Fire Departments And Homeowner Insurance

A few years ago the fire department in South Fulton, TN made national news when rushed to the scene of a house fire and —

Let the thing burn to the ground.

It turns out that the family hadn’t paid their $75 annual fire protection fee:

Firefighters aren’t afraid to break down windows and doors to douse flames, but a Tennessee family’s failure to pay a $75 fee stopped firefighters dead in their tracks last week as a home burned to the ground.

South Fulton, Tenn., firefighters stood on the sidelines, watching as flames engulfed Gene Cranick’s Obion County home. They refused to help because Cranick had not paid an annual “pay to spray” subscription fee.

“I just forgot to pay my $75,” homeowner Gene Cranick said. “I did it last year, the year before. … It slipped my mind.”

The city of South Fulton charges that $75 fire protection fee to rural residents who live outside the city limits. When a household has not paid the fee, firefighters are required by law to not respond.

It turns out that when you live within the city limits you pay taxes that support things like fire departments.  But when you live outside those city limits, and avoid paying those taxes, you do not get to enjoy things that those taxes pay for.  Things like fire stations.

The outrage was all the rage at the time.  My liberal talk show hosts couldn’t stop talking about it for days.

Not surprisingly, I took the Libertarian approach:

If you want fire station protection, you should pay for it; if you don’t, then don’t.

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Food And Medical Care

During the hearing of Obamacare, the news was full of analysis.  One of those pieces, in the “USA Today”, made a point that food is more of a basic need to people than healthcare:

A brief submitted by 215 economists argues that food is even more basic to survival than health care…

I was struck by this last night as I was cleaning out some of my “stack” in my office last night.

See, the food delivery market, while not perfectly so, is a free market example of how goods can be distributed efficiently.  Based on demand and the profit motive, food stuffs are delivered to a literal market where individual shoppers are allowed to “ration” themselves based, in part, by how much money they have and what types of services they want.

For example, in my market I can by generic chicken soup, Ramen noodles and rice.  Or, I can walk 50 feet away and purchase hand rolled sushi, fillet mignon, $60 wine and lobster.

As a real example of the power of markets I picked up this flier:

For $5, this profit driven market is offering a meal that feeds 4 people, perhaps more if the kids are younger.

If medical care were subject to the same market forces you would see the same thing happen with the cost of medical care.  In the same way, if you allowed health insurance to be impacted by the same market forces, you would see prices of health insurance react in the same manner.

It’s only when government intercedes, by mandating acupuncture coverage, or by restricting the sale of insurance polices across state lines, that you see the price of a good or service go up.

March Jobs: Headline Oops

From my local news source, the AP announced:

Fourth straight month of strong US hiring expected

This was announced at 06:58 AM this morning.

Then, reality:

US economy adds 120K jobs, jobless rate at 8.2 pct

I sure do hope the economy continues to recover.  I say this knowing that it will buoy an Obama election effort, however, it’s time for the uncertainly in the nation’s economy to shift to robust growth.

With that said, I am not sure this current recovery will be either long lived or robust.

Drilling For Oil And The Price Of Oil

The price of gas continues to go up.  And I’m pretty sure it’ll continue to go up until just after Memorial Day.  For some reason I think I remember hearing that Memorial Day is traditionally considered the height of seasonal highs of gas prices; I dunno.  I guess I could look:

Typically, prices peak in the summer months, or around Memorial Day, as has been the case in 2010 and 2011

[ I love the internet ]

So we have about 2 more months to look forward to rising prices at the pump.  Other than this causing Obama extreme discomfort, this sucks.  It hurts people directly and indirectly; things that depend on the price of gas are going up as well.

So we all wanna know what we can do.  And the biggest call from the Right is for the administration to increase drilling.

But would it help?

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The Health Care Market

One of the many arguments made by the supporters of Obamacare is that there exists a health care market.  And, as such, congress can regulate it.  This includes the requirement to purchase insurance.  A counter argument to this line of reasoning is that the government can regulate commerce once contracted, but not before.  That is, if you choose to purchase a car, congress can regulate things like seat belts and emission technologies.  But they can’t require you to purchase car.

Which gets us to the point.  Defenders of Obamacare will argue that we are already IN the market, by being alive we are in the “health care contract”.  And this is because if we get sick or hurt and cannot afford to pay for our care, the rest of us must pick up the cost.

It’s hard to argue this line of thinking.

We ARE all in this market if you think of it this way.  Either acting as people who are assuming a cost for those who act less responsibly or by acting in a responsible manner ourselves.

But then it occurred to me.  The only reason that we are in this “market” to begin with is through government mandate to begin with.  Which is, “You cannot turn away a patient based on ability to pay.”

If the government didn’t first require that I pay for all people’s irresponsibility, then I would not have costs ascribed to me that now require me to purchase insurance.

This is what the Court meant when they asked, “Can you create a market that forces everyone to participate and then regulate that market without limit?”

 

Ssshhhhhh, I’m Huntin’ Wabbits!

 

I used to think mathematics is about as straight forward as you can get; a thing is a thing and it’s always that thing.  But I long ago realized that there is art in play.  Certain observations have a mark of individuality.  I guess I shouldn’t be surprised at all that law is the same way.

There is an art.

And here, via Althouse, is one artist taking another to school:

Paul Clement will attack the expansion of Medicaid. He’s talking about whether it’s “coercive,” because if it is, it won’t fit the Spending Power. Justice Kagan wants to know why a “big gift from the Federal Government” is coercion. “The Federal Government is here saying, we are giving you a boatload of money.” Page 3. Just a big old boatload of money is coercive, Clement says confidently. But the actual bill has a “very big condition.” Kagan interrupts, trying to make her point that a big boatload of money is not coercive. What if someone offered you a job and would pay you $10 million a year. Of course, you say yes, but you’re not coerced are you. Clement lays down one of the cleverist teasers I have ever heard: “Well, I guess I would want to know where the money came from.”

“Wow. Wow.” says Kagan. Has a Supreme Court ever said “Wow. Wow” before? She can’t believe you’d do anything other than snap up that money. “I’m offering you $10 million a year to come work for me, and you are saying that this is anything but a great choice?”

Clement springs his trap: “Sure, if I told you, actually, it came from my own bank account.”

Beautiful.  And somewhat ballsy.

I suspect that Supreme Court Justices don’t enjoy being mocked in court.  But hey, style points none the less.

The lesson, of course, is that the Liberal doesn’t know the money is already mine.

The Gun Mandate

We all live in a dangerous world.  Crime all around us.  We spend untold amounts of money keeping ourselves safe.  It might be stronger locks on our doors, cameras in the roof, alarm systems in the house.

I have a safe; two even.

And then we spend money on public infrastructure.  We pay the local police, the state police and even federal law enforcement officials.

Given that private ownership of guns reduces crime, and that we are all living in a crime market, I would like to see the federal government mandate gun ownership.

 

I’m Just A Long Haired Hippie: But Qualified For The Supreme Court

The argument goes something like this:

By allowing people to make their own decisions, they pass costs on to other American citizens who make better and more correct decisions.  Therefore, we can mandate that what we feel is a better and more correct decision; health insurance.

That’s the Left.  That’s Obama.  That’s what people who claim to love liberty want to embrace.  That a beneficent government, acting in our best interests, can mandate behavior.

I’ve challenged this line of thought by asking if we could mandate blueberries.  See, blueberries are one of the most healthy foods available.  It consistently ranks in the top 5; heck, top 3.  People who eat blueberries are healthier than people who don’t.

There is little scientific evidence to dispute this.  If any.

Yet we know that we cannot mandate that people buy blueberries.

But if this health care mandate goes through, we are saying that the government CAN mandate blueberries.  Heck, we then admit that the government mandate that we GROW blueberries.

And yet this argument has been ignored.

Until now:

Antonin Scalia, asked if the government might require Americans to buy broccoli or automobiles. Returning to the limits thing, Scalia asked, “If the government can do this, what else can it … do?”

Sub green for blue and the argument is the same.

What can the government NOT mandate?

 

 

Incentives Matter: The Nanny State

Don’t think that incentives matter?

Don’t think that government programs that enlarge the nanny state don’t result in poor behavior?

Think again.

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The Role Of Government

 

The government should be a ref.