Last week, I promised I would talk about (read: make fun of) economists in the hopes of getting a rise out of a book-bound non-realist.
This morning’s paper brought the easiest target to me.
There is an article (I don’t know how long the link will be good; azcentral seems to not like being linked) that talks about the length a particular zinc-supply company has gone to ensure a couple of things: that the penny is still used, and that the mint continues to use zinc as the core for the pennies.
The company, Jarden Zinc Products, has paid lobbyists to kill bills relevant to their industry – one, in 2006, that would have made the penny extinct (legislation that would have rounded transactions to the nearest nickel) and now they are lobbying against the ability of the United States Mint itself to decide what materials to use in the minting of coins, in order to best keep costs down (it currently costs 1.7 cents to make a brand new penny, and nearly 10 cents to make a nickel). This would, in effect, cause Jarden to lose their number one customer. According to the article, Jarden has been paid more than $170 million dollars between 2004 and 2006 under a contract with the United States Mint. Also according to the article, the change in legislation would save the American taxpayer $100 million annually.
This is, in my opinion, a clear case of the greater good being usurped for a special interest. Going back to a pure supply-an-demand model, a single zinc supplier is being kept alive (or at least highly profitable) by law, rather than by market forces. If the legislation passes, and the Mint is allowed to choose the materials, then the free market would drive the costs, not an ironclad contract.
This is an example of Common Sense being allowed to drive a need instead of a network of backroom deals. This is, in the end, how I would urge the entire government to do business – by best price, not best friends.
In other news, papers have been filed for the creation of casework by cary, inc., a custom-woodworks firm. Finally, a boss I can’t disagree with and that I can have a reasoned discussion with when he makes a boneheaded mistake.
Thank you for stopping by, God bless you all, Wear Red on Fridays, support Warriors for Innocence, and write in Cary Cartter for President in 2008!
Tag: Write in Cary Cartter for President in 2008