Government Archives

As planned, President Obama gave his speech to schoolchildren nationwide, on September 8th.

And as was widely reported, many parent’s (and conservative pundits) across the country expressed concern for the event.

And, as I expected, many people, liberal and conservative alike, are now gleefully reporting that President Obama’s speech was all about education and nothing about indoctrinating our children into Socialism (e.g., here and here).

Of course, these writers completely miss the point!

No one in their right mind would ever have considered pledging to serve Ronald Reagan or George H. W. Bush, the two other presidents, we’ve been reminded, who also gave speeches to schoolchildren across the nation. Yet, since last year, we have had to wallow through incessant hero worshiping genuflections to the one who brings his historic presidency to fruition, embarking upon a worldwide tour, delivering orations worthy of all the grandeur of our long lost savior returned, at last, to unite our land, our people, our globe. This cult of Obama is just that, sending tingling chills up people’s legs and causing others to liken him to “god”. Shouldn’t such adoration bestowed upon an elected leader at least give one, especially the Christian, cause for concern?

Others of us, the blind ones, have missed it completely, not unlike Aunt Eunice, who never gets the jokes at the family get-togethers. We could only see a pro-abortion Senator, with barely a measurable amount of negligible service, unpublished in the legal journals, who had previously organized… communities.

But I venture towards reality.

Needless to say, since his inauguration, we have watched Obama attempt to make good on his promise to “spread the wealth around”, what with his trillion dollar economic extravaganza and plans for government run healthcare, expanding the federal government’s reach into the private sector.

The man is socialist through and through, and desires to increase the role of government in our lives.

So when he decides to speak to the children of America, I’m not expecting him to try and win the war; but I am on alert, and wary of each battle.

Christians: pray for President Obama

Health care is not a right; Rationing is inevitable

Two provocative excerpts from Eric Chevlen, in an article at First Things.

It’s a mistake to think of health care as a right. It is not a right; it is a good. Freedom of speech, by contrast, is a right, as is freedom of religious belief. They are privileges that inure to individuals as a consequence of the primordial right, free will. That is why we see them as inalienable. The exercise of these rights does not depend on any action of government, but rather on its inaction. Government may not legitimately interfere with their exercise, but nothing mandates that the government provide us with printing press or chapel.

Health care is different. It is more akin to the other goods which sustain life: food, clothing, and shelter. A well-ordered society exists to protect its members from the unlawful taking of life, and is structured to facilitate its members’ acquisition of these goods.

And then,

To claim that Congress will devise a new federal health care plan that will not involve rationing is like claiming that it will invent a triangle that doesn’t have three sides. Currently, within the private sector of health care, we have a large number of private insurance companies vying for the business of their customers. They ration health care on the basis of evidence-based medical necessity. The Obama health plan, the details of which are still being worked out, will also ration health care. The alternative to that is an accelerated escalation of aggregate health care costs. But the single-payer system to which Obama’s plan will lead will have no competitor and no pressing financial incentive to please its customers. No competitor for the single payer means no alternative for the patient. We can reasonably expect that a single-payer system of rationing will be largely implicit rather than explicit, and governed as much by cost and political considerations as by medical evidence. Such a system would likely combine the fiscal responsibility of the Postal Service, the customer friendliness of the Bureau of Motor Vehicles, and the smooth efficiency of the Immigration and Naturalization Service.

Social Security and the Ponzi Scheme

Commenter JA recently offered that “anyone who compares Social Security (SS) to Bernie Madoff shouldn’t be taken seriously.” Now Bernie Madoff is the latest in a list of various enterprises employing a Ponzi scheme for raising money. The comparison to Mr Madoff is not to suggest that the motives behind the SS program is the same as Mr Madoff’s, but that the SS program has a number of features which classify it as very similar to a classic Ponzi scheme. This BW article is instructive.

Superficially, these critics have a point, and there is a parallel between Social Security and a Ponzi scheme. But on a fundamental level, they are very wrong, and it’s worth explaining why.First, the parallel. Social Security taxes current workers to pay Social Security benefits for current retirees. In other words, the new entrants into the Social Security system, the young workers, pay off the previous entrants, the older workers. And despite the fact you have a Social Security “account”, there is no necessary link between what you paid into the system in taxes, and what you receive.

That’s very similar to the structure of a Ponzi scheme, where new investors pay off the original investors. As long as enough new ‘victims’ are brought into the scheme, it keeps growing and growing. But when the new investors runs out, the Ponzi collapses. Analogously, the slowdown in population growth puts pressure on Social Security finances.

But there is one enormous difference between Social Security and a Ponzi scheme: Technological change. Over the past century, new technologies have enabled the output of the country to grow much faster than its population. To be more precise, the U.S. population has more than tripled since the early 1900s, while the U.S. economic output has gone up by more than 20 times.

So SS is in fact a Ponzi scheme with the modification that unlike a standard Ponzi scheme which depends on infinite population size (victim pool) to continue, the SS program depends economic growth to outstrip any demographic changes.

It is curious to me why the left so aggressively defends this program. Time and time again you will find the left defending progressive taxation as opposed to a flat or other non-progressive tax scheme. Yet, here is SS a blatantly non-progressive tax, which they defend conveniently ignoring its very non-progressive nature.

The criticisms of this program from the right center on its size, a 13% tax, and its very poor rate of return (which calculation assuredly uses the wrong figure for the tax amount, i.e., 7.5%). The answer to that from the left, as far as I can see, is to try to buy into the accounting fiction that the 13% is really 7.5%. I think the reply to the second is, “meh”.

From the right’s point of view, the insistence by the left that this program aids the poor and indigent (yet provides universal coverage) seems myopic at best. Nobody on the right would insist that we fail to provide for the retired people without means, yet when one asks why this enormous tax is paying retirement benefits to those who are well off has no answer.

It seems to me a political feasible solution would be the following:

  1. No change to the coverage of currently retired people would be made. SS made promises and should therefore make good on those.
  2. Currently working people, starting “now” (now = when this change is put in place) would be informed that any new benefits (figured in the fictional accrued that comprises SS) will only be means tested in order for that payment to take place. That is to say, it would be as if you stopped working right “now” and your benefit would be frozen at that point. If you need benefits in excess of that amount, means testing will be required before you will receive money.

The effect of this is that over the next generation (or two) the tax would return to the 3% level at which it began. People will plan for their retirement independently, realizing that SS would be a safety net for retirement. When the “SS” generation expecting “a rate of return” sort of benefit payment are no longer in the working force, the SS tax could be removed from its special tax/payment status and tax and receive its funding from standard mechanisms.

I should point out this is not exactly the proposal I would really prefer, although it might be a stepping stone to the same.

Now He Tells Us

A major speech on health care reform from President Obama is coming.

WASHINGTON, Sept 3 (Reuters) – President Barack Obama will lay out specifics of his proposed healthcare overhaul when he addresses Congress on Wednesday, Vice President Joe Biden said, as the administration sought to regain control of the debate.

"Stay tuned for Wednesday," Biden said in a Thursday speech to a Washington think tank a day after it was announced that Obama would make a rare speech to the joint houses of Congress as he seeks to boost flagging support for healthcare reform.

"It’s going to be a major speech laying out in understandable, clear terms what our administration wants to happen with regard to health care and what we’re going to push for, specifically," Biden said at the Brookings Institution.

Back in July, Obama urged Congress to pass a reform bill before the August recess.  Isn’t it a bit late to be telling us — in September — what he wants?  "Understandable, clear terms" would have been helpful 2 months ago.  Today, it’s damage control.

So What Is a "Basic Human Right"?

Is health care a basic human right?  Bob Lupton, writing at the Sojourners presumptively-named blog "God’s Politics", thinks so.  I created an account so I could post a comment that includes a question I’ll now formally pose here:

Is food a basic human right?

Food you need constantly in order to live.  Health care you only need occasionally.  (For some, very occasionally.)  So which is more important for life?

Clearly, food is more important for life, and thus shouldn’t we have universal food care before we have universal health care? 

(Before you point to food stamps or the WIC program, understand that they are nowhere near as invasive to the rights of all as ObamaCare would be.  Those programs for the poor do not place any restrictions on my food purchases; on what I buy or where I buy it or what sorts of foods are sold.  ObamaCare would force me to get a certain type of policy as soon as I cross a state line or change jobs.  And there are many other restrictions on people and employers all in the name of covering those not currently covered.  None of these kinds of restrictions come from food programs for the poor.)

So the questions before you are: If you support the health care reform that the Democrats are trying to pass:

1 – Is health care a basic human right?

2 – If your answer to #1 is "Yes", then is food also a basic human right?

3 – If your answer to #2 is "Yes", then why not universal food coverage?  And what, exactly, do you consider a "basic human right" in general?

4 – If your answer to #2 is "No", why isn’t food a right if it’s more important to life?

5 – And finally, if your answer to #1 was "No", then why do you support a program that restricts everyone in order to deal with a few?  Why not a program that just covers the poor, like food stamps do in the area of food?

Your comments appreciated.  And I’ll report back if Mr. Lupton answers my question.

Socialist Agendas under attack from the people: Republicans, beware

What is happening to the Left, the One, and their cherished socialist agenda? In Townhall meeting after Townhall meeting, we see the people voicing their opinions – and their opinions are decidedly against the moves the Obama administration are attempting to make (ref. here).

How has this come about?

From Richard Fernandez,

Somebody believes the left is losing the public policy debate because they’ve got all the flagship institutions. And that’s a liability. Umair Haque, writing in a Harvard Business Publishing article, argues that the right, like al-Qaeda has mastered the art of “5th generation warfare” and is swarming all over the left. He notices that liberals have been losing the debate lately and tries to analyze why. The problem with the left, he seems to think, is that they are responding from a center, sending talking points out to a periphery, whereas the right has discovered how to attack swiftly, from a plethora of directions and in depth. The right is inside their OODA loop and Haque realizes that if this goes on long enough, the left will lose…

Is the swarm simply a swastika-laden Astroturf tactic of the Right, per Nancy Pelosi? Fernandez doesn’t buy such conspiracy theories,

The Republican leadership was in fact the first victim of the revolt from below. Only after the “5th generation” war had ripped through the comfortable assumptions of business as usual did it break out to face the left. To think that the current unrest is the creation of Sarah Palin, Rush Limbaugh or Glenn Beck would be to make a fundamental mistake. Those figures are simply its beneficiaries — and its beneficiaries by accident. If Haque really wants to fight 5G, I would like to propose a different set of rules.

  1. Listen to the people;
  2. Believe that truth is something to be discovered in dialogue with the public; that the debate is never “over” simply because the great and good say so;
  3. Consider it possible that all men, including small businessmen, plumbers, rubes from Alaska, cleaning women who say their prayers at mealtimes — are in some fundamental way the equal of graduates of Harvard Law School and know as much about life and death as Dr. Zeke Emmanuel;
  4. Accept that facts do matter because reality is authored by something larger than government, greater than the Congress and more lasting than any administration;
  5. That all efforts to “attack the base” will ultimately fail because a government by the people, of the people and for the people will never perish from the earth; and
  6. Realize that these precepts are obvious on the face of it though there are none so blind as they who will not see.

I would add that the Republican leadership had also better realize the following:

  1. The revolt from below does not necessarily indicate that the people support Republicans vs. Democrats;
  2. If they attempt to travel down the same spend-easy path, as liberals tend to rush into, they too will find themselves under harsh criticism (aka peaceful revolt);
  3. The people, by and large, are repulsed by any political party’s attempts to increase government intrusion into their lives.

On Healthcare and Christian Virtues

Fr. Jake offers a rhetorical question that nevertheless deserves a response.

I must admit to being simply astounded that anyone who claims to be a follower of Jesus Christ would be against providing health care for every child of God.

Unless you cut out the 25th chapter of Matthew, the parable of the Good Samaritan, the year of Jubilee, and various other big swaths of scripture, it is simply impossible to refute the clear message that God has a preferential bias for the poor.

This is dishonest rhetoric. It is true that the Christian eschatological hope is exactly, in part, what Fr. Jake yearns for here, that everyone have succor and find their peace. How could a Christian be against that? [An aside: The Good Samaritan? How is that about poverty? Who is poor in that story?]

Well, first of all it isn’t charity. It is charity when I give to the poor and for other causes. It is not charity when, by force, I take money from my richer neighbor and give it to the poor. The revenue gotten from taxation, while the IRS is in now way anywhere nears as corrupt or likely as rapacious as the average 1st century Middle Eastern Roman tax collector, is not my nor anyone else’s charity. If a person does not pay, like then, that person faces a jail sentence. Charity is a principal virtue for the Christian. Charity cannot be given when there is no choice.

Fr. Jake continues with some statistics, the origin which he may be unaware, which are dishonest as well. “46 million” in this country are without healthcare. If you take out the millions who can afford healthcare but, because they are young and/or foolish and choose to spend their money elsewhere, don’t avail themselves of it … are not part of the crises as is normally considered. They are not the “poor” to which the church fathers sought to aid and of which the Gospels preach. The 46 million figure also includes the illegal residents … which Fr Jake notes “are not covered under this bill.” so then why include them in the 46 millions? Why not use a more accurate figure, which has been estimated elsewhere but is far less than 46 millions. Or “It will not raise your taxes” … which (so far) remains true … unless you consider your employer’s provision of your current healthcare part of your remuneration for your services (which it is) … for that will in fact be taxed. So not raising your taxes requires a particularly narrow evaluation of what “your taxes” means.

Thus while he notes that “a lot of disinformation and likes” have been spread about HR3200. Well, well, a lot of disinformation has been spread in favor of the bill as well. The (pseudonymous) Czar of Muscovy blogging at the Gormogons, has read the entire bill … and found it lacking in many respects, i.e., has quite a number of unmet criticisms. In fact, one might offer, that there is enough here that is objectionable that one might offer that while anyone who claims to be a follower of Jesus Christ might like to see everyone receive the aid and succor for which their heart yearns … HR3200 is not in no way shape or form the sort of bill by which that goal might be reached.

Furthermore, while yes, detachment from material things is seen as a virtue. I would offer this post from long ago on healthcare in the more abstract. Or here where I wrote:

Fr. Schmemann suggests that counseling and care (of Christians by Christians) at the end of life is incorrectly motivated. What he calls for is that instead of looking at quality of life and extension of the same, the priority of a Christian as he nears the end of his days in this life should be martyrdom. Now martyrdom doesn’t mean dying spectacularly in defense of the faith. It means, essentially witness. In this context, martyrdom means that the end of your life should be sign, a witness of your life in Christ. Extension of life, for a Christian, should be the highest priority, after all there is the life to come. Your life should be an expression and witness to that fundamental ontological freedom.

Coping with H1N1 Flu

School is starting and officials are naturally worried about the potential of a H1N1 flu outbreak. The federal government has tried to provide some helpful advice. But buried in the memo is this brilliant little nugget on how to deal with a student infected with the H1N1 virus:

If close contact with others cannot be avoided, the ill student should be asked to wear a surgical mask during the period of contact. Examples of close contact include kissing, sharing eating or drinking utensils, or having any other contact between persons likely to result in exposure to respiratory droplets.

Kissing with surgical masks on? I suppose it’s too much to ask for the kids to not kiss period.

This is your tax dollars at work.

Is this responsible; saddling future generations with mountains of debt so that we don’t have to suffer ourselves?  Is this moral?

The federal government faces exploding deficits and mounting debt over the next decade, White House officials predicted Tuesday in a fiscal assessment far bleaker than what the Obama administration had estimated just a few months ago.

Figures released by the White House budget office foresee a cumulative $9 trillion deficit from 2010-2019, $2 trillion more than the administration estimated in May. Moreover, the figures show the public debt doubling by 2019 and reaching three-quarters the size of the entire national economy.

Obama economic adviser Christina Romer predicted unemployment could reach 10 percent this year and begin a slow decline next year. Still, she said, the average unemployment will be 9.3 in 2009 and 9.8 percent in 2010.

"This recession was simply worse than the information that we and other forecasters had back in last fall and early this winter," Romer said.

Fine, the recession may have been worse than your experts predicted, but you can’t possibly escape the fact that the "exploding deficits" and "mounting debt" are directly attributable to the administrations own programs, Ms. Romer.  You didn’t inherit TARP.  "Cash for Clunkers" is not a Bush administration program.  And it’s not entirely clear whether or not all this indebtedness has been a remedy.

Our current indebtedness is making foreign investors skittish, even if we do come out of the recession fairly early.  We have to pay this money back at some point, but Obama is going to foist it off on whoever’s President after him.

If this was a private citizen doing this, Dave Ramsey would be having an intervention.  Millions of (otherwise) fiscally responsible Christians would, too, but this crisis has turn some of them on their heads.

Here’s an article from March by Tony Campolo, where he says that he is repenting from being the "older brother" in the story of the Prodigal Son by complaining how irresponsible others were with (in this case) the money taken from him in taxes.

That, I am sad to say, is much the same attitude that I, along with most of my conservative evangelical brothers and sisters, have had in reaction to President Obama’s announcement that taxpayers’ dollars, earned by hard-working, responsible citizens, would be given to help those irresponsible Americans who bought houses that they couldn’t afford, while embracing a lifestyle that was beyond their means. With resentment, I, along with most of my rugged individualistic Christian friends, now sound like that older brother in Jesus’ story, and call for those irresponsible spenders to get what they deserve. With an air of self-righteous indignation, we declare, “They didn’t do what’s right and now we’re being asked to rescue them from the financial mess they’ve created for themselves!”

The gospel is about grace and we all know that grace is about us receiving from God blessings that we don’t deserve. But now, I, having received grace, find that my voice is blending in with a host of other older brother types who are reluctant to grant grace to those desperate home-buyers who were seduced into lavish living they could ill afford.

I’ve got some repenting to do. I doubt, however, that those who have wedded Christianity with laissez-faire capitalism will see things this way. I can just hear them saying, “Am I my brother’s keeper?”

I have no idea what conservative Christians you’ve been talking to, or perhaps imagining, Tony.  I am my brother’s keeper.  I am, not my government.  And my neighbor is not my brother’s keeper either, so forcing them via taxes to pay for my brother is wrong.  When God is separating the sheep from the goats, the Bible does not say He’ll ask me if I voted to make sure others paid to help the poor, He’ll ask if I fed the hungry, clothed the naked and visited the prisoner. 

Charity money I give directly, or through the organization of my choice, is grace.  Forcing me, with threat of incarceration, to pay for anything, no matter how well-intentioned, is most decidedly not charity or grace.  Campolo seems to suggest that God’s grace consists of always letting us keep the fruits of our foolishness and bad decisions. 

But in the story that he references, the younger son, while welcomed back into the family, does not get a windfall or a bailout.  He’s forgetting one of the last lines of the story, where the father says to the older brother, "’My son,’ the father said, ‘you are always with me, and everything I have is yours.’"  Yes, the younger brother came back and, instead of being a servant, was restored to his place as a member of the family.  Yes, he had a party thrown in his honor.  But, as Jesus points out through the words of the father, he no longer is entitled to half of the inheritance anymore.  That ship has sailed.  If he did have even that restored to him — if there were no consequence for his actions — the temptation later on to repeat the same mistake would be very great. 

As in that story, rewarding poor choices is not something we should have our government in the business of doing.  The father did take the younger son back into the family, which means he gets his 3 square meals a day and other benefits, and we, with our charity dollars (as opposed to forcibly taxed dollars), should be helping out those who made poor choices, or who find themselves in circumstances not of their own making.  Absolutely true, and I’d wonder where Mr. Campolo is finding Christians saying otherwise.  Certainly not in the disagreeing comments to his post.  They’re worth reading as much as the article itself.

Part of the issue with toxic mortgages is something Campolo alludes to; the government contributed to this problem by relaxing the rules on who could qualify for a mortgage.  This action was urged by liberals likely with the same mindset as now, who thought that encouraging home ownership, regardless of the ability to pay the debt, was also gracious.  Never mind the hindsight we now have, just the idea that doing anything and everything for the poor without thought for the potential consequences is irresponsible.  What we wound up with was a program to allegedly help the poor, that encouraged irresponsibility, funded by taxpayers, which, when it foundered, was then bailed out by taxpayers.  This, I believe, is the source of the frustration that Mr. Campolo is hearing; the same mindset that helped cause the problem claims that it can now solve the problem.

So the question from a Christian perspective is not whether we are our brother’s keeper, as Mr. Campolo’s straw man insists.  That’s a cheap shot at best.  I think the question is; what is the proper role of government in dispensing grace?  Jesus didn’t speak to the Roman government, nor did he speak to the local civic leaders (though He did have some strong words for the local religious leader).  He spoke to individuals.  To those outside the church, He said to repent.  That’s it.  To those inside the church, however, He had many things to say, including how to treat the poor.  Our civil government does not speak or act for the church, so it is not the job of the government to carry out the instructions to the church.  And given that churches and church-goers are, generally, the most giving and charitable people, I don’t see a rebuke of Mr. Campolo’s type is in order; simply an admonishment to continue to do more.

(This is not to say that we shouldn’t want the government to act morally in its proper spheres.  This is a question of what those spheres should be or how extensively it should penetrate those spheres that it is in.)

I grew up in the Salvation Army, and when giving out food to the poor, there was sometimes a concern that such giveaways might be scammed.  Perhaps a father comes in and gets groceries for a family of 3, and then later the mother comes in to do the same.  Is it moral to question whether or not the food program is being properly administered to avoid this?  Is it fair to the family in need who comes to our door only to be turned away because their bag of groceries went to a family that double-dipped, or didn’t really need it?  And so, wouldn’t it valid for those who give money to the Salvation Army, in hopes of helping the needy, to be frustrated if they find that the program needs more money because it was improperly handled in the first place?  And if it’s OK for the Salvation Army, how much more so for a government dealing out billions and trillions of dollars!

Don’t we expect good stewardship?  Or if the intent is good, should we ignore all the problems with a program and instead force our neighbors and future generations to pay for it?  How in the world is that moral or responsible or, if you will, sustainable?

Of Windows and Clunkers

Sunday, while riding, I had an entrepreneurial idea which I’m also almost certain occurred in abundance in the cash-for-clunkers boondogle.  This enterprise would most likely be best employed by a car dealer, perhaps one who put his bottom line ahead of his “patriotic duty.” Imagine a car dealer has a potential customer who wants to buy a new car, yet has no clunker to turn in. Here is a way in which that most of that $4.5k windfall could aid that person in buying a new car. He follows the following steps:

  1. The initial ingredient is a person (person A), willing to buy a car with the help of $3.5k cash-for-clunker money in the absence of said clunker.
  2. First, locate a person (B) who owns a qualifying “clunker”, i.e., not-so-good gas mileage and has owned it for two years.
  3. Offer that person an exchange/upgrade car + $1000, which of might be used toward the purchase of said “upgraded” clunker.
  4. That same said person is “lent” the money is then (on the books at least) used purchase the new car that the person A wants and is purchasing.
  5. Person B then “sells” car A (for a song and as agreed) to person A.
  6. Person A drives off with his car, which cost $3.5k less than negotiated originally.
  7. Person B drives off with a “new” used car. His original “clunker” is then turned to sand.
  8. The car dealer makes his commission on two cars (one used and one new).

If you don’t think this occurred with some frequency over the summer, you haven’t noticed that this is America … the land ruled by enterprising hucksters. The $1k/$3.5k split of course is illustrative and would vary in proportion as the market dictated. I’ll leave it as an exercise for the reader to defend this practice … or suggest how/why it is not possible given the current law. While it certainly violates the spirit of the law, I’m pretty sure a half-way competent lawyer could see a way to making it fit the letter of the law.

The Cash-for-clunkers hornswoggle has educated Americans in a practical lesson in Bastiat’s Parable of the Broken Window. This paradox/parable is one which the Keynsian’s would like to whitewash with talk of multipliers and other such nonsense, but the essential argument is largely untouched by that rhetoric, i.e., for the multiplier to be considered it is essential that the hidden costs implicit in their multiplier be ignored. The parable as recounted in the wiki piece above, excerpted is:

Have you ever witnessed the anger of the good shopkeeper, James Goodfellow, when his careless son happened to break a pane of glass? If you have been present at such a scene, you will most assuredly bear witness to the fact, that every one of the spectators, were there even thirty of them, by common consent apparently, offered the unfortunate owner this invariable consolation—”It is an ill wind that blows nobody good. Everybody must live, and what would become of the glaziers if panes of glass were never broken?”Now, this form of condolence contains an entire theory, which it will be well to show up in this simple case, seeing that it is precisely the same as that which, unhappily, regulates the greater part of our economical institutions.

Suppose it cost six francs to repair the damage, and you say that the accident brings six francs to the glazier’s trade—that it encourages that trade to the amount of six francs—I grant it; I have not a word to say against it; you reason justly. The glazier comes, performs his task, receives his six francs, rubs his hands, and, in his heart, blesses the careless child. All this is that which is seen.

But if, on the other hand, you come to the conclusion, as is too often the case, that it is a good thing to break windows, that it causes money to circulate, and that the encouragement of industry in general will be the result of it, you will oblige me to call out, “Stop there! Your theory is confined to that which is seen; it takes no account of that which is not seen.”

It is not seen that as our shopkeeper has spent six francs upon one thing, he cannot spend them upon another. It is not seen that if he had not had a window to replace, he would, perhaps, have replaced his old shoes, or added another book to his library. In short, he would have employed his six francs in some way, which this accident has prevented

This is the problem with the clunker. The taxed money which will be extracted from the public will not be able to be used for the various purposes to which they would have used those monies for, instead it is taken and used in this way. Very often that same said clunker gets just a few mpg more than the car it replaced, which then is scrapped … and the energy costs of production will take many years to recoup … so the net energy/pollution equation is likely for almost a decade … a loss in many if not most cases. Furthermore today, in the wake of cash-for-clunkers, we hear that the used car market is not difficult right now. The price of used cars is up and the availability of cars is down. There are few cars available … due to so many having been having silicate added to their engines. One might ask which whether the used car vs new car consumer is better or worse off financially relatively speaking in order to review who has been helped and who has been harmed by this policy.

No, you read that right.  It’s not Fox News reporting this; it’s CNN.  Even if you believe Fox News Channel is the broadcast arm of the Vast Right-Wing Conspiracy, you don’t have that excuse to hand-wave this away.

The article is here, but here’s just the main list of items:

  1. Freedom to choose what’s in your plan
  2. Freedom to be rewarded for healthy living, or pay your real costs
  3. Freedom to choose high-deductible coverage
  4. Freedom to keep your existing plan
  5. Freedom to choose your doctors

CNN details how these freedoms will be lost, in spite of protestations from Obama and his backers.  These freedoms would be lost in either of the two main bills; one in the House and one in the Senate. 

This is not just about covering folks who don’t have insurance, and millions of whom indeed don’t want insurance.  It’s about government control of the industry.

(There’s a word for that.  Can’t recall it just now.)

For Perspective: Spending

For those that continue to say, "Well, Bush spent a lot during his presidency!", a little perspective from Greg Mankiw:

Before you read this story, here is one number you need to know: the U.S. federal government’s debt is now about $7.4 trillion. That is the accumulation from past budget deficits.

With that number firmly in mind, here is a story from the Washington Post about the path of future fiscal policy:

The nation would be forced to borrow more than $9 trillion over the next decade under President Obama’s policies, the White House acknowledged late Friday, bringing their long-term budget forecast in line with independent estimates.

The projection is that in 10 years we’ll more than double the debt our country has accumulated up to this point.  Dubya and the Republicans continues to look more and more like coupon-clipping penny-pinchers compared to Obama and the Democrats. 

Or, if you prefer automobile analogies:

Healthcare Reform Hypocrisy On End Of Life

Ever since former Alaska Governor Sarah Palin made her “death panel” remarks on Facebook, President Obama has repeated as often as he can that the government in the proposed health care reform plan would not “pull the plug on granny”.

However, there is one agency responsible for healthcare of a certain segment of the population  whose actions directly contradict the President’s rhetoric (Hat tip: The Corner):

If President Obama wants to better understand why America’s discomfort with end-of-life discussions threatens to derail his health-care reform, he might begin with his own Department of Veterans Affairs (VA). He will quickly discover how government bureaucrats are greasing the slippery slope that can start with cost containment but quickly become a systematic denial of care.

Last year, bureaucrats at the VA’s National Center for Ethics in Health Care advocated a 52-page end-of-life planning document, “Your Life, Your Choices.” It was first published in 1997 and later promoted as the VA’s preferred living will throughout its vast network of hospitals and nursing homes. After the Bush White House took a look at how this document was treating complex health and moral issues, the VA suspended its use. Unfortunately, under President Obama, the VA has now resuscitated “Your Life, Your Choices.”

Who is the primary author of this workbook? Dr. Robert Pearlman, chief of ethics evaluation for the center, a man who in 1996 advocated for physician-assisted suicide in Vacco v. Quill before the U.S. Supreme Court and is known for his support of health-care rationing.

“Your Life, Your Choices” presents end-of-life choices in a way aimed at steering users toward predetermined conclusions, much like a political “push poll.” For example, a worksheet on page 21 lists various scenarios and asks users to then decide whether their own life would be “not worth living.”

The circumstances listed include ones common among the elderly and disabled: living in a nursing home, being in a wheelchair and not being able to “shake the blues.” There is a section which provocatively asks, “Have you ever heard anyone say, ‘If I’m a vegetable, pull the plug’?” There also are guilt-inducing scenarios such as “I can no longer contribute to my family’s well being,” “I am a severe financial burden on my family” and that the vet’s situation “causes severe emotional burden for my family.”

When the government can steer vulnerable individuals to conclude for themselves that life is not worth living, who needs a death panel?

This just goes to show in judging where the President stands on different aspects of health care reform that it might be better to pay more attention to his actions than his words.

The (In)Experience Factor

During the primaries and the general election campaign last year, the most potent argument made for not supporting Barack Obama was his lack of experience. He had never managed anything. He did not have any leadership experience. And with only two years in the U. S. Senate, he lacked sufficient knowledge of how the legislative process worked in Washington. In other words, he didn’t know how to lead or to govern. Although the debate over Obamacare is far from over, this fatal weakness has been laid open for all to see in the debacle over how health care reform has been handled so far.

President Obama’s first mistake was that he did not lay out a vision for what health care reform should look like. He relied on the same nonspecific campaign rhetoric that led to victory last November in the election when talking about health care reform. He had convinced the public something needed to be done about health care but he hadn’t made the case for specific steps that needed to be taken. Even his New York Times op-ed doesn’t contain a single tangible proposal on how he will achieve the reform goals he wants to meet. By contrast, Whole Foods CEO John Mackey laid out a very sensible proposal for reform in a Wall Street Journal op-ed last week. The President could have taken a cue from someone like Mr. Mackey by providing specific proposals of what to accomplish with reform legislation.

The President’s second mistake was not practicing what he preached when it came to bipartisanship. At the beginning of this debate, President Obama made it clear he wanted support for healthcare reform to be bipartisan. But instead of bringing Republicans into the process of drafting the reform legislation, he outsourced the writing of the bill to Nancy Pelosi and the House Democratic caucus. As a result, he got a bill that was chock full of goodies for their liberal supporters and controversial proposals that no one in their right mind could defend. The President then squandered precious political capital having to play defense on issues such as “death panels” and single-payer programs and flip-flops on the public option.

Now the President finds himself in a bind. His approval ratings are plummeting. The public is growing skeptical about whether they can trust him on this issue. Getting Republicans to come to the table at this point seems unlikely. Despite having supermajorities in both houses of Congress, he probably won’t be able to get anything passed anytime soon as he can’t keep his own party in line.

So what does the President do? Is it time to hit the reset button as some have suggested? You can’t erase the past but you can move forward, can’t you?

The first step for the President will be the most difficult. He has to come out and publicly admit that he has made mistakes in how he has handled health care reform. He then has to tell Congress to start over from scratch. He should bring leaders from both parties together and lay out a plan of what he wants to accomplish and be willing to listen to and incorporate ideas from both parties. There are an abundance of proposals being tossed about. The President needs to be willing to cull through them and working with Congress incorporate the best of them.

President Obama has a difficult task ahead. If health care reform is to be enacted it’s going to require him to do something he hasn’t had to do nor has the experience to do: be a leader. The chances of reform being enacted are directly tied to his ability to demonstrate leadership. If the President’s plan does fail he has no one to blame but himself.

The Canadian Health Care Plan: Looking More Like the American One

Y’know, maybe that whole profit motive thing and competition wasn’t so bad after all.

SASKATOON — The incoming president of the Canadian Medical Association says this country’s health-care system is sick and doctors need to develop a plan to cure it.

Dr. Anne Doig says patients are getting less than optimal care and she adds that physicians from across the country – who will gather in Saskatoon on Sunday for their annual meeting – recognize that changes must be made.

"We all agree that the system is imploding, we all agree that things are more precarious than perhaps Canadians realize," Doing said in an interview with The Canadian Press.

"We know that there must be change," she said. "We’re all running flat out, we’re all just trying to stay ahead of the immediate day-to-day demands."

The pitch for change at the conference is to start with a presentation from Dr. Robert Ouellet, the current president of the CMA, who has said there’s a critical need to make Canada’s health-care system patient-centred. He will present details from his fact-finding trip to Europe in January, where he met with health groups in England, Denmark, Belgium, Netherlands and France.

His thoughts on the issue are already clear. Ouellet has been saying since his return that "a health-care revolution has passed us by," that it’s possible to make wait lists disappear while maintaining universal coverage and "that competition should be welcomed, not feared."

In other words, Ouellet believes there could be a role for private health-care delivery within the public system.

We already know that American private health-care delivery already has a role. 

And this is hilarious.

He has also said the Canadian system could be restructured to focus on patients if hospitals and other health-care institutions received funding based on the patients they treat, instead of an annual, lump-sum budget. This "activity-based funding" would be an incentive to provide more efficient care, he has said.

Heh.  That "activity-based funding" is something like what we capitalists call "pricing".  We’ve found out that it’s a more efficient way to deal with supply and demand than government dictate. 

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