Tag Archives: Wealth Redistribution

How government forces private firms out of business with predatory pricing

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.

Why Democrat policies discourage men from marrying, part 3

This article is the third of a three-part series on how Democrat policies discourage marriage and child-rearing. Part 1 is here and Part 2 is here.

How no-fault divorce discourages men from marrying

This time we’ll look at my favorite argument against marriage. Today’s article is from Dr. Stephen Baskerville, author of the amazing book “Taken Into Custody: The War Against Fathers, Marriage, and the Family”. I own two copies, one for me and one to lend out.

Let’s get a look at the problem posed to marriage by the Democrat policy of no-fault divorce:

…80 percent of divorces are unilateral. Under “no-fault,” divorce becomes a power grab by one spouse, assisted by judicial officials who profit from the ensuing litigation: judges, lawyers, psychotherapists, and social workers. Involuntary divorce involves government agents forcibly removing innocent people from their homes, seizing their property, and separating them from their children. It requires long-term supervision over private life by state functionaries, including police and jails.

…Invariably the first action in a divorce is to separate the children from one parent, usually the father. Even if he is innocent of any legal wrongdoing and does not agree to the divorce, the state seizes his children with no burden of proof to justify why. The burden of proof–and financial burden–falls on him to demonstrate why they should be returned.

A legally unimpeachable parent can thus be arrested for seeing his own children without government authorization. He can be arrested through additional judicial directives that apply to no one but him. He can be arrested for domestic violence or child abuse, even without evidence that he has committed any. He can be arrested for not paying child support, regardless of the amount demanded. He can even be arrested for not paying an attorney or psychotherapist. There is no formal charge, no jury, no trial, and no record.

When I was a student in graduate school, I used to hate going out the door and leaving my pet parrot behind with my brother. I did not believe then, and do not now, that anyone in the world is capable of taking care of my bird except me. I felt awful leaving the house, and I would call home between classes just to check on him. That is how parents feel.

I could go on and on about the way that I have bonded with that little creature. And this is basically why marriage is a virtual impossibility to me, given the divorce laws enacted by Democrats and their special interest groups, (trial lawyers, feminists, academic elites, etc.). I do not think I could survive being separated from my children for years by lawyers and courts.

To justify this, the divorce machinery has generated hysteria against parents so inflammatory that few dare question it: child abuse, wife-beating, and nonpayment of “child support”–all propagated by feminists, bar associations, and social work bureaucracies, with federal funding. The accused parent loses his children and is abandoned by friends, family members, parishioners, and co-workers–all terrified to be associated with an accused “pedophile,” “batterer,” or “deadbeat dad.”

Each of these figures is largely a hoax. There is no evidence of large numbers of fathers abandoning their families, beating their wives, and molesting their children. Divorce courts separate parents from their children, with false accusations as a rationalization.

Child abuse and domestic violence have no precise definition. They are not adjudicated as assault, and accused parents do not enjoy the constitutional protections of criminal defendants. Allegations are “confirmed” not by juries but by judges or social workers. Domestic “violence” need not be violent or even physical. Official definitions include “extreme jealousy” and “constant criticizing.”

Child abuse is itself the creation of welfare bureaucracies. An intact family is the safest place for women and children, since child abuse overwhelmingly occurs in single-parent homes from which the father has been removed. Britain’s Family Education Trust reports that children are up to 33 times more likely to be abused in a single-parent home than in an intact family. Domestic violence too is far more likely with the breakup of a marriage than among married couples.

Yet trumped-up accusations are rampant in divorce courts, usually to eliminate fathers. Elaine Epstein of the Massachusetts Women’s Bar Association writes that “allegations of abuse are now used for tactical advantage” in custody cases, a trend documented in the Illinois Bar Journal, Yale Law Review, Rutgers Law Review, and others.

The principal impediment to child abuse is thus the father. “The presence of the father placed the child at lesser risk for child sexual abuse,” concludes a study in Adolescent and Family Health. By eliminating fathers, officials pose as the solution to the problem they themselves create. Appalling as it sounds, we have created a massive army of officials with a vested interest in child abuse.

And it’s not just the separation, the legal fees, the false allegations and the criminal record. It’s the fact that I would be driven into poverty by the courts.

The “deadbeat dad” is another creation of divorce machinery. He is far less likely to have voluntarily abandoned offspring he callously sired than to be an involuntarily divorced father who has been, as one attorney writes, “forced to finance the filching of his own children.”

Originally justified to recover welfare costs, child support has become an entitlement for all mothers, regardless of their behavior, and a subsidy on middle-class divorce. It allows the mother–simply by divorcing–to confiscate her husband’s income. It is tax-free to the recipient, and nonpayment means incarceration without trial. The Journal of Socio-Economics notes that child support serves as an “economic incentive for middle-class women to seek divorce.” Economist Robert Willis calculates that one-fifth to one-third of child support payments are used for children; the rest is profit for the custodial parent.

State governments also generate revenue from child support, giving them a financial incentive to make it onerous and to encourage divorce. Federal taxpayers subsidize this family destruction scheme with about $3 billion annually. Officials have admitted that the arrearages are far beyond the parents’ ability to pay.

Government’s divorce apparatus has become a machine for destroying families, seizing children, and incarcerating parents without trial. It is the most repressive government machinery ever created in the United States.

So, the creation of no-fault divorce, an intrusion by the state on private contracts, makes marriage impossible for rational men. The stakes are just too high to be taking chances.

You can hear Dr. Baskerville on the radio with Dennis Prager and Milt Rosenberg in podcasts linked here.A more complete version of the article can be found here in Touchstone Magazine. I highly recommend the more complete version. If you are a single man, or you have male children, you really need to read it. Dr. Baskerville wrote recently about marriage and the Christian church here.

This series on Democrat’s opposition to marriage and family is now complete. If you absolutely, positively have to have more on marriage, then you can read one of my most popular posts about an ideal marriage I know about, or some guest posts from my very happily married friend Andrew on marriage, here and here.