Miracle on the Charles

The editorial page of today's Wall Street Journal offer yet another example of the free market trouncing central planners.

Our friends in the Bay State had been paying some of America's highest car insurance premiums, largely the result of a state government that set the rates each year. On April 1st, the state lifted that heaviest regulation, allowing for what it calls "managed competition." While still not the optimal model, the net result has been better rates for consumers.

Overall, premiums in the state are due to fall nearly 8% this year as insurers adjust to a world in which they need to compete to attract customers instead of bargaining with their regulator for price hikes. Imagine: When you remove price controls, supply increases and prices fall.

Just a healthy reminder of why we advocate for free market policies in the first place.