Gooooood morning!
(I don’t know about you, but it’s always a good morning for me when the Boston Red Sox win the most exciting game of the baseball season so far with a three-run homer in the bottom of the ninth after what should have been the last out reached first because a swinging strike three went through the catcher for a passed ball….)
1. Yesterday, the gang at HLN were laughing and guffawing over the fact that someone sent e-mails purporting to be from Anthony Scaramucci to various White House officials and fooled the recipients into responding. Such publicity is what hoaxers dream about. This is why we have despicable fake news sites like “The News Nerd” and others. This is why Facebook feels it needs a special task force to search out and destroy false representations. CNN and other news media also treated the e-mails as significant news—more newsworthy, for example, than the Pakistani crooks the Democratic party had handling sensitive e-mails and other data. Why is this news, other than the fact that the “bad guys” were fooled, in the warped perspective of “resistance” journalists? More to the point, why is it funny? Why is the news media encouraging hoaxes by rewarding them with the notoriety they crave, so they can puff up their little pigeon chests and say, “See? I matter!”
The reports attempted to bootstrap the story by explaining that fake e-mails are how cyber-predators can get access to e-mail accounts. Those phishing episodes, however, involve the credulous recipients clicking on links in the message, which did not occur here. That’s what Hillary Clinton and John Podesta did. I don’t recall HLN chortling about that, however.
2. I’m still waiting for the news media’s apology to Sarah Palin. The news from UK socialized medicine today:
“Obese people will be routinely refused operations across the NHS, health service bosses have warned, after one authority said it would limit procedures on an unprecedented scale.Hospital leaders in North Yorkshire said that patients with a body mass index (BMI) of 30 or above – as well as smokers – will be barred from most surgery for up to a year amid increasingly desperate measures to plug a funding black hole. The restrictions will apply to standard hip and knee operations. The decision, described by the Royal College of Surgeons as the “most severe the modern NHS has ever seen”, led to warnings that other trusts will soon be forced to follow suit and rationing will become the norm if the current funding crisis continues.”
By fortune’s smiles, I was able to finally meet Charlie last week face to face, as he kindly alerted me that he would be passing through my neighborhood. Finally having personal contact with an Ethics Alarms reader is always a revealing and enjoyable experience, and this time especially so. I think you would all enjoy Charlie; I certainly did. Maybe I need to hold an Ethics Alarms convention.
Here is his Comment of the Day on the post, Comment Of The Day: “No, Insurance Companies Treating People With Pre-Existing Conditions Differently From Other Customers Is Not ‘Discrimination’.”
…The claim that “a free market system” and “freedom of choice” is the solution to all that ails us is a mindless mantra that is only occasionally true, but not always.
It’s important to be clear about when free market solutions are good, and when they are not. It’s not all that hard to sort out. Basically:
Free market solutions ought to be the presumptive default. Unless there is good reason to the contrary, they ought to be the rule.
1. Exception Number 1: Natural monopolies. It makes no sense to have competition for municipal water supplies; airports; multiple-gauge railroads; fishing grounds; groundwater; or police departments. The basic reason is the putative economic benefit is either simply not there, or is absurdly overwhelmed by the social confusion engendered by multiple suppliers.
In these cases, a form of regulated monopoly is desirable. (By the way, the airline industry at a national level is precisely this kind of market; we do not have too little competition there, but too little regulation).
2. Exception Number 2a: Wallet-driven market power monopolies. It’s strategy 101 in business schools that the way to be successful is to be #1 or #2, and the best way to do that is to get more market share than your competition, so you can drive them out of business. The one guaranteed way to do that is to cut prices so low that no one else can compete. Think Walmart. Think Amazon. Think Japanese in the 60s and 70s in any industry.
The reason we have anti-monopoly laws is to reset the playing field when a competitor dominates the market too strongly.
3. Exception Number 2b: Product-driven market power monopolies. Where the product is so obscure, expensive, infinitely variable, and difficult to understand that the producers are de facto in control, because it is too confusing and too dangerous to challenge them.
Drug prescriptions are an interesting example. The ‘free market solution’ to high drug prices was (partly) to let drug companies advertise, and to loosen up the definition of what constituted a ‘new’ drug. What did we get? New diseases like RLS, new definitions of ‘new’ (moving ‘off label’ to ‘on label’) and even higher drug company profits. Because who’s still going to argue with your doc? Especially when he or she gets side benefits from giving in to the latest DTC ads on network news programs?
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