Price ceilings: go for it!

Claiming they have become a luxury item to most consumers, Representative Timmo Olopai recently proposed a price ceiling on betel nut sales.

“Some enterprising individuals,” said the Congressman, “may seize the opportunity and abuse its sale,” knowing that the market demand for betel nut remains quite high.

(I guess the Congressman wants to discourage ‘enterprising individuals’ from seizing the initiative and pursuing the American dream in a free enterprise system that celebrates, rewards and adores such risk, hard work and noble ambition.)

Under a bill he filed in the CNMI House of Representatives, Mr. Olopai would prohibit the betel nut retail purchase price from exceeding $1 per standard bag.

According to the Saipan Tribune, “At present, betel nuts from Guam, Saipan, Yap and other neighboring islands are sold at $1.25 for four pieces of young nuts and $1.50
for only two pieces of the hard kind.”

At those extravagant prices–$1.25 and $1.50–betel nut does seem like a luxury item indeed; in fact, knowing how expensive they truly are, I am quite surprised that these valuable nuts are not sold at Duty Free, Saipan’s premier luxury outlet. At such lofty prices, you would think they would be displayed right next to the expensive chocolates and the exotic cigars.

Those betel nuts imported from Asian countries such as Thailand and Taiwan, however, are not quite as expensive as the local variety. According to the Saipan Tribune, these imported nuts generally have a retail value of about $1 for the same number of pieces. These imports Congressman Olopai wants to tax, presumably to make them cheaper for the overcharged betel nut consumer.

You see, Representative Olopai blames foreign businessmen “for jacking up the retail price of betel nuts over the past five years, by importing these products and selling them at exorbitant prices.”

According to the Tribune, “Olopai maintained that since chewing betel nut is popular among adult and young population of the Northern Marianas, the proposed restriction would prevent businessmen from selling these at exorbitant rates.”

Why stop there? Why confine price ceilings to mere betel nuts?

Congressman Olopai should protect other consumers as well. Maybe he should tell Microl Corporation how much they should charge for their cars. Maybe he should pass a bill imposing a price ceiling on attorney David A. Wiseman’s legal services (say, about $25 an hour for all CNMI attorneys).

Or how about forcing Hollywood Video to confine their tape rentals to not more than $1 per night. After all, more people rent videos (yet another luxury item) than chew betel nuts.

Price ceilings? I say go for it!

Who cares about freedom, anyway?