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How Economic Intervention Skews The Marketplace
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<blockquote data-quote="wkmac" data-source="post: 891670" data-attributes="member: 2189"><p>Without the tax credit, would companies allocate resources for this?</p><p></p><p>[video=youtube;-cLrXYmUurE]http://www.youtube.com/watch?v=-cLrXYmUurE[/video]</p><p></p><p>How many more interventions in the marketplace cause resource misallocation that skews the market itself? Who benefits from this market intervention and who lobbied for it in the first place? Sad part is the Congressman in the piece isn't smart enough to just say, "end the tax credit and most all of this will just disapppear on it's own." He seems intent on just adding more pages of regulation to the Federal Register.</p><p></p><p>Here's an interesting question to ponder. With the insurance premium subsidized by the State and it's tax credit, does UPS for example maintain an insurance policy on retirees and upon death, UPS in effect gets back some or all the money paid out in retirement costs? I have no answer on this but in the current market I could see where this might make sense. If they do this (again I have no proof either way) any claim of harm by the company on retirement costs (hourly or management) become very weak IMO.</p></blockquote><p></p>
[QUOTE="wkmac, post: 891670, member: 2189"] Without the tax credit, would companies allocate resources for this? [video=youtube;-cLrXYmUurE]http://www.youtube.com/watch?v=-cLrXYmUurE[/video] How many more interventions in the marketplace cause resource misallocation that skews the market itself? Who benefits from this market intervention and who lobbied for it in the first place? Sad part is the Congressman in the piece isn't smart enough to just say, "end the tax credit and most all of this will just disapppear on it's own." He seems intent on just adding more pages of regulation to the Federal Register. Here's an interesting question to ponder. With the insurance premium subsidized by the State and it's tax credit, does UPS for example maintain an insurance policy on retirees and upon death, UPS in effect gets back some or all the money paid out in retirement costs? I have no answer on this but in the current market I could see where this might make sense. If they do this (again I have no proof either way) any claim of harm by the company on retirement costs (hourly or management) become very weak IMO. [/QUOTE]
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