Why does Mark Zuckerberg publicly endorse more government regulations on social media companies and content? Simple: Because he knows that they are an effective means of limiting his competition. 

 

Texans are all too aware that monopolies are creations of government, not markets.

 

Texans’ prescriptions costs are approaching record highs because Food and Drug Administration regulations have raised entrepreneurs’ costs for developing new drugs. The people of this state have less banks to choose from than any time in recent memory because the Dodd-Frank regulations have strengthened large financial intuitions while harming their weaker competitors. They can’t even find decent, affordable, and reliable cable companies because anyone wishing to operate a cable company in the state must not only comply with federal regulations, but they must sign a “franchise” agreement with their local government. 

 

Large companies can afford new government mandates. Their smaller competitors cannot. Big business can also hire lobbyists to find loopholes. Again, their smaller competitors cannot. 

 

The most recent example of this protectionist façade is how Big Insurance is trying to bankrupt their smaller competitors, making it next to impossible for Texans to find affordable life insurers to service their retirement needs. 

 

The nation’s largest insurance companies are pushing insurance regulators to increase their competitors’ capital charges by over 50 percent. According to reporting in the Financial Times, Big Insurance is arguing that their rivals are “overloading customer portfolios with excessive risk” and “higher capital requirements can help absorb potential investment losses but also depress investment returns.”

 

Let’s be candid. These big companies aren’t really concerned about protecting Texans against “excessive risk.” They’re only concerned about protecting themselves from competition. 

 

As top consumer and senior citizen advocacy groups, such as the 60 Plus Association, have already made clear, these new capital charges are unnecessary — and they will lead to higher costs, less choices, and great frustration for Texas’ seniors. 

 

Sadly, Big Insurance’s lobbying push is paying off. The National Association of Insurance Commissioners, a trade group that the nation’s insurance commissioners are all members of and use as guardrails for their own policies, has finalized a proposal that would turn this corporate behemoth’s anti-competitive dream into reality. If it’s implemented, smaller insurers will find it difficult, if not impossible, to stay in business. The most vulnerable Texans among us would be left holding the bag as prices increase and efficiency declines.

 

The Texas Department of Insurance is already fighting the NAIC proposal, but what will Commissioner Cassie Brown do if the NAIC decides to move forward anyway?

 

The Texas Constitution says that “all political power is inherent in the people.” But if unelected regulatory agencies limit our rights without our input or consent, it sure won’t feel like that. 

 

Commissioner Brown has put up a good fight so far. I am cautiously optimistic that she will stand for Texas’ states’ rights and continue to reject the NAIC’s posturing even when the going gets tough. That’s something this state’s seniors won’t soon forget. 

 

Matt Mackowiak is chairman of the Travis County GOP.