Archive for the Market Solutions Category

Boycott (Advertisers On) AM (Anger Mongering) Radio (March 5, 2011)

Posted in Boycott Series, First Amendment, Government Regulation, Less Government Regulation Series, Market Solutions on March 5, 2012 by e-ssay.org

. . .

C1          “Rather than getting the government into the business of regulating evil, vile and loathsome speech, let the citizens decide.”

C2          “I plan to design an easily remembered website providing an updated list of the names of the advertisers on AM (Anger Mongering) radio and television programs.”

C1          “Don’t buy the products or services.  e-mail your friends and neighbors with reminders not to buy the products or services.  Create something creative to spread the word on the net and design it to go viral.  If it does not go viral, try again.  Viral is virile.  Create a contest for the cleverest post.”

C2          “And tell the companies why you are not buying their stuff by writing a short e-mail note to the “Contact Us” address at the company website.  Make it a regular part of your daily routine.  Make a difference.  Make the airwaves safe for reasoned debate.”

. . .

[See http://www.npr.org/blogs/thetwo-way/2012/03/05/147954477/limbaugh-loses-seventh-advertiser-over-comments-about-law-student for an example.]

Bumper stickers of the week:

Boycott (Advertisers On) Hate Radio

Vote with your dollars

Lapel sticker of the week:

I boycotted _______ .  Ask me why.  [Fill in the product]

Parade of Homes/Charade of Horrors (October 31, 2011)

Posted in Coffee Party USA, Housing, Less Government Regulation Series, Market Solutions, Occupy Movement, Pogo Plight, Population on October 31, 2011 by e-ssay.org

. . .

X          “The event should have been touted as a tour of Halloween Haunted Houses.  Nothing is changing.  No one is learning.  The garage door on the McMansion is only one inch thick.  What did you find?”

Y          “On the subsidized house, the garage door is two inches thick with brush insulation around the outside perimeter.”

X          “The Horror House is heated with an eighty percent efficient forced air system that draws combustion air from the garage and outside.  Even a new generation system that draws air from outside induces a stack effect flow of air that cools the house in the winter and warms it in the summer.  Cozy.”

Y          “The subsidized chateau is equipped with a ninety-five percent efficient forced air system that draws piped combustion air from outside the structure.  Huge energy savings.  The PVC to the outside is run aesthetically.”

X          “The McHorror House has windows splattered all over the place, but they are double paned.”

Y          “The code requires them.  Most of the windows in the bargain bungalow are on the south side with some on the west and a few on the east.  Some of the windows are covered with simple double-cell blinds.”

X          “The kitchen in the McMonster is equipped with shiny stainless steel but marginally efficient appliances.”

Y          “Simple Energy Star appliances.”

X          “The McNightmare is illuminated with regular incandescent light bulbs and T12 fluorescent bulbs in the garage with a smattering of cfls (compact fluorescent lights).”

Y          “Compact fluorescents throughout with T8 bulbs in the garage and two LEDs for the outside lights on the walkway.”

X          “There are so many little things.  The Monster Mansion has regular gate valves that may seize in a decade or two.  They require multiple turns to open and close, yet after a few years are really only good for one turn.”

Y          “They could do a good turn by getting quarter turn valves from the same supplier who outfitted the subsidized place.”

X          “One thing after another.  And I watched everyone else wandering around the McMongo house bedazzled by all the flashy baubles.”

Y          “The market sets the standards for the mansion; the government sets the standards for the subsidized structure.”

X          “We need more citizens less bedazzled by baubles.”

. . .

[Neither rain nor sleet nor snow could rein in or slow the “Enough is Enough!” March in Washington D.C. sponsored by Coffee Party USA on Saturday nor dampen the spirit.  A few hundred hearty souls hailing from Rhode Island to Oregon showed up at the gathering on the west side of the Capital to listen to a wide range of speakers.  They are frustrated but not feckless.  No one was arrested.]

[See the “e-ssay” titled "On Overpopulation (June 14, 2010)."]

Bumper stickers of the week:

Insulate it tight; ventilate it right

Seven billion little miracles are a big problem.  That’s ghoulish.

Practical Price Theory in Practice (December 6, 2010)

Posted in Economics, Journalism, Market Solutions, Society on December 6, 2010 by e-ssay.org

. . .

L          “So you want to maximize attendance?”

M          “It’s a polemical movie.  We want to get as many eyes and ears in the seats as possible.  We have already committed the funds to rent the theater and the movie.  Student volunteers are running it.”

L          “If you offer the movie for free, it may not be worth anything.  Only the committed will attend.  Why not make the movie valuable.  The price of similar movies on campus is three dollars whereas in my day it was one dollar.  State that the cost of a ticket is 25 cents and then print ‘SCHOLARSHIPS AVAILABLE’ in a large font on the pamphlet to entice interest.”

M          “It could peg the value at a quarter and thus not worth considering.”

L          “It might.  And you don’t want to dissuade someone who may not care about the money but does not want to be hassled searching for a quarter.  When someone asks what must be done to obtain the scholarship, ask him or her to state in 25 or fewer words what the movie means to him or her.  Pause and then agree that they are deserving of the scholarship.  Call it ‘Two Bits Production’.”

. . .

M          “We did attract far more viewers than we expected and made some money.  Because of the delay in the line for those seeking scholarships, we set up a second table to conduct the interview, streamlined it to twenty-five seconds and kept the conversation light.”

L          “Super.  It was raining outside that night which may have kept some at home or, if they left the house, drove them inside.  And nothing else was playing in town that night that would appeal to the demographic.  Keep up the experiments.  And keep up the reports.”

. . .

Bumper stickers of the week:

“A cynic is a man who knows the price of everything and the value of nothing.”  Oscar Wilde

“At the usual daily rate, The Wall Street Journal would cost $999 for the entire semester, but you can subscribe today and today only for the low, low rate of 25 cents a semester.”

O’Bama Arming Industry (November 22, 2010)

Posted in Guns, Market Solutions, O'Bama, Society on November 22, 2010 by e-ssay.org

. . .

G         “I made a killing.”

A         “You’ve got to love it.  A totally private sector stimulus with no government funding at all.”

G         “None.  Totally self-executing.  The frenzy built up until the 2008 election and then exploded like wildfire, like gang busters.  One guy wanted a gun, any gun and bought a .243.  But I didn’t have any more .243 rounds, so he bought a few boxes of .308s.  It didn’t matter.  It was crazy.”

A         “I assume that he could use a ball peen hammer to pound the round into the receiver.”

G         “I don’t know what he planned to do.  By the Inauguration, there was almost nothing in the store.  And then the crazy thing, last summer, guys came back with the guns and asked to sell them back.  A lot of them were in financial trouble.  One guy’s wife was still giving him a ration of grief as they walked in the store.  It was painful.  If they were unfired and still in the original box, I bought them back at half price.  I can’t resell them as factory brand new.”

A         “I followed the price rise and availability of ammo throughout that time.  .22s rounds in the 525 box went from $14.99 in Nov. of 2007 to $19.99 in Nov. of 2009 to $18.99 today.  I lost my notes for the most pivotal time in Nov. of 2008.”

G         “I can find the price.”

A         “As you saw, in early 2009, boxes of every caliber were plucked off the palates in the aisle.  They never made the shelves.  Yet there was not a great run-up in prices.  Since Nov. of 2007, large caliber ammunition has gone up 24 to 29 percent.”

G         “The big box stores keep us honest, and we keep them honest.  There are just enough small owners like the two of us still hanging on.  The real money is in the gear like the sling, case, scope, scope rings, bore sight, the whole shooting match they walk out with.  My wife always worried in the past that there is no pay check or pension or health insurance or anything for us.  We are on our own.  We manage to keep the doors open.  I still come in early if someone needs to pick something up on the way to the office.  I’ve stayed late if someone is leaving on a trip in the morning and has to have something.  Whatever it takes.”

A         “The plight of the self-unemployed.  Today, the stores are stocked with ammo, the shelves are stacked.  Even .380s and .10s are readily available.  And you’re offering rebates?”

G         “Factory rebates.  On a few select rounds, mainly shotgun shells.”

A         “There is $5.00 in-store sale across town.  $16.99 a box.  At the big box store of course.”

G         “I’ll match it.  I’ve got to match it.”

A         “And $24.99 a box at another big box store.  I’ll pay a $2.00 premium to protect the market.”

G         “I can throw in a hat, but, get this, it is not from the same manufacturer.”

A         “Anything to keep you from throwing in the hat.  I should stock up today.  Based on the increasing cost of the components, I expect the price of ammunition to explode in the near future.  Ammunition soon will cost a fortune.”

G         “I really owe my fortune to O’Bama.”

A         “With all the O’Bama signs in here, you could’ve fooled me.”

. . .

Bumper sticker of the week:

What happens when you take an arrow out of the quiver, nock it with care, draw back purposefully, release while slowly exhaling and then look up to see that you have hit the bull’s eye?

The Marginal Utility of (House) Utilities: Only 1600 Square Feet! (October 25, 2010)

Posted in Case-Shiller/S&P Index, Housing, Less Government Regulation Series, Market Solutions on October 25, 2010 by e-ssay.org

. . .

K         “In the near future, rather than marketing the total square feet, we will market a structure based on the average cost of utilities per square foot per year.  A person will pay more for a structure to get less because it has well-insulated but fewer square feet and lower fuel bills than another comparable structure.  ‘Natural gas bill:  only $14,700 per year!  And only 1600 square feet!’”

J          “A few individuals have noted that the market for houses won’t stabilize until the average price is more in line with the long run price measured by the S&P/Case-Shiller Home Price Indices or another index of housing prices.  We are not there yet.”

K         “The average size of a new structure must be more in line with the average size in the past so that a family can afford the facility.  The government should not dictate the maximum size for a house; the market should determine the optimal size of the appropriate structure.  Single family homes may not even be the model home for the future.  Townhouses and more open space are more efficient and desirable to house the town.”

J          “The four horsemen of the housing apocalypse ride together – a bigger house means a bigger mortgage, a bigger tax bill, a bigger insurance bill and of course a bigger HVAC (Heating, Ventilation, and Air Conditioning) bill to maintain the monster.  A smaller house means a smaller mortgage, a smaller tax bill, etc.”

K         “And fewer furnishings are needed to furnish it.  The government makes it too cheap to get into the beast.  Then the real costs devour the owner.”

J          “The Republicans and the Democrats and their corporate owners just won’t let the government get out of the housing business.”

. . .

Bumper sticker of the week:

Natural gas bill:  only $14,700 per year!  And only 1600 square feet!

Less Government Regulation Series: Building Codes and Competition (May 18, 2009)

Posted in Law, Less Government Regulation Series, Market Solutions on May 18, 2009 by e-ssay.org

Some individuals oppose state-wide or national building codes because they prefer local codes that reflect local concerns and conditions.  For some, the belief is deeply ideological and passionate.  However, there is a cost to the community in lost competition that costs the consumer.  A builder who is obliged to expend the resources to learn a new local building code is hindered from competing with and against other builders who know the local code.  The local code is a barrier to entry into the market.  With less competition, there are higher prices to the consumer.  If there are more local building codes, ironically there is more abstruse government regulation and more piles of paper.  For some, free and open markets are a greater concern.  Government regulation or involvement is often necessary to promote free and open markets.  These antinomies tax the intellect and muddle the debate.  Rise above the din of ideology.

Bumper stickers of the week:

Measure ten times, cut once.

More is more.

“American Medicine” Not “Socialized Medicine” (February 25, 2008)

Posted in Health Care, Market Solutions on February 25, 2008 by e-ssay.org

The only thing almost as bad as not having health insurance is having health insurance.  Get injured and try to compel an insurance company to cover a valid claim.  Insurance company representatives are drilled to deny or at most pay in part a claim as standard operating procedure.  Most people accept the answer and go home.  Only those who persist stand a chance of obtaining more complete coverage.

“Sir, you do have a $10,000 deductible policy and then 100% co-pay for expenses after that.  Why are you calling your health insurance company about this medical bill?  And there will not be a premium increase for another three months.”

“Sir, you do not have coverage for an injured rider.  You should have purchased a rider policy to cover a rider.  In fact, you should consider purchasing a riders rider to cover all riders in the vehicle, except those excluded or exempted for other reasons.”

“Sir, you do have ‘theft and fire insurance,” but the theft did not occur while your house was on fire, did it?  No it didn’t.  You should have purchased our ‘theft or fire insurance’ policy.”

“Sir, why didn’t you have a friend use a straight razor and a bottle of whiskey to save on the cost of the surgeon and anesthesiologist?”

“Sir, your secretary noted that you are a member of Congress.  Your spa treatments in Tahiti are fully covered under your plan.”

The insurance market is not working and is impacting American competitiveness.  [See the e-ssay dated October 23, 2006 entitled “Efficient Health Care:  Making American Business More Competitive”].  The solution is simple.  Adopt the “American Medicine” plan not some loathsome “Socialized Medicine” plan.  Health care may be a fundamental right under the Constitution (“life” and “liberty”).  One universal insurance program modeled on the program that currently protects our United States Senators and Representatives in Washington should suffice.  The citizens do not get any greater coverage than our elected officials.  In addition, the citizens should not be provided any less coverage.  The “American Medicine Plan.”

Bumper sticker of the week:

“American Medicine” Not “Socialized Medicine”

Congress Should Increase Congressional and Judicial Pay; Shareholders Should Reduce CEO/CFO/COO Pay (March 5, 2007)

Posted in Market Solutions, Spending on March 5, 2007 by e-ssay.org

Supreme Court Justice Kennedy recently testified that the salaries of federal judges should be increased to provide some competition with the private sector.  He points to the substantial signing bonuses paid to former Supreme Court judicial law clerks when they go to work with wealthy law firms.  Many young law students plan to retire on the federal bench.  The power and prestige are the most significant draws. However, the pay must be competitive or only the wealth will apply.  Raise their salaries consistent with his request.

Congressional salaries should also be raised.  The public is better off if the hired help is paid by the people rather than by the lobbyists.  Fifty thousand a year is a cheap and prudent investment.

Arguing that Congressional salaries should be increased is never popular.  After passage of a pay raise, every candidate running against an incumbent makes a stink.  To provide political cover, a commission should be established and the findings adopted by voice vote.  Commissions provide cover.

CEOs, CFOs, COOs and their colleagues are paid salaries and bonuses far out of proportion to their contribution to their companies and shareholders.  The contention that the companies must pay big money to attract talent is a chimera because there is no thriving market for the positions.  A small select group simply pays more to their management which provides an excuse for their colleagues/competitors to pay more and thereby to provide an excuse for other companies to pay themselves even more.  When the company makes money, for whatever reason, management issues huge bonuses.  When the company loses money, management continues to draw inflated salaries and/or parachutes out with a bucket of loot. The market is broken beyond redemption.

The government is not the player to challenges the salaries.  Large shareholder groups should simply dictate the pay.  The various state PERSs (Public Employees Retirement Systems) programs in particular should state that they will sell shares and not buy shares unless management sets salaries within a defined range.  All shareholders should vote on all executive compensation at every annual meeting.

Bumper sticker of the week:

We all live downstream

Efficient Health Care: Making American Business More Competitive (October 23, 2006)

Posted in Health Care, Market Solutions on October 23, 2006 by e-ssay.org

Charles Wilson, the General Motors executive who became a Secretary of Defense in the Eisenhower Administration, was asked if as Secretary he could make a decision adverse to the interests of his then-current employer.  He answered affirmatively but added that he could not believe that he would confront such a situation “because for years I thought what was good for the country was good for General Motors and vice versa.”  The response has been translated into the popular observation: “What’s good for General Motors is good for the country.”

What’s bad for GM is bad for the country.  The cost of health care is crippling American business.  The lack of health care is crippling individual Americans and undermining the family.  Resorting to bankruptcy in the face of overwhelming medical bills imposes a tremendous cost on society.  To make American companies competitive with companies in other countries, American companies should be relieved of providing and paying for health care.  This proposal represents a major departure from the settled practice since the end of World War II.  However, the market has failed.  The six or seven hundred private insurance companies deliver inadequate health care coverage to an insufficient percentage of the population.  The inefficient government is the most efficient provider.

In debates over free trade, some commentators note that foreign nations are assisting their domestic corporations by providing health care.  This competitive advantage rarely is calculated into discussions about tariffs and trade policy.  The Democrats should unite with GM to provide a rational and efficient national health care program.  Imagine the reaction if the United States Chamber of Commerce proposed an efficient national health care program?  Imagine.

Dubai Ports World: The Ship Storm (March 13, 2006)

Posted in Economics, Foreign Policy, Market Solutions on March 13, 2006 by e-ssay.org

America and its allies must encourage other countries, particularly Arab countries, to embrace capitalism and participate in the world economy.  The most competitive economic player, Dubai Ports World, was set to take over terminal operations at some of America’s busiest ports.  Bush could have done a more nuanced job anticipating the reaction and introducing the development to the American people.  The reaction of many Americans to the sale was unfortunate but not surprising.  Leaders, however, should lead, not pander.  The one time in recent memory when the Democrats and Republicans in Congress stood up to Bush was the one time when they should have stood tall with him.  Two of the 9/11 terrorists appear to have had connections to Dubai.  There is less chance of an attack on an American port by someone from Dubai if someone from Dubai is assisting in operating it.  Free trade and economic interdependence promote peace.  America made an egregious mistake and forfeited a promising opportunity to build an economic link to the Arab world.  America committed a self-inflicted terrorist act by burning a bridge it should have built.

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