Thursday, September 19, 2013

Negating your rights - Canadian Health Insurance.

Most Canadians understand the need for insurance. People buy insurance to avoid catastrophic expenses, major damage or liability in an auto collision, fire damage in a house, or life insurance. It does not make sense to insure routine maintenance. People don't buy car insurance to pay for oil changes or even major expenses like new tires, or a brake job. These need to be factored in with the cost of car ownership.  Car ownership is a responsibility and it includes paying for all associated costs.

Unfortunately, when the Canadian health care system came into existence in the 1960's, those involved in creating the legislation considered health care as a "right," a positive right.  I agree that access to healthcare is a right, and cost is sometimes a barrier. So when healthcare legislation was conceived by federal and provincial legislators 50 years ago in Canada, they realized that catastrophic health events happen over the course of people's lives and these should be insurable. That makes sense, but having the government do it doesn't. The problem was made much worse when legislation was written to provide ALL health care as a right. Even routine medical visits which are on the level of automobile oil changes were covered by insurance. Everything was covered, and the scarce resource that is healthcare became virtually "free," an obvious contradiction. The government even takes pains NOT to make the cost of healthcare known to Canadian consumers. We have no idea what anything costs and they won't tell us.

Nothing is free, and its almost axiomatic that whenever a government gets involved in mitigating an expense, you can be certain that expense will increase, beyond all good intentions.

"Free" healthcare is the number one budget expense in Ontario, and probably every province. Why? Because in the rest of economy free markets and competitive innovation are the primary forces that reduce prices and keep them as low as possible. When a government monopoly takes over any aspect of the economy, the government sets the price and taxpayers have no option but to pay. Every routine procedure is theoretically covered by our Canadian health insurance, which at the same instant tries to control costs, while increasing wages and benefits to employees, and its all controlled by a small cadre of bureaucrats. Exactly the opposite of an innovative free market.

What the government has determined as a "right," actually negates rights. Access to healthcare is a right, but as governments try to control costs they ration care, and access becomes a problem. Canada is exceptional as one of freest countries in the world with some of the poorest access to timely healthcare.

The original intent was to make healthcare available to everyone, even the poorest in our society. The result is that we are all treated as equally poor and our right to timely care is out of our hands.

The video that follows needs to be shared and widely distributed among all your friends. Dr. David Gratzer of the Montreal Economic Institute explains what is good about modern medicine and bad about Canadian Healthcare.        

   

Wednesday, September 18, 2013

Rights versus Duties

People often misuse the term "rights."
Many people, even political parties and governmental or nongovernmental organizations, advocate for individuals to have an assortment of rights other than the commonly held right to life, liberty and property. In philosophical jargon those three are considered negative rights. Yes, you have a right to those three, but no one is required to provide you with anything. That's different from the photo above which implies that the right to an education can be legislated. This means that someone has a duty or obligation to provide it. This is a positive right. In the libertarian tradition, negative rights are the rights that governments should be protecting.
Of course there is nothing wrong with someone volunteering to provide an education to those unable to obtain one. This idea of voluntary charity is a virtue that most libertarians would support. The idea of providing positive rights to individuals usually involves infringing on the rights of those who must provide the rights.
Here is an explanation of that view of Positive vs. Negative Rights:

    

Sunday, September 8, 2013

Horse manure piled 60 feet high......

There is an apocryphal story about futurologists in 1860 New York City, predicting that NYC would not exist in 100 years because the present (1860) growth rate indicated that 6 million people would need 6 million horses, and that NYC could not handle the amount of manure produced.

Indeed the amount of manure produced in NYC was prodigious. In SuperFreakonomics, this section is worth reading because it graphically illustrates the problem. In 1900 there were 200,000 horses, and each horse could produce 24 pounds of manure or 5 million pounds a day, so manure lined city streets like banks of snow, and up to 60 foot piles of it was stored in empty lots. Summer heat must have been fun. And you thought cars were polluting.

I mention all this because the future is tough to predict and sometimes the errors made are spectacularly laughable in hindsight. There is even a webpage that collects and displays erroneous predictions. Here, have a look.

When governments make these errors which are paid for from coerced taxes and which create huge "malinvestments," it's just that much worse. Lately the Ontario government has made some doozies, from subsidized wind turbines to poorly placed gas generators. Money is wasted.

The newest government craze in the Greater Toronto Area (GTA) is mass transit. An arm of the city government wants to expend $50 Billion to create a mass transit system to relieve traffic congestion in the GTA over the next 25 years. Given the rate of change of technological development, the problem may be alleviated best with much cheaper solutions. This article by Lawrence Solomon points to solutions that were used in Singapore for similar issues. Building more highways and luring people out of their cars to take transit are both partial solutions at best, and the article continues.."As Singapore and others have shown, software can turn our now-clogged roads into smart roads, creating effective new road capacity that eliminates the need for either major new highways or mass transit." Here is a link to Intelligent Transport Systems used in Singapore.

The collision of smart transport systems in congested cities with self driving cars is likely to happen BEFORE the last mass transit line is in place in Toronto in 2038.

Technology and innovation are disruptive when allowed to happen to solve problems. The City government of New York did not need to find storage for more manure, the free market solved the manure problem and saved New York.

Tuesday, September 3, 2013

Where are the Atlantic Hurricanes of 2013?

Not that I miss large destructive storms but, there has not been one named Hurricane in the 2013 season as yet. We're half way through the six month June 1 to November 30 Atlantic Hurricane season, a season that was predicted to be "extremely active" last spring. There were lots of warnings in media, but so far nada.

Now its too early to start criticizing the computer models that were used to make this prediction, but things look fairly quiet through to the middle of September. In fact 2013 could produce a record for the latest named storm in the short history of hurricane prediction. That is, assuming a storm happens. Wouldn't it be something if NOAA's prediction was wrong? I guess climate science models need some revisions?   

Exploiting the worker

Just to follow up to my Labour Day post. One of the primary reasons for the existence of unions was to prevent workers from being exploited by capitalists. If markets were free, does that make it inevitable that workers are exploited? Not according to the video below:

In fact, the chances of workers being exploited are far greater in the present situation where free markets do not exist. Today in most Western democracies (including the US and Canada) governments do favours for capitalists and capitalists provide donations to political parties on the "understanding" that favours will be done. This crony capitalism is far more exploitive than a free market would be as explained here:
  

Monday, September 2, 2013

Labour Day & the Zombie Apocalypse?

Labour (Labor US) Day traditionally celebrates the contributions of workers in the US and Canada. Nothing wrong with that. It's become an annual parade event, celebrated mostly by unionized labour, especially in Canada.

Unions are in trouble all over the world. In almost every OECD country there has been a decline in union representation since the mid-1980's. In some countries the decline has been huge over the last 30 to 50 years, in others things have changed little. In the US 30.9% of workers were in unions in 1960, only 11.6% by 2007; in Canada, 29.2% in 1960, 29.4% in 2007. In almost every OECD country recent trends have been downward. Lately Canada has up-ticked because of a growing public sector. Globalized labour markets have shifted jobs to lower wage centres around the world. The unions see the writing on the wall, their position has been made even worse by the financial crisis after 2008, followed by recessions and austerity moves in Europe and elsewhere.

So how are unionists and zombies related? Zombies are difficult to kill, they frequently operate in large groups, seek brains to consume, and most compelling, they seem mindless with respect to their opposition. 

The strength of unions in Canada makes them virtually indestructible without an act of Parliament. Their ability to collect fees, and control labour markets are enshrined in a variety of arguably illegitimate and ill-considered laws that have accumulated over the years. Today most of the reasons for these protective laws have been enshrined in other laws, which makes them unnecessary, redundant. The fact that union membership represents 30% plus (extended family) of the electorate, makes it political suicide for any government Party to contravene union legislation. They are unstoppable.

Lately, noises made by some Canadian governments, and unfriendly legislation by others, have forced unions to amalgamate into much larger groups; strength in numbers.

But underlying much of the thinking amongst union leadership, both public and private sector, and transferred to their masses, is a distorted theory of value. What is the actual worth of the labour provided by their workers public or private?

When I was a young teacher, I spent enormously long hours trying to work out effective lessons for my students. This went on for years. I often thought that if I were paid at the hourly rate of my actual teaching time, I'd make a lot of money. But I knew I was not worth it. My job was protected by my union, and the teaching job market was controlled by the union together with the government. No one could have my job without their say-so, and I would have to screw up pretty badly to get booted out of teaching. This is typical of government monopolies.

Was I even worth what I was being paid? How was that determined? That number was determined by negotiations in what is called euphemistically collective bargaining. If someone was a better, more experienced teacher than I, but lacking certain credentials, applied for my job, they were out of luck even if they tried to underbid for my job.

The compensation for my job had little to do with reality, it was contrived. I understood that as a young teacher, very few of my colleagues did. The entire government public school teaching profession is based on the Labour Theory of Value. The worth of your job is based on the effort you put in to get the credentials (the years of schooling etc.) plus your experience. That sounds fair, but its wrong.

It would mean that each job could be assigned some objective value unrelated to the market place. That's the way union shops and their leadership think. If that were true, my junior years should have been my best in terms of effort expended and salary paid.

Zombies seem mindless and unwilling (unable) to even acknowledge those who appose them.

The truth is my job should have paid, much, much less if it were bid for by parents in a competitive market place. This should be the way to think about value in a job. How much would a competitive marketplace of parents looking for teachers actually pay for the service of teaching their children. It's a purely subjective value, worth something to some, and nothing to many others. This Subjective Theory of Value, makes every union negotiated settlement (by collective bargaining), a distortion of the labour market in that field or market place.

It's early days yet, but the Zombie Apocalypse is coming.      

Thursday, August 29, 2013

Church of Atheism?

Here is an example of how unnecessary government interventions create unintended consequences.  According to this newspaper report, atheism is a creed that requires protections much the same as other religions do. So, atheism is equated to religion. In the actual paper copy, on the front page (see photo), the National Post makes light of this. I guess to pander to their social conservative patrons.

I'll skip over whether religions need protection, I don't think they do. I'd like to examine atheism as a creed.

According to Dictionary.com "creed" is defined as:

1. any system, doctrine, or formula of religious belief, as of a denomination.
2. any system or codification of belief or of opinion.
3. an authoritative, formulated statement of the chief articles of Christian belief, as the Apostles' Creed, the Nicene Creed, or the Athanasian Creed.

As far as I know, to be an atheist one is not required to join a group that has an atheist code or formula. Atheists typically don't meet regularly to fulfil belief obligations. They don't construct massive buildings as places of worship, nor do they get tax breaks from local governments for doing so. Calling atheism a belief system is a huge stretch and distortion. If I don't believe in fairies, is that a belief system? Hardly!

The news story above, reports on a decision by the Human Rights Tribunal of Ontario (HRTO), a superfluous arm of government if ever there was (theoretically in Canada, Charter Rights are already protected). It seems a Mr. Choinard of Grimsby Ontario, wanted to match the Gideon's of bible distribution fame as a protest. He wanted to hand out an atheist text “Just Pretend: A Freethought Book for Children,” and of course was, as expected, refused. He made a case to the HRTO alleging that the District School Board of Niagara has “discriminated against them … because of creed.” Making such a protest is simple and costs nothing to the complainant, there is no barrier to frivolity, not that I think this is a frivolous complaint.

As a result, earlier in August, the HRTO ruled on the complaint saying that the school board's policy was biased.
“The policy was discriminatory because its definition of acceptable materials violated substantive equality by excluding the kinds of materials central to many creeds.”
The school board policy blocked atheist books and other “emerging or non-traditional creeds.”

In the end, according to the news article, the HRTO descision was:
“If [the school board] is prepared to distribute permission forms proposing the distribution of Christian texts to committed atheists, it must also be prepared to distribute permission forms proposing the distribution of atheist texts to religious Christians.”
The school board has six months to draw up a new policy “permitting distribution of creed and religious publications in its schools.” So atheism is a creed.

Throughout the process Mr. Choinard maintained his primary goal was to critique the board's policy and point out that government public schools should not be in the business of supporting a religious agenda. I absolutely agree, and that illustrates the real problem. If parents had the (affordable) option to send their children to their school of choice, religious or not, this entire case would not exist.

Ideally schools should be an extension of the home. The values that parents want to instil in their children should be a parental responsibility. Busy parents should be able to obtain a service, at an affordable price, that fulfils this need consistent with their values in addition to educating their children for the modern world. To have government public schools try to be all things to all people is impossible and undesirable; and to require an HRTO to enforce this is ridiculous. Here are two arms of the Ontario government that can easily be reduced or eliminated.      

Tuesday, August 27, 2013

Attention Shoppers...

Out doing a bit of food shopping this afternoon. I spent the first few minutes trying to liberate a shopping cart with my quarter. That comes from habit, the cart thingy would not budge, then I read the instructions (see photo).
I did not get the memo that things had changed at my local food store.

Two observations:

1. A quarter seems no longer worth as much as it was. I've noticed this on previous shopping trips. People don't return their carts to the right spot sometimes because their time is worth more than a quarter, OR it's raining, and again, not worth it.

2. The "Cart return islands" in the parking lot had disappeared, now shoppers have to march the cart all the way back to the store. That means that the entry level job of moving carts back to the store is gone. Casualty of the minimum wage? Maybe.
How long will it be before it takes a "two-ny" ($2) to liberate the carts?



Wednesday, August 21, 2013

Facebook - please "Like"

This week I created a Facebook page to highlight this blog TBL, soon to be in its fifth year. 

The Facebook page ought to allow more discussion and feedback, and I can post smaller items that do not warrant a full blog post but are still very interesting.

If you are already a Facebook user, I would appreciate a "like" (in jargon of Facebook) or a (civil) comment. 

You can find the TBL page here

If you don't use Facebook, but have libertarian leanings, why not air them out in the classic libertarian way, the dreaded online argument thread. Join up. Arguing on Facebook is not quite as interactive (or funny) as the video below, but fun nevertheless. 

 

Tuesday, August 20, 2013

Gas (plant) pains

Flooded Highway 427
By now the story of the big rainstorm that caused flooding and power outages in the western part of Toronto, earlier this summer (July 8, 2013) is old news. Certainly the severity of the storm was unusual, and with that much rain, flooding was to be expected. But most of the flooding was cleared by the following morning leaving behind considerable damage to property.

What was unexpected was that electrical power remained offline to thousands of homes and businesses for nearly two days which added (unnecessarily) to the destruction of property in freezers and refrigerators across the region. The Mayor of Toronto even appealed to citizens to conserve electricity because the city was “hanging by a thread.” Was this a surprise to authorities, an unnoticed flaw in the system? Who is in charge?

The Ontario Power Authority (OPA) is in charge of Ontario’s electricity infrastructure, and the disruption in service after the recent flood was foreseen years ago.

A report issued in October 2007, recommended “the siting of new gas generation in the southwest part of the Greater Toronto Area (Southwest GTA)” and that OPA intended to “procure such generation by 2013…to address capacity needs…expected by 2015 in the western half of the GTA.” Of course the proposed Oakville and Mississauga gas power plants that were supposed to mitigate the problem were canceled for political reasons.

The same report foreshadowed the recent power failure: “Extraordinary events or major failures on the transmission system could lead to inadequate supply capacity or voltage stability issues. The risk of such events is significantly reduced with internal generation capacity. As an example, New York City requires an installed generation capacity that is 80% of the city load.” How does Toronto, the financial capital of Canada, compare? Only about 10% of its electricity is generated locally. The city is on tenterhooks.

The best available guess is that the cancellation of the two aforementioned gas power plants cost about $600 million. The recent economic ($850 million) and societal losses during the power failure should to be added to that estimate. Indeed, the cancellation of those plants was not the decision of experts, and not done in the interests of the people of the Southwest GTA. It was a calculated decision designed to save two political seats weighed against the best interests of hundreds of thousands of hard working citizens.

In a recent committee hearing on the gas plant debacle, Dalton McGuinty reiterated his position that the power plant cancellation was “the right thing to do.” Yes, it was for the Liberal Party, but what about the ratepayers and citizens of western Toronto, and the rest of the province?

This is the Libertarian platform plank on electrical energy generation.