Free markets Archives - Page 49 of 50 Voice For Liberty

Nov

Local economic development in Wichita

Writing from Memphis, Tennessee Today's Wichita Eagle (November 5, 2005) tells us of a new economic development package that our local governments have given to induce a call center to locate in Wichita. The deal is described as "one of the biggest the two-year-old economic development coalition [Greater Wichita Economic Development Coalition] has landed." There is an interesting academic paper titled "The Failures of Economic Development Incentives," published in Journal of the American Planning Association, and which can be read here: www.planning.org/japa/pdf/04winterecondev.pdf. A few quotes from the study: Given the weak effects of incentives on the location choices of businesses…

Oct

By Bob Weeks

How government insurance destroyed New Orleans

Writing from Chicago, Illinois In the September 3, 2005 New York Times, columnist John Tierney educates us on the difference between private insurance and government insurance. Currently, the flood insurance that's available through the federal government, because the premiums are so low, doesn't fully reflect the costs of assuming that risk. And even as cheap as the flood insurance rates are, not many people bought it. What's wrong with government insurance that's priced too low to cover the risks it insures? First, the taxpayers as a whole have to pay to subsidize something that benefits only a few. Second, as…

Oct

By Bob Weeks

Employer-paid health insurance

In the past I have written on how the system in America where almost everyone gets their health insurance through their job (Let's Pay for Our Own Health Insurance) does not serve us well. Now I have become aware of even more evidence as to why we should all choose and pay for our own health insurance. A Harvard study (Illness And Injury As Contributors To Bankruptcy) concluded that of families that declared bankruptcy, about half cited medical bills as the reason. Of those, 76% had medical insurance at the time they became sick. Some of the problem is that…

Sep

By Bob Weeks

Prices ration scarce goods

As the price for gasoline rises, politicians hear increased calls for regulation of gas prices. We hear news stories of hotels increasing prices for victims of hurricane Katrina, and prices for needed goods in the destructed area could rise, too. In Wichita, when gasoline prices rose rapidly, someone told me that this was price gouging, because the price the gas stations pay for gasoline hasn't increased yet. I'm sure that's true, their cost hasn't increased yet, as they're still selling gasoline they already bought some time ago. This analysis, however, doesn't consider the most important role of prices: to strike…

Aug

By Bob Weeks

How to decide arts funding

Writing from Miami, Fla. In an editorial in The Wichita Eagle on August 9, 2005, Randy Schofield wrote, explaining why government should support culture: "Because cultural amenities make Wichita a more desirable place to live, work and visit, and thus help realize Wichita's quality of life and economic development goals." We might examine some of the ideas and reasoning behind this statement. Do cultural amenities make Wichita more desirable? That's quite a judgment to make. Personally, I enjoy many of the music events held at Wichita State University. I look forward to attending the recitals in the Rie Bloomfield Organ…

Jul

By Bob Weeks

Let profits save (or sink) Exploration Place

What must a business do to make a profit? It must deliver something that people want at a price they are willing to pay. It must deliver that product or service with costs lower than revenues, if it is to survive beyond the short-term. If a business fails to do this it will become immediately aware, as it will be generating losses instead of profits. Since losses can't be continued for very long before the business goes bankrupt, management has a very powerful motive to make corrections. There are some who believe that making a profit is evil or immoral,…

May

By Bob Weeks

The Mississippi beef plant has a lesson for us

Writing from Jackson, Miss. Jackson, Mississippi has a lively talk radio station, WJNT, featuring both local shows and national shows. The hot topic of discussion on my trip to this city was what to do with the MCI settlement money, as the state had just negotiated a settlement with MCI of $100 million, for taxes MCI owed. Some callers (and perhaps the host) suggested that the state use this money to pay for the "beef plant." I was curious as to what this meant. Why, I wondered, would Mississippi be paying for a beef packing plant? After a little research…

May

By Bob Weeks

I, Pencil

I, Pencil Leonard E. Read (Click here to read the article.) Do you think there exists a single person who knows how to make a lead pencil? In this article, Mr. Read shows us how there is no one who knows even a small fraction of what is necessary to produce even this simple, everyday item. How, then, does a lead pencil come to be manufactured? Through the uncoordinated actions of many people, each exchanging their own small amount of knowledge for something else they want. The absence of a master mind, of anyone dictating or forcibly directing these countless…

Apr

By Bob Weeks

The miracle and morality of the market

The Miracle and Morality of the Market Richard M. Ebeling (Click here to read the article.) In this short article we learn the simple mechanism that makes our economy work so well. Interference with that mechanism is not only harmful, it is immoral. Prices convey the information that we need to make our economy work. Here is why: How are the activities of an increasingly larger group of individuals successfully coordinated, so that all the multitudes of demands and supplies are brought into balance and harmony? The Austrian economist and Nobel Laureate Friedrich Hayek showed how all of the knowledge…

Apr

By Bob Weeks

AirTran Subsidy Remarks

Following are remarks I am delivering to several groups, including the Wichita City Council, in April 2005. AirTran Subsidy is Moving in Wrong Direction We were persuaded to accept the AirTran subsidy in 2002 as a temporary measure, to allow AirTran to build a presence here, and that the subsidy would no longer be needed at some time. But now we see that the situation is moving in the opposite direction, as AirTran asks for even a larger subsidy. Economic Impact Overstated The argument that many Fair Fares supporters make is flawed. They are grossly -- I would say even…