What Goes Wrong When the Government Mandates Prices

MoneyFeatured Scholars: Russ Roberts, Richard Epstein, Milton Friedman, Thomas Sowell, Lee Ohanian, John Cochrane, Daniel Heil
 
"Prices are a fact of life, and so is complaining about them. You probably prefer lower prices on just about everything, but especially when buying a house or paying for college, and you wish for higher prices when it comes time to sell that house or negotiate your salary. Complaints aside, however, prices are actually the key to widespread prosperity.

"Prices contain vital information. They show us how scarce resources are. They indicate what consumers want. Entrepreneurs and innovators rely on prices to decide what to make and how to make it. But not all prices are meaningful. Too often, governments interfere. In an attempt to protect consumers, politicians mandate lower prices. Other times, governments push prices up to benefit certain industries. These efforts might be well intentioned, but they distort the information that prices convey and tend to make us poorer.

"Why are prices so important, and what happens when policy makers forget this lesson?"

Read it all here…

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A New Government

Cabinet
Dear Editor,

The Elections have come and gone and the different waves have settled and many are still scratching their heads, puzzled as to what transpired. I try to have an answer for every occasion and the best thing I have come up with so far is that the undecided voters decided to stay home. I was hoping for a scenario where the sitting Prime Minister and the Leader of the Opposition ( who is now Prime Minister) would have lost their seats and the two men waiting in the wings would have been able to bring us into a "new day", but that was not to be; even one of those did not make it. There are comments I would like to reserve until  I see how close the seats were and which constituency polling stations were active or inactive. However, I will go out on a limb and say that this Election was supposed to be closer, but too many persons stayed home because they were afraid to catch covid-19; but in the Food Store on Saturday two well-dressed ladies opined that it was a combination of Covid-19 and a lost of interest . I can agree with both reasons but the latter one could be the most telling, as I recall the FNM machine being more active around the polling stations in past Elections, but this time they were out-colored and out-manned. A certain, peculiar class of FNM worker seemed to be missing from the areas surrounding the stations, almost like the B Teams were representing.

There is an upside of this "victory" for the PLP that is more of a victory than a mandate. The margin of victory informs both Parties that many are dissatisfied and there could be mischief afoot in the months ahead. The upside? It looks like the new Prime Minister has stepped forward; if we regard what he has said in "acceptance" speech. I have never,  heard him speak in that manner before,( except more than 50 years ago with the lunch time crowd in front of the Nassau Shop)there were pauses, no hesitation or stumbling and Thursday evening's speech came with a peculiar conviction. I guess there are times when content and context are able to drive dialogue in a meaningful way. I was thinking of what may have triggered this 'brave new" posture and I recall that the last  member of the "law firm" has now ascended to the status of two of his former partners and may have something to prove. He will have no problem surpassing one of them but surpassing the remaining one is a challenge. It may sound odd, but he has a quality that all of his predecessors did not have  … …he is not easily ticked off.

Hopefully he  selects from the men who came before a  quality of their personality and brings them together so that they can compliment each other. The tact of Pindling, the drive of Ingraham, the loquaciousness  of Christie and the (sometime needed) arrogance of Minnis. I have not placed the official title before these former Prime Ministers intentionally, remembering that the "best of men are men at best".  I have requested the men of our Church's Bible Study group to hold up our Prime Minister in prayer, it just may be that God will do his best work with a man who many consider to be the least of all the vessels.

Sincerely,

Edward Hutcheson  

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Bahamas Election September 16, 2021

Miltiple RoadsDear Editor,

We are in that season again when all and sundry take leave of their senses  and escape into a land of fantasy, where for a paltry sum of $400.00 well meaning individuals get the opportunity of taking a shot at the title of who can over promise with a straight face, and under deliver if granted the opportunity. But this time around it seems different. The main contenders should have switched their slogans; those wanting a new day should be spending more time on the future viability and relevance of their organization, and those looking to the future do not seem to realize that it is a new day or time for their party but their leader keeps on acting like a high schooler still playing with his friends.

This is not going to be an election like those in the past. We may see political leadership skip a generation as those fifty-somethings and under finally get to exercise their rights and come into the political spotlight. Shaping up to be a battle of all the middle-aged folk born between 1967 and 1973.   This may happen because the old foggies of my generation no longer have the "swing vote", we have been replaced by the new "influencers" and whatever is going on in that digital world with all of its' algorithms and social profiling data software. I am hoping for a very surgical exercise where those who have dedicated themselves to their constituencies and the troublemakers who have stood their ground in their parties will come to the front. I am hoping for such a political disarray that this eclectic collection will see the wisdom in working together for the good of the nation. This may be our last chance to do so, with the global geo-political-social climate that we find ourselves in. Then there is that other battle playing out between the Doctors "dem". Not much attention was being given to that internal party struggle until the former Prime Minister endorsed Dr.Sands which may have tilted the scale a bit as to which Doctor may keep his seat and emerge as an eventual party leader. I am not too sure if the other former Prime Minister helped Mr.Davis with his endorsement, but we will see. This may not be the time for us to recall that we are seeing a recurring theme in how leaders get to be at the helm of political parties. Ingraham, Christie and Sands were all "fired" by the leaders of their party, but the firing of Sands at the instigation of the leader of the Opposition may come back to haunt Dr.Minnis as that firing should not have happened and was seen as "petty". If the pandemic was handled by a person of Dr.Sand's expertise we may be in a different situation in this pandemic.

However, there are still some shortsighted folk (mostly union) who have made the mistake of aligning themselves politically with who they think will give them the best deal. I don't think they understand that regardless of who wins, the Public and Civil Service has to be downsized; they are such an ungrateful lot. … ..the majority of them have not been furloughed and still receive a paycheck, while a host of others in the country are suffering financially. You would have thought they would have learned their lesson when some flooded South Florida in July 2020 to relieve themselves of the monies they had accumulated during the shutdown, but they came back home form America and also brought a spike in Covid-19 cases; the Government did not manage that situation well at all. Hopefully this election finds us at a better place.

I hope that at least some of the contenders have the compassion to inform the voters of the downsizing that will occur, but up to now it seems that both of major political leaders have agreed not to bring it up in their campaigning. Perhaps access to the Public Treasury is still the prize for winning an election in our country.  In closing, I am drawn back to the earlier comment I made about this being a "surgical" Election, in the sense that it will be the voters doing the surgery. There are many waiting on the sidelines, some of them having been promised opportunities where will be able to step back into political life as if they never left, but the Bahamian people are not easy, even if they take your money, eat your food and drink your libations. This Election is going to be about our Children's Children and if we understand that there will not be a lot of surprises.                            

Sincerely,

Edward Hutcheson

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The Unsavory Union of Corruption and Hypocrisy – Meet the new Poster Boy

Hypocricycorruption"Woe to you, teachers of the law and Pharisees, you hypocrites! You are like whitewashed tombs, which look beautiful on the outside but on the inside are full of dead men's bones and everything unclean”. Matthews 23, v.27

A union of corruption and hypocrisy came to light in August 2021 when a serving MP, Adrian Gibson, who had written more than 300 articles and Blogs (~2014 to 2017), to address a number of issues facing the country, including public sector corruption, was himself, front and centre of the headlines. Below are three of his numerous headlines with selected excerpts, which first appeared in The Tribune before being re-published online (https://www.weblogbahamas.com/blog_bahamas/articles_by_author_adrian_gibson/):

“No one is above the Law, No Matter their Political Persuasion” (Jun 2014)

“There are some things that are simply indefensible and whether it’s a FNM or PLP politician or the spouse of any political leader, no excuses should be offered, no attacking of the messenger would suffice”.

“Tiefin at the heart of our Society” (May 2016):

“EVERY time Auditor General Terrance Bastian and his team releases a damning report, I become more and more convinced that we live in a society where “tiefin”, in one form or another, has become the order of the day. To use a phrase I heard bandied about this week, “we don’t need no VAT, we need a moratorium on ‘tiefin’!”

“The Culture of Criminality that pervades our Nation” (May 2016)

“THERE is a culture of criminality that is alive and well and pervasive in The Bahamas. It transcends the fabric of our nation. Given that adherence to the law is only a reasonable option when people believe that they would likely be caught – and if such people believe that they will be caught – adherence to the law is relative”.

His provocative and accusatory headlines were only exceeded by the prolificness of his publications, sometimes on the order of one per week. What could only be described as a three-year relentless tirade against all of society's ‘abnormalities', and mainly targeted at the opposition PLP, only stopped when he was elected as the FNM MP for Long Island. This 3-year run was his first step in ‘training’ to become a poster boy for hypocrisy.

After the successful election in the safest of FNM seats, he was then upset that he had not been nominated for a Cabinet post, so like an unruly toddler, ‘threw his toys out of the pram’, and in order to settle him, the new Government surprisingly acquiesced in his juvenile behaviour, awarding him Chairmanship of a main Public Sector Corporation, Water and Sewerage. Apparently, one year into his reign and for the succeeding two-years, 2018 – 2020, it is alleged that the Chairman funneled contracts to his fiancée and ‘campaign general’.

It really is difficult to pretend to hold certain beliefs or attitudes and not genuinely hold those beliefs when publishing so prolifically on the specific topics. But in late summer 2021, it was publicly alleged (reportedly by a disgruntled WSC worker) that Mr. Gibson had funneled contracts to a company in which his fiancée and ‘campaign general’ were principals. Abandoning all pretense at principles, Mr. Gibson allegedly carried on this corrupt practice for two years, thus prompting the below headlines on 01st September:

“Adrian Gibson’s fiancée Alexandra Mackey aka “Da Elites” quits job amid scandal” (Sep 2021)

“Alexandria Mackey, the fiancée of embattled WSC Chairman Adrian Gibson, resigned from a top firm on Friday amid a scandal involving fat contracts she received from WSC between 2018 and 2020”.

              The headline writer had become the subject of the headlines! If proven, his egregious behaviour will be the lowest of the low, in my view, which occurs too often in our society as we show an inability to learn from the mistakes of others or arrogantly to think, 'I won't get caught'. Rather than thinking this should not happen, we know it will happen and it does not matter who it is, the indecorous behaviour must be exposed and challenged because as Gibson said himself, “there are some things that are simply indefensible and whether it’s a FNM or PLP politician or the spouse of any political leader”, we should not make excuses or attack the messenger. Such behaviour is disgraceful and totally reprehensible in its own right; but Gibson's decision not to engage with the allegations publicly shows he is a coward and then, not to resign, shows he is cut from the same cloth as the arrogant corrupt hypocrites who preceded him. Thus, Mr. Gibson has cemented his place as the latest poster boy of corruption and hypocrisy in Bahamian politics, for which he gave us fair advanced notice:

"Given that adherence to the law is only a reasonable option when people believe that they would likely be caught – and if such people believe that they will be caught – adherence to the law is relative”.

By Selwyn Seymour

END


The views expressed are those of the author, and not necessarily those of Weblog Bahamas (which has no corporate view).

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Garbage on our streets

RoadSignsSir,

Would someone, anyone, please tell us who are the cretins, one in the FNM the other in the PLP, who approved the obscene amounts of money wasted  buying and installing those hideously ugly signs that are now disfiguring our streets on New Providence.  Just think of the number of hungry who could have been fed for weeks!

Those signs tell us nothing.  Until I hear some serious arguments I am truly considering, when I reach the polls, whether I should write “no vote” on my ballot.  Doctor, Brave, the ball is in your court

Yours forever in astonishment,

Harry Strachan

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In Memoriam of Jeffrey D. (Jeff) Robertson

JeffToday (Monday, August 2, 2021) I lost a dear friend. A brother I never had.

To all those who knew him, he was one of a kind and generous, almost to a fault. Funny and humble with a discipline unseen by most of us.

A discipline that was applied with equal vigour to his work and his pursuit of cycling whether it be in L'Etape du Tour de France, or the streets of New Providence, or taking part in a triathlon.

Jeff quietly accomplished so much more than many of us can dream to.

Joanne and I are so grateful we were able to spend a week with Jeff and Diane in April this year, accompanying them to Florida for Jeff’s check-up.

Even then he was checking out new products in the food store and sending messages to his associates at BWA for their consideration.

The results of his treatment were good so far, all things considered, so we were all ill prepared when his symptoms grew worse four weeks later. Then ten weeks ago he was  air lifted to MD Anderson in Houston, Texas. Those 10 weeks seem like an eternity.

The last voice note I have from Jeff is on May 19 at 12:41pm, just three days after his birthday, was typical Jeff, apologising for not being better as if he was being an inconvenience to others by being ill. Maybe he just didn’t want the attention?

Jeff CyclingSince first meeting Jeff in the Rotary Club of East Nassau back in 1987 our families bonded. Whether it was boating trips to Rose Island or even a trip to Italy with ten other friends, or football trips with the guys, we did things together and he was always leading with the organisation and arranging fun activities.

Jeff loved life, and always encouraged people to do the same. His sense of humour was just great albeit inconvenient sometimes. Like inviting a dozen extra friends to a party he wasn’t organising causing the hosts to run out of food and drink.  Or dropping the above mentioned football crew off to a nearby pharmacy and proceeding to a Halloween outlet store to buy a long blonde wig to drive back to collect us. Needless to say we didn’t recognize him and turned away from the car that looked like ours after proceeding to attempt to open the door.

A lover of puzzles, Jeff even enjoyed packing and repacking the rental car after a shopping trip until every box and suitcase fit.

Always a handyman I recall him fixing a hurricane shutter for a friend just before a storm arrived.

Not to mention the fabulous birthday parties he organized for Diane including a magician, a limo drive with a chance sighting of Sylvester Stallone to a sailing trip with friends.

Our circle of friends and family will miss you Jeff, but you will never, ever, be forgotten.

Your friendship, generosity and humour will always be remembered.

Your memory is treasured dear friend.

Cycle on Jeffrey. I, no we, love you.

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The Roots of Progress

RootsofProgressThe story of human progress—and how we can keep it going

I stumbled across this interesting blog recently.

Take a look here…The Roots of Progress

You might also find this article of interest…Why I'm a proud solutionist

Enjoy!

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Government and the Cost of Living

Ryan Bourneby Ryan Bourne

Read the original post at CATO.org here,,,

"This paper sets out nine policy areas across all levels of government that, combined, directly raise spending for typical households in the bottom 20 percent of the income distribution by anywhere from $830 to $3,500 per year. This list is hardly comprehensive; to avoid subjective judgments about the effect on prices relative to other objectives, this analysis focuses exclusively on anti-competitive interventions and regulations that both raise prices and reduce overall economic efficiency.9 A “cost-based” approach to poverty alleviation through reform in these areas could therefore provide a significant financial boost to low-income households.

"For too long, scholars on the left and right have thought about alleviating poverty as something that should occur after market-based activity has taken place. But removing misguided regulatory interventions would reduce poverty while expanding markets, simultaneously reducing the cost of living for low-income families and growing the economy. Even on cautious assumptions, the indicative numbers outlined here suggest that reform in these areas could be a powerful tool against poverty and should take precedence over new programs, regulations, and interventions."

Download a pdf of the report here…

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Why demonise anti-vaxers and Florida?

FloridaVax%In his Thursday, June 24, 2021 column Front Porch, Simon says:

"There is a disturbing moral selfishness by those who refuse to be vaccinated, who contract the virus overseas, mostly in south Florida, then return to The Bahamas, potentially spreading more dangerous variants.

"This is worse than magical thinking. It is stupidity on steroids. There is no mask mandate in Florida, where the virus continues to spread, though not as widely as before. Though not at the astronomical heights of the last major wave in the US, the pandemic rages next door and globally.

"Let us call this travel by the unvaccinated what it is: selfish, mindless, morally irresponsible, reckless and dangerous! And it is unpatriotic! How can someone claim to love The Bahamas, yet contribute to putting our economy, society and health care system at risk because of unbridled selfishness?"

In just three paragraphs he rips Florida and "anti-vaxers".

Let's look at Florida numbers:

  Number % in Population      
People Vaccinated with at least One Dose 11,386,007 55.28%      
People Fully Vaccinated 9,597,221 46.59%      
https://data.democratandchronicle.com/covid-19-vaccine-tracker/florida/12/
           
Est Population  21,944,547        
https://worldpopulationreview.com/states/florida-population  

Meanwhile The Bahamas has 7 or 8 percent of the population vaccinated?

We traveled to Florida a few weeks ago now and found most people were acting very responsibly, quite contrary to what the press and Simon says.

This is not to say everyone in Florida or The Bahama is acting responsibly.

There are some people that might not be able to take the vaccine and there is a legitimate fear among others, while there is a vocal minority of "anti-vaxers".

Surely a reasoned approach to educating "anti-vaxers" instead of name calling and demonising is a more reasonable approach.


Visit Rick Lowe’s Nassau Institute archive here…

and at WeblogBahamas.com here….

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Joe and Janet, Robber Barons

YellnYes, unbelievable as it may be to small children, governments and double standards go together like peanut butter and jelly.

by Lawrence W. Reed

This article was originally published on FEE.org. Read the original article.

Imagine if oil companies got together and agreed to charge consumers no less than $3.50 per gallon for gas. Let’s call it a “global minimum price.” How long

—in minutes—do you think it would take for the news media to cry foul and for the Justice Department to file an antitrust suit?

In recent days, President Joe Biden and Treasury Secretary Janet Yellen endorsed the identical concept—so long as the perpetrators are governments.

Yes, unbelievable as it may be to small children, governments and double standards go together like peanut butter and jelly.

Biden and Yellen are leading the charge for a “global minimum tax” on businesses. They want to get governments all over the world to agree to charge companies no less than 15 percent for the State’s wisdom and beneficence. No more of this competition stuff that might encourage firms to move to, say, Ireland where the government only charges them 12.5 percent! “That’s not fair!” cry the anti-competition “progressives” like Biden and Yellen.

If private firms connived to fix a minimum price for their goods, they would be branded “robber barons” and their CEOs would be vilified before congressional committees. Do not expect Biden, Yellen and the government price-fixers who endorse a global minimum tax to ever face so much as a tough question at a press conference.

To date, major media has not only been silent on this glaring hypocrisy, but it has also cheered on the price-fixers—which reminds me of something Adlai Stevenson said more than half a century ago: “The job of the journalist is to separate the wheat from the chaff, and then print the chaff.”

Poor old John D. Rockefeller of Standard Oil! He still catches Hell from armchair historians who claim he colluded with competitors to fix minimum prices for oil products, even though the evidence is scant at best. Unlike governments, Standard charged less and less for products that steadily improved in quality. (See my essay, “Witch-Hunting for Robber Barons: The Standard Oil Story”).

In a May 27 editorial, The Wall Street Journal pointed out that Ireland is a superb example of the wisdom of tax competition between countries. For decades now, the previously over-taxed Emerald Isle has kept its flat-rate business income tax rate at 12.5 percent:

Ireland has reaped the benefits. Between 1986 and 2006, the economy grew to nearly 140% of the EU average from a mere two-thirds. Employment nearly doubled to two million, and the brain drain of the 1970s and 1980s reversed. Ireland became a destination for global capital.

If Ireland were to sign on to the Biden/Yellen global minimum tax proposal, it would have to impose a 20% tax hike. Its finance minister is no idiot. He’s against it.

So the next time your teacher or professor says that getting together with your competitors to fix minimum prices and reduce competition makes you an evil robber baron, raise your hand and ask, “You mean like Joe Biden and Janet Yellen?”

 
Lawrence W. Reed
Lawrence W. Reed  is FEE's President Emeritus, Humphreys Family Senior Fellow, and Ron Manners Global Ambassador for Liberty, having served for nearly 11 years as FEE’s president (2008-2019). He is author of the 2020 book, Was Jesus a Socialist? as well as Real Heroes: Incredible True Stories of Courage, Character, and Conviction and Excuse Me, Professor: Challenging the Myths of Progressivism. Follow on LinkedIn and Parler and Like his public figure page on Facebook. His website is www.lawrencewreed.com.

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