Category Archives: Monopolies

Stossel On Government Schools

From his blog at Fox Business Network, John Stossel has this on government schools:

It’s absurd that powerful Americans consider it normal that they must move their residence or manipulate politicians to get their kids into a good school No one has do that to buy an iphone, or a good restaurant meal In every business besides education, successful producers expand. When more people started liking McDonalds – there were no lines around the block, because McDonalds expanded to meet demand.

What exactly is Stossel talking about? Yet another corrupt Obama administration official.

While many Chicago parents took formal routes to land their children in the best schools, the well-connected also sought help through a shadowy appeals system created in recent years under former schools chief Arne Duncan.

Whispers have long swirled that some children get spots in the city’s premier schools based on whom their parents know. But a list maintained over several years in Duncan’s office and obtained by the Tribune lends further evidence to those charges. Duncan is now secretary of education under President Barack Obama.

The log is a compilation of politicians and influential business people who interceded on behalf of children during Duncan’s tenure. It includes 25 aldermen, Mayor Richard Daley’s office, House Speaker Michael Madigan, his daughter Illinois Attorney General Lisa Madigan, former White House social secretary Desiree Rogers and former U.S. Sen. Carol Moseley Braun.

Non-connected parents, such as those who sought spots for their special-needs child or who were new to the city, also appear on the log. But the politically connected make up about three-quarters of those making requests in the documents obtained by the Tribune.

The American education system can be best described as “all children are equal but some are more equal than others”. This is because of the way we have structured government schools. While most of these special requests were rejected by Duncan, the fact that Chicago’s ruling elite could even make these special requests is troubling. Expect Chicago-style school admission policies to spread nationwide as Obama completes what his predecessor started when he likely nationalizes the education system this year. America’s health care system will be heading on this track soon.

If we had school choice via vouchers, parents could decide where their children are educated, not government bureaucrats. Good schools will expand to take in more children while bad schools will improve in order to stay in business.

Until your state gets a real school choice program, if you are able to, get your children out of government schools. Put them in a private school or better yet, homeschool them yourself. Ever since government involvement increased in education, students have been dumbed down and our nation has become less free. Teacher’s unions continue to demand pay raises and obscene benefits without being held accountable for student performance.

If our country is to regain its freedom, the government education monopoly must be broken.

I’m one of the original co-founders of The Liberty Papers all the way back in 2005. Since then, I wound up doing this blogging thing professionally. Now I’m running the site now. You can find my other work at The and Rare. You can also find me over at the R Street Institute.

A Bit of Unexpected Wisdom from a Friend

You might have heard the old saying “The best measure of a mans intelligence and wisdom, is how closely he agrees with you on any given subject”…

Well, by that measure, Kommander is a damn genius (from a thread discussing Obamas abandonment of manned space flight):

The problem with exploring and colonizing space, as opposed to exploring and colonizing the “New World”; is that there is, right now, little commercial benefit for doing so.

Remember that the first colonists to the Americas were not doing it “For Science!” but “For Money!” Until there is money to be made in space it will continue to be dominated by various governmental agencies.

Spaceship One and the space tourism are a good start, be we need more. The future of the space program does not lie with governments, but with commercial interests who will be willing to take risks where governments are not.

Indeed. I’ll take Branson and Rutan over Bolden and Garver in a split second.

Just let me know when I can sign up for the trip to freehold… or anywhere… or nowhere and back for that matter (when it costs less than a nice used car anyway).

I am a cynically romantic optimistic pessimist. I am neither liberal, nor conservative. I am a (somewhat disgruntled) muscular minarchist… something like a constructive anarchist.

Basically what that means, is that I believe, all things being equal, responsible adults should be able to do whatever the hell they want to do, so long as nobody’s getting hurt, who isn’t paying extra

Quote Of The Day

From the Mises Econ Blog, regarding Obama’s two most recent FTC nominees:

For those keeping score, with Brill and Ramirez the FTC will now consist of two law firm partners specializing in antitrust, one former state assistant attorney general for antitrust, a law professor who specialized in antitrust, and a former staff lawyer for the Senate’s antitrust subcommittee. If that’s not diversity, I don’t know what is.

I wonder what the FTC will place their focus on under this administration?

Our Exalted Fearless Leader Almost Gets It

Obama is not a dumb man. He understands that government provisioning generally produces a worse service than private organizations which are dependent on people choosing to patronize them.

Here he is pointing out that while Fedex is required by law to charge higher prices than the Post Office for equivalent services, it is the Post Office which struggles and requires constant taxpayer bailout.

Like Amtrak, USPS, Fannie Mae and Freddie Mac, any publicly funded insurance company will struggle to contain costs as it encourages overconsumption.

I’ve long argued that the real reason that medical care is so expensive is that the government limits supply and subsidizes demand.

The Obama administration, in choosing to ignore the limits on supply placed by government, is embarking on a program that is doomed to fail to meet any of the publicly stated goals.

It’s too bad that Mr Obama is unwilling to follow the evidence to its inevitable, logical conclusion.

I am an anarcho-capitalist living just west of Boston Massachussetts. I am married, have two children, and am trying to start my own computer consulting company.

Public Schools and the Public Option

Imagine a private school where students sat in a math class for weeks misbehaving and learning nothing. Imagine that school gets on TV news because the administrators suspended the young lady who blew the whistle by taking a cell phone video and giving it to her mom who confronted them. Do you think that school would have enough students to start the next school year?

Well, this happened at a public high school in the SF Bay Area:

A freshman at Clayton Valley High School in Concord, California says that’s just what she had to endure in algebra as her classmates went wild.

“People smoking marijuana in the classroom. They smoke cigarettes.” Arielle said. “There was one kid who peed in a bottle and threw it across the room.”

Clayton Valley High School is a public high school, and I have no doubt that it will open with just as many students next year as it did this year. When parents pay for an education, they absolutely will not tolerate a school run like Clayton Valley HS. When the state provides an education for free, a vast majority of parents will generally take what they can get and call it good enough. They might picket and protest for improvement, but they won’t take their kids out of the school.

What does this have to do with health care? The public option being created as part of “ObamaCare” is rather similar to public schools, in that it is designed to undercut private health insurance on the basis of price:

The Lewin Group crunched the numbers through their health care model and found that premiums for the public option plan would be 30 to 40 percent lower than private plans.

A price difference of that magnitude would lead employers to throw their employees into the ObamaCare option:

Overall, the Lewin Group estimates that if Medicare reimbursement rates are imposed, the number of Americans with private health insurance would decline by almost 120 million, leaving only 50 million Americans in the private insurance market.

That would leave approximately 15% of the population in non-government health care, just slightly more than the percentage of students that go to private school. At that point, ObamaCare will have similar monopoly power to the public schools. I expect abuses and incompetence similar to that captured by Arielle Moore at Clayton Valley High when the public option achieves its monopoly power. The scary difference is that instead of not learning algebra, the people who have to suffer that abuse and incompetence will be missing out on life-saving medical treatments.

A human life is too important to waste on government health care.

Update: John Calfee compares ObamaCare to Fannie Mae and Freddie Mac in the WSJ. Yet another sterling example of how we don’t want our health care managed.

1 2 3 4 5 11