Free Markets, Free People

Daily Archives: December 12, 2009

Government v. The Market

The myth is that without government regulation, the market would certainly do everything it could do to kill or cheat its customers. Of course most of us realize that doing those things is a sure way not to be in business long. But for a significant number of others, that myth is alive an well. A recent example, however, provides a perfect example of the absurdity of that notion. And, I suggest that it should be applied to health care as well.

Myth:

The U.S. Department of Agriculture says the meat it buys for the National School Lunch Program “meets or exceeds standards in commercial products.”

Reality:

In the past three years, the government has provided the nation’s schools with millions of pounds of beef and chicken that wouldn’t meet the quality or safety standards of many fast-food restaurants, from Jack in the Box and other burger places to chicken chains such as KFC, a USA TODAY investigation found.

[…]

McDonald’s, Burger King and Costco, for instance, are far more rigorous in checking for bacteria and dangerous pathogens. They test the ground beef they buy five to 10 times more often than the USDA tests beef made for schools during a typical production day.

And the limits Jack in the Box and other big retailers set for certain bacteria in their burgers are up to 10 times more stringent than what the USDA sets for school beef.

So the burger at Jack in the Box is safer than the mystery meat your child is served at school. Children are served tons of chicken in school each year that KFC won’t touch (KFC doesn’t do “spent hens” but your child does).

Jack in the Box and KFC have to please and answer to customer demands if they want to stay in business. If KFC makes you sick because of bacteria, you and others will most likely vote with your feet and go elsewhere. What is your choice if that happens in a government school?

Now, think health care.

End of story.

~McQ

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Debt Ceiling To Increase by $1.8 Trillion

Not content with fiscally enslaving your children, Congress plans on doing the same to your grandchildren:

In a bold but risky year-end strategy, Democrats are preparing to raise the federal debt ceiling by as much as $1.8 trillion before New Year’s rather than have to face the issue again prior to the 2010 elections.

“We’ve incurred this debt. We have to pay our bills,” House Majority Leader Steny Hoyer told POLITICO Wednesday. And the Maryland Democrat confirmed that the anticipated increase could be as high as $1.8 trillion — nearly twice what had been assumed in last spring’s budget resolution for the 2010 fiscal year.

The leadership is betting that it’s better for the party to take its lumps now rather than risk further votes over the coming year. But the enormity of the number could create its own dynamic, much as another debt ceiling fight in 1985 gave rise to the Gramm-Rudman deficit reduction act mandating across-the-board spending cuts nearly 25 years ago.

You have to love the lead sentence: “In bold but risky year-end strategy …”. “Bold”? It’s more like feeding an addiction. And it’s hardly “bold” in another sense. They’re going to hide it in a defense appropriation bill:

“This is a defining moment,” said Senate Budget Committee Chairman Kent Conrad (D-N.D.), one of the lead sponsors, and New Hampshire Sen. Judd Gregg, the panel’s ranking Republican, is already maneuvering to try to add the legislation as an amendment to any bill tapped to carry the debt increase.

As explained by Hoyer and other Democrats, that will almost certainly be a pending $636.4 billion Pentagon appropriations bill that includes $128.3 in contingency funds for military operations in Iraq and Afghanistan.

That’s not “bold”, that’s cowardly. But what it buys Democrats is cover. Adding it (and hiding it) in a defense appropriations bill guarantees “bi-partisan” passage or contingency funds for our two wars won’t become law. But the fact remains this is an old tried and true tactic of both sides in Congress.

Somehow spending like this needs to see the requirement to stand alone imposed on it. Make them do this sort out in the open and in the sunlight. Make them pass any debt increases where everyone can see it – and judge it on election day.

~McQ

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