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The Nugget Newspaper
Sisters, Oregon
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Comments to
Eric Dolson, Publisher

It's all about power

One of our favorite and most frustrating pundits, Molly Ivins, is nearly illiterate when it comes to economics. So are many liberals. They waste arrows on the wrong targets, they fight the wrong battles.

In her column this week, (on this page), Ms. Ivins takes aim at free markets. As an example, she uses airline deregulation to show how bad deregulation can be.

Then she defeats her own case. Airline travel has tripled in 20 years, she points out, and fares are 40 percent lower.

She implies we need more regulation, without saying what that would be. True, this would probably solve many of the industry's problems, but do so by driving up the cost of airfares and making air travel again the reserve of the wealthy and business class.

That's an interesting position for one who champions the less advantaged.

Even more perplexing is her position on the trucking industry. She talks about sweat shops on wheels, but gives short shrift to the fact that lower transportation costs reduce the cost of food. This can be a good thing for poor people.

Free markets also offer choice. Choice is a cornerstone of liberty.

Ivins makes the common mistake of confusing markets with monopolies. Markets can be, and often are, manipulated by powerful interests who own our government. These are the "Skull and Boners" who operate not in a free market but in clubs and conference rooms and golf courses, the (mostly) guys who know they will win the game because they write the rules.

Deceit, collusion and corruption -- not markets -- are the enemy of the people.

It is true that markets are soulless mechanisms for the exchange of goods and do not recognize morality, social goals or evils. But a truly free market can also reduce costs, lower poverty, make more goods and services available to more people with lower incomes than any other mechanism.

There is a place for regulation. Industries require oversight. Safety regulations need to be enacted and enforced. Most importantly, monopoly and collusion need to be prevented.

But this won't happen, because liberals don't understand economics and politicians are owned by those who do.

E.D.

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