Category: moral hazard

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

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 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 education and schooling folly local leaders moral hazard

Ugly Scrutiny

Prince George’s County Public Schools, grading, education, incentives,

Prince George’s County Public Schools have increased their graduation rates faster than all other schools in Maryland. Measuring from 2013 to 2016, the graduation rate jumped from 74.1 percent to 81.4 percent.

Great! 

Well . . . a fly has stuck itself into the soothing salve of their success — what county principals called an “unfair, ugly scrutiny.” Said scrutiny came from the Old Line State’s Board of Education, which voted to pursue an investigation* into what the Washington Post described as “grade tampering” to “drive up graduation rates.”

Keith Maxwell, the county schools’ CEO, says he welcomes the investigation. 

Dozens of whistleblowers have reportedly come forward. Several spoke with the Post, anonymously, for fear of retaliation: 

  • “We knew that it wasn’t real,” said a teacher at a high graduation rate school. “It’s just common knowledge that they push kids through who shouldn’t be pushed through.”
  • “I’m not averse to helping a student pass,” one educator explained. “But when people are pressuring you to do it, when it happens behind your back, that’s when it’s problematic.”
  • “For a child not to come to class — maybe been in class three days in a whole quarter — and you’re going to change their grade?” questioned another teacher. “It’s not right. If they don’t come to school, and they don’t do the work, they deserve to fail.”

She added, “It doesn’t help them.”

Which is the point: the students are being cheated. If graduation doesn’t mean anything, then . . . their diplomas don’t mean anything.

This is Common Sense. I’m Paul Jacob.

 

*The investigation had been requested by Governor Larry Hogan.

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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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