Industries without much competition are marked by high prices, low customer service, and a lack of innovation. But when competition thrives in a market, consumers get better goods and services at lower prices. Existing producers in the market don’t like competition, but it’s good for consumers. Some businesses will succeed and others will fail. But as long as it is easy for new competitors to enter the market, prices will stay low and innovation will continue.

Reforming health insurance in this country begins with redefining our understanding of what insurance is and what it supposed to cover. Insurance isn’t for routine or predictable expenses. Over time, we have come to expect all of our health care to be provided through insurance, and covering more has helped make health insurance cost more.

Often our words can replace the need for action in foreign affairs, but only if our allies and enemies believe what we say. Strength and diplomacy don’t happen without credibility. That comes from following through on what we’ll say do and never making empty threats.

Hoover Institution fellow Ed Lazear discusses the push for further tax cuts when we are growing government spending at record rates. Lazear emphasizes that we need to rein in government spending.