Tag: government intervention
The Biden Administration’s Ridiculously Spendy Broadband Promises
“There’s a reason rural and small-town dwellers have less access to the sort of fast internet connections that urban dwellers enjoy: It costs a lot of money to lay fiber-optic cable—”an average cost of $1,000 to $1,250 per residential household passed or $60,000 to $80,000 per mile,” according to Dgtl Infra’s Jonathan Kim. It’s easier to limit and recover costs in densely populated areas where a lot of potential customers live along paved roads than in sparsely settled areas where there’s rough terrain and empty space between each household served. Costs rise dramatically in rural areas.”
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“The Alaska Telephone Company, which won a $33 million grant, is planning to run fiber to 211 homes and five businesses at a staggering cost of nearly $204,000 per passing.””
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“wireless internet offering 10-50 Mbps and (increasingly) satellite connections such as HughesNet, Viasat, and Starlink are how we connect to the world in my piece of Arizona. It’s a tradeoff you accept if you want open space around you. Well, you accept that tradeoff unless you can rope other people into paying the cost of laying cable.”
“”If you’re spending $50,000 to connect a very remote location, you have to ask yourself, would we be better off spending that same amount of money to connect [more] families?””
https://reason.com/2023/09/08/the-biden-administrations-ridiculously-spendy-broadband-promises/
Government Continues To Deny Its Role in Adderall Shortage
“The DEA is empowered by federal law to set annual production quotas for all Schedule II narcotics, including amphetamines. Once it sets the quotas, companies apply for a piece of the total and are forbidden from manufacturing more than their allotment. Despite seeing a sharp increase in prescriptions for ADHD treatment, and in spite of an FDA-reported shortage, the DEA kept the same 2022 levels for its 2023 amphetamine quotas.
Earlier this month, the FDA and DEA put out a joint statement to address the continuing shortage. The statement noted that “for amphetamine medications, in 2022, manufacturers did not produce the full amount” allowed under the quotas. While the agencies “cannot require a pharmaceutical company to make a drug, make more of a drug, or change the distribution of a drug,” they nonetheless “called on manufacturers to confirm they are working to increase production to meet their allotted quota amount.”
But there’s more to the story than manufacturer supply. State and local governments sued the three largest pharmaceutical distributors and Johnson & Johnson over claims that the companies had contributed to opioid abuse and deaths. In February 2022, the companies settled for $26 billion and cracked down on potentially suspicious orders of controlled substances from independent pharmacies. As a result, many pharmacies were limited in the drugs they were able to order; some were banned altogether.”
https://reason.com/2023/08/25/government-continues-to-deny-its-role-in-adderall-shortage/
Subsidized Flood Insurance Makes Storm Damage Worse
“The National Flood Insurance Program (NFIP), managed by the Federal Emergency Management Agency, was created in 1968 to help homeowners in flood-prone areas afford insurance. Federal law requires that mortgaged properties in designated flood hazard areas carry flood insurance, but insurance premiums in oft-flooded areas are significantly more expensive (if they’re even offered at all). The NFIP offers federal backing for policies that private insurers would not otherwise touch or that would be too expensive for most people to afford.”
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“providing insurance to an otherwise uninsurable market comes at a price: A 2011 report by the nonpartisan Government Accountability Office (GAO) found that 22 percent of NFIP’s policies were issued at subsidized rates, about 40–45 percent of the cost of an unsubsidized policy. Between 2002 and 2013, the NFIP collected between $11 billion and $17 billion fewer in premiums than the market would have dictated.
As a result of charging premiums below market rate, the NFIP often runs over budget”
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“The policies themselves don’t make financial sense. NFIP policy holders are not limited in how many claims they can file or how much money they can receive. As a result, more than 150,000 properties nationwide have flooded multiple times and received NFIP reimbursement each time.”
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“An insurance company’s refusal to provide coverage in a high-risk area provides a disincentive to anyone who chooses to live there: When the inevitable happens, you’ll be responsible for the damage yourself.
But when the government assumes the risk on an insurer’s behalf and makes insurance cheaper than the market would dictate, it creates incentives for people to live in dangerous areas more likely to be battered by extreme weather events.
There is evidence that NFIP’s artificially cheaper policies have done exactly that. A 2018 study by Abigail Peralta of Louisiana State University and Jonathan Scott of the University of California, Berkeley, found that after a county joins NFIP, its relative population “increases by 4 to 5 percent” as residents stay in high-risk areas as opposed to moving away.”
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“Two decades ago, John Stossel relayed the story of his beach house in the Hamptons, built on the edge of the water and insured for just a few hundred dollars a year through NFIP. It was fully or partially rebuilt multiple times over the years before finally getting washed away in a storm, with taxpayers footing the bill each time.
As the 2023 hurricane season gets underway, it’s high time for Congress to end the NFIP—a program that goes billions of dollars into debt providing subsidies to keep mostly wealthy people living in high-risk areas.”
https://reason.com/2023/08/30/subsidized-flood-insurance-makes-storm-damage-worse/
China Is No Economic Model for America
What the GOP debate revealed about Republican health care hypocrisy
“On abortion, on health care for transgender people, even on mental health care, the candidates were comfortable flexing governmental authority to dictate the terms of medical treatment.
But when it comes to using that same authority to protect people during a global pandemic or providing health coverage to people with low incomes, they don’t want the government getting involved.”
https://www.vox.com/2024-elections/2023/8/25/23844263/republican-debate-national-abortion-ban-trans-care-covid
The Government Has Made College an Overpriced Scam
“nearly half of the students given loans don’t graduate even after six years.”
https://reason.com/2023/08/16/the-government-has-made-college-an-overpriced-scam/
The Biden Administration’s Antitrust Changes Would Be Great for Bureaucrats—and Bad for Consumers
Industrial Policy Isn’t About Creating Jobs
“Government favoritism in the form of subsidies, tariffs, and other interventions allocates resources (labor and capital) differently than the way resources are allocated by consumers spending their own money. Ordinarily, businesses—spending their investors’ money—compete for these consumer dollars. Industrial policy rests on the assumption that such market outcomes don’t adequately support higher causes such as national security. If that’s true, it’s all the justification industrial policy needs. Nothing needs to be said about jobs.”
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“As Noah Smith reminded his readers in a recent blog post, “Most of the actual production work will be done by robots, because we are a rich country with very high labor costs and lots of abundant capital and technology. Automated manufacturing is what we specialize in, not labor-intensive manufacturing.””
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“Be wary of those who push industrial policy as a means of job creation. It’s a short-sighted approach that distracts us from the more important question, which is whether hindering the market allocation of resources is truly justified for national security or other valid reasons.”