The Competitive Enterprise Institute Daily Update
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Issues in the News
1. GLOBAL WARMING
California Governor Arnold Schwarzenegger signs a law initiating the nation’s first CO2 emissions limit.
“Alarm over the prospect of the Earth warming is not warranted by the agreed science or economics of the issue. Global warming is happening and man is responsible for at least some of it. Yet this does not mean that global warming will cause enough damage to the Earth and humanity to require drastic cuts in energy use, a policy that would have damaging consequences of its own. Moreover, science cannot answer questions that are at heart economic or political, such as whether the Kyoto Protocol is worthwhile.”
2. HEALTH & SAFETY
The FDA gives accelerated approval to the cancer drug Vectibix.
“The real risk is that FDA will slow down its approval of new therapies in response to this critique, further delaying the availability of important new therapies. The only way to guarantee zero risks from medicines is not to approve any medicines, and that would be a public health disaster.”
Starbucks faces accusations of predatory business practices.
“Critics allege that a firm employs “predatory” tactics to drive rivals out of business, snatch their customer base, and amass a larger market share—and charge monopoly prices after achieving all this. As aspiring rivals surface, the now-monopolist merely cuts price again. Yet when has anyone ever seen Starbucks cut its prices? There’s still plenty of room for lower-cost competitors—and even comparable chains, as any Caribou Coffee patron can tell you.”
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