Free Markets – Page 28 – artdiamondblog.com

Marconi Matters

Source of book image: http://palmaddict.typepad.com/photos/uncategorized/big_larsonthunderstruckdrm_1.jpg

Larson’s book plays off a murder mystery against Marconi as the innovator who brought us communication through the air.

I’m most enthused about hte Marconi part. It shows how he proceeded against the theorists of the day, whose theories told them that what he was trying to do was impossible. He was more entrepreneur, than scientist. And it turned out that it was a good thing that the theoretical scientists did not rule, as they might if all decisions about technology were made by the government.

What happened here is an example of what Taleb would call a Black Swan.

Source:

Larson, Erik. Thunderstruck. New York: Crown, 2006.

Free Market Can Provide Better, Cheaper Health Care

"Eve Linney, 5, who had an infected finger, went with her family last week to a walk-in clinic at a Duane Reade drugstore on Broadway in Manhattan. Her father, John, is at the counter." Source of caption and photo: online version of the NYT article quoted and cited below.

Clayton Christensen and co-authors in Seeing What’s Next, make a plausible case for the improvement of health care through disruptive innovation. A key aspect of their vision is the increasing role of nurse-practitioners in taking on increasingly routinized tasks, a development they see as generally both effective, and cost-efficient.

The article excerpted below suggests that this trend is promising, if it does not get killed by the government, and by organized medical doctors protecting their turf from competition.

(p. A1) The concept has been called urgent care “lite”: Patients who are tired of waiting days to see a doctor for bronchitis, pinkeye or a sprained ankle can instead walk into a nearby drugstore and, at lower cost, with brief waits, see a doctor or a nurse and then fill a prescription on the spot.

With demand for primary care doctors surpassing the supply in many parts of the country, the number of these retail clinics in drugstores has exploded over the past two years, and several companies operating them are now aggressively seeking to open clinics in New York City.

. . .

More than 700 clinics are operating across the country at chain stores including Wal-Mart, CVS, Walgreens and Duane Reade.

New York State regulators are investigating the business relationships between drugstore companies and medical providers to determine whether the clinics are being used improperly to increase business or steer patients to the pharmacies in which the clinics are located.

And doctors’ groups, whose members stand to lose business from the clinics, are citing concerns about standards of care, safety and hygiene, and they have urged the federal and state governments to step in to more rigorously regulate the new businesses.

. . .

(p. A16) Patients, however, have flocked to the clinics, according to a new industry group, the Convenient Care Association.

“I think it’s great you don’t have to make an appointment. That could take weeks,” said Ezequiel Strachan, 33, who lives in Manhattan and walked into the clinic at the Duane Reade store at 50th Street and Broadway on a recent morning for treatment of a sore throat. “People here value their time a lot.”

The average waiting time for an exam at such clinics nationwide is 15 to 25 minutes, according to the Convenient Care Association.

The association estimated that 70 percent of clinic patients have health insurance and are using the clinics because of convenience. For them, costs may not be much different from those at doctors’ offices, because the same insurance co-payments apply. But uninsured patients could reap substantial savings.

In New York City, one in five residents lacks a regular doctor and one in six is uninsured, according to a recent survey by the city’s Department of Health and Mental Hygiene, and overcrowded emergency rooms are often their first resort for routine care.

. . .

MinuteClinic officials insisted that there was nothing improper in the relationships between providers and the drugstores and that medical care is not being compromised.

“We are transparent with regulators,” said Michael C. Howe, the chief executive of MinuteClinic, which is based in Minneapolis and operates more than 200 clinics nationwide. using the motto “You’re Sick, We’re Quick.”

Mr. Howe said the concerns of doctors’ groups and other critics “are being raised by voices of people who have not really studied the model.”

Preliminary data from a two-year study of claims from MinuteClinic by a Minnesota health maintenance organization, HealthPartners, which was released to The Minneapolis Star Tribune in July, showed that each visit to the retail clinic cost an average of $18 less than a visit to other primary-care clinics, but that pharmacy costs were $4 higher per patient.

Duane Reade, New York City’s largest drugstore chain, which opened four clinics in Manhattan in May, plans to open as many as 60 more across the city in the next 18 months. A key difference at the Duane Reade clinics is that they use doctors, while nurse practitioners and physician assistants typically provide the care at most retail clinics.

For the full story, see:

SARAH KERSHAW. "Tired of Waiting for a Doctor? Try the Drugstore." The New York Times (Thurs., . August 23, 2007): A1 & A16.

(Note: the title of the online version is "Drugstore Clinics Spread, and Scrutiny Grows." Ellipses added.)

"Dr. Maggie Bertisch saw Eve while her mother, Claire, waited." Source of caption and photo: online version of the NYT article quoted and cited above.

Subsidized Bread Leads to Long Lines, and Corruption

"A vendor sold bread on Wednesday in a poor section of Cairo, where lines are long and customers pushy." Source of caption and photo: online version of the NYT article quoted and cited below.

(p. A4) Much of what ails Egypt seems to converge in the story of subsidized bread. It speaks to a state that is in many ways stuck in the past, struggling to pull itself into the future, unable, or unwilling, to conquer corruption or even to persuade people to care about one another.

How do you take a broken system that somehow helps feed 80 million people and fix it without causing social disorder? That is a challenge for Egypt at large, and for this little bakery where Mr. Muhammad ekes out a living, with a cigarette hanging from his lips and an angry crowd demanding his bread.

. . .

“The most corrupt sector in the country is the provisions sector,” said a government inspector who asked not to be identified for fear of punishment. His job is to go to bakeries to ensure they are actually using the cheap government flour to produce cheap bread that is sold at the proper price.

The inspector explained why the system was so open to abuse. The government sells bakeries 25-pound bags of flour for 8 Egyptian pounds, the equivalent of about $1.50. The bakeries are then supposed to sell the flatbread at the subsidized rate, which gives them a profit of about $10 from each sack. Or the baker can simply sell the flour on the black market for $15 a bag.

If the inspector, who said he was paid $42 a month, certifies that after three months the baker has faithfully used the flour to bake bread, the baker gets a refund of about $1 a bag. A baker who goes through 40 sacks a day over the three-month period gets back 18,000 pounds (around $3,300) — a nice sum, this inspector said, which could easily be shared with an underpaid inspector.

. . .

Over the course of an hour one recent day, 14-year-old Mahmoud Ahmed managed four trips to the counter. His job, he said, was to ensure a steady stream of bread for a nearby food vendor, who then resold it in sandwiches. It appeared that the baker let him push his way to the front to get bread before others. Was there a deal going? Mahmoud would not say.

Down the road, five blocks away, a 12-year-old, Muhammad Abdul Nabi, was selling bread, the same kind of bread, from a makeshift table for more than double the price at the bakery. But there were no lines.

For the full story, see:

MICHAEL SLACKMAN. "CAIRO MEMO; Egypt’s Problem and Its Challenge: Bread Corrupts." The New York Times (Thurs., January 17, 2008): A4.

(Note: ellipses added.)

"Fresh baked for less than a penny, and that’s just the start of the complications." Source of caption and photo: online version of the NYT article quoted and cited above.

“Freedom and Prosperity Are Highly Correlated”

Source of graph: http://www.heritage.org/Press/ALAChart/images/ALC_017_index_econ_freedom_3col_c.jpg

(p. A13) . . . the evidence is piling up that neither government nor multilateral spending on education and infrastructure are key to development. To move out of poverty, countries instead need fast growth; and to get that they need to unleash the animal spirits of entrepreneurs.

Empirical support for this view is presented again this year in The Heritage Foundation/The Wall Street Journal Index of Economic Freedom, released today. In its 14th edition, the annual survey grades countries on a combination of factors including property rights protection, tax rates, government intervention in the economy, monetary, fiscal and trade policy, and business freedom.

The nearby table shows the 2008 rankings but doesn’t tell the whole story. The Index also reports that the freest 20% of the world’s economies have twice the per capita income of those in the second quintile and five times that of the least-free 20%. In other words, freedom and prosperity are highly correlated.

For the full commentary, see:

MARY ANASTASIA O’GRADY. "The Real Key to Development." The Wall Street Journal (Tues., January 15, 2008): A13.

(Note: ellipsis added.)

Source of table: online version of the WSJ article quoted and cited above.

Feds Force Us to Fluoresce, Causing Migraines and Epileptic Seizures

Source: screen capture from the CNN report cited below.

The new energy bill signed into law on Weds., Dec. 19, 2007, included a provision to force us all to fluoresce starting in 2012. In the CNN report cited below, Dr. Sanjay Gupta summarizes recent research suggesting that fluorescent bulbs cause a significant increase in the number of migraine headaches and epileptic seizures.

For the full story, see:

Dr. Sanjay Gupta. "Eco-bulbs and migraines." CNN Report. Posted online on January 4, 2008.

Source: screen capture from the CNN report cited above.

Prominent Transplant Surgeon Endorses Market for Kidneys

Source of graphic: online version of the WSJ article quoted and cited below.

(p. A1) Amid a severe kidney-donor shortage, an idea long considered anathema in the medical community is gaining new currency: payments for people willing to give up a kidney.

One of the most outspoken voices on the topic isn’t a free-market libertarian, but a prominent transplant surgeon named Arthur Matas.

Dr. Matas, 59 years old, is a Canadian-born physician best known for his research at the University of Minnesota. Lately, he’s been traveling the country trying to make the case that barring kidney sales is tantamount to sentencing some patients to death.

"There’s one clear argument for sales," Dr. Matas told a gathering of surgeons earlier this year. The practice, currently illegal in the U.S., "would increase the supply of kidneys, save lives and improve the quality of life for those with end-stage renal disease."

The doctor supports a regulated market only for kidneys, since live donors can give one up and survive without excessive health risks. (Transplants of other organs, such as livers and lungs, pose greater complications to a living donor.) And Dr. Matas doesn’t rule out financial incentives for the families of deceased donors.

For the full story, see:

LAURA MECKLER. "Kidney Shortage Inspires A Radical Idea: Organ Sales As Waiting List Grows, Some Seek to Lift Ban; Exploiting the Poor?" The Wall Street Journal (Tues., November 13, 2007): A1 & A22.

Source of image: online version of the WSJ article quoted and cited above.

Thor Halvorssen Produces Documentaries that Defend Human Rights

"Thor Halvorssen at his office in the Empire State Building." Source of caption and photo: online version of the NYT article quoted and cited below.

(p. 11) Since 2005, having already founded two nonprofit organizations focused on free speech and human-rights issues, Mr. Halvorssen has made the movie business part of his portfolio of controversy-stirring efforts. Established with a small amount of his money, his nonprofit Moving Picture Institute has raised about $1.5 million in donations to date to pay for, promote and seek distribution for documentary films.

At a time when the most successful documentaries on political or social issues all seem to be anti-corporate, anti-Bush, pro-environmentalist and left-leaning, the Moving Picture Institute has backed pro-business, anti-Communist and even anti-environmentalist ones. The latest, “Indoctrinate U,” follows the first-time filmmaker Evan Coyne Maloney as he turns Michael Moore’s guerrilla interview tactics on their head to address what he sees as political correctness on campus. In one scene, Mr. Maloney strolls into the women’s studies centers on several campuses and, playing innocent, asks directions to the men’s studies center. He is met with genuine bafflement, derisive laughs or icy hostility.

To Mr. Halvorssen his new role as a fledgling movie mogul dovetails perfectly with his other activities. “Pop culture has (p. 12) the power to be transformational culture,” he said. “A film can reach a lot more people than a white paper. You could think of the film as a trailer for the white paper.”

He paused, then said, “Put it this way: What ‘Sideways’ did for pinot noir, I want to do for freedom.”

. . .

His upbringing helped make a self-described “classical liberal” rather than a conservative, big on free markets and individual liberties, and convinced that “government is not your friend most of the time,” he said. “And I abhor fascism, whether it’s socialist or National Socialist.”

. . .

“The Sugar Babies,” a documentary by Amy Serrano that Mr. Halvorssen helped produce, takes on the issue human trafficking of Haitian workers on sugar plantations in the Dominican Republic. A screening at Florida International University in June erupted into what local press described as “a near riot” between Dominican and Haitian audience members.

Other documentaries championed by the Motion Picture Institute include “Hammer & Tickle,” a lighthearted look at the subversive jokes Soviet citizens told about their leaders.

And Mr. Halvorssen was a co-producer of “Freedom’s Fury,” narrated by Olympic swimmer Mark Spitz, which describes the role Hungary’s Olympic water polo team played in that nation’s 1956 uprising against its Soviet occupiers.

No doubt the most contentious film on the Motion Picture Institute roster so far is ”Mine Your Own Business,” billed as ”the world’s first anti-environmentalist documentary.” Phelim McAleer, an Irish journalist who received a fellowship from the Motion Picture Institute, traveled to Romania, Madagascar and Chile, where international environmental groups oppose planned mining operations. His film — financed by Gabriel Resources, a Canadian mining company — portrays environmentalists as condescending elitists while impoverished locals insist they would welcome the jobs and development the mines would bring.

. . .

Mr. Halvorssen speaks of a ”YouTube revolution” with the Internet, along with on-demand cable and satellite television, freeing independent filmmakers from Hollywood dominance.

Ultimately, he added, he hopes that ”exploiting technology, marketing and alternative distribution will transform human rights, making it inspiring and even sexy.”

For the full story, see:

JOHN STRAUSBAUGH. "A Maverick Mogul, Proudly Politically Incorrect." The New York Times, Arts&Leisure Section (Sun., August 19, 2007): 11 & 12.

(Note: ellipses added.)

For more information on the documentaries of Halvorssen’s Moving Picture Institute, see:

http://www.thempi.org/

Poster for the movie "Mine Your Own Busines." Source for poster: http://billhobbs.com/myobposter.gif

New Farm Bill Is Sweet for Sugar Industry, but Sour for Sugar Consumers

"Sugar being processed at the Louisiana Sugar Cooperative mill in St. Martinville, La." Source of caption and photo: online version of NYT article quoted and cited below.

(p. C1) A little-noticed provision in the new farm bill working its way through Congress would oblige the Agriculture Department to buy surplus domestic sugar caused by the expected influx of Mexican sugar next year. Then the government would sell it, most likely at a steep discount, to ethanol producers to add to their fermentation tanks. The Bush administration is fighting the measure.

Sugar producers say the cost would be relatively low and the plan would help keep prices at a level they consider fair. As a side benefit, the deal would allow the nation to produce more ethanol to mix with gasoline, displacing some foreign oil, they say.

But ethanol producers are unenthused. And the plan is drawing fire from opponents of agricultural subsidies and from longtime critics of the sugar in- (p. C4) dustry, who complain that producers already have one of the best deals in American agriculture.

“It’s a tax burden without a benefit that distorts both the ethanol market and the food-ingredient market,” said Richard E. Pasco, counsel for the Sweetener Users Association, a lobby group for food companies that use sugar. “And guess who will pay the price? Taxpayers and consumers.”

. . .

The measure would be grafted onto an existing sugar policy so complex that even many farmers have trouble understanding it. The government limits the supply of sugar through production quotas and import restrictions, and it uses financial mechanisms to set an effective price floor.

The system does not cost taxpayers money directly, a point of pride for the industry. But it costs consumers money in the form of higher sugar prices. The system has been subjected to withering criticism for decades, but the sugar lobby has clout on Capitol Hill. Sugar producers donated $2.7 million in campaign contributions to House and Senate incumbents in 2006, more than any other group of food growers, according to the Center for Responsive Politics, a Washington group.

The new farm bill would retain much of the existing system, which sugar producers defend on the ground that virtually every country with a domestic sugar industry has strong protections. But it would add more guarantees, including one that would assure American producers 85 percent of the market no matter how much sugar comes in from abroad.

For the full story, see:

CLIFFORD KRAUSS. "Seeing Sugar’s Future in Fuel." The New York Times (Thurs., October 18, 2007): C1 & C4.

(Note: ellipsis added.)

Source of graphic: online version of NYT article cited above.

Hong Kong Dim Sum Lovers Rebuke Government

"Wong Yuen enjoying breakfast at a Hong Kong restaurant. The government, he says, "shouldn’t be telling anyone how dim sum should be served."" Source of caption and photo: online version of the NYT article quoted and cited below.

Longtime dim sum lovers are indignant.

"The government is putting its thumb on every part of citizens’ lives, and it shouldn’t be telling anyone how dim sum should be served," said Wong Yuen, a retired mechanic and truck driver who says he has eaten dim sum every morning for the last two decades. "People can make their own decisions. If it’s unhealthy, they can eat less. They don’t need the government to tell them."

For the full story, see:

KEITH BRADSHER. "HONG KONG JOURNAL; Dim Sum Under Assault, and Devotees Say ‘Hands Off’." The New York Times (Thurs., April 28, 2005): A4.

Incentives for Organ Donations Would Save Lives

Sally Satel is a medical doctor and a resident scholar at the Amerrican Enterprise Institute. Source of photo: http://www.aei.org/publications/filter.all,pubID.25785/pub_detail.asp

(p. A12) At the annual meeting of The American Society of Transplant Surgeons this winter a straw poll revealed that 80 to 85% were in favor of studying incentives for living donors, according to society president Arthur Matas. In 2003, the American Medical Association testified on behalf of legislation that would have permitted pilot studies of incentives for deceased organs.

The public seems receptive as well, according to a new Gallup poll on attitudes toward donation of organs after death. The most striking results were among 18 to 34 year olds wherein an impressive 34% said that incentives would make them "more likely" to donate while 6% said less likely. . . .

. . .

The idea of combining organ donation with material gain can make people queasy. Yet the mix of financial and humanitarian motives is commonplace. No one objects, for example, to a tax credit for charitable contributions–a financial incentive to complement the "pure" motive of giving to others. The great teachers who enlighten us and the doctors who heal us inspire no less gratitude because they are paid. An increase in the supply of kidneys will ameliorate suffering and prevent needless death. This is more important than whether an organ has been given freely or for material gain. . . .

For the full commentary, see:

Satel, Sally. "Doing Well By Doing Good." The Wall Street Journal (Fri, March 16 2007): A12.

(Note: ellipses added.)

“India is Outsourcing Outsourcing”

"Infosys employs workers in Brno, Czech Republic." Source of caption and photo: online version of the NYT article quoted, and cited, below.

(p. A1) MYSORE, India — Thousands of Indians report to Infosys Technologies’ campus here to learn the finer points of programming. Lately, though, packs of foreigners have been roaming the manicured lawns, too.

Many of them are recent American college graduates, and some have even turned down job offers from coveted employers like Google. Instead, they accepted a novel assignment from Infosys, the Indian technology giant: fly here for six months of training, then return home to work in the company’s American back offices.

India is outsourcing outsourcing.

One of the constants of the global economy has been companies moving their tasks — and jobs — to India. But rising wages and a stronger currency here, demands for workers who speak languages other than English, and competition from countries looking to emulate India’s success as a back office — including China, Morocco and Mexico — are challenging that model.

Many executives here acknowledge that outsourcing, having rained most heavily on India, will increasingly sprinkle tasks around the globe. Or, as Ashok Vemuri, an Infosys senior vice president, put it, the future of outsourcing is “to take the work from any part of the world and do it in any part of the world.”

. . .

(p. A14) Such is the new outsourcing: A company in the United States pays an Indian vendor 7,000 miles away to supply it with Mexican engineers working 150 miles south of the United States border.

In Europe, too, companies now hire Infosys to manage back offices in their own backyards. When an American manufacturer, for instance, needed a system to handle bills from multiple vendors supplying its factories in different European countries, it turned to the Indian company. The manufacturer’s different locations scan the invoices and send them to an office of Infosys, where each bill is passed to the right language team. The teams verify the orders and send the payment to the suppliers while logged in to the client’s computer system.

More than a dozen languages are spoken at the Infosys office, which is in Brno, Czech Republic.

For the full story, see:

ANAND GIRIDHARADAS. "Outsourcing Comes Full Circle As India Starts to Export Jobs." The New York Times (Tues., September 25, 2007): A1 & A14.

(Note: the somewhat different title of the online version was: "Outsourcing Works So Well, India Is Sending Jobs Abroad.")