Wednesday, April 04, 2012


Ludwig von Mises:
He who believes the formation of prices to be arbitrary easily arrives at the demand that they should be fixed by external regulation. [A Critique of Interventionism, p. 97]

Monday, April 02, 2012

Individual Mandate: What Would James Madison Say?

From a letter Madison wrote in 1829:
Yet it is very certain that it grew out of the abuse of the power by the importing States in taxing the non-importing, and was intended as a negative and preventive provision against injustice among the States themselves, rather than as a power to be used for the positive purposes of the General Government, in which alone, however, the remedial power could be lodged.
In other words, the power to regulate commerce between the states, in Madison's view, was to give Congress the power to knock down state government barriers to interstate commerce.

Hmm.  That means Congress has the power to stop state government barriers to citizens within their states purchasing health insurance from sellers in other states.  That would certainly seem to help reduce the cost of health insurance.  Alas, Congress has not been interested in such action.

I do believe Madison would say the health insurance mandate is unconstitutional.

I believe I'm a Madisonian.  I wonder if there are any people in government today who would be Madisonian?

Blame Capitalism

Ludwig von Mises:
It is popular today to blame capitalism for anything that displeases.  Indeed, who is still aware of what he would have to forego if there were no "capitalism"?  When great dreams do not come true, capitalism is charged immediately.  This may be a proper procedure for party politics, but in scientific discussion it should be avoided. [A Critique of Interventionism, p. 53]
Unfortunately, it seems these days the most of what people think they know comes to them through the lens of party politics.