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February 3, 2012
Edmund Sanders : Israeli official says Iran is creating missile that could reach East Coast of US
Victoria Kim: Immigrant-smuggling ring used black drivers to avoid racial profiling
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Jim Carney: Wrong number call may have saved her life
Reza Kahlili : Ex-CIA spy in Iran's Revolutionary Guard: What Obama doesn't grasp about striking deals with Tehran
Tina Susman: For woodchuck rescuer, every day is Groundhog Day
February 1, 2012
Brian Bennett: US officials see increasing threat of domestic attack from Iran
Emily Brandon: How to Take Advantage of New 401(k) Fee Disclosures
January 31, 2012
January 30, 2012
Paul Richter and Ramin Mostaghim: Misreading Teheran's limits -- deadly and economically devastating as they may be -- is a risk administration, Europe seem willing to take
Suzanne Bohan: Warning: Nap-deprived tots missing more than sleep, study finds
Meg Handley: Banks Revamping Rewards Programs to Woo Customers
January 27, 2012
Caroline B. Glick: Obama: Of course I intend to prevent a nuclear holocaust . . . in a few months
Yochonon Donn: In liberal New York City, fervently-Orthodox Jews may soon be getting a district to call their own
Jeannine Stein: An inflated ego and thinking you're 'all that' doesn't just make others sick of you, it can make you ill
Katy Hopkins: New budget rules may affect how much money you get for college
January 26, 2012
Ed Koch: To the New York Times, calling for the murder of Jews by those capable of having their incitement taken seriously isn't news
Jeannine Stein: Mental illness struck one in five U.S. adults in 2010: Report
January 25, 2012
Richard Simon: House passes two bills endorsing the use of religious symbols at military memorials
Fred Weir: Putin: Multiethnic Russia cannot survive as a US-style 'melting pot'; must find its own way
Susan Johnston: 5 Sneaky Coupon Strategies Consumers Should Watch Out For
January 24, 2012
Carol Clark: The price of your soul: How your brain decides whether to 'sell out'
Caroline B. Glick: America lost most in 'Arab Spring'. Sadly, many voters still don't grasp the extent
Warren Richey: Drug criminal scores win in GPS ruling from conservative-leaning high court
Erika Bolstad: Black conservatives gather to talk about gaining strength
January 23, 2012
Melissa Dribben: Jewish voters to play a key role in Florida's Republican primary
Jordan Rau: In quest to grow, Catholic hospital system will announce this morning its break from church
Ali Safi: U.S. envoy gives Taliban terms for peace talks
January 19, 2012
January 18, 2012
January 17, 2012
Frank J. Gaffney Jr.: No-kidding red lines: U.S. response to an Iranian nuke may be bluster, but Israel's won't be
David G. Savage: They sued their principals after slandering them online --- now the cases are headed to the Supreme Court
David Francis: Where to Invest in 2012: With stocks expected to rebound, opportunity abounds for investors
January 13, 2012
Ben Lynfield: Israeli lawmakers move to annex Jewish Judea, one museum at a time
Alexia Elejalde-Ruiz: Thriving through touch: Gentle massage helps older people with low mobility improve in mind and body
January 12, 2012
Warren Richey: Landmark Supreme Court ruling a 'resounding win' for religious groups
Warren Richey: Supreme Court says no to new rule on eyewitness testimony
John Fauber : Statins found to raise diabetes risk in postmenopausal women
Katy Hopkins : Consider This Before You Pay for an Online Degree
The Kosher Gourmet by Joseph Erdos: This mushroom and barley soup has an intense -- almost nutty -- flavor that mixes robust with Middle East. It has creaminess without cream
January 11, 2012
Shari Roan: Millions of atrial fibrillation sufferers at risk for devastating, but preventable, stroke
Tom Hussain: Pakistan -- recipient of more than $21 billion in civilian and military aid -- speeds pursuit of Iranian pipeline, defying US
David G. Savage: High court signals it won't be loosening TV's 'indecency' rules
Stephen Ceasar: Oklahoma's Islamic law amendment can't go into effect, court rules
January 10, 2012
Reza Kahlili: From an ex-CIA spy: US must exploit new split in Iran's Revolutionary Guard
Karen Kaplan: Study: Nicotine replacement products ineffective when used in real-life situations
January 9, 2012
Michael Doyle: Put through legal hell over dream home, couple fought back hard --- all the way to Supreme Court
January 6, 2012
January 5, 2012
Tom A. Peter: Taliban talks: In administration's push to negotiate with terrorists, was a key hurdle overlooked?
Pete Spotts: Time cloaking: How scientists opened a hidden gap in time
Karen Kaplan: Teens aren't too old to boost their IQ, study finds
January 4, 2012
Scott Baldauf: Islamist terror group giving Christians living in north Nigeria days to flee
Howard LaFranchi : An accelerating covert war with Iran: Could it spiral into military action?
January 3, 2012
Tom A. Peter: Release several Taliban leaders from Guantanamo Bay; give them headquarters as confidence-building measure?
Elaine Woo: Thomas T. Johnson, L.A. judge who ruled that Holocaust was a fact, dies at 88
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Jewish World Review
Feb. 27, 2008
/ 21 Adar I 5768
A lesson from Venezuela
By
Thomas Sowell
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http://www.JewishWorldReview.com |
People on the left often use other countries as examples of things that we should do. If other countries have a government-run medical system, then we should have one too, they say. If other countries control prices, then we should control prices or so the reasoning goes.
Almost never is there any suggestion that we should first find out whether the actual results of the policies we are supposed to imitate are better or worse than what we already have.
There is in fact a lot that we can learn from other countries if we look at the actual consequences of some of the things we are being urged to do, instead of just assuming that we should automatically imitate what others are doing.
Studies have already shown that the waiting time before being able to get surgery is several times as long in a number of countries with government-run medical systems as in the United States. Modern medical technology like MRIs and CAT scans are also rarer in such countries.
Venezuela is currently giving us a lesson on the consequences of price controls. The government of leftist President Hugo Chavez has imposed price controls and seems to be surprised that lower prices have lead to reduced supplies, even though price controls have led to reduced supplies in countries around the world and for thousands of years.
There were price controls back in the days of the Roman Empire, under the Pharaohs in Egypt, and in ancient Babylon. There is plenty of history to look at, if we bother.
Price controls under the Roman Emperor Diocletian led to a decline in the supply of goods. The same thing happened under President Richard Nixon's price controls in the 1970s. It has happened in Zimbabwe within the past year.
Rent control laws led to housing shortages in Cairo and in Berkeley, Hanoi, Paris, and other cities around the world.
When price controls in Venezuela led to food shortages, Hugo Chavez accused companies of "hoarding" food. The emperor Diocletian was similarly accusatory when his price controls reduced supplies, many centuries ago.
Political leaders always find someone else to blame for the bad consequences of their own policies.
Hugo Chavez has blamed foreign owned companies for Venezuela's food shortages and threatened to "nationalize" them. This too is an old political game that seldom does the people of the country any good.
What is remarkable is how little interest there is among the media and among the public in how often and how consistently this has happened in the wake of price controls.
When politicians today say that they are going to "bring down the cost of medical care" or make housing "affordable," what are they talking about other than price controls?
Do we want a shortage of medical care? Do you want to have to wait for months for surgery and suffer needlessly in the meantime, as people do in Canada and Britain?
Behind these wonderful-sounding political "solutions" to our problems is the notion that businesses are just ripping us off with arbitrarily set prices, and that the government can make them stop.
It makes a nice story and it can get votes for politicians who play the role of saviors. But it makes little economic sense. Why do so many businesses have losses, and even go bankrupt, if they can set their prices wherever they want to?
It is not uncommon for companies on the Fortune 500 list to operate in the red. Back during the days of the Great Depression of the 1930s, corporations as a whole operated in the red two years in a row.
They were trying to keep from going under while Franklin D. Roosevelt was denouncing them as "economic royalists." FDR knew how to win elections, even if he didn't know how to get the country out of the Great Depression.
That political lesson has been learned all too well, as much of the strident, anti-business political rhetoric of this election year demonstrates.
Now if only the media and the public had some interest in learning the economic lesson!
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