Category: Free Markets

Deregulation of Hearing Aids Will Lower Costs and Increase Innovation

(p. A1) The Food and Drug Administration decided on Tuesday to allow hearing aids to be sold over the counter without a prescription to adults, a long-sought wish of consumers frustrated by expensive exams and devices.

The high cost of hearing aids, which are not covered by basic Medicare, has discouraged millions of Americans from buying the devices. Health experts say that untreated hearing loss can contribute to cognitive decline and depression in older people.

Under the F.D.A.’s new rule, people with mild to moderate hearing loss should be able to buy hearing aids online and in retail stores as soon as October, without being required to see a doctor for an exam to get a prescription.

. . .

“This could fundamentally change technology,” said Nicholas Reed, an audiologist at the Department of Epidemiology at Johns Hopkins Bloomberg School of Public Health. “We don’t know what these companies might come up with. We may literally see new ways hearing aids work, how they look.”

. . .

The change has been percolating for years. In 2016, a proposal for the F.D.A. to approve over-the-counter hearing aids for adults with mild to moderate hearing was released in a report by the National Academies of Science, Engineering and Medicine. The following year, Senators Chuck Grassley, a Republican of Iowa, and Elizabeth Warren, a Democrat of Massachusetts, introduced a bill enabling the agency to make the change. Congress approved the legislation and President Trump signed it into law.

Finalizing regulations has moved slowly since then, with some conflict over details, like how the federal rule would interact with state laws on hearing aid returns or warranty policies and how much the devices should amplify sound.

Mr. Biden issued an executive order last July calling for greater competition in the economy, which urged the F.D.A. to take action “to promote the wide availability of low-cost hearing aids.”

For the full story, see:

Christina Jewett. “F.D.A. Decides to Allow Over-the-Counter Sales of Hearing Aids.” The New York Times (Wednesday, August 17, 2022): A1 & A23.

(Note: ellipses added.)

(Note: the online version of the story was updated Aug. 23, 2022, and has the title “F.D.A. Clears Path for Hearing Aids to Be Sold Over the Counter.”)

President Grover Cleveland Stuck with His Free Market Principles

(p. C7) Troy Senik, a former White House speechwriter, has written “A Man of Iron: The Turbulent Life and Improbable Presidency of Grover Cleveland” to rescue his subject from obscurity.

. . .

Mr. Senik says that Cleveland should be remembered as “one of our greatest presidents.”

. . .

He entered the White House favoring tariff cuts, the gold standard, limited government and the expansion of the civil service to reduce the power of patronage bosses. When he retired 12 years later, his principles were the same. He vetoed more bills in his first term than all 21 of his predecessors combined.

. . .

(p. C9) When Texas suffered a drought, he vetoed a bill to provide seeds to farmers, warily explaining: “Federal aid in such cases encourages the expectation of paternal care . . . and weakens the sturdiness of our national character.”

. . .

After triumphing in his first White House bid he declared, “Henceforth I must have no friends,” a rather monkish notion of virtue and a fitting template for how he governed. At the end of that term, he was advised not to push for tariff reform before his re-election but ignored the advice, observing: “What is the use of being elected or reelected unless you stand for something?”

“A Man of Iron” is a tribute to an incorruptible man, a rare politician who rose above partisanship.

For the full review, see:

Roger Lowenstein. “Oddly, Both Principled And President.” The Wall Street Journal (Saturday, Sept. 17, 2022): C7 & C9.

(Note: ellipses between paragraphs added; ellipsis within paragraph, in original. Bracketed word also added.)

(Note: the online version of the review has the date September 16, 2022, and has the title “‘A Man of Iron’ Review: Grover Cleveland, Honest to a Fault.”)

The book under review is:

Senik, Troy. A Man of Iron: The Turbulent Life and Improbable Presidency of Grover Cleveland. New York: Threshold Editions, 2022.

“No One Wants to Take Mass Transit”

(p. A16) Across almost seven hours Thursday night [Aug. 25, 2022], the speeches grew in volume and intensity — a cacophony of New Yorkers brought together over Zoom to either praise or denounce one of the city’s most contentious transportation projects.

Transit officials held the virtual hearing to collect input on a tolling program to reduce traffic in Manhattan. But the meeting also provided the chance to swing at a favorite New York City punching bag: the Metropolitan Transportation Authority, which runs the subway and bus network and would benefit from the proposal.

. . .

“No one wants to take mass transit. It’s not safe. Jumping turnstiles, shooting, looting, fighting, the list goes on,” Brendan Peo, a schoolteacher who lives in New Jersey, said during the hearing on Thursday. “The suggestion that more people will use mass transit instead of driving when conditions are like this in the subway is asinine.”

For the full story see:

Ana Ley. “Critics Abound at First Hearing on Tolls for Driving Into Manhattan.” The New York Times (Saturday, Aug. 27, 2022): A16.

(Note: ellipsis, and bracketed date, added.)

(Note: the online version of the story has the date August 26, 2022, and has the title “At M.T.A.’s First Congestion Pricing Hearing, Critics Abound.”)

Miami Mayor Welcomes Private Enterprise with Public Safety, Low Taxes, and Few Regulations

(p. A15) On one side, we have the socialist model: high taxes, high regulation, less competition and declining public services with government imposing itself as the solver and arbiter of all social problems. On the other side, we have the Miami model: low taxes, low regulation and a commitment to public safety and private enterprise. The models present a stark choice on issues ranging from personal freedom, economic opportunity, public safety and the role of government.

. . .

In Miami, many residents have personally experienced the socialist model along with its symptoms of hyperinflation, class resentment and stagnant growth. Four years ago Miami residents elected me to pursue a different path. We reduced taxes dramatically, and our revenue base doubled. We invested in our police, and our crime rate dropped. And last week we reduced taxes to their lowest level in history—cutting costs for residents and promoting economic growth.

Miami is a place where you can keep what you earn, invest what you save, and own what you build. We are meeting the high demand of rent costs by encouraging public-private partnerships, activating underutilized land through zoning reforms, and harnessing free-market forces to build more. It works, and our new residents from New York and California can confirm it.

For the full commentary see:

Francis X. Suarez. “Miami Takes On the Socialist Model.” The Wall Street Journal (Monday, Aug. 22, 2022): A15.

(Note: ellipsis added.)

(Note: the online version of the commentary has the date August 21, 2022, and has the same title as the print version.)

“Maverick” Chinese Entrepreneur Zhou Hang Dares Criticize Zero Covid Policy

(p. B1) China’s entrepreneur class is grappling with the worst economic slump in decades as the government’s zero Covid policy has shut down cities and kept would-be customers at home. Yet they can’t seem to agree on how loudly they should complain — or even whether they should at all.

. . .

Their approach, the equivalent of an ostrich sticking its head in the sand, doesn’t make sense to Zhou Hang. Mr. Zhou, a tech entrepreneur and a venture capitalist, has questioned how his peers can pretend it’s business as usual, given the political and economic upheaval. Stop putting up with the ridiculous reality, he urged. It’s time to speak up and seek change.

Mr. Zhou is rare in China’s business community for being openly critical of the government’s zero Covid policy, which has put hundreds of millions of people under some kind of lockdowns in the past few months, costing jobs and revenues. He’s saying what many others are whispering in private but fear to say in public.

“The questions we should ask ourselves are,” he wrote in an article that was censored within an hour of posting (p. B4) but shared widely in other formats, “what caused such widespread negative sentiment across the society? Who should be responsible for this? And how can we change it?”

He said the lockdowns in Shanghai and other cities made it clear that wealth and social status meant little to a government determined to pursue its zero Covid policy. “We’re all nobodies who could be sent to the quarantine camps, and our homes could be broken into,” he wrote. “If we still choose to adapt to and put up with this, all of us will face the same destiny: trapped.”

. . .

Mr. Zhou, 49, is known as a maverick in Chinese business circles. He founded his first business in stereo systems with his brother in the mid-1990s when he was still in college. In 2010, he started Yongche, one of the first ride-hailing companies.

Unlike most Chinese bosses, he didn’t demand that his employees work overtime, and he didn’t like liquor-filled business meals. He turned down hundreds of millions of dollars in funding and refused to participate in subsidy wars because doing so didn’t make economic sense. He ended up losing out to his more aggressive competitor Didi.

He later wrote a best seller about his failure and became a partner at a venture capital firm in Beijing. In April [2022], he was named chairman of the ride-sharing company Caocao, a subsidiary of auto manufacturing giant Geely Auto Group.

A Chinese citizen with his family in Canada, Mr. Zhou said in an interview that in the past many wealthy Chinese people like him would move their families and some of their assets abroad but work in China because there were more opportunities.

Now, some of the top talent are trying to move their businesses out of the country, too. It doesn’t bode well for China’s future, he said.

“Entrepreneurs have good survivor’s instinct,” he said. “Now they’re forced to look beyond China.” He coined a term — “passive globalization” — based on his discussions with other entrepreneurs. “Many of us are starting to take such actions,” he said.

For the full story see:

Li Yuan. “A Solitary Critic on ‘Zero Covid’.” The New York Times (Saturday, June 11, 2022): B1 & B4.

(Note: ellipses, and bracketed year, added.)

(Note: the online version of the story has the date June 10, 2022 and has the title “A Chinese Entrepreneur Who Says What Others Only Think.”)

Which Country’s National Anthem Ends by Questioning Its Citizens’ Bravery and Freedom?

(p. 9) Mark Clague knows everything about “The Star-Spangled Banner,” . . . .

. . .

The lyrics were composed by the lawyer, politician and amateur poet Francis Scott Key while held prisoner by the British in Baltimore Harbor during the War of 1812.

. . .

Clague even creates a detailed military map of the engagement to demonstrate how “perilous” that fight really was. The first verse, the only one now sung, ends, as every child knows, with a question:

“Oh, say does that star-spangled banner yet wave/O’er the land of the free, and the home of the brave?”

In the complete version, Key details his relief at finally seeing the flag, and rejoices in the promise of future victories. But those three verses are rarely sung, and leaving the question unanswered might be the secret to the song’s hold on the American public. It is not an anthem that, like “La Marseillaise,” calls for our enemy’s “impure blood to water our fields.” Rather, it’s a song for a country that is still in the fight, for its existence and its ideals, and it offers an invitation to any and all — the “you” of the first line — . . .

. . .

. . ., Clague has no patience for anyone who demands . . . reverence from others, . . . . But he reveres the anthem itself, and he makes the strongest case for the song in his detailed analysis of what he calls its most successful modern rendition, Whitney Houston’s performance at the 1991 Super Bowl.

Houston’s version, though, is transformed by artistry and personality and musical genius. She has changed the time signature to 4/4, and imbues the melody with the ornamentation of jazz, blues and, most important, gospel. By the time she gets that highest “FREEEE” she not only reaches but goes above it, expressing ownership of the word and the gesture. While the lyrics may remain as written, the meaning of a crucial word in the first line — “you” — has been wrenched from past to present to be addressed, at last, to all of us.

So: Does that star-spangled banner yet wave o’er the land of the free and home of the brave? Not yet, perhaps. But listening to a descendant of the enslaved claiming the song of a slaver, you want to believe it someday might.

For the full review, see:

Peter Sagal. “High Notes.” The New York Times Book Review (Sunday, July 3, 2022): 9.

(Note: ellipses added.)

(Note: the online version of the review was updated June 22, 2022, and has the title “Our Flag Was Still There.”)

The book under review is:

Clague, Mark. O Say Can You Hear?: A Cultural Biography of “the Star-Spangled Banner”. New York: W. W. Norton & Company, 2022.

Regulations Hurt Immigrant Home Cooks in Gig Labor Market

“In the kitchen of her apartment in Green point, Brooklyn, Juliet Achan stirs up dishes from her Surinamese background.” Source of photo: online version of the NYT article cited below. Source of caption: print version of the NYT article cited below.

(p. B1) Several days a week, Jullet Achan moves around the kitchen of her apartment in Greenpoint, Brooklyn, stirring up dishes from her Surinamese background: fragrant batches of goat curry, root vegetable soup and her own take on chicken chow mein.

She packages the meals, and they are picked up for delivery to customers who order through an app called WoodSpoon.

“Joining WoodSpoon has made a huge difference during the pandemic, giving me the flexibility to work safely from home and supplement my income,” Ms. Achan said in a news release from the company in February.

However, in the state of New York, there are no permits or licenses that allow individuals to sell hot meals cooked in their home kitchens. And WoodSpoon, a three-year-old start-up that says it has about 300 chefs preparing foods on its platform and has raised millions of dollars from investors, including the parent company of Burger King, knows it.

“It’s not legally allowed,” said Oren Saar, a founder and the chief executive of WoodSpoon, which facilitated the interviews with Ms. Achan and other cooks. “If someone is on our platform and they’re selling food they cooked in their own kitchens, that’s against our platform policy. But, to be completely honest, we think that those rules are outdated.”

Ms. Achan said she had become aware from her own research that cooks were not allowed to sell foods cooked in their homes, but said she continued to do so. “The food needs to be prepared in a clean kitchen, and it needs to be done correctly,” she said. “I’ve been cooking for my family for years, and that’s how I prepare meals for my customers.”

. . .

(p. B4) Legislation was introduced last year that would allow individuals to sell hot meals from their own kitchens, but it is still pending.

Mr. Saar said WoodSpoon, which started in 2019, couldn’t wait for the laws to catch up when the pandemic hit. “With Covid and all of the people who were reaching out to us to work on the platform, all of the people we thought we could work with, it was not right for us to wait to launch,” he said.

He estimates that 20 to 30 percent of the chefs on the platform are using licensed commercial kitchens, meaning the bulk are not. He said WoodSpoon helped home cooks obtain the proper permits and licenses, provided safety training and inspected the kitchens, but ultimately the onus is on the individuals selling on the platform to follow the proper rules. A spokesman later added in an email that the company was working to make commercial kitchens available to its chefs.

“We are ahead of the regulators, but as long as I keep my customers safe and everything is healthy, there are no issues,” Mr. Saar said. “We believe our home kitchens are safer than any restaurants.”

When asked if WoodSpoon would remove any chefs it knew were cooking from kitchens in their homes, Mr. Saar demurred, saying, “It was a good question.” He noted that many of WoodSpoon’s cooks prepared and sold foods on social media and competing food platforms, like Shef.

For the full story, see:

Julie Creswell. “Illegally Delicious. Probably.” The New York Times (Monday, April 18, 2022): B1 & B4.

(Note: ellipsis added.)

(Note: the online version of the story has the date April 10, 2022, and has the title “The Home Cooks (and Start-Ups) Betting on Prepared Meals.”)

Ronald Reagan, a Cuban, a Mormon, Me, and the Deauville

I recently ran across a front-page story in the New York Times about the disrepair, and likely demolition, of Miami’s famous Deauville Hotel. It brought back memories.

Toastmasters International was going to have its annual convention in Miami immediately following the Republican Convention there in 1968. My father was an officer of Toastmasters, eventually the international president. We went down early since a friend of my father was able to get us tickets to a day of the Republican Convention. We heard a speech by Senator Everett Dirksen of Illinois, a well-known orator.

My father was supporting Richard Nixon. In an act of minor rebellion, at age 16 I asked him if I could go to the Ronald Reagan headquarters at the Deauville Hotel and volunteer for a day. He said OK.

I reported to the head of Youth for Reagan, Dan Manion. My first job was to attend a rally to greet Reagan’s arrival at the Deauville. I remember Reagan smiling and waving as he exited his limo, while we chanted: “Give a yell, give a cheer, Ron-ald Rea-gan is here!”

For most of the day, Manion assigned me to work with a Cuban and a Mormon to haul cases of cheap wine from somewhere in Miami to the California delegation at the Deauville. (The Cuban had a pickup truck.) We were a diverse trio. I do not remember the details of our conversation, but I remember its warmth and camaraderie.

Reagan lost the nomination to Nixon, but he did not give up, and we did not give up either.

Over half a century later, I still smile when I remember that day. Dan Manion became a federal judge; I talked with him at my father’s funeral in April 2000. I never saw the Cuban or the Mormon again, and would not recognize them if I ran into them. But I hope that life has been good to them and that they remember that day as fondly as I do.

The article that I mentioned above on the decline of the Deauville Hotel is:

Patricia Mazzei. “A Historic Miami Beach Hotel Falls Prey to Neglect and Time.” The New York Times (Tuesday, January 19, 2022): A1 & A11.

(Note: the online version of the story was updated Jan. 20, 2022, and has the title “A Grand Miami Beach Hotel, and Its History, Might Be Torn Down.”)

Warren Harding Fostered Economic Growth by Reducing Government

(p. A15) Poor Warren G. Harding, burdened with the distinction of being America’s pre-eminent presidential bottom-dweller. In surveys on White House performance, Harding invariably ranks dead last, with almost no prospect that he will ever climb the rankings as others have done—Dwight D. Eisenhower, for example, or Ulysses S. Grant.

Historians have variously described Harding as “a prime example of incompetence, sloth, and feeble good nature,” “the most inept president” of his century, “lazy,” “a black mark in American history” and “quite the bumbler.” Is this an accurate appraisal? Ryan S. Walters answers with a defiant no. In “The Jazz Age President: Defending Warren G. Harding,” the author even indulges in a few flights of outrage at what he considers the “rumors, lies, smears, and innuendo” that have been “used to wreck” Harding’s reputation.

. . .

When Harding became president in 1921, the nation was struggling through one of its greatest crisis periods, beset by soaring inflation followed by debilitating deflation, bloody racial and labor strife, ominous episodes of domestic terrorism, and the fallout from Woodrow Wilson’s harsh wartime assaults on civil liberties. Harding’s first priority was the economy—the gross national product was down 17%, stock values were cut nearly in half, unemployment was at 12% and farmers were devastated by plunging prices. Harding reduced government spending, slashed individual taxes (the marginal rate had reached a high of 77%), increased tariff rates, and shrank the size and intrusiveness of the federal government.

All this flouted the progressivism that had dominated American politics since Theodore Roosevelt’s presidency of 1901-09. But Harding’s efforts worked, setting in motion a decade of economic expansion unequaled in American history. The economy grew at an average of 7% a year between 1922 and 1927, and the nation’s wealth soared to $103 billion in 1929 from $70 billion in 1921.

. . .

Harding was a man of little intellectual sophistication, with a gentle nature, hardly any pretense and almost no guile—in other words, the kind of man who is often underestimated and easily ridiculed. But he harbored serious convictions and a degree of common sense that served him well.

For the full review, see:

Robert W. Merry. “BOOKSHELF; A President Revisited.” The Wall Street Journal (Monday, April 4, 2022): A15.

(Note: ellipses added.)

(Note: the online version of the review has the date April 3, 2022, and has the title “BOOKSHELF; ‘The Jazz Age President’ Review: Correcting the Record.”)

The book under review is:

Walters, Ryan S. The Jazz Age President: Defending Warren G. Harding. Washington, D.C.: Regnery History, 2022.

Large Retailers Chartered Ships to Avoid the Most Crowded Ports

(p. A1) Global supply-chain delays are so severe that some of the biggest U.S. retailers have resorted to an extreme—and expensive—tactic to try to stock shelves this holiday season: They are chartering their own cargo ships to import goods.

Port delays, Covid-19 outbreaks and worker shortages have snarled the flow of products between Asia and North America, threatening the supplies of everything from holiday decorations and toys to appliances and furniture. It is taking roughly 80 days to transport goods across the Pacific, or twice as long as before the pandemic, retail and shipping executives said.

Walmart Inc., Home Depot Inc., Costco Wholesale Corp. and Target Corp. —some of the biggest U.S. retailers by revenue—are among the companies that are paying for their own chartered ships as part of wider plans to mitigate the disruptions, a costly and unattainable option for most companies.

For the full story, see:

Sarah Nassauer and Costas Paris. “Retailers Charter Ships to Ensure Supplies.” The Wall Street Journal (Monday, October 11, 2021): A1 & A6.

(Note: the online version of the story has the date October 10, 2021, and has the title “Big U.S. Retailers Charter Private Cargo Ships Amid Port Delays.”)

Feds Impede Consumer Choice by Going Back to Incandescent Ban

(p. A16) In 2019, the Trump administration blocked a rule designed to phase out older incandescent bulbs, calling it unnecessary and an impediment to consumer choice.

With the move, the administration heeded to both industry demands as well as free market proponents who have long railed against tougher efficiency regulations for consumer appliances and goods, like energy-saving bulbs or water-saving dishwashers, as governmental overreach.

“The new bulb is many times more expensive, and I hate to say it, it doesn’t make you look as good,” Donald J. Trump, the former president, quipped at a White House meeting in 2019, referring to an early common complaint that LEDs emit a harsher light, though recent LED lights come in warmer hues. “We’re bringing back the old light bulb,” he later told a rally in Michigan.

The Biden administration has moved to reinstate the standards. But in a letter to the Department of Energy last year, NEMA, the industry group, urged federal rules to allow companies to manufacture and import inefficient bulbs for at least another year, followed by another year or more to sell out stockpiled inventory.

For the full story, see:

Hiroko Tabuchi. “Obsolete Bulbs Fill the Shelves At Dollar Stores.” The New York Times (Monday, January 24, 2022): A1 & A16.

(Note: the online version of the story has the date January 23, 2022, and has the title “Old-Fashioned, Inefficient Light Bulbs Live On at the Nation’s Dollar Stores.”)