Category: too much government

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Accountability folly free trade & free markets general freedom moral hazard nannyism national politics & policies responsibility too much government U.S. Constitution

According to Logic

healthcare, Obamacare, Trumpcare, Affordable Care Act, pre-existing condition

“Polling on every possible option confounds all logic,” or so writes Tiana Lowe about ObamaCare and its repeal, at National Review.

“Americans overwhelmingly dislike the individual mandate and prioritize lowering the cost of health care over all other health problems in the country,” Ms. Lowe elaborates, “but a majority of Americans do not want to roll back Obamacare’s guaranteed coverage of pre-existing conditions. Just a quarter of Americans are happy with Obamacare as-is, but a mere 12 percent favor the now-dead Senate health-care bill.”

Perceptively, she notes that the situation is as bad or worse for politicians, who want to “have their cake and eat it too.” The problem with politicians is pretty obvious: they lie because they are afraid of confronting the truth.

But it seems to me, on the evidence Lowe herself provides, Americans mostly have it right.

We want to lower costs of health care. Well, that should be the first priority. It should’ve been government’s highest priority, since government caused our predicament.

A huge supermajority is unhappy with ObamaCare, which makes sense. The Affordable Care Act is not affordable. But the Senate health-care bill was worse than ObamaCare, so folks were right to oppose it.

The only real issue? Many Americans don’t seem to understand that the “pre-existing coverage” mandate necessarily raises costs. Forcing insurance companies to pay for non-eventualities* requires them to pass those extras onto customers in general. Here is where leadership would be of help.

And where it has failed, our President most of all.

Lowe criticizes Trump for not pushing the Senate’s bill more effectively. I’m thankful for that.

This is Common Sense. I’m Paul Jacob.

 

* Insurers wager against unpredictable future illness or accident, not the sucker’s bet of paying for an existing predicament.

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Accountability crime and punishment government transparency moral hazard national politics & policies property rights responsibility too much government U.S. Constitution

The Police State Is in Sessions

Jeff Sessions, AG, Attorney General, asset forfeiture, civil, Trump

U.S. Attorney General Jeff Sessions threatens to make himself one of the biggest threats to your liberty.*

President Donald Trump’s pick for Attorney General just promised to encourage police departments to seize the personal property (cars, houses, cash) of criminal suspects.

The practice is called asset forfeiture. It comes in two forms, criminal and civil. Compelling objections have been raised against civil forfeiture, which accounts for nearly 90 percent of all forfeitures. Abuse is rampant in cities, counties and states around the country, routinely used against people who have not even been charged, much less prosecuted and convicted. (Often not really even suspected of criminality.)

“No criminal should be allowed to keep the proceeds of their crime,” he told conference attendees in Minneapolis, Minnesota, on Monday.** But how can our top federal law enforcement officer ignore the profound difference between a suspect and a criminal?

No one is a criminal, before the law, until proved in court. Taking away property to make it harder for suspects to defend themselves — which is what RICO laws and other Drug War reforms intended to do — is obviously contrary to the letter of the Fourth and Fifth Amendments as well as the spirit of the U.S. Constitution.

Sessions announced he’ll soon offer a “new directive on asset forfeiture — especially for drug traffickers.” Unless he clearly indicates that it will only be used against the property of persons legally convicted of crimes, Sessions will be merely making charges of an “American Police State” stick.

America’s top lawman argues completely contrary to American principles of justice.

This is Common Sense. I’m Paul Jacob.

 

* Bigger than Eric Holder was. Bigger than Loretta Lynch.

** Sessions also went on to say that “sharing with our partners” — local police departments around the nation — is a good thing. This is, systemically, the most dangerous aspect of it all, for it encourages police departments to take things for their own benefit.

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The Worst Is the Enemy of the Cure

Obamacare, healthcare, single payer, Ryancare, Trumpcare, government, Affordable Care Act

You’ve heard the adage: “the perfect is the enemy of the good.” This can be true in politics, where opposing an ameliorating reform because it is not ideal means, sometimes, getting stuck with unmitigated policy disasters.

But there’s a corollary: in politics the worst is likely to emerge . . . when practiced compromisers succumb to fearing the best, because unpalatable, or perhaps not in line with political interests.* Trying to avoid the “best is the enemy of the good,” we’re left with the outrageously awful.

Cures worse than the disease are not uncommon. The Democrats’ “Affordable Care Act” (ObamaCare) was a clumsy, badly drafted hodgepodge designed to fix problems by doing the opposite of what made sense.

And it immediately started having ill effects, pushing up costs for many, many health-care and medical insurance consumers.

No wonder Republicans ran year after year promising repeal.

But now that Republicans have the chance for a real cure, they’re chickening out. The Senate just debuted their ObamaCare replacement. And Senator Rand Paul (R-Ky) calls it “worse than ObamaCare.”

Why worse?

Because Republican politicians are better at promising than delivering. Fearing how those who directly benefited from ObamaCare might squawk, and how badly the GOP would be treated in the media because of this, moderates went with what they know: snake oil.

Fortunately, Rand Paul’s opposition may kill the bill. If one other senator joins Dr. Paul — and Sen. Susan Collins (R-Maine) who announced her opposition for other reasons — in not voting for the monster, it will not pass.

Which is great, because going for a cure worse than the previous cure leaves us all with the worst possible outcome.

This is Common Sense. I’m Paul Jacob.

 

* Like many cures. Politicians these days no longer have the knack for the necessary “spoonful of sugar” to help medicine go down. They prefer distributing just sugar pills.

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Accountability crime and punishment folly free trade & free markets local leaders nannyism national politics & policies too much government

Messed Up State

Marijuana, sand, Nevada, crisis, emergency

After lamenting Illinois’s fiscal decline into America’s “most messed up” state yesterday, lo and behold, today we find the State of Nevada messed up, too.

On marijuana.*

Question 2, passed by voters last November, legalized recreational use of what we used to call “weed” by those 21 years of age and older. The measure also stipulated that — for the first 18 months only — alcohol distributers are solely permitted to carry marijuana from wholesalers to the new retail dispensaries.

Why provide a monopoly to alcohol distributors?

“[T]he state’s powerful alcohol lobby worried that legalized weed would cut into liquor store sales,” explained the Los Angeles Times. Proponents added that provision as “a concession.”

But still not a single alcohol distributor has been approved to distribute marijuana.

So, with pot now flying off the shelves of Nevada’s 47 marijuana dispensaries, there is no lawful way to replenish those shelves. Nevada’s DOT (which requested from the governor an official declaration of a state of emergency) warns: “this nascent industry could grind to a halt.”

That’s not just a bummer for pot smokers; it has the governor and the DOT in a state, too. “A 10% tax on sales of recreational pot — along with a 15% tax on growers — is expected to generate tens of millions of dollars a year for schools and the state’s general fund reserves,” notes the Times.

Legalize marijuana, sure. And realize that the politics of it can be more toxic than the drug itself.

This is Common Sense. I’m Paul Jacob.

 

*Is that why the slogan “A World Within, A State Apart” is now featured on the state’s website?

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Accountability folly local leaders moral hazard porkbarrel politics responsibility term limits too much government

Most Messed Up

Illinois, budget crisis, garbage, term limits, spending, responsibility, Junk Bond, Moody's

“Politicians are notorious for making promises they can’t keep,” Matt Egan reports at CNN Money. “But they really outdid themselves in Illinois — and now the state is paying for it.”

Egan dubs the state “America’s most messed-up.”*

No wonder the state has the worst outbound migration in the nation — or, as Egan puts it: “people are leaving in droves.”

On June 1, Moody’s and S&P Global Ratings downgraded the state’s credit rating to one notch above so-called “junk bond” status. “Illinois has suffered 21 downgrades from the three major ratings agencies since 2009,” the Illinois Policy Institute informs, and now has the lowest credit rating of any state, making it more expensive to borrow. Even with passage of a budget — finally, after three years of the legislature failing to fulfill its constitutional duty — the threat of a further downgrade still looms.

“After decades of historic mismanagement, Illinois is now grappling with $15 billion of unpaid bills and an unthinkable quarter-trillion dollars owed to public employees when they retire,” the article explains.

Decades of mismanagement? Perhaps the problem was inexperienced legislators, lacking the necessary expertise to do their crucial jobs, because of term limits. Except that Illinois doesn’t have term limits.

In fact, Illinois sports the nation’s longest-serving Speaker of the House in modern times. Mike Madigan has been speaker for 32 of the last 34 years, since 1983. Call him “Mr. Experience.” Madigan is recognized as the most powerful man in state government.

All that leadership experience . . . leading citizens to experience much pain and suffering.

This is Common Sense. I’m Paul Jacob.

 

* That’s in the headline. In the article, Egan explains the mess as “the inevitable result of spending more on pensions and services than the state could afford — then covering it up with reckless budget tricks.”

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Accountability folly general freedom ideological culture moral hazard nannyism national politics & policies privacy responsibility too much government

UK Death Panel

healthcare, socialism, rationing, government

Six days ago, the European Court of Human Rights sided against the parents of Charlie Gard, a severely ill boy, refusing to allow them to take their infant son to America where he could receive full (and privately funded) experimental treatment. The court ruled that removing the child from the hospital would cause him “significant harm” — and authorized the termination of life support.

Yesterday, this site quoted Ben Shapiro on the case. Shapiro sees this sad story as a grand demonstration of what is wrong with government-funded and -managed health care:

Bernie Sanders tweets about how nobody should be denied care because they can’t afford it? But that’s what happens all the time under socialized medicine — the difference being, it’s not about you not being able to afford it, it is about the government not being able to afford it.

Economists tell us that, in a world of scarcity, there will be rationing, willy nilly: either by price (according to consumer and producer choices) or else by government diktat.

Last week, the European Court of Human Rights did its due diligence to ration resources — serving as a Death Panel.

The scheduled to pull the plug on Charlie last Friday, but there’s been a last-minute reprieve — no doubt a result of pressure from America and the Vatican.

Though the doctor who testified before the court insisted that any American medical institution would have provided the treatment he offers, the best the Gards can apparently hope for, now, is to be allowed to take Charlie home to die.

Think of it as socialized medicine in action.

This is Common Sense. I’m Paul Jacob.

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Against Flexibility?

Seattle, Oregon, unintended consequences, work hours, scheduling, Fair Work Week, labor

Do politicians have any idea what they are doing?

In Oregon, Senate Bill 828 just passed the Senate and is now being favorably reviewed in the House. The law would require “large employers in specified industries to provide new employee[s] with estimated work schedule and to provide current employee with seven days’ notice of employee[’s] work schedule.”

But will the measure help employees? Really?

The notion is called the “Fair Work Week.” Pushed by Democrats, it has gained bipartisan support. The basic idea: allow time (under full force of law) for workers to manage their own schedules and personal economies.

Trouble is, in the name of making work easier to manage, it attacks flexibility.

Which is something many workers want. More than notification.

Indeed, the study commissioned by the City of Seattle for their similar regulatory scheme acknowledged that reducing flexibility is not necessarily a godsend for workers.

“A more predictable schedule,” the report noted, “is not always one that an employee would prefer. A schedule known with certainty is a cold comfort if it yields too little income to survive.”

The report went on to explain that many of the labor market’s scheduling inconveniences are themselves the result of other government regulations, such as ObamaCare.

Christian Britschgi, writing at Reason, predicts that passing the Oregon law would mean “a fairer worker week” for some, but for others, “no work week at all.”*

Meanwhile, the Seattle study noted that it was workers in small businesses who are most likely to be discomfited by last-minute scheduling changes. The Oregon law applies only to big businesses.

This is Common Sense. I’m Paul Jacob.

 

* A standard, negative consequence of most “well-intended” legislation.

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folly free trade & free markets general freedom ideological culture moral hazard nannyism national politics & policies property rights responsibility too much government

Minimally Mugged By Reality

minimum wage, business, pay, workers, fallacy, profit, Bernie Sanders

It should shock no one: forcing businesses to pay steep minimum wages ends up pushing some businesses out . . . of business. Yesterday I looked at what minimum wage laws can do to low-skilled workers. Today, consider the employers. When we make it harder to turn a profit, it becomes harder to profit. Businesses that can’t at least break even close their doors.

Many business owners are inclined to promote, politically, politicians who in turn support minimum wage hikes. Do they change their minds when mugged by reality? Alas, the trauma alone won’t convert a person to principled allegiance to free markets.

I was reminded of this fact by a story about business owners in Minneapolis who stress their Sandernista credentials.  

“I’m a bleeding-heart liberal and I’m a big Bernie Sanders supporter,” says businesswoman Jane Elias, an art store owner. “But this whole flat-out, $15, one-size-fits all is just wrong.” Another victim, restaurant owner Heather Bray, says she’s a “proud, proud progressive.” But: “The arithmetic doesn’t work. People will not continue to go to budget-conscious restaurants when they’re no longer budget-conscious.”

So . . . arbitrary minimum-wage demands don’t add up in light of the demands of running their businesses under their particular circumstances. Well, no disagreement here. But take it further, please. Keep doing the math. The bottom line is that everybody, not just you — and always, not just sometimes — has the right to make his own decisions about his own life and property.

And profit by it.

This is Common Sense. I’m Paul Jacob.

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Minimum Wage Laboratory

minimum wage, experiment, Seattle, scientific method, social engineering

Not every popular idea about government policy is good. Or bad. How do we tell the difference?

One way is evidence.

The modern administrative state was promoted heavily by social scientists who thought that piecemeal social engineering should be tested. A few even thought that the older experiment in limited-government federal republicanism gave Americans a near-ideal testing ground: “the laboratory of democracy.”*

Activists and politicians have been pushing big increases in the minimum wage in cities around the country. Seattle, Washington, has been one of those, establishing an $11.00/hour legal minimum in April of 2015, then raising that limit by two dollars in 2016. Now the results are in.

The City of Seattle commissioned a study of “the wage, employment, and hours effects of the first and second phase-in of the Seattle Minimum Wage Ordinance,” and it shows clear results:

  1. The first hike led to “modest reductions in unemployment” but scant change in over-all low-wage employment.
  2. The second hike led to a 9 percent reduction in hours worked at wages below $19/hour;
  3. a reduction of over $100 million per year in total payroll for low-wage jobs; and
  4. total payroll losses average about $125 per job per month.

Jonathan Meer, an economist teaching at Texas A&M University, calls this an “unmitigated disaster.” But he notices that a backlash against it was immediate.

To those who object: do you object to the method or the conclusions?

The only halfway plausible rationale for social engineering of this kind — top-down interventions into markets — has been “social science.” Rejecting evidence is to reject science, which is to reject . . . the minimum wage idea itself.

This is Common Sense. I’m Paul Jacob.

 

* The idea is to test policy tried in one location against its goals. What works should be mimicked, but only after the evidence is in and results accepted as good. And dropped in cases where not.

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free trade & free markets general freedom local leaders national politics & policies political challengers property rights responsibility too much government

The Real ObamaCare Opposition

Mitch McConnell, Rand Paul, ObamaCare, healthcare bill, opposition

Senate Majority Leader Mitch McConnell (R-Ky) has introduced a bill to compromise between the House’s recent Affordable Health Care Act and the current “ObamaCare” Affordable Care Act. Though there seems to be some “what the heck, go with it” enthusiasm for it on Capitol Hill, it’s not coming from Senators Rand Paul of Kentucky, Ted Cruz of Texas, Ron Johnson of Wisconsin and Mike Lee of Utah.

‘‘Currently, for a variety of reasons, we are not ready to vote for this bill,” their joint statement from yesterday reads.

Their objections? Well, they agree that there are “provisions in this draft that represent an improvement to our current healthcare system but. . .”

— and this is a big but —

“it does not appear this draft as written will accomplish the most important promise that we made to Americans: to repeal Obamacare and lower their healthcare costs.’’ Their opposition, the Boston Globe tells us, puts the TrumpCare wannabe in jeopardy.

Dr. Rand Paul is the key figure in the opposition. One of Capitol Hill’s ongoing amusements has been to watch the junior Kentucky senator repeatedly pit himself against his state’s senior member — who, the Globe tells us, now threatens “to bring the bill to a vote next week even if he doesn’t have the necessary votes.”

Pressure tactics.

Which you need to put an obviously bad bill through Congress.

Too many mainstream Republican congressmen lack the courage of their constituents’ convictions. They apparently do not really believe that a freed-up health care system and insurance market can work to the general good.

At least, not in time for the next election.

This is Common Sense. I’m Paul Jacob.

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