4 ms·

Utilities that trend towards natural monopolies due to high barriers to entry like water and electricity infrastructure are often run by the government or heavi

by __loam 2y ago

Utilities that trend towards natural monopolies due to high barriers to entry like water and electricity infrastructure are often run by the government or heavily regulated because pricing would be extortionate if the market were allowed to set prices.

keerthiko 2y ago
Yep, basic human rights are priceless, and by capitalist mechanics, their pricing will always converge at "how much can we get away with in the current economy?" Government oversight is the only way we currently have to manage this somewhat. As an example in support of this, healthcare is barely price-regulated and hardly run by the government in America, and is thus extortionate.
- yonran 2y ago
  > As an example in support of this, healthcare is barely price-regulated and hardly run by the government in America, and is thus extortionate. They are supply-regulated by governments. According to Niskanen Center, the high cost of health care is due to the American Medical Association limiting new accredited medical schools and certificate-of-need laws limiting new hospitals. https://www.niskanencenter.org/faster_fairer/liberating_the_captured_economy.html#Supply-Side_Reforms_to_Boost_Competition_in_Health_Care https://www.niskanencenter.org/faster_fairer/liberating_the_...
  - __loam 2y ago
    "Named after William A. Niskanen, an economic adviser to Ronald Reagan, it states that its "main audience is Washington insiders", and characterizes itself as moderate." Barf. These seem like very erudite reasons when really the issue is running healthcare as a balkanized private system with opaque pricing information that patients often don't see until after they receive care is fundamentally an inefficient system. The government could run a single payer system at a loss and it would be cheaper than what we have now.
yonran 2y ago
Fair enough, utility regulations fix prices except in the opposite direction. Without zoning, landowners could not act as a cartel since that would violate antitrust laws, whereas without utility regulation, a natural monopoly could set prices as high as the market will bear.

by __loam 2y ago

keerthiko 2y ago

Yep, basic human rights are priceless, and by capitalist mechanics, their pricing will always converge at "how much can we get away with in the current economy?" Government oversight is the only way we currently have to manage this somewhat. As an example in support of this, healthcare is barely price-regulated and hardly run by the government in America, and is thus extortionate.

yonran 2y ago
> As an example in support of this, healthcare is barely price-regulated and hardly run by the government in America, and is thus extortionate. They are supply-regulated by governments. According to Niskanen Center, the high cost of health care is due to the American Medical Association limiting new accredited medical schools and certificate-of-need laws limiting new hospitals. https://www.niskanencenter.org/faster_fairer/liberating_the_captured_economy.html#Supply-Side_Reforms_to_Boost_Competition_in_Health_Care https://www.niskanencenter.org/faster_fairer/liberating_the_...
- __loam 2y ago
  "Named after William A. Niskanen, an economic adviser to Ronald Reagan, it states that its "main audience is Washington insiders", and characterizes itself as moderate." Barf. These seem like very erudite reasons when really the issue is running healthcare as a balkanized private system with opaque pricing information that patients often don't see until after they receive care is fundamentally an inefficient system. The government could run a single payer system at a loss and it would be cheaper than what we have now.

yonran 2y ago

Fair enough, utility regulations fix prices except in the opposite direction. Without zoning, landowners could not act as a cartel since that would violate antitrust laws, whereas without utility regulation, a natural monopoly could set prices as high as the market will bear.