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February 10, 2012
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Mark Clayton: How did Anonymous hackers eavesdrop on FBI and Scotland Yard?
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Victoria Kim: Immigrant-smuggling ring used black drivers to avoid racial profiling
February 2, 2012
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
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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
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Suzanne Bohan: Warning: Nap-deprived tots missing more than sleep, study finds
Meg Handley: Banks Revamping Rewards Programs to Woo Customers
January 27, 2012
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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
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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
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John Fauber : Statins found to raise diabetes risk in postmenopausal women
Katy Hopkins : Consider This Before You Pay for an Online Degree
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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
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Jewish World Review
May 15, 2008
/ 19 Iyar 5768
Too Complex?, Part III
By
Thomas Sowell
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http://www.JewishWorldReview.com |
In one of those typical San Francisco decisions that makes San Francisco a poster child for the liberal left, the city's Board of Supervisors is moving to block a paint store from renting a vacant building once used by a video rental shop.
That paint store is part of a chain, and chain stores are not liked by a vocal segment of the local population. Chain stores are already banned from some parts of San Francisco, and at least one member of the Board of Supervisors plans to introduce bans on chain stores in other areas.
Chain stores have been disliked for decades, at both local and national levels. Taking advantage of economies of scale that lower their costs of doing business, chain stores are able to charge lower prices than smaller independent stores, and therefore attract customers away from their higher-cost competitors.
The economics of this is certainly not too "complex" to understand. However, politics is not economics, so politicians tend to respond to people's emotional reactions and if economic realities stand in the way, then so much the worse for economics.
All sorts of laws and court decisions, going back as far as the 1930s, have tried to prevent the economies of scale that lower costs from being reflected in lower prices that drive high-cost competitors out of business.
Economists may say that benefits always have costs, that there is no free lunch but how many votes do economists have?
There was a time when courts would have stopped politicians from interfering with people's property rights by banning chain stores. After all, if whoever owns the vacant video rental store in San Francisco wants to rent it to the paint company, and the paint company is willing to pay the rent, why should politicians be involved in the first place?
However, once the notion of "a living Constitution" became fashionable, the Constitution's protection of property rights has been "interpreted" virtually out of existence by judges.
The biggest losers are not people who own property but people who have to pay higher prices because politicians make it harder for businesses that charge lower prices to come into the community.
Despite the political myth that government is protecting us from big businesses charging monopoly prices, the cold fact is that far more government actions have been taken against businesses that charge low prices than against businesses that charge high prices.
The biggest antitrust cases of a century ago were against the Great Northern Railroad and the Standard Oil Company, both of which charged lower prices than their competitors.
The Robinson-Patman Act of 1936 was called "the anti-Sears, Roebuck law" because it was directed again this and other chains that charged lower prices than smaller retailers could match.
For a long time, there were so-called Fair Trade Laws designed to keep low-cost businesses in general from charging low prices that drive high-cost businesses out of business.
Fortunately, enough sanity eventually prevailed that Fair Trade Laws were repealed. But the emotional needs that such laws met were still there, and today they find an outlet in hostility to Wal-Mart and other "big box" stores especially in San Francisco and other bastions of the liberal left.
People have every right to indulge their emotions at their own expense. Unfortunately, through politics, those emotions are expressed in laws and administrative decisions by people who pay no price at all for indulging either their own emotions or the emotions of the people who vote for them.
That is why the Constitution tried to erect barriers to government power, of which property rights were one. But, once judges started saying that "the public interest" over-rides property rights, that left politicians free to call whatever they wanted to do "the public interest."
Neither economics nor property rights are too "complex" to understand. But both get in the way of willful people who seek to deny other people the right to make their own decisions.
Anyone who doesn't like chain stores is free not to shop there. But that is wholly different from saying that they have a right to stop other people from exercising their own freedom of choice. That's not too "complex" to understand.
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