Trends of Economic Performance

Greg Mankiw presents a good Case for setting aside the 1911 Miles Ruling, prohibiting Retail Price Maintenance. The argument sounds alright if One leaves it in the arena which Business and Mankiw pose it. One must delve into economic theory, which has much relevance at this point, to develop a contradictory argument to retain the Miles Rule. The Market should dictate the quantity of Showroom exposure utilized to exhibit any Product. Retailers who wish to create a giddier Exhibit have the right to do so, but only in the context of lower Profit margins against competitive Retailers who use more conservative Showroom exhibits. The idea of provision of Public Goods is fallacious as long as the Retailer’s only desire is for higher Profits from Showroom detail. Provision of Public Goods works only to the benefit of the Producer and immediate Retailer, it does not guarantee Quality of Product or efficient Price. Competitive Retailers and Customers face a monopolistic Price with no assurance of better Product; and Cost-Cutting allowed through monopolistic Pricing hazards future inferiority of Product.

Greg Ip’s column and Ritholtz’s Post on the intentions of the Fed are correct in my estimate; We have a Fed on Hold, and for very real reasons. Energy Pricing is too high, Food Processing Prices will quickly reflect the Energy prices, and Utilities will ship Costs forward automatically. The Fall-Off of Capital Goods is to be expected, with recent technological upgrades with high Credit build-up which must be paid down; lower Fed rates would do little to affect Capital Equipment shipments. The fact of the matter remains there is little economic opportunity left unexplored until such time as a major technological advancement comes about; something which is of multi-Sector character. It has become a Time for sharp Production procedures reducing Costs, not a Time for easy Credit.

Kash at Street Light present a informative Post about American Health Care. The most glaring fact about American Health Care not statistically graphed is how much of the American population possess no Health Care in terms of other nations; it is an extremely wide differential I believe, presumably consistent with some of the Third World nations. This is worsened by Medical Schools sharply restricting enrollment, and Doctors limiting their Patient load. American Medicine also utilizes approx. three times as many Drug proscriptions; it is also very hard to get Doctors to proscribe the adequate Medications used by other Nations with superior performance, simply because these Drugs are no longer Patented. American Drug Marketing precludes usage of non-royalty Drugs, with American Doctors losing many benefits if they do not maintain royalty-covered Proscription loads. The above incites both the excessive Cost of American medicine, and also the poor response factors of American Health Care. lgl