NZ House price index for selected territorial authority areas, 1989–2014

Source: Changes in home-ownership patterns 1986–2013: Focus on Māori and Pacific people.

@eigoodwin forgot @cjsbishop’s private members’ bill on organ donation

The Otago Daily Times health reporter wrote today that

…individualist new-right” attitude that holds sway in New Zealand is holding back organ donation rates, a University of Otago biomedical ethics authority says

Eileen Goodwin contacted Eric Crampton at the New Zealand Initiative for comment. She did not mention, much less contact a National Party backbencher who has a private members’ bill before the house to promote organ donation.

Source: New Zealand Parliament – Financial Assistance for Live Organ Donors Bill.

Chris Bishop’s bill passed its first reading and is now before a select committee for public hearings. Michael Woodhouse, MP first put the bill in the ballot.

This private members bill ensures that live organ donors are not out of pocket. The financial cost of time out the workforce to recover from a live organ donation is sufficient to prevent some from doing so. As Chris Bishop said in his first reading speech

I think it is wrong that at the moment live organ donors are essentially penalised for their altruism, facing a large loss of income even though their actions save lives and contribute to a healthier New Zealand.

Moreover, the current system in many ways actually favours the wealthy. If you have a relative who can afford to take time off work and make the financial sacrifice is entailed in donating an organ to you, and they are a match, then you have a good shot of getting that organ.

But if you have someone who is a match but cannot afford to take time off work to donate an organ to you, then you are obviously in a less advantageous position. 

It is bizarre that people cannot donate organs because they cannot afford the time off work to recover and still pay the mortgage or rent. They currently receive a sickness benefit of $206 per week. The private members bill will ensure they receive 80% of their previous income for 12 weeks.

Organ donation is a repugnant market. Live organ markets are illegal because most people are just repelled by the very idea of such trading as The Economist explains

In most countries it is illegal to buy or sell a kidney. If you need a transplant you join a waiting list until a matching organ becomes available.

This drives economists nuts. Why not allow willing donors to sell spare kidneys and let patients (or the government, acting on their behalf) bid for them? The waiting list would disappear overnight.

The reason is that most societies find the concept of mixing kidneys and cash repugnant. People often exclude financial considerations from their most important decisions, from the person they marry to the foster child they adopt.

Al Roth has written an excellent survey article on repugnant markets in the Journal of Economic Perspectives where he said.

Because healthy people have two kidneys and can remain healthy with only one, kidneys from living donors are now widely used for kidney transplantation, the preferred treatment for end-stage renal disease.

The laws against buying or selling kidneys reflect a reasonably widespread repugnance, and this repugnance may make it difficult for arguments that focus only on the gains from trade to make headway in changing these laws.

Requiring people to opt-out rather than opt-in, as suggested by the medical ethics professor that the Otago Daily Times interviewed, is an antagonistic move that many will oppose.

Prof Gillett supports a shift to an opt-off organ donation system that would involve families in the decision-making process.

He said the political ideology of the Ministry of Health and the Government hindered efforts to foster a different view of organ donation.

“The ministry’s got quite an individualist new-right sort of agenda.

“I think it’s shared by the Government at large; I think that’s the reason why we are encouraged to tolerate the inequalities [in society].”

“It’s fundamental to neoliberalism that every individual should be able to be accountable for their own stuff, wrapped up in their own life, and not have dues to others.”

Organ donation should be seen as a normal way to contribute to society, Prof Gillett believed.

“An opt-off system is consistent with the solidarity view of human beings.”

Requiring people to opt out rather than opt in wastes political energy on a losing proposal when far simpler reforms are yet to be done. Piecemeal social reform in the tradition of Karl Popper is better. We should first do simpler things like making sure that people do not donate organs to a relative because they cannot afford to do so.

When I heard of Chris Bishop’s private members bill, it is one of those social reforms you wonder why it was not done years ago. The notion of someone not been able to donate an organ to a relative to save their life because of financial constraints is far more repugnant than an organ market. Their financial constraint is the need to pay the rent and buy the groceries while off work recovering from the live organ donation. As Roth says

One often-noted regularity is that some transactions that are not repugnant as gifts and in-kind exchanges become repugnant when money is added…

Many people clearly regard monetary compensation for organ donation as something that transforms a good deed into a bad one.

While a repugnance against an organ market is a common preference, I cannot see anyone opposing making sure that live organ donors are not out of pocket because of their tremendous generosity. There is no slippery slope you despite some people’s concerns as Roth explains

Concern that monetizing some transactions might lead to other changes seems to lurk beneath the more explicit concerns. Some critics fear a commercial dystopia in which kidney sales would enter into contracts: for example, as collateral, or as payment for other medical services, or to repay debts, or as means tests for eligibility for social services and financial aid. Such scenarios have found their way into fiction and movies

Repugnance is a real constraint on the emergence of markets. The issue of making sure the people are not out of pocket for live organ donations is separate from the repugnance against commercial transactions over human organs.

I have made a complaint to the editor of the Otago Daily Times about sloppy journalism and sloppy editing. If I am not satisfied with their response, I will take the matter to the Press Council. Yes, I have a bee in my bonnet.

#feelthebern will raise your taxes

#FeeltheBern? There’s a Cure.

 

why no protests against #UBI bureaucratic job losses but #TPPANoWay protests aplenty about jobs?

The universal basic income is a rare bird for the left. It is the only time the usual suspects on the left are happy to cut government bureaucracy.

Furthermore, the left makes no inquiries as to how these redundant bureaucrats who administered the welfare state will find jobs. The market is left to work its magic for once. How convenient.

When a tariff cut is proposed, a trade deal signed, or job reduction in a bureaucracy suggested perhaps as the result of a privatisation, left-wing activists chain themselves to factory gates or government offices in solidarity. The social upheaval from the job losses among existing workers and their dim prospects of reemployment are paramount in their minds.

Why in the case of a universal basic income is the left so relaxed about job losses. Indeed, it celebrates as an advantage of a universal basic income that “Most of the bureaucracy of the welfare system [is] swept away” .

The universal basic income is the only time the left welcomes a reduction in bureaucracy and the role in the state. This switch from welfare payments to a universal basic income does not make those on the benefit any better off. Normally they are worse off under a universal basic income.

None of the the less well groups which of the concern of the left gain from a universal basic income. Despite this, they sell the jobs of their comrades in the public sector down the river.

I cannot believe the explanation is job losses are OK as long as they are the result of left-wing policies. Unless the labour market is liberalised, its ability to find new jobs for workers, for example, made redundant in the public sector after the introduction of a universal basic income is not any under greater than under a right-wing policy that costs jobs.

High US drug prices as a good shot public good ‏@RobinHoodTax

Much is made of the fact that drug prices are lower in Canada and Western Europe as compared to the USA. Indeed, day trips are made across the Canadian border to buy cheaper drugs as compared to the local pharmacy pricin in a US city.

Instead of what is always the relevant public policy question. What would happen in the USA if attempts were made to seriously reduce the price of drugs. The answer is obvious, the incentive to create new drugs would be severely diminished. There are no free lunches in public policy.

Bringing in new drug to the market is a seriously expensive business these days. That is before you consider the commercial risk of inventing a drug that isn’t much better than its competitors.

Of course, you can always be leapfrogged by another drug company brining on a better drug not long after you have brought yours to market. None of this is getting any cheaper.

Innovation by specific drug company is a form of public good production known as best shot  public goods. Under a best-shot rule, the socially available amount is the maximum of the individual quantities. There is is a single prize of overwhelming social importance, such as a major drug breakthrough, with any individual’s effort having a chance of securing the prize.

The amount to be produced of a best shot public good depends on the best contribution rather than  the usual situation of any contribution is interchangeable. Another example is a large number of people shooting at an incoming missile. The best shot counts, all the others don’t matter.

High drug prices in the USA could be the price of the weakest shot or weakest link public good. Weakest shot public good is where the socially available amount is the minimum of the quantities individually provided. One example a weakest link public goods are military alliances where the success of the alliance depends upon everyone contributing

In the weakest shot or weakest link theory of public good production, the free riding countries of Europe will bring the whole show down by not making their contribution to drug research by buying at good prices from the US pharmaceutical companies.

Perhaps a better way to look at drug innovation is a good shot public good. Someone has to make a reasonable contribution; that has to be the USA because it is such a large market. Without access to good prices in the USA, there wouldn’t be enough of an incentive for drug innovation.

Military alliances such as NATO and the Warsaw Pact probably are examples of good shot public goods. They depend on a number of large countries making their contribution but I always leaned towards the crucial best shot contribution of the USA and former USSR .

In the case of the start of World War I, Triple Entente against Germany was a weaker shot public good. Its defensive wall depended on the strength of the weakest country defending i.e. the unfortified Belgian border (in both wars). The Tripartite Alliance was a best shot public good depending on the strength of Germany’s attack for ultimate success or failure.

Senator Leyonhjelm on ABC Drive discussing childcare and our $40 billion deficit

#GeorgeOrwell summarises the traditional @uklabour @nzlabour voter – sounds Blairite

Source: The Road to Wigan Pier – Wikiquote.

Did #FightFor15 forget that @FightFor15 was an ambit claim for a #livingwage

Any decent political movement makes an ambit claim in expectation of being beaten back to its real position. That is basic negotiation tactics in politics.

Such is the volatility of expressive politics that the fight for 15 campaign has taken on a life of its own and is actually delivering on a $15 living wage as the minimum wage in the USA in a growing number of states and cities as well is in Democratic party presidential campaign pledges.

If there is any degree of economic sanity and practicality among living wage advocates, they know that such a high living wage increase will cost jobs.

After all, if a large wage increase for low-paid workers cost no jobs, why not increase everyone’s wage by a similar percentage, which is about 100% in the USA?

Déjà vu all over again for @NZLabour @NZGreens

@BernieSanders Supporters Brutally Beat Each Other, Suddenly Realize They’re All Bernie Supporters

Source: Bernie Supporters Brutally Beat Each Other, Suddenly Realize They’re All Bernie Supporters

Homeless means living rough or in a car @DavidReiMiller @greencatherine @secondzeit

Statistics New Zealand spent 21 pages trying to define the term homeless. How Orwellian.

When I first moved to Canberra and when I moved back, I stayed with friends. Some regard that as being homeless under the Statistics New Zealand definition, much to my own surprise.

I qualify because I shared accommodation . Having shared or short-term accommodation is not homeless. The descriptions shared and short-term accommodation quite adequate to the task.

People living in temporary accommodation including with friends are not homeless. Their situation is unsatisfactory but describing it does not justify butchering the English language by conflating their inconveniences with the few hundred people who live rough each night.

image

Source: New Zealand Parliament – Homelessness in New Zealand.

Those that conflate having a roof over your head tonight with living rough take advantage of the great sympathy people have for those living rough for people in far less dire situations.

#MiltonFriedman v. @berniesanders

Who said that the average voter cannot understand tariffs?

Image

NZ #UBI can be only $4,700 @JordNZ @GrantRobertson1 @GeoffSimmonz

A universal basic income in New Zealand will have to be financed by a great big new tax because the existing ones are not enough according to the Economist calculations below.

image

HT: Paul Kerby.

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