buy unique gifts at Zazzle

Feb

25

Government Monopoly = Poor Health Inspections

February 25, 2007 |

For some reason Americans have been convinced that their savior comes in the form of Government bearing gifts of regulations and handouts. God forbid, far too many believe, that people were left to sort out their own behaviors through voluntary association. After all, the evil profiteering business owners would as soon poison their patrons and steal their money as provide a quality product were it not for the saints who enforce government regulation out there to save us all form ourselves. Or so the reasoning goes.

There’s only a few problems with that line of reasoning. First, if people are so imperfect as big government types always say, so flawed that they need regulation by government in so many areas of their lives or else all hell would break lose, why should these same people suddenly become paragons of virtue simply by acting on behalf of government? Certainly we can’t be so naive to believe that government would only draw the virtuous, or for that matter, the competent?

Evidence might suggest, rather, the opposite: Government may well draw into its ranks those who are less virtuous and competent than the average. While many complain about free market monopolies here or there, they don’t bother to notice (or conveniently ignore) that government is nothing more than monopolized coercive force. You don’t want to be part of social security? Too bad: pay up the 13% of your wages, or go to jail. Competition for that 13% is flat outlawed, and is it any wonder that Social Security is the bankrupt, Ponzi Scheme joke that it is?

At any rate, the impetus for this post was an article we came across regarding the local news having exposed a rat-infested KFC Taco Bell in New York City that passed an inspection from the NYC Department of Health one day earlier. Of course, after the news item made it onto TV, the health department rushed to close the store and tell everyone they’d get to the bottom of the problem. That’s very typical of government: give the impression that you’re taking care of the problem. Fail miserably. Rush in to very publicly solve the problem and blame the company for the problem.

Certainly KFC Taco Bell will nationally lose business over this, and whoever ran the disgusting franchise so poorly ought to be sued by patrons whose health was put at risk. I may never eat at a KFC again if this is the guarantee the brand implies.

But what will happen to the fool department of health inspectors who couldn’t seem to find any rats when the TV news filmed dog sized varmint on tables and floors? Probably nothing: the local government union will protect whoever failed so badly. And what of the institution known as “The NYC Department of Health”? Will they lose their contract to grant the clean bill of health status to NYC eateries? Don’t hold your breath.

So there’s your problem: the unaccountable monopoly called government.

Imagine, instead, private organizations that vied to be the best in the industry of granting clean bills of health? We have such for-profit consumer watchdog groups monitoring other industries: JD Power & Associates, Inc., comes to mind with cars. Consumer Reports monitors all sorts of products. The financial industry is full ratings agencies like S&P, Moody’s, and A.M. Bests, not to mention the analysts departments of thousands of firms nationwide. Consumers would see on an eateries window the ratings from an agency or two and decide if it made sense to go in or not. If one of those organization did what the NYC Department of Health did, that company would be embarrassed nationally, it would lose its reputation and contracts, offending employees fired, and another more reliable reorganization would step in to take over.

But not with the NYC Department of Health. Or any such department in any major city. Or, for that matter, generally any government department responsible for providing regulatory oversight on behalf of the public.

Skeptical? Why not take a look at the SEC, which is supposed to protect consumers when investing. The SEC gave a clean bill of health to an industry that was exposed in the wake of the stock market crash 2000-2002 to have been promoting the stocks of companies they knew were lousy solely because those same companies were big fee paying clients.

As well, companies like Enron and World com falsified all sorts of information that the SEC reviewed. Of course, although charged with oversight and giving the impression that they are on the job, on most every piece of material they provide their own alibi that absolves them of the very responsibility many consumers believe of them: they essentially state that they don’t guarantee the reliability of anything and that, in the end, it remains a buyer beware world. We ought to ask why it is they are bothering to demand everyone go through the motions consuming hundreds of millions of dollars in compliance time, etc. form the marketplace when private analysts are, in the end, the ones determining if a company is quality or garbage? At least the SEC disclosure is honest compared to the NYC DoH, which ought to have the same disclaimer on their oversight, apparently.

Is that to say that private players are perfect? Absolutely not. But I think we’d agree they’d all be a whole hell of a lot less perfect were any one of them granted a monopoly in their specific niche, like we grant those who work for the government department of health.

Surely eateries could go out on their own and hire someone to reaffirm their clean bill, but why should they effectively pay twice through their fees and taxes?

Don’t forget that the biggest problem with government is it is a monopoly, and human nature is that those who gravitate to the protection of monopolies tend to not want to compete in the real world for the good graces of consumers.

Do you believe your best retirement investment is your own business? Sorry, but those in charge say you are not entitled to the IRA benefits afforded to the stock of companies who are able to play the wall street game, where fat cats at investment banks and brokerages extract their tolls on your hard earned wealth.

Would you rather school your kids in a way differently than your school board and local teacher’s unions want? Well, that’s fine, but they get first dibs on education resources, so you better hope you’re able to afford to pay for education twice: once through the overpriced government school taxes, and again for whatever private choice you really believe is best for your kids. No wonder most can’t do the latter.


Comments

You must be logged in to post a comment.

Name (required)

Email (required)

Website

Speak your mind