One of the main things, and one of the things we can actually fix, keeping businesses from locating in West Virginia is our high workers comp rates. Let's face it when you choose a place to locate your business you go to the place with the lowest prices.
I can look out the window across the river into Maryland, and about 2000 feet away is substantially lower workers comp rate for my business. However I believe in keeping everything in my home state, so I stay, even at a competitive disadvantage.
Now July 1, 2008 Brickstreet will no longer be the only game in town, but their is an issue tied to that. I will get to that in a minute. Right now Brickstreet is a government created monopoly, and most businesses in West Virginia have been receiving increasing rates from Brickstreet. We have no choice, but to pay them or cease operations. It is nothing more than government sponsored extortion.
What upsets most of us business owners is the fact that Brickstreet is advertising. Why? Nobody can compete with them by law. Why do you need to advertise when you're the only game in town by law? That is just wasting money of the owners of Brickstreet and hurting its clients. We pay higher rates to cover needless advertising!
Now on July 1st, 2008 other companies are allowed to offer workers comp insurance, but their is a catch. The competitors are only allowed to price 5% lower than Brickstreet. This is nothing more than price supports for insurance.
Price supports do nothing more than cost consumers more money. Only the Free Market gives the consumer the best price. These price supports are nothing more than corporate welfare for Brickstreet. They will keep wages lower in West Virginia, because if they company has to pay more for insurance, then that is less they can pay the employee.
We must open up Workers Comp up to real competition in the state, so that we can all benefit and not just the fat cats running Brickstreet.
Showing posts with label Price Fixing. Show all posts
Showing posts with label Price Fixing. Show all posts
Tuesday, October 23, 2007
Monday, June 4, 2007
The Price of Government Intervention
In the past few months we have seen gas prices jump to their highest levels since Hurricane Katrina hit. Consumers scramble to find ways to pay the price while others scramble to lay blame. Plenty of explanation exists for this most recent spike.
First is the problem of blends. Different environmental regulations for different parts of the country mean that gasoline refineries must produce a vast array of gasoline formulas, then must figure out the supply and demand for each version sent out over the country. Personally I wonder why they do not simply go with the most environmentally friendly formula for the whole nation.
Secondly, refining in the United States is almost an endangered species. Our domestic capacity has not expanded in decades due to the expensive and time consuming permit process combined with legions of environmental groups waiting to sue. Meanwhile current facilities continue to age and occasionally blow up. Increasingly we rely on foreign countries such as Mexico and Venezuela to help provide the fuel we need. The most recent price rises reflect fears that unless a short term reduction in consumption takes place, shortages will occur in some parts of the country. Yes oil companies profit from this and it is hard to work up much sympathy for them, but it is a market tool to ensure a continued supply everywhere.
Right now the supply of crude does not pose a problem. Actually oil prices have dropped recently due to increases in supply primarily from Saudi Arabia. That nation's authorities just foiled a major plot to destroy its oil facilities. We need stable domestic sources of oil and no reason exists to not tap reserves in the Alaska National Wildlife Refuge. In his infinite wisdom, President Carter created this sprawling reserve to prevent oil companies from drilling there, citing the potential danger to polar bear and reindeer habitats. Of course the presence of cities, interstate highways, coal mines, etc. have absolutely driven away the population of black bear and white tail deer from our region. We simply need more domestic supply in case of international turmoil.
Some want to blame the long term energy consumption of the United States, citing familiar statistics that say we use more than any other nation. This represents a typical example of America bashing with no suggested alternative. Environmentalists fail to point out that the US produces more goods and services more efficiently than any other nation. We use more because we produce more, but America also wastes less. The inefficient authoritarian Chinese economy among others wastes more energy due to their much lower productivity level.
As has been pointed out here before, that capability comes from the genius of competitive capitalism. In that philosophy lies the key to solving energy price problems. Governor Manchin called upon the president to declare a state of emergency, a move that would create panic and huge price hikes. He also asked Bush to create a national energy strategy, a policy that the president has attempted repeatedly and received no support. If the governor and others actually want an energy policy they must meet with President Bush, leave politics at the door, and work out a solution. For our economic stability and national security we need to free American industry to produce more in America for Americans.
First is the problem of blends. Different environmental regulations for different parts of the country mean that gasoline refineries must produce a vast array of gasoline formulas, then must figure out the supply and demand for each version sent out over the country. Personally I wonder why they do not simply go with the most environmentally friendly formula for the whole nation.
Secondly, refining in the United States is almost an endangered species. Our domestic capacity has not expanded in decades due to the expensive and time consuming permit process combined with legions of environmental groups waiting to sue. Meanwhile current facilities continue to age and occasionally blow up. Increasingly we rely on foreign countries such as Mexico and Venezuela to help provide the fuel we need. The most recent price rises reflect fears that unless a short term reduction in consumption takes place, shortages will occur in some parts of the country. Yes oil companies profit from this and it is hard to work up much sympathy for them, but it is a market tool to ensure a continued supply everywhere.
Right now the supply of crude does not pose a problem. Actually oil prices have dropped recently due to increases in supply primarily from Saudi Arabia. That nation's authorities just foiled a major plot to destroy its oil facilities. We need stable domestic sources of oil and no reason exists to not tap reserves in the Alaska National Wildlife Refuge. In his infinite wisdom, President Carter created this sprawling reserve to prevent oil companies from drilling there, citing the potential danger to polar bear and reindeer habitats. Of course the presence of cities, interstate highways, coal mines, etc. have absolutely driven away the population of black bear and white tail deer from our region. We simply need more domestic supply in case of international turmoil.
Some want to blame the long term energy consumption of the United States, citing familiar statistics that say we use more than any other nation. This represents a typical example of America bashing with no suggested alternative. Environmentalists fail to point out that the US produces more goods and services more efficiently than any other nation. We use more because we produce more, but America also wastes less. The inefficient authoritarian Chinese economy among others wastes more energy due to their much lower productivity level.
As has been pointed out here before, that capability comes from the genius of competitive capitalism. In that philosophy lies the key to solving energy price problems. Governor Manchin called upon the president to declare a state of emergency, a move that would create panic and huge price hikes. He also asked Bush to create a national energy strategy, a policy that the president has attempted repeatedly and received no support. If the governor and others actually want an energy policy they must meet with President Bush, leave politics at the door, and work out a solution. For our economic stability and national security we need to free American industry to produce more in America for Americans.
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