Category: Government

Private Sector Succeeds Where Public Sector Fails at Operating a Successful Passenger Train

The New York Times recently ran a surprising (for them) article highlighting the success of the privately owned Brightline passenger railroad on the east coast of Florida. The Times contrasts the private success of Brightline with the public failures of Amtrak and California’s mostly undone proposed bullet train. Amtrak ran an operating deficit of over $700 million in 2024. The long-planned, barely-begun, pared-back California bullet train is now estimated to require over $100 billion to reach completion.

Maybe Brightline succeeds because the private sector allows entrepreneurs to use what Deirdre McCloskey calls trade-tested innovation to pursue their projects.

The private sector allows innovative dynamism.

The New York Times article is:

Michael Kimmelman. “What’s So Hard About Building High-Speed Trains?” The New York Times (Sat., April 19, 2025): B4-B5.

(Note: the online version of the article was updated April 18, 2025, and has the title “What’s So Hard About Building Trains?”)

McCloskey discusses trade-tested innovation in:

McCloskey, Deirdre N. Bourgeois Equality: How Ideas, Not Capital, Transformed the World. Chicago: University of Chicago Press: Chicago, 2016.

I discuss innovative dynamism in:

Diamond, Arthur M., Jr. Openness to Creative Destruction: Sustaining Innovative Dynamism. New York: Oxford University Press, 2019.

A World with No Tariffs, No Barriers, No Subsidies

Art Laffer and Stephen Moore had an op-ed a few weeks ago in which they encouraged Donald Trump to be the best version of himself on the tariff and trade issue. Trump has made inconsistent statements on tariffs and trade. Sometimes his goal seems to be to seek long-term tariffs that bring in substantial revenue. But his best version seeks a mutual reduction in tariffs to zero–a world of free trade, which when combined with deregulation and downsizing of government will allow entrepreneurs to innovate and trade so that we all flourish.

The best version of Trump is the one who spoke the following words in 2018 at a meeting of the Group of Seven in Quebec:

“No tariffs, no barriers. That’s the way it should be. And no subsidies. I even said, ‘no tariffs.’ . . . Ultimately, that’s what you want. You want tariff-free, no barriers and you want no subsidies.” (Trump as quoted in Laffer and Moore 2023, p. A17)

Source of quote:

Arthur Laffer and Stephen Moore. “A Win-Win Exit Strategy For Trump on Tariffs.” The Wall Street Journal (Tues., April 8, 2025): A17.

(Note: ellipsis in original.)

(Note: the online version of the commentary has the date April 7, 2025, and has the same title as the print version.)

(Note: Stephen Moore wrote a nice blurb for my Openness book.

“If She Ever Had a Clever Thought, It Died Alone and Afraid”

I still smile whenever I see a Tesla Cybertruck. Boldly audacious–its mere existence gives me hope for the future. If I could charge its battery as fast as I can fill a tank of gas, I would buy one tomorrow. I still worry that Musk will implode or cave. But right now he looks like a genuine hero, defending free speech by buying Twitter, taking on the deep state by creating DOGE, solving the engineering challenges to make the dream of Mars a reality!

(p. B1) When Jennifer Trebb first pulled into her driveway two years ago with her sleek Tesla Model Y, it was — as she put it — “kind of like a ‘Back to the Future’ moment.”

She was helping the environment, she said, but driving a Tesla also had cachet. “It was definitely a little bit of a cool moment to have something that was innovative and different,” she said.

But Ms. Trebb recently made a U-turn, joining the ranks of Tesla owners in the United States and overseas — some well known, including the singer Sheryl Crow — who are selling their vehicles because the values and politics of the company’s billionaire chief executive, Elon Musk, are alienating them, they say.

. . .

(p. B6) In the United States, perhaps the most notable rebuke of the car brand was lodged by Ms. Crow, the singer-songwriter, who posted an Instagram video in February [2025] showing her waving goodbye as her electric vehicle was driven away on a flatbed truck.

. . .

In an appearance with Sean Hannity on Fox News, Senator John Kennedy, Republican of Louisiana, mocked Ms. Crow’s protest.

“I think she means well, but if she ever had a clever thought, it died alone and afraid,” Mr. Kennedy said.

For the full story see:

Neil Vigdor. “Tesla for Sale: Buyer’s Remorse Sets In For E.V. Owners Who’ve Soured on Musk.” The New York Times (Friday, March 7, 2025): B1 & B6.

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

(Note: the online version of the story was updated March 5, 2025, and has the title “Tesla for Sale: Buyer’s Remorse Sinks In for Elon Musk’s E.V.-Owning Critics.”)

Covid Handouts Raised Government Debt, Leading to Higher Inflation

During Covid, Democrats in Congress pushed for ever-greater government handouts to voters, that often were handed out to fraudsters, and substantially increased the U.S. debt. Former Democratic Secretary of the Treasury Larry Summers predicted that this would fuel inflation. Recent research by Ernie Tedeschi, the former Chief Economist at President Biden’s Council of Economic Advisors, confirms that increased debt results in higher prices.

The New York Times article summarizing Tedeschi’s research is:

Colby Smith. “Research Shows Link Between High Government Debt and Rising Prices.” The New York Times (Thurs., March 13, 2025): B3.

(Note: the online version of the article has the date March 12, 2024, and has the title “High Government Debt Is Seen as Stoking Inflation, Research Shows.”)

Colby Smith identifies Tedeschi as the author of the following research paper. The Budget Lab web site, where the paper is posted, does not identify the author:

“The Inflationary Risks of Rising Federal Deficits and Debt.” The Budget Lab at Yale. March 12, 2025.

Alternatives to Government F.D.A.: Private “High-Quality Third-Party Seals of Approval”

The many label inaccuracies found in the “2022 study” (Crawford et al. 2022) mentioned below would seem to bode ill for the supplement consumer. But if you look at the “new study” you will find that NONE of the 30 supplements they examined had “a third-party certification seal.” This leaves open the plausible possibility that prudent consumers could do well for themselves by limiting their supplement purchases to those with a private third-party certification seal. It would be very useful if someone does another study–this one to confirm or refute my hypothesis that supplements with third-party certification seals had many fewer label inaccuracies. Confirmation would be evidence that the consumer could do well without the F.D.A.’s governmental regulatory mandates.

The relevant quotation from the “2022 study” (Crawford et al. 2022) is:

“No product had a third-party certification seal (ie, naming the third-party company), such as BSCG (Banned Substances Control Group), NSF (National Sanitation Foundation)International, Informed Sport, or USP (US Pharmacopeia), presented on the label” (Crawford et al. 2022, pp. 3 & 5 [all of p. 4 was a table]).”

(p. D7) Supplements claiming to support immunity often contain vitamins and minerals necessary for the immune system. So it isn’t unreasonable to believe that these products could help you sidestep common viral infections or lessen symptoms once you’ve become sick.

In fact, some nutrients such as vitamins A, C, D and zinc are needed to protect against germs, and deficiencies in them raise your risk of becoming sick, said Dr. Mahtab Jafari, a professor of pharmaceutical sciences at the University of California, Irvine.

. . .

It’s hard to firmly state the benefits of immune system supplements because there are few high-quality randomized clinical trials, the gold standard of medical research, assessing their effectiveness, said Dr. Pieter Cohen, an associate professor at Harvard Medical School who studies dietary supplement safety.

And dietary supplements aren’t approved by the Food and Drug Administration before hitting the market.

This means companies can sell products containing ingredients that haven’t been rigorously tested to offer benefits, Dr. Cohen said, and they generally don’t have to prove to the F.D.A. that their products contain what they claim.

A 2022 study analyzing 30 supplements marketed to support the immune system found that more than half had inaccurate labels, 13 were misbranded and nine contained ingredients not listed on the label.

. . .

“You need to have a really healthy dose of skepticism when you’re pulling something off the shelf,” Dr. Ben-Aderet said.

But if you want to give supplements a try, check for high-quality third-party seals of approval from organizations such as U.S. Pharmacopeia or NSF, which test the quality of dietary supplements, Dr. Jafari said.

For the full story see:

Katie Mogg. “Supplements and Claims of Improved Immunity.” The New York Times (Tuesday, February 25, 2025): D7.

(Note: ellipses added.)

(Note: the online version of the story was updated March 3, 2025, and has the title “Can Vitamin C and Zinc Actually Boost Your Immune System?”)

The “2022 study” mentioned above is:

Crawford, Cindy, Bharathi Avula, Andrea T. Lindsey, Abraham Walter, Kumar Katragunta, Ikhlas A. Khan, and Patricia A. Deuster. “Analysis of Select Dietary Supplement Products Marketed to Support or Boost the Immune System.” JAMA Network Open 5, no. 8 (2022): e2226040-e40.

Signed Anti-Tariff Declaration and Would LIKE to Sign PRO-Deregulation and PRO-Government-Downsizing Declarations

My friend Tom Chappelear posted a response to my posting, and I responded:

You may be right, but I am inclined otherwise. How much of the off-shoring is due to other countries’ protectionist policies, and how much is due to the U.S. over-regulating manufacturing, so that labor is cheaper and more flexible abroad? I disagree with Oren Cass’s support for protectionism and industrial policy, but I found his chapter on environmental regulations eye-opening. Ever-more-onerous environmental regulations don’t do anything to make the air and water healthier, but do a lot to make manufacturing in the U.S. more expensive and less nimbly adaptive. Our labor regulations also make it much harder for U.S. entrepreneurs to hire U.S. laborers, and to deploy them in innovative ways.

New York Times Says Trump “Has Waged a Multipronged Assault at Regulations” on Environment

The passages quoted below are further evidence apropos my dialogue with my libertarian friends who argue that the Trump administration’s efforts to deregulate and downsize have failed.

(p. 1) With a flurry of actions that have stretched the limits of presidential power, Mr. Trump has gutted federal climate efforts, rolled back regulations aimed at limiting pollution and given a major boost to the fossil fuel industry.

. . .

To achieve such a wholesale overhaul of the country’s climate policies in such a short time, the Trump administration has reneged on federal grants, fired workers en masse and attacked longstanding environmental regulations.

. . .

(p. 31) [Trump] has waged a multipronged assault at regulations designed to curb pollution, immediately sweeping some rules to the side and circumventing the normally lengthy rule-making processes. At the same time, Mr. Trump has declared an energy emergency, giving himself the authority to fast-track the construction of oil and gas projects as he works to stoke supply as well as demand for fossil fuels.

. . .

The administration and Republicans in Congress plan to use a legislative maneuver to quickly erase California’s authority to ban the sale of new gasoline-powered cars in the state by 2035. That authority has never before been challenged in this way, and critics say the maneuver is illegal. But it would be much faster than trying to overturn the California ban through the standard process that requires months of public notice and comment.

“They’re doing all the things I thought they would do, and they’re doing other things that I only dreamed they might do,” said Myron Ebell, a conservative activist who led the E.P.A. transition team during Mr. Trump’s first term.

. . .

And in a move that could have far-reaching implications for government efforts to regulate industry, Lee Zeldin, the administrator of the E.P.A., has recommended that the agency reverse its 2009 finding that greenhouse gas emissions endanger human health and welfare, according to three people familiar with the decision. That would eliminate the legal basis for the government’s climate laws, such as limits on pollution from automobiles and power plants.

“We’re talking about undoing 50 years of environmental regulation and accelerating the extinction crisis and risking the health of the American people,” said Ben Jealous, the executive director of the Sierra Club. “There’s so much shocking news every day. People are struggling to process all of it.”

. . .

Much of the damage to the country’s environmental regulatory apparatus may be long-lasting.

. . .

On Wednesday [Feb. 26, 2025] Trump said he believed Mr. Zeldin, the E.P.A. administrator, would be cutting about 65 percent of the agency’s more than 17,000 jobs. Mr. Zeldin later said that he thought the E.PA. could cut at least 65 percent of its budget and make cuts to its work force.

For the full story see:

David Gelles, Lisa Friedman and Brad Plumer. “Undoing Years of Climate Policy in a Few Weeks.” The New York Times, First Section (Sunday, March 2, 2025): 1 & 31.

(Note: ellipses, and bracketed name and date, added.)

(Note: the online version of the story has the date March 2, 2025, and has the title “‘Full on Fight Club’: How Trump Is Crushing U.S. Climate Policy.”)

Trump Deregulates Biden’s Logging and Mining Bans on Public Lands

Trump’s agriculture secretary announced the deregulation of logging on 113 million acres of public lands–logging is now allowed on those lands. The Agriculture Department also announced the deregulation of mining on 264,000 acres of public lands, in order to “boost production of critical minerals” (p. A19).

Source:

Lisa Friedman. “White House Reverses Biden Limits on Drilling and Mining on Public Lands.” The New York Times (Thurs., April 10, 2025): A19.

(Note: the online version of the article has the date April 8, 2025, and has the title “Trump Administration Opens More Public Land to Drilling and Mining.”)

U.S. Shipbuilding Industry’s Obsolescence of Physical and Human Capital Threatens Timely Revival of Navy

I have always opposed every form of protectionism. But at the recent APEE meetings in Guatemala City my friend Young Back Choi suggested that there might be circumstances when protectionist policy is justified. One circumstance in particular gives me pause for thought. If a technology is important for national defense, arguably the most important justified function of government, then it might be justified if necessary to maintain U.S. access to a key defense technology. For instance, a recent WSJ article, quoted below, suggests that the U.S. capacity to quickly and efficiently build naval ships has been compromised by the attrition of the U.S. shipbuilding industry.

I believe further thought and research is justified.

(p. A10) The Navy complains U.S. shipyards don’t invest enough in staff and equipment.

McKinsey analysts in a recent report on U.S. shipyards found equipment, including metal casting machines, cranes and transport systems, that was decades old, some harking back to before WW2.

The report said equipment broke down, causing delays to contracts. In some cases, it was so old that replacement parts had to be fabricated from scratch because they were no longer commercially available.

Some shipbuilding executives said European naval yards typically have more modern equipment than those in America.

Some investments have made improvements. In the so-called panel-line at Fincantieri’s Wisconsin yard, where major ship sections are joined together, the addition of robotic welders means that there are now six workers as opposed to the 24 previously needed.

That is important because the U.S. industry has a dearth of experienced older shipyard workers—with the skills necessary for the complex fabrications. A third of workers in Fincantieri’s U.S. shipyard are over 50, compared with almost 40% in Italy. Last year, the Navy blamed inexperienced new hands at a Huntington Ingalls Industries shipyard in Virginia for faulty welding on 26 vessels.

For the full story see:

MacDonald, Alistair, and Gordon Lubold. “A Warship Shows Why China Is Challenging the U.S. Navy.” The Wall Street Journal (Sat., March 22, 2025): A1 & A10.

(Note: the online version of the story has the date March 20, 2025, and has the title “The Warship That Shows Why the U.S. Navy Is Falling Behind China.”)

Healthcare Under ObamaCare’s “Affordable” Care Act Is Neither Popular Nor Affordable

In my Openness book, I argue that government regulations bind entrepreneurs and reduce innovation. As part of an antidote, I suggest that “sunset laws,” where regulations automatically expire, if not renewed. Later, at a small conference on Adam Thierer’s latest book, I was discouraged to hear a couple of participants grant the plausibility of the “antidote,” but report that in actual practice it does not work because almost all old regulations get renewed. Some hope returned when I read a report from James Broughel of a successful sunset review process:

(p. A17) Well, well. Progressives are at last acknowledging that ObamaCare is a failure. They aren’t doing so explicitly, of course, but their social-media screeds against insurers, triggered by last week’s murder of UnitedHealthcare CEO Brian Thompson, suggest as much. “We’ve gotten to a point where healthcare is so inaccessible and unaffordable, people are justified in their frustrations,” CBS News medical contributor Céline Gounder said during a Friday segment on the roasting of health insurers.

A Gallup survey released Friday [Dec. 6, 2024] affirms the sentiment, finding that only 44% of Americans rate U.S. healthcare good or excellent, down from 62% when Democrats passed ObamaCare in 2010. A mere 28% rate the country’s insurance coverage highly, an 11-point decline. ObamaCare may rank as the biggest political bait-and-switch in history.

Remember Barack Obama’s promise that if you like your health plan and doctor, you could keep them? Sorry. How about his claim that people with pre-existing conditions would be protected? Also not true. The biggest howler, however, was that healthcare would become more affordable.

Grant Democrats this: The law has advanced their political goal of expanding government control over insurers, in return for lavishing Americans with subsidies to buy overpriced, lousy products.

. . .

At the same time, ObamaCare’s perverse effects are fueling public rage against insurers and support for a single-payer system that would eliminate them. Mr. Obama and Peter Orszag, the law’s chief architect, must be smiling. Mr. Orszag, now CEO of the financial-services firm Lazard, has dined out on advising health insurers on mergers he says were spurred by the law’s regulations. How convenient.

. . .

If the goal were to help Americans with costly health conditions, it would have been far simpler and less expensive to boost subsidies for state high-risk pools. But that wouldn’t have accomplished Democrats’ actual goal, which is to turn insurers into de facto public utilities and jerry-rig a halfway house to single-payer healthcare. What a con.

For the full commentary see:

Allysia Finley. “Life Science; UnitedHealthcare and the ObamaCare Con.” The Wall Street Journal (Mon., Dec. 9, 2024): A17.

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

(Note: the online version of the commentary has the date December 8, 2024, and has the same title as the print version.)

The Gallup poll results mentioned above can be viewed at:

Brenan, Megan. “View of U.S. Healthcare Quality Declines to 24-Year Low.” Gallup, Inc., Dec. 6, 2024 [cited March 27, 2025]. Available from https://news.gallup.com/poll/654044/view-healthcare-quality-declines-year-low.aspx.

Doctors Burnout from Spending Less Time with Patients and More Time Arguing with Insurance Firms

Government policies have increased the paperwork that physicians must process and the time they must spend arguing with insurance companies on behalf of their patients. The policies have increased the need for back-office staff to handle the regulations, and so increased the overhead of private practice. So more and more physicians have given up private practice and become employees. They find their work less fulfilling and face burnout. Patients suffer when more of their physicians are bitter and burned-out.

(p. A1) There’s a question dividing the medical practice right now: Is being a doctor a job, or a calling?

. . .

(p. A2) Physicians work an average of 59 hours a week, according to the American Medical Association, and while the profession is well-compensated—the average physician makes $350,000, a recent National Bureau of Economic Research analysis found—it comes with high pressure and emotional strain.

. . .

Among physicians under age 45, only 32% own practices, down from 44% in 2012. By comparison, 51% of those ages 45 to 55 are owners.

Owners have more autonomy, but also increasing overhead costs. Vaughan, who sold his private practice in 2011, saw his malpractice insurance premiums increase to $65,000 a year.

Dr. Joseph Comfort, 80, sold his anesthesiology practice in 2003, frustrated by rising billing tussles with insurance companies. He now works part time as an internal medicine doctor at a small concierge clinic in Sanford, Fla.

“We’ve been ripped down off our pedestals,” he says.

For generations, Comfort says, doctors accepted being at the mercy of their pager and working long hours as the cost of doing business. “We took it because we considered ourselves to be masters of our own fate,” he says. “Now, everything’s changed. Doctors are like any other employee, and that’s how the new generation is behaving.”

They also spend far more time doing administrative tasks. One 2022 study found residents spent just 13% of their time in patient rooms, a factor many correlate with burnout.

. . .

In San Francisco, Dr. Christopher Domanski—a first-year resident who had his first child earlier this year—says he’s interested in pursuing a four-day workweek once he’s completed his training.

“I’m very happy to provide exceptional care for my patients and be there for them, but medicine has become more corporatized,” says Domanski, 29. Though he’s early in his medical career, he’s heard plenty of physicians complain about needing to argue with insurance companies to get their patients the treatments they need.

“It’s disheartening,” he says.

For the full story see:

Te-Ping Chen. “Younger Doctors Balk at Medicine’s Workaholic Culture.” The Wall Street Journal (Monday, Nov 04, 2024 [sic]): A1-A2.

(Note: ellipses added.)

(Note: the online version of the story has the date November 3, 2024 [sic], and has the title “Young Doctors Want Work-Life Balance. Older Doctors Say That’s Not the Job.”)