October 30, 2006

• I keep seeing all these commercials that are criticizing Cruz Bustamonte, a candidate for California insurance commissioner, for accepting campaign donations from insurance companies.  They go on and on about how much he's taking, etc.  The commercials are on behalf of Steve Poizner, who brags that he's taking no money from insurance companies himself.  Of course, that's much easier to do when you use at least $6 million of your own money to finance your campaign.  I take no position on whether either candidate is a good guy or not.  But doesn't it stand to reason that insurance companies are among the biggest donors to a candidate for insurance commissioner?  With any form of regulation, the benefits are diffuse while the burdens are concentrated.  So who's more likely to give money to Bustamonte:  the average motorist who might see a fluctuation of $30 a year in his premium or large insurance companies that stand to gain or lose millions?  Couple that with the fact that insurance companies have better information about the candidates -- again, out of greater interest -- and are thus more likely to predict which candidate will give them a better return on a donation (investment). 

  • 2:16 am
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