Quotulatiousness

December 2, 2016

QotD: Socialism

Filed under: Government, Politics, Quotations — Tags: , , , — Nicholas @ 01:00

Socialism, like the ancient ideas from which it springs, confuses the distinction between government and society. As a result of this, every time we object to a thing being done by government, the socialists conclude that we object to its being done at all. We disapprove of state education. Then the socialists say that we are opposed to any education. We object to a state religion. Then the socialists say that we want no religion at all. We object to a state-enforced equality. Then they say that we are against equality. And so on, and so on. It is as if the socialists were to accuse us of not wanting persons to eat because we do not want the state to raise grain.

Frédéric Bastiat, The Law, 1850.

November 28, 2016

Legalized political corruption

Filed under: Government, Politics, USA — Tags: , , , , , — Nicholas @ 03:00

Walter Williams on the real danger the hyper-rich pose to the body politic:

Microsoft co-founder Bill Gates, having a net worth of $81.8 billion, and Amazon.com CEO Jeff Bezos, having a net worth of $70.4 billion, are the nation’s two richest men. They are at the top of the Forbes 400 list of America’s superrich individuals, people who have net worths of billions of dollars. Many see the rich as a danger. New York Times columnist Bob Herbert wrote, “It doesn’t really matter what ordinary people want. The wealthy call the tune, and the politicians dance.” His colleague Paul Krugman wrote, “On paper, we’re a one-person-one-vote nation; in reality, we’re more than a bit of an oligarchy, in which a handful of wealthy people dominate.” It’s sentiments like these that have led me to wish there were a humane way to get rid of the rich. For without having the rich around to be whipping boys and distract our attention, we might be able to concentrate on what’s best for the 99.9 percent of the rest of us.

Let’s look at the power of the rich. With all the money that Gates, Bezos and other superrich people have, what can they force you or me to do? Can they condemn our houses to create space so that another individual can build an auto dealership or a casino parking lot? Can they force us to pay money into the government-run — and doomed — Obamacare program? Can they force us to bus our children to schools out of our neighborhood in the name of diversity? Can they force us to buy our sugar from a high-cost domestic producer rather than from a low-cost Caribbean producer? The answer to all of these questions is a big fat no.

You say, “Williams, I don’t understand.” Let me be more explicit. Bill Gates cannot order you to enroll your child in another school in order to promote racial diversity. He has no power to condemn your house to make way for a casino parking lot. Unless our elected public officials grant them the power to rip us off, rich people have little power to force us to do anything. A lowly municipal clerk earning $50,000 a year has far more life-and-death power over us. It is that type of person to whom we must turn for permission to build a house, ply a trade, open a restaurant and do myriad other activities. It’s government people, not rich people, who have the power to coerce us and rip us off. They have the power to make our lives miserable if we disobey. This coercive power goes a long way toward explaining legalized political corruption.

November 24, 2016

QotD: Black hats and white hats

Filed under: Economics, Government, Politics, Quotations, USA — Tags: , , , , — Nicholas @ 01:00

When considering the major failures of recent American governance – the 2008-09 financial crisis, the catastrophe that is U.S. policy in the Mideast – the one thing that any honest-minded person must conclude is: Nobody meant for things to turn out this way. It is impossible to make precise predictions about the effects of government policy; that is the nature of systems characterized by high levels of complexity. It’s one thing to predict that it’ll be colder during the winter, but another thing to predict down to the millimeter how much snow will fall on a particular acre in rural Maine on the third Wednesday in February, which is really what we expect from our public policy.

Classic cowboy movies, in contrast, are not complex at all: The good guys wear white hats, the bad guys wear black hats, all hats remain firmly affixed to all heads at all times, and that’s that. You can pretty much always predict how an old Western is going to turn out.

But that isn’t how the real world works.

On Tuesday, I had a conversation about Elizabeth Warren and Wall Street, pointing out that the popular version of that story – Senator Warren vs. Wall Street – is so oversimplified as to be not merely useless but misleading. The reality is that there are people working on Wall Street who dislike Senator Warren – investors and bankers, mainly – and people who adore her – notably Wall Street lawyers, who are reliable donors to her campaign and to those of other Democrats. My naïve interlocutor said: “Hopefully, it’s the lawyers that fight against Wall Street,” as though there were such a thing, as though there weren’t nice progressive lawyers in Manhattan who jokingly refer to their yachts as the SS Dodd-Frank.

Spend any time writing about this sort of thing and you’ll hear angry and panicked denunciations of derivatives-trading from people who pretty clearly do not know what a derivative is, just as you’ll hear paeans to Glass-Steagall sung by people who don’t understand the difference between a commercial bank and an investment bank, who don’t know how Goldman-Sachs makes its money or what it is that Standard & Poor’s does.

But they’re quite sure they know who is wearing the black hats.

Kevin Williamson, “Black Hats and White Hats”, National Review, 2015-04-15.

November 23, 2016

When is an American Indian artist not American Indian?

Filed under: Bureaucracy, Business, USA — Tags: , , , , — Nicholas @ 03:00

Answer: when federal bureaucratic rules interact unhappily with state-level bureaucratic rules. Eric Boehm explains why an artist is not legally allowed to market her beadwork as “American Indian-made”:

Peggy Fontenot is an American Indian artist, of that there can be no doubt.

She’s a member of the Patawomeck tribe. She’s taught traditional American Indian beading classes in Native American schools and cultural centers in several states. Her work has been featured in the Smithsonian’s National Museum of the Native American.

In Oklahoma, though, she’s forbidden from calling her art what it plainly is: American Indian-made.

A state law, passed earlier this year, forbids artists from marketing their products in Oklahoma as being “American Indian-made” unless the artist is a member of a tribe recognized by the U.S. Bureau of Indian Affairs.

The Patawomeck tribe is recognized by the state of Virginia, but not by the federal government. Fontenot says she can trace her Native American heritage back to the 16th Century, when the tribe was one of the first to welcome settlers from Europe who landed on the east coast of Virginia. She’s been working as an artist since 1983, doing photography, beading, and making jewelry.

[…]

According to PLF [Pacific Legal Foundation], Oklahoma’s law could affect as many as two-thirds of all artists who are defined American Indians under federal law. The state law also violates the U.S. Constitution’s Commerce Clause by restricting the interstate American Indian art market, the lawsuit contends.

November 14, 2016

QotD: The relationship between unions and occupational licensing

Filed under: Bureaucracy, Economics, Quotations — Tags: , , , — Nicholas @ 01:00

… this is also known as “licensure”. And the rate in the 50s, at that peak of union power, was around 5% of workers needed such a licence to go to work. And union membership was, at that peak, 35% and is now around 10% or a little above, and licensure has gone from 5% to 30%.

For my point to work we have to consider unionisation and licensure as being the same thing. And they’re obviously not exactly the same thing. But they are sorta, kinda, the same thing. For all the claims that the requirement for a licence is in order to protect consumers (a theory for which the technical economic term is “codswallop”) it’s really a way to protect the wages of the ingroup against competition. As, of course, is being in a union a method of protecting those economic interests of the ingroup.

Actually, licensure is most akin to the medieval and early modern guilds system, out of which the union movement itself grew. So it’s really not surprising at all that they share certain attributes. That aim and desire of protecting the incomes of members of the group against the economic interests of everyone else.

So, my argument is that we’ve not in fact had a fall in the power of organised labour over these recent decades. We’ve just seen a change in the form of it, from unionisation to licensure. The point being that this is absolutely and definitely true in part and may or may not be true entirely. I tend towards the entirely end of that spectrum and I’d be absolutely fascinated to see if there’s been any academic comparisons made of the strengths of the two systems in protecting workers’ wages and conditions. I’d even be willing to believe that licensure works better than unionisation, given that the first is a conspiracy against the consumer, something easier to carry off than the unions’ conspiracy against the employer.

Tim Worstall, “More Union Power Won’t Raise Wages Or Reduce Inequality”, Forbes, 2015-03-07.

November 13, 2016

“All it would take would be a repudiation of Wickard v Filburn…”

Filed under: Government, Law, USA — Tags: , , , — Nicholas @ 04:00

Ed Morrissey on the strange new respect being shown on the left to the concept of checks and balances in the US federal system:

For the past six years, the media has lionized Barack Obama for his increasing autocratic acts in pushing executive power to its limits — or past them — rather than compromise with Republicans in control of Congress. “I’ve got a pen, and I’ve got a phone,” Obama declared, “and I can use that pen to sign executive orders and take executive actions and administrative actions.” Despite serious rebukes by courts over his attempts to bypass the Senate on recess appointments and flat-out violate the law on immigration, the media has always cast Republicans as villains for frustrating Obama’s agenda rather than focus on his abuses of executive authority.

Suddenly, though, an epiphany has begun to dawn on the media. Pens and phones are old and busted, and checks and balances are the new hotness. […]

Under a true federalist system, Californians could run their own state, as could Coloradans, Minnesotans, and also Texans, Floridians, New Yorkers, and, er … whatever people from Wisconsin call themselves. All it would take would be a repudiation of Wickard v Filburn to reduce federal authority over economic activity to commerce that actually takes place across state lines. Each state could have their own EPA, if they desire it, and maintain their own land in the manner they see fit.

In such a system, the authority of the president would greatly diminish on domestic affairs, allowing voters to consider candidates for such a position based on issues such as diplomacy and national defense rather than which of the two will be the biggest busybodies. Rather than trying to run a nanny state and failing as miserably as F. A. Hayek predicted, Congress could focus on a much narrower range of tasks and do those well. Most importantly, states could keep much of the revenue pouring into Washington and provide a lot more effective accountability over its use.

Does that appeal to all the special snowflakes looking for safe space in the Age of Trump, and to all of those protesting because they just found out what it feels like to lose an election? Sound like a novel idea that could shield you from the potential side effects of a presidential election? Well, then congratulations — you are well on your way to becoming a conservative, or perhaps a libertarian. Feel free to ask us about the principles that we have (imperfectly to be sure) espoused all along while Barack Obama set all the precedents that Donald Trump will expand to your detriment. We’ll try not to snicker when explaining them to you … much, anyway.

October 29, 2016

Is there a bright side to the sale of Constellation Brands for Ontario wine drinkers?

Filed under: Business, Cancon, Wine — Tags: , , — Nicholas @ 02:00

Michael Pinkus gets an uncharacteristic rush of optimism over the sale of Constellation Brands:

[W]hile it’s nice to see Canada’s Inniskillin and Jackson-Triggs back in Canadian hands what does all this say about the selling of wine in Canada? When the world’s largest holder of wine companies/brands decides to throw in the towel here and sell off their Canadian division, yet still holds the remainder of the wineries and brands they acquired with their 2006 purchase of Vincor to me speaks volumes. Now I’m just speculating here, as I do in many of my commentaries, but could it be that Constellation sees the writing on the wall: that making money in Canada (in general) and in Ontario specifically, will not be as easy as it once was under the Liberal’s new proposed “sharing the retail space plan”. Let’s face it, the real selling feature of Vincor’s Canadian holdings were those Ontario money makers: those off-site stores that were a license to print money in the province … and now if the world’s largest can’t figure it out how in the world are the rest of Ontario’s wineries supposed to do it? Are we about to embark down another rabbit hole of when it comes to the sale of booze in this province?

[…] Just last week, I was asked for my thoughts and I immediately went to the pessimistic side of things: “does not bode well for the selling of wine here in Ontario”; but then after some careful thought I decided there still might be room for optimism, especially if you look at the purchaser. At one point in the process it was rumoured that Peller was in the mix of buyers to take over the Constellation Canadian holdings, but in the end it was the Teachers’ Pension Plan that took it for $1.03 billion. Many on social media lamented that if the teachers do for booze what they did for Toronto sports teams we’re all in big trouble. But I thought of a better angle: Nobody is better at lobbying and twisting the arm of the provincial government to get what they want than the Teachers’ Union … and once they learn how difficult selling wine is, and the antiquated laws we have surrounding it, here in Ontario, they’ll set their sights on making changes, and while the fairly ineffectual Wine Council of Ontario seems to be a mouse nipping at the heels of the governmental elephant, the Teachers’ Union and their Pension Plan will seem like a pack of wolves and hyenas working together to wrestle the elephant to the ground. So while Peller (had they succeeded in their purchase efforts) would have become the largest Canadian winery by far, they would not have been any more effective at invoking change to the system; on the other hand, the Teachers’ Union could play a large and important role at getting laws passed that will loosen up our repressive and antiquated system up; because who is in more need of a drink at the end of the day than a teacher, and it should be easier for them to get it and sell it..

October 18, 2016

QotD: “Smart Growth” regulations hurt the poor

Filed under: Economics, Government, Quotations, USA — Tags: , , , — Nicholas @ 01:00

In the 1970s, municipalities enacted new rules that were designed to protect farmland and to preserve green space surrounding rapidly growing cities by forbidding private development in those areas. By the late 1990s, this practice evolved into a land-use strategy called “smart growth.” (Here’s a video I did about smart growth.) While some of these initiatives may have preserved green space that can be seen, what is harder to see is the resulting supply restriction and higher cost of housing.

Again, the lower the supply of housing, other things equal, the higher real-estate prices will be. Those who now can’t afford to buy will often rent smaller apartments in less-desirable areas, which typically have less influence on the political process. Locally elected officials tend to be more responsive to the interests of current residents who own property, vote, and pay taxes, and less responsive to renters, who are more likely to be transients and nonvoters. That, in turn, makes it easier to implement policies that use regulation to discriminate against people living on low incomes.

Sandy Ikeda, “Shut Out: How Land-Use Regulations Hurt the Poor”, The Freeman, 2015-02-05.

September 21, 2016

Pathological altruism

Filed under: Business, Law, USA — Tags: , , , , — Nicholas @ 03:00

Amy Alkon on the mainspring of some (possibly many) altruistic actions:

I write about this sort of thing in Good Manners for Nice People Who Sometimes Say F*ck. It’s called “pathological altruism,” and describes deeds intended to help that actually hurt — sometimes both the helper and the person they’re trying to help:

    [Dr. Barbara] Oakley notes that we are especially blind to the ill effects of over- giving when whatever we’re doing allows us to feel particularly good, virtuous, and benevolent. To keep from harming ourselves or others when we’re supposed to be helping, Oakley emphasizes the importance of checking our motives when we believe we’re doing good. “People don’t realize how narcissistic a lot of ‘helping’ can be,” she told me. “It’s all too easy for empathy and good deeds to really be about our self-image or making ourselves happy or comfortable.”

One example of this is The New York Times series on nail salons — intended to help the workers but actually keeping a number of them from being able to get work…work they were able to get before the crackdowns the NYT piece led to. From Reason‘s Jim Epstein:

    Salon owners have also stopped hiring unlicensed workers, whether they’re undocumented or not. By law, every manicurist working in New York State must complete 250 hours of training at a beauty school, which costs about $1,000, and then obtain a government-issued license. This is a barrier to entry, and some aspiring manicurists can’t afford the time or tuition. There are some salon owners in the industry who, up until recently, were willing to hire them anyway because they were desperate for employees and the state rarely checked. Cuomo’s task force changed that.

    Kim sponsored a state law, passed in July, that attempted to remedy the situation. The bill made it legal for nail salons to hire workers as apprentices receiving on-the-job training. After a year, they’re eligible for a state license without attending beauty school.

    Few are utilizing the apprenticeship program. “It needs tweaking,” Kim admits. Despite assurances to the contrary from state officials, Kim says he’s hearing on the ground that when signing up for the program, applicants are being asked their citizenship status, which is scaring off many would-be apprentices.

    Licensed workers legally working in the U.S. have also been hurt by the inspections. “Workers themselves prefer to be paid in cash, and it’s not just at nail salons,” says Kim. Salon owners have started recording every dollar that passes through their shops to avoid getting fined. The inspection task force has had “unintended consequences,” he says.

    The biggest victims, however, are people like Jing Ren, the main character in the Times series. Ren, 20, is undocumented, penniless, and “recently arrived from China.” Instead of paying $1,000 for salon school, she signed on as a trainee at a shop in Long Island. By the end of the article, she’s making $65 per day in base wages.

    When weaving its cartoonish tale of evil bosses and oppressed workers, the Times never considers what would happen if all of the nail salons willing to hire Jing Ren disappeared. Would future immigrants like her be better or worse off?

Oops.

September 20, 2016

QotD: Municipal parking regulations hurt the poor

Filed under: Economics, Government, Quotations, USA — Tags: , , — Nicholas @ 01:00

Another land-use regulation that makes space more expensive is municipal requirements that establish a minimum number of parking spaces per housing unit.

According Donald Shoup’s analysis, parking requirements add significantly to the cost of housing, particularly in areas with high land values. For example, in Los Angeles, parking requirements can add $104,000 to the cost of each apartment. Parking requirements limit consumers’ choices and increase the cost of housing even for those who prefer not to pay for parking.

Developers typically build only the minimum amount of parking required by law, which indicates that those requirements are binding. That is, in a less-regulated environment, developers would devote less land to parking and more land to living space. A greater supply of living space will, other things equal, lower the cost of housing.

Sandy Ikeda, “Shut Out: How Land-Use Regulations Hurt the Poor”, The Freeman, 2015-02-05.

September 18, 2016

Progressives who suffer from small-c conservatism

Filed under: Bureaucracy, Business, Politics, USA — Tags: , , , — Nicholas @ 02:00

At Coyote Blog, Warren Meyer explains why many “progressives” are actually driven by very conservative ideas:

Begin with a libertarian goal that should be agreeable to most Progressives — people should be able to live the way they wish. Add a classic Progressive goal — we need more low income housing. Throw in a favored Progressive lifestyle — we want to live in high density urban settings without owning a car.

From this is born the great idea of micro-housing, or one room apartments averaging less than 150 square feet. For young folks, they are nicer versions of the dorms they just left at college, with their own bathroom and kitchenette.

Ahh, but then throw in a number of other concerns of the Progressive Left, as administered by a city government in Seattle dominated by the Progressive Left. We don’t want these poor people exploited! So we need to set minimum standards for the size and amenities of apartments. We need to make sure they are safe! So they must go through extensive design reviews. We need to respect the community! So existing residents are given the ability to comment or even veto projects. We can’t trust these evil corporations building these things on their own! So all new construction is subject to planning and zoning. But we still need to keep rents low! So maximum rents are set at a number below what can be obtained, particularly given all these other new rules.

As a result, new micro-housing development has come to a halt. A Progressive lifestyle achieving Progressive goals is killed by Progressive regulatory concerns and fears of exploitation. How about those good intentions, where did they get you?

The moral of this story comes back to the very first item I listed, that people should be able to live the way they wish. Progressives feel like they believe this, but in practice they don’t. They don’t trust individuals to make decisions for themselves, because their core philosophy is dominated by the concept of exploitation of the powerless by the powerful, which in a free society means that they view individuals as idiotic, weak-willed suckers who are easily led to their own doom by the first clever corporation that comes along.

Postscript: Here is a general lesson for on housing affordability: If you give existing homeowners and residents the right (through the political process, through zoning, through community standards) to control how other people use their property, they are always, always, always going to oppose those other people doing anything new with that property. If you destroy property rights in favor of some sort of quasi-communal ownership, as is in the case in San Francisco, you don’t get some beautiful utopia — you get stasis. You don’t get progressive experimentation, you get absolute conservatism (little c). You get the world frozen in stone, except for prices that continue to rise as no new housing is built. Which interestingly, is a theme of one of my first posts over a decade ago when I wrote that Progressives Don’t Like Capitalism Because They Are Too Conservative.

September 6, 2016

QotD: Minimum lot size regulations hurt the poor

Filed under: Bureaucracy, Economics, Government, Quotations, USA — Tags: , , , — Nicholas @ 01:00

Other things equal, the larger the lot, the more you’ll pay for it. Regulations that specify minimum lot sizes — that say you can’t build on land smaller than that minimum — increase prices. Regulations that forbid building more units on a given-size lot have the same effect: they restrict supply and make housing more expensive.

People who already live there may only want to preserve their lifestyle. But whether they intend to or not (and many certainly do so intend) the effect of these regulations is to exclude lower-income families. Where do they go? Where they aren’t excluded — usually poorer neighborhoods. But that increases the demand for housing in poorer neighborhoods, where prices will tend to be higher than they would have been.

And it’s not just middle-class families that do this. Very wealthy residents of exclusive neighborhoods and districts also have an incentive to support limits on construction in order to maintain their preferred lifestyle and to keep out the upper-middle-class hoi polloi. Again, the latter then go elsewhere, very often to lower-income neighborhoods — Williamsburg in Brooklyn is a recent example — where they buy more-affordable housing and drive up prices. Those who complain about well-off people moving into poor neighborhoods — a phenomenon known as “gentrification” — may very well have minimum-lot-size and maximum-density regulations to thank.

When government has the authority to restrict building and development, established residents of all income levels will use that power to protect their wealth.

Sandy Ikeda, “Shut Out: How Land-Use Regulations Hurt the Poor”, The Freeman, 2015-02-05.

September 1, 2016

Don’t blame the market for the EpiPen price hike – blame the FDA

Filed under: Bureaucracy, Government, Health, USA — Tags: , , , — Nicholas @ 03:00

Scott Alexander explains why “the market” has very little to do with the outrageous price hike for EpiPens:

EpiPens, useful medical devices which reverse potentially fatal allergic reactions, have recently quadrupled in price, putting pressure on allergy sufferers and those who care for them. Vox writes that this “tells us a lot about what’s wrong with American health care” – namely that we don’t regulate it enough:

    The story of Mylan’s giant EpiPen price increase is, more fundamentally, a story about America’s unique drug pricing policies. We are the only developed nation that lets drugmakers set their own prices, maximizing profits the same way sellers of chairs, mugs, shoes, or any other manufactured goods would.

Let me ask Vox a question: when was the last time that America’s chair industry hiked the price of chairs 400% and suddenly nobody in the country could afford to sit down? When was the last time that the mug industry decided to charge $300 per cup, and everyone had to drink coffee straight from the pot or face bankruptcy? When was the last time greedy shoe executives forced most Americans to go barefoot? And why do you think that is?

The problem with the pharmaceutical industry isn’t that they’re unregulated just like chairs and mugs. The problem with the pharmaceutical industry is that they’re part of a highly-regulated cronyist system that works completely differently from chairs and mugs.

If a chair company decided to charge $300 for their chairs, somebody else would set up a woodshop, sell their chairs for $250, and make a killing – and so on until chairs cost normal-chair-prices again. When Mylan decided to sell EpiPens for $300, in any normal system somebody would have made their own EpiPens and sold them for less. It wouldn’t have been hard. Its active ingredient, epinephrine, is off-patent, was being synthesized as early as 1906, and costs about ten cents per EpiPen-load.

Why don’t they? They keep trying, and the FDA keeps refusing to approve them for human use. For example, in 2009, a group called Teva Pharmaceuticals announced a plan to sell their own EpiPens in the US. The makers of the original EpiPen sued them, saying that they had patented the idea epinephrine-injecting devices. Teva successfully fended off the challenge and brought its product to the FDA, which rejected it because of “certain major deficiencies”. As far as I know, nobody has ever publicly said what the problem was – we can only hope they at least told Teva.

[…]

Imagine that the government creates the Furniture and Desk Association, an agency which declares that only IKEA is allowed to sell chairs. IKEA responds by charging $300 per chair. Other companies try to sell stools or sofas, but get bogged down for years in litigation over whether these technically count as “chairs”. When a few of them win their court cases, the FDA shoots them down anyway for vague reasons it refuses to share, or because they haven’t done studies showing that their chairs will not break, or because the studies that showed their chairs will not break didn’t include a high enough number of morbidly obese people so we can’t be sure they won’t break. Finally, Target spends tens of millions of dollars on lawyers and gets the okay to compete with IKEA, but people can only get Target chairs if they have a note signed by a professional interior designer saying that their room needs a “comfort-producing seating implement” and which absolutely definitely does not mention “chairs” anywhere, because otherwise a child who was used to sitting on IKEA chairs might sit down on a Target chair the wrong way, get confused, fall off, and break her head.

(You’re going to say this is an unfair comparison because drugs are potentially dangerous and chairs aren’t – but 50 people die each year from falling off chairs in Britain alone and as far as I know nobody has ever died from an EpiPen malfunction.)

Imagine that this whole system is going on at the same time that IKEA spends millions of dollars lobbying senators about chair-related issues, and that these same senators vote down a bill preventing IKEA from paying off other companies to stay out of the chair industry. Also, suppose that a bunch of people are dying each year of exhaustion from having to stand up all the time because chairs are too expensive unless you’ve got really good furniture insurance, which is totally a thing and which everybody is legally required to have.

And now imagine that a news site responds with an article saying the government doesn’t regulate chairs enough.

August 10, 2016

QotD: “Pro-business” versus “Pro-consumer”

In popular discourse, America is said to be more “pro-business” than is France. When people use this term “pro-business” they typically have in mind some vague notion of a government policy made up of low-ish taxes and not a great deal of government regulation. That is, “pro-business” is commonly used to mean a free, or free-ish, market.

But such language is mistaken.

A true free market is at its core pro-consumer. In a genuinely free-market economy, businesses are valued only insofar as they serve consumers. The performance of a genuinely free-market economy is assessed by how well it satisfies, over time, the demands of consumers spending their own money and not by how well it satisfies the demands of business owners and managers.

Obviously, because businesses are a useful – indeed, practically indispensable – means of abundantly satisfying consumers’ demands, government policies that obstruct the smooth operation of these means are undesirable. But such policies that obstruct or discourage business operations are economically undesirable not because they harm businesses but, rather, because they harm consumers.

Anyway, for all of its faults, American culture and policy are actually much less pro-business than are the culture and policy of France. If you’re really looking for a government that is deeply pro-business – one that regards the protection of existing businesses as a worthy end in and of itself – one that forcibly transfers resources from taxpayers, consumers, and other non-businesses in order to promote the material interests of existing businesses – look at France. You’ll find there what you seek. In France you’ll find one of the most business-friendly policy regimes on the face of the earth. (HT Chris Meisenzahl)

Pity the French.

Don Boudreaux, “Pity the French Consumer and Worker”, Café Hayek, 2016-06-27.

August 2, 2016

The Old Third Vineyards wins their appeal against the VQA

Filed under: Bureaucracy, Cancon, Wine — Tags: , , , — Nicholas @ 02:00

The Ontario government granted the Vintner’s Quality Alliance (VQA) some regulatory power to police the marketing and labelling of wines made in Ontario, including (the VQA thought) the rights to restrict the use of certain geographical designators like “Ontario” and “Prince Edward County” to VQA-compliant wineries. In a recent decision, a non-VQA winery located in Prince Edward County won an appeal against the VQA’s over-restrictive order:

Yesterday (July 28, 2016) was a big day for The Old Third Vineyards, a small, boutique winery located in Prince Edward County. The Licence Appeal Tribunal ruled in their favour against the Vintner’s Quality Alliance Ontario (VQAO) compliance order that they remove “Prince Edward County” from The Old Third website.

The Old Third Vineyard is located in Prince Edward County. It is owned and operated by winemaker Bruno François and Jens Korberg. They make Pinot Noir and Cabernet Franc wines, sold from their estates. Their wines have received ratings of 90 points or higher by esteemed wine experts Jamie Goode, John Szabo and Quench’s own Rick VanSickle. Each vintage – only one per year per variety – is bottled with a wine label that reads “Product of Canada”.

However, their website has a heading tagline that reads “Producers of fine wine and cider in Prince Edward County.” This is an issue for the VQA.

On February 3, 2016, VQA compliance officer Susan Piovesan emailed The Old Third with regards to the use of the geographic designation “Prince Edward County” on their website.

In other words, the VQA wanted to prevent the Old Third Vineyards from even revealing where in the country they were located because the legal designator for that area is also a restricted term for use by the VQA’s own wineries on wine bottle labels. Old Third wasn’t using it on a label, but as any common sense interpretation would agree, they have to indicate where customers can find them if they want to sell much of their wine … and they’re physically located in Prince Edward County, and said that on their website.

The VQA argued that The Old Third are trying to monopolize on the value the VQA has added to the term “Prince Edward County” by making it an official wine designation. The Tribunal disagreed: “The information conveyed in the banner … locates it geographically. Giving the words, in context, their ordinary meaning, they do not convey that the Appellant produces a Prince Edward County wine.”

The Tribunal’s ruling in favour of The Old Third shows that, even if an organization that regulates wine believes they own a term or regional name, it doesn’t mean they have the right to enforce their designations on those wineries that don’t wish to buy into the designation. The Old Third is a small vineyard in Prince Edward County and it will most likely remain that way.

And it’s these small wineries that first put Prince Edward County on the wine scene – there wouldn’t be a VQA designation for Prince Edward County if it weren’t for the wineries and estates that were producing quality wines long before the VQA came around in 2007: Waupoos Winery, The Grange of Prince Edward Vineyards and Winery, Casa-Dea Estates Winery, By Chadsey’s Cairns Winery, Sandbanks Estates Winery… the list goes on (and on).

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