Mitch Daniels' "Yellow Pages Test"

The Stossel solution

Excerpt:

One of his guests was Indiana Governor Mitch Daniels. Forget for a moment that Daniels is a Republican. Focus on his accomplishments. "You were $78 million in debt," Stossel said during the program. "Now you have a $1.5 billion surplus." In a controversial decision, Indiana leaders leased a 157-mile toll road to foreign investors. "In exchange," writes Ryan Holeywell of Governing.com, "for a $3.8 billion, lump-sum payment, the investors would get to keep toll road revenue for 75 years ... a windfall for Indiana, with little downside to taxpayers." Next year, Daniels announced recently, his state's surplus will be at least $2 billion. Taxpayers can expect a credit on their 2013 taxes.

Daniels said he invokes what he calls "the Yellow Pages test. If it's in there, then conceivably government shouldn't be doing it itself."

And the result? "The result," said Daniels, "is we're repairing bridges, building roads. We're the only state with a building boom in infrastructure and it didn't cost the taxpayers a nickel."

Re-read that last sentence and then ask yourself why the federal government still sees itself as the primary builder of roads and bridges when it costs more and delivers less. This is a real solution to a nagging problem. Why isn't it more widely embraced? Refer to Stossel's previous answer about government: "They want their tentacles on everything." They're about power. The rest of the country wants results, which they must have in order for their businesses to survive and prosper.

Comment: Good artricle ... goes on to mention Amtrak (which should be shuttered!).

On the value of "First Jobs"

Why Are Politicians Killing Off "First Jobs"?

Excerpts:

What was your first job?

I stuck pieces of plastic and metal together at an Evanston, Ill., assembly line. We produced photocopiers for a company called American Photocopy.

I hated the work. It was hot and boring. But it was useful. It taught me to get good grades in school so I might have other choices.

...

I write about this because I’m appalled watching politicians kill off “first” jobs. (They say it’s to protect us.)

First, they raise the minimum wage. Forcing employers to pay $7.25 an hour leaves them reluctant to give unskilled kids a chance—why pay more than a worker can produce? So they offer fewer “first” jobs.

Comment: My first job was working at a greenhouse making $ 1. per hour. I started in the Spring of 1967. That summer I worked 54 hours a week ... 6 days X 9 hours and made $ 54 hours a week.

What did I do?

• I boxed plants into flats and carried them and loaded them into a delivery truck
• I mulched plants with manure
• I blended potting soil: dirt, manure, and some other stuff in a large grinder / blower
• I wheeled old dirt out and new dirt into greenhouses
• I occassionally drove the delivery truck
• I cleaned out the boiler (had to crawl inside and scrape it)
• I cut weeds and tall grass with a scythe
• I hacked vines off from fence with a small axe
• I burned a giant brush pile
• I mowed the owner's home lawn
• I weeded the owner's private garden
• I picked weeds
• I cut flowers
• I walked along side of a bush hog and picked up rocks / sticks ahead of it
• I repaired greenhouse glass
• I bulked up, muscled up and tanned up. I sweated a lot!
• There were no sick days, PTO, or vacation days!

The seminal events:

• A childhood friend's father committed suicide in the early morning hours of July 5th
• A guy I met at the greenhouse died in an auto accident - not that summer but later that year (I think Spring 1968)
• Two guys I knew well in H.S. died just after graduation. One: VW bug accident / other: tractor rolled over on him

Some have asked me about the $ 1 wage and minimum wage. This chart details that the minimum wage was $ 1.40 back then. Scroll right and the chart shows that the minimum wage for farm labor was $ 1.00. I was considered farm labor. In February 1968 I received a 15% raise to $ 1.15! The following Summer (1968) I started working at Monsanto Chemical and made as I recollect about $ 3.00 per hour.

Stossel: "No-discrimination insurance isn't insurance. It's welfare."

In Praise of Discrimination in the Health Insurance Market

 Excerpt:

... discrimination is what makes insurance work. An insurance regime where everyone pays the same amount is called "community rating." That sounds fair. No more cruel discrimination against the obese or people with cancer. But community rating is as destructive as ordering flood insurance companies to charge me nothing extra to insure my very vulnerable beach house, or ordering car insurance companies to charge Lindsay Lohan no more than they charge you. Such one-size-fits-all rules take away insurance companies' best tool: risk-based pricing. Risk-based pricing encourages us to take better care of ourselves.

Car insurance works because companies reward good drivers and charge the Lindsay Lohans more. If the state forces insurance companies to stop discriminating, that kills the business model.

No-discrimination insurance isn't insurance. It's welfare. If the politicians' plan was to create another government welfare program, they ought to own up to that instead of hiding the cost.

Comment: On this day the the landmark SCOTUS Obamacare ruling is to be announced, this frames the discussion well! When it comes to economics, I'm basically a Libertarian