a better place.

 

They tweak, we submit meekly.

 

Daylight Savings Time was invented by William Willet in 1905 because he was annoyed that his fellow Londoners slept through what he considered the best part of the day—the early morning. The solution proposed by this busybody was to use the power of government to force everyone to wake up when he thought they should.

The idea didn’t catch on until the advent of World War I, when other busybodies in government latched onto the idea that DST would help save energy, which was then at a premium due to the war. Like many bad ideas, nobody actually did the math to find out whether the underlying premise was correct, and modern DST was born.

It wasn’t until 1918 that the United States joined the bandwagon (soon after we joined the war), and due to the salutary pigheadedness of at least a few Americans it was not universally adopted. Unfortunately, Arizona and Hawaii are the only holdout states left.

 

Today’s version of Daylight Savings Time—which perversely lasts about twice as long as “standard” time—is still motivated by the supposed need to save energy. Our wise Congress decreed in the Energy Security Act of 2005 a modification that extended DST by another month in order to save energy and reduce greenhouse gases.

The do-gooders are wrong, of course. It is not so easy to tweak the real world in order to get the results you want.

Consider these facts:

 

Daylight savings time likely increases energy use, despite the fact that Americans use somewhat less lighting than without it. It turns out that heating and air conditioning usage goes up; · Billions of dollars were spent by individuals and companies change the DST rules in computer programs when Congress decided to tweak the rules, creating a mini-Y2K problem;

· Americans spend, conservatively, about $1.7 billion in time wasted changing their clocks and watches to reflect the springing forward and falling back each year;

· DST causes deaths, as more pedestrians are hit in the fall after the return to standard time, and more car accidents happen due to tired drivers in the spring.

 

The point is not that we should abandon DST because it is bad policy (we should and it is), but that we should abandon the notion that bureaucrats and politicians can tweak policies to make a better world.

 

The law of unintended consequences makes it unlikely that the good anticipated will come about, and ensure that all sorts of bad things not anticipated will come to pass.

The world is imperfect, as are we. But with few exceptions it is better to let people muddle about in relative freedom than to try to socially engineer them into some preconceived and probably impossible better world.

 

Ironically enough, that was the point of the Benjamin Franklin’s satirical essay that has led many to believe that he, not William Willet was the inventor of DST. What Franklin thought absurd and amusing, forcing Parisians through government fiat to abandon their love of nighttime activities, has now become the official public policy of much of the world.

 

Ah, progress!

Paper, Styrofoam, or Ceramic?

March 6th, 2008 by David Strom

Proving once again just how unserious they are about actually governing, the Minneapolis City Council actually took the time to debate and implement a policy to ban disposable coffee cups for Council members and their employees. (http://www.startribune.com/local/16201047.html)

Scott Benson, the Chair of the Health, Energy and Environment Committee (yes, Minneapolis has such a committee) put the resolution up for debate this week because some members of the Council were secretly pro-disposable. Benson, knowing that none of the Council would want to appear anti-green, forced their hand by making them actually vote on the measure.


 

by David Strom

 

Proving once again just how unserious they are about actually governing, the Minneapolis City Council actually took the time to debate and implement a policy to ban disposable coffee cups for Council members and their employees. (http://www.startribune.com/local/16201047.html)

Scott Benson, the Chair of the Health, Energy and Environment Committee (yes, Minneapolis has such a committee) put the resolution up for debate this week because some members of the Council were secretly pro-disposable. Benson, knowing that none of the Council would want to appear anti-green, forced their hand by making them actually vote on the measure.

 

This resolution is silly not only because presumably the City Council has more important things to worry about than the dishes they use to satisfy their caffeine fixes, but also because the premise of their ban is probably flawed.

Paper and Styrofoam may be disposable and thus appear to be less green than ceramic mugs, it is unclear that they actually do more harm to the environment.

Ceramic, you may recall from your summer camp days, is a pretty energy intensive product to make. According to www.treehugger.com, a website dedicated to making its readers more green, ceramic mugs use 614 times more energy to make than polystyrene cups, and almost 300 times more than paper cups. (http://www.treehugger.com/files/2004/11/ecotip_coffee_c.php)

The air pollution ratio is even worse: it takes 1800 uses, or about 5 years of every day use, for a ceramic mug to get even with a using a new polystyrene cup every day. That’s using the same mug (if you use two or three different mugs over time, then you are a terrible polluter) every day for 5 years versus using Styrofoam cups every day for 5 years.

Then of course you have water use, heating the water to clean the mug, the use of soap (Minneapolis is requiring the use of environmentally sensitive soap), and don’t forget the greater likelihood of spreading disease from requiring reusable cups.

It turns out that one of the motivating factors behind requiring the use of ceramic mugs in city hall is the fact that such mugs are common gifts to the City (one just came with a recent award).

Each of those mugs is putting a terrible strain on the environment. Perhaps rather than banning disposable cups, the city should consider banning ceramic instead?

The Planning Fallacy

March 6th, 2008 by David Strom

Henry Ford proposed that for efficiency’s sake, all cars should be one color—black. Imagine that dictum as applied to Healthcare. Now imagine the government in control of your healthcare and able to apply it. That’s the subject of David’s Strom’s latest Townhall Column.

The Planning Fallacy

 

by David Strom

 

Imagine this scenario: an economist examines consumers’ automobile purchases and comes to the conclusion that the market is completely out of whack. By any rational measure consumers are making irrational decisions about what cars to buy, raising the costs of automobile purchases far above what is economically sensible.

Consumers could save huge amounts of money by buying the “best” cars based upon cost, safety, fuel consumption, and other criteria set up by experts. Better yet, by standardizing automobiles society could benefit from diverting enormous resources to other, more worthy social goods. Reducing the frequency of automobile purchases could save enormous amounts of money too, without significantly impacting mobility. 

Only a few types of cars would be manufactured instead of the 340-plus models available today. Standardization would improve efficiency immeasurably. All cars would have interchangeable parts, all mechanics would be specialized in maintaining the few standard cars available, and drivers would never have to waste time figuring out how to turn on the lights or windshield wipers when we rent a car. Nirvana!

You can make this kind of argument with just about any product and easily arrive at the conclusion that the free market is wildly inefficient and should be replaced by the rational management of the economy by experts. After all, experts are better equipped to evaluate the costs and benefits of different products and optimize the results for all involved. A planned economy would be much more rational and fair than the wasteful chaos of the free market.

Of course this logic is built on pure fantasy: experts cannot adequately account for diverse consumer preferences; innovation will slow to a crawl as research and development gets centralized; and lack of competition will inevitably cause industry to stagnate and become increasingly inefficient. The history of socialist experiments bears these criticisms out.

Unfortunately it seems like this lesson is never learned, especially by the “experts” themselves.

The next wave of health care “reform” is driven by this logic. The solutions being peddled to an unsuspecting public include dramatically more government regulation, imposing “best practices” requirements on doctors and hospitals, and reducing the already restricted consumer sovereignty in health care.

The same surface rationality that would call for a state Bureau of Automobiles applies to the aggressive regulation of medical care. We hear constantly that our medical care is too expensive, of too uneven quality, and produces results far too poor for the money we spend. It is easy to marshal statistics which show that medical results in America are poorer than in our peer countries, despite much higher spending.

These statistics, though, are highly suspect for many reasons. Consider just one measure that is often used to prove the superiority of socialized systems to the American health care system: infant mortality. In the United States medical teams almost always try to save every baby, regardless of its chances of survival; in many “advanced” countries babies are counted as stillborn if their chances of survival are deemed too low. Hence the US can simultaneous save more babies’ lives while appearing to have a higher infant mortality rate.

In comparing apples to apples you get a much different picture. Statistics like infant mortality and lifespan are poor measures of the health care system, because they measure many variables in one overall number (average life spans, for instance, are influenced by murder rates, car accidents, risk-taking behavior, diets, genetic variables, etc.). If you compare medical care to medical care, theU.S.system looks considerably better.

Consider cancer survival rates. If you examine five year survival rates in theUnited StatesversusEurope, a startling fact emerges: Americans have far higher 5-year survival rates from cancer. Among women the 5 year survival rate for Europeans is only about 90% ofAmerica’s. Among men the difference is stark indeed: European men have only 71% of the 5-year survival rate as American men. American health care starts to look pretty good.

And measurable outcomes are only one component of consumer satisfaction, which should be the goal of health care providers. Just as with other kinds of consumer products, it is impossible for a panel of experts to define what is “right” for consumers, no matter how precise their data or how sophisticated their models of what we “ought” to want. Government planners are no better equipped to manage and regulate our health care system than the supply and demand for automobiles.

Just as in other areas of life, there is no “one size fits all” model of health care provision.

There is no doubt that our current health care system needs reforms, largely due to the enormous government intervention already present in the system. Government directly pays for about 45% of health care expenditures, and influences the totality of spending through tax subsidies of third-party payer systems. These interventions distort our health care spending enormously.

The solution, though, is not more government intervention in the system, but less. The logic of consumer sovereignty which works in the automobile, housing, food, and consumer products sectors of our economy should be applied as well to the medical sector as well. Freer markets really are the most effective way to increase consumer satisfaction.

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