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Commentary

How government forces private firms out of business with predatory pricing

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This article on Fox News’ Forum is by John Lott. He explains the threat of predatory pricing as it relates to Obama’s health care plan.

First, Lott explains the stated goal of Obama’s plan:

President Obama is selling government health insurance to the American people as the way to save money.  That government health insurance will merely provide competition to keep private insurance companies from gouging their customers.

But here is the problem with a parallel system run by the government:

There are a couple of problems with Obama’s argument.  Government is just not known for its cost effectiveness or quality.  And the way for government enterprises to survive is with massive taxpayer subsidies and charging customers prices below the firm’s actual costs, driving more efficient private firms out of business.  These subsidies mean that when government enterprises “win” they do so by driving more efficient private firms out of business.

Here is an an example of how it works with USPS vs Fedex:

The U.S. Postal Service would often increase its first-class mail rate, where it had a monopoly, to raise money to subsidize its overnight delivery service where it faced stiff competition.  For example, it raised first-class mail to thirty-three cents in January 1999 and simultaneously reduced the price of domestic overnight express mail from $15.00 to $13.70, even though it was already losing money at the $15.00 rate. The price, which was lowered in response to increasingly successful competition in overnight delivery from FedEx and UPS Overnight, remained below $15.00 for the next seven years.  Clearly the Postal Service was not able to drive its competitors out of business with this maneuver, in part because its on-time delivery record and quality was poorer.

The Postal Service lost money on its overnight deliveries despite advantages that FedEx and UPS could only dream of.  The Postal Service is exempt from paying state sales, property and income taxes.  And it uses some of the most expensive real estate in the country — rent-free. The competition that Obama advocates between government and private insurance companies isn’t going to be any fairer.

The government can run huge deficits, effectively transferring money from the productive private sector into their parallel public competitor, with the end goal being complete control of consumer purchases. Obama intends to run private companies out of business so that you have only one place where you can go to purchase health care: OBAMA. And you will do anything he tells you in order to get that health care.

It’s all about controlling your behavior by taking your money and then restricting your access to services. The end goal is that everyone will have equal life outcomes regardless of how hard they work, and how risky and/or immoral their lifestyle. Democrats do not trust you to keep the money you earn, and to spend your money on the things that you want. They think government knows best.

In his book “Freedomnomics”, Lott has even more examples of predatory pricing. I recommend that book, especially for the chapter on abortion and crime. Pro-lifers will find the book very useful. It’s important for people to understand that the more involved government gets in the free market, the less liberty we have as consumers.

Commentary

Understanding the effect of sex on your brain chemistry

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This article was sent to me by my friend Andrew. It’s by Marcia Segelstein.

Marcia is trying to make the same point about sex that Miriam Grossmann made in her book “Unprotected”. The point is that although bureaucrats and educrats love to tell people about the riskiness of behaviors like smoking and obesity, they don’t tell people the truth about the dangers of casual sex, because they don’t want to antagonize special interest groups like feminists and gay activists.

In the article, Marcia talks about the mental effects of casual sex. She talks about dopamine first, but the one I want to tell you about is called oxytocin. It is very important that you parents of young ladies understand this and present this evidence to your daughters. (The male version of this phenomenon is also explained in the article, it’s called vasopressin).

Excerpt:

Oxytocin is another important brain chemical we are now learning more about.  Oxytocin helps females, in particular, bond with other people.  When a new mother breastfeeds her infant, for example, oxytocin floods her brain.  The effect is powerful.  She feels a strong desire to be with her baby, and is willing to suffer the sleepless nights and inconveniences that come with having a baby.

Oxytocin also helps females bond with men.  When a woman and man touch each other in a loving way, oxytocin is released in her brain.  It makes her want more of that loving touch, and she begins to feel a bond with her partner.  Sexual intercourse leads to the release of even more oxytocin, a desire to repeat the contact, and even stronger bonding.  But, like dopamine, oxytocin is values-neutral.  It’s a chemical reaction, or, as the authors write: “[I]t is an involuntary process that cannot distinguish between a one-night stand and a lifelong soul mate.  Oxytocin can cause a woman to bond to a man even during what was expected to be a short-term sexual relationship.”  So when that short-term relationship ends, the emotional fallout can be devastating, thanks to oxytocin.

Another significant finding about oxytocin is that it produces feelings of trust.  That can be good or bad, depending on the situation.  “While the hormonal effect of oxytocin is ideal for marriage, it can cause problems for the unmarried woman or girl who is approached by a man desiring sex….[T]he warning is that a woman’s brain can cause her to be blindsided by a bad relationship that she thought was good because of the physical contact and the oxytocin response it generates.”

This is why Dr. Jennifer Roback Morse says that the only smart sex is married sex. Otherwise you are just coarsening your own self. Neil Simpson calls this the duct tape theory of sex. He explains why sex is like duct tape here. Don’t order your children around – give them the data so they understand the why of chastity.

Humor

Friday night funny: Fleeing communism, velcro, single-payer health care

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This is the funniest thing I have seen all week! (H/T Pugnacious Irishman)

There’s a little grown-up content at the end, there, so watch out!

And this one was sent to me by commenter ECM:

I found that YouTube version of the video on the Heritage Foundation blog.

Scott Ott of Scrappleface.com wrote a hilarious satire of Obama voters for the Washington Examiner.

Excerpt:

While opinion polls indicate a growing concern among Americans that their new president has no coherent plan to reverse the nation’s economic woes, and lacks the principled conviction to boldly address crises in Iran, North Korea and the Middle East, still a majority say they love “the idea of an Obama presidency.”

A new Wall Street Journal/NBC News poll shows that 56 percent still of approve of President Barack Obama “as a theoretical concept,” even as support for his handling of the economy and foreign policy has slipped in recent days.

…In an unrelated poll, 79 percent of women said they would “continue to date a hot guy with a great car even if he made me pay his way into the movies and I lived in constant fear that his reckless driving was going to get me killed.”

My God, Scott has talent. If you feel that the people who voted for Obama made a mistake, and you want to make fun of them, this is your article. You will laugh, and then you will cry.

Scott is actually on fire this week:

These are all very funny posts.

Frank J. Fleming of IMAO.us has a post up at Pajamas Media:

Excerpt:

Okay, liberals, I have a radical idea I want to run by you: the Iranian government is bad and worthy of some of your outrage.

Yeah, I know, it sounds crazy. Iran is not a beauty queen speaking out against gay marriage, or Sarah Palin. Why in the world would you want to direct any scorn towards a brutal theocracy seeking nuclear weapons? It’s not obvious, but let me explain.

The second page is even funnier than the first! I wish Frank was still writing “filthy lies” about Glenn Reynolds and his puppy-blending habit. That was really funny! Maybe I should try that. I could write a filthy lie about Richard Dawkins, claiming he’s really a secret Southern Baptist, who just loves to sing praise hymns. I could photoshop some fake evidence of Dawkins with his hands raised and eyes closed in church. I think that would work!

Happy Friday!