Monday, June 22, 2009
Tobacco control and thought control
What motivates advocates of stricter tobacco regulation is the unassailable assurance that they are not only completely right but that their opponents are a) wrong and b) evil. This invigorating certitude makes it possible to justify almost anything that punishes cigarette companies, even if it does no actual good -- or does actual harm.One of the main purposes of the new law is to reduce the number of smokers in the name of improving "public health." This is a skillful use of language to confuse rather than enlighten.
How to Cure Health Care By Milton Friedman
The high cost and inequitable character of our medical care system are the direct result of our steady movement toward reliance on third-party payment. A cure requires reversing course, reprivatizing medical care by eliminating most third-party payment, and restoring the role of insurance to providing protection against major medical catastrophes.
The ideal way to do that would be to reverse past actions: repeal the tax exemption of employer-provided medical care; terminate Medicare and Medicaid; deregulate most insurance; and restrict the role of the government, preferably state and local rather than federal, to financing care for the hard cases. However, the vested interests that have grown up around the existing system, and the tyranny of the status quo, clearly make that solution not feasible politically. Yet it is worth stating the ideal as a guide to judging whether proposed incremental changes are in the right direction.
Most changes made in the final decade of the twentieth century were in the wrong direction. Despite rejection of the sweeping socialization of medicine proposed by Hillary Clinton, subsequent incremental changes have expanded the role of government, increased regulation of medical practice, and further constrained the terms of medical insurance, thereby raising its cost and increasing the fraction of individuals who choose or are forced to go without insurance.
There is one exception, which, though minor in current scope, is pregnant of future possibilities. The Kassebaum-Kennedy Bill, passed in 1996 after lengthy and acrimonious debate, included a narrowly limited four-year pilot program authorizing medical savings accounts. A medical savings account enables individuals to deposit tax-free funds in an account usable only for medical expense, provided they have a high-deductible insurance policy that limits the maximum out-of-pocket expense. As noted earlier, it eliminates third-party payment except for major medical expenses and is thus a movement very much in the right direction. By extending tax exemption to all medical expenses whether paid by the employer or not, it eliminates the present bias in favor of employer-provided medical care. That too is a move in the right direction. However, the extension of tax exemption increases the bias in favor of medical care compared to other household expenditures. This effect would tend to increase the implicit government subsidy for medical care, which would be a step in the wrong direction.
Before this pilot project, a number of large companies (e.g., Quaker Oats, Forbes, Golden Rule Insurance Company) had offered their employees the choice of a medical savings account instead of the usual low-deductible employer-provided insurance policy. In each case, the employer purchased a high-deductible major medical insurance policy for the employee and deposited a stated sum, generally about half of the deductible, in a medical savings account for the employee. That sum could be used by the employee for medical care. Any part not used during the year was the property of the employee and had to be included in taxable income. Despite the loss of the tax exemption, this alternative has generally been very popular with both employers and employees. It has reduced costs for the employer and empowered the employee, eliminating much third-party payment.
Medical savings accounts offer one way to resolve the growing financial and administrative problems of Medicare and Medicaid. It seems clear from private experience that a program along these lines would be less expensive and bureaucratic than the current system and more satisfactory to the participants. In effect, it would be a way to voucherize Medicare and Medicaid. It would enable participants to spend their own money on themselves for routine medical care and medical problems, rather than having to go through HMOs and insurance companies, while at the same time providing protection against medical catastrophes.
A more radical reform would, first, end both Medicare and Medicaid, at least for new entrants, and replace them by providing every family in the United States with catastrophic insurance (i.e., a major medical policy with a high deductible). Second, it would end tax exemption of employer-provided medical care. And, third, it would remove the restrictive regulations that are now imposed on medical insurance—hard to justify with universal catastrophic insurance.
This reform would solve the problem of the currently medically uninsured, eliminate most of the bureaucratic structure, free medical practitioners from an increasingly heavy burden of paperwork and regulation, and lead many employers and employees to convert employer-provided medical care into a higher cash wage. The taxpayer would save money because total government costs would plummet. The family would be relieved of one of its major concerns—the possibility of being impoverished by a major medical catastrophe—and most could readily finance the remaining medical costs. Families would once again have an incentive to monitor the providers of medical care and to establish the kind of personal relations with them that were once customary. The demonstrated efficiency of private enterprise would have a chance to improve the quality and lower the cost of medical care. The first question asked of a patient entering a hospital might once again become "What’s wrong?" not "What’s your insurance?"
Wednesday, June 17, 2009
How Safeway Is Cutting Health-Care Costs
Monday, June 15, 2009
A Call to Action for all Republicans
“The great difference between Reagan’s rhetorical skills and President Obama’s rhetorical skills are that Reagan used his rhetorical skills to shine light on truths and fundamental facts. Obama uses his rhetorical skills to hide from fundamental facts.” Newt Gingrich
TRANSCRIPT - Newt's Speech to 2009 House/Senate GOP Fundraising Dinner
Sunday, June 14, 2009
Sonia Sotomayor: "Affirmative Action Baby"
VOTING IN GEORGIA
Naturally, Karen Handel is more than peeved that the DOJ has rejected her program for voter verification. So she decided to respond to the DOJ about its rejection:
The decision by the U.S. Department of Justice (DOJ) to deny preclearance of Georgia's already implemented citizenship verification process shows a shocking disregard for the integrity of our elections.
With this decision, DOJ has now barred Georgia from continuing the citizenship verification program that DOJ lawyers helped to craft. DOJ's decision also nullifies the orders of two federal courts directing Georgia to implement the procedure for the 2008 general election.
The decision comes seven months after Georgia requested an expedited review of the preclearance submission.
DOJ has thrown open the door for activist organizations such as ACORN to register non-citizens to vote in Georgia's elections, and the state has no ability to verify an applicant's citizenship status or whether the individual even exists.... Clearly, politics took priority over common sense and good public policy.
Wrong-Way Health Care 'Reform' Could Actually Increase Spending
Too Much Medicine
Employer-paid insurance premiums for family coverage, which grew 85% in inflation-adjusted terms from 1996 to $11,941 in 2006, would increase to $25,200 by 2025 and $45,000 in 2040 (all figures in "constant 2008 dollars"). The huge costs would force employers to reduce take-home pay.
The message in these dismal figures is that uncontrolled health spending is almost single-handedly determining national priorities. It's reducing discretionary income, raising taxes, widening budget deficits and squeezing other government programs.
Worse, much medical spending is wasted, the CEA report says. It doesn't improve Americans' health; some care is unneeded or ineffective.
The Obama administration's response is to talk endlessly about restraining health spending — "bending the curve" is the buzz — as if talk would suffice. The president summoned the heads of major health care trade groups representing doctors, hospitals, drug companies and medical device firms to the White House. All pledged to bend the curve.
This is mostly public relations. Does anyone believe that the American Medical Association can control the nation's 800,000 doctors or that the American Hospital Association can command the 5,700 hospitals?
The central cause of runaway health spending is clear. Hospitals and doctors are paid mostly on a fee-for-service basis and reimbursed by insurance, either private or governmental.
The open-ended payment system encourages doctors and hospitals to provide more services — and patients to expect them. It also favors new medical technologies, which are made profitable by heavy use.
Unfortunately, what pleases providers and patients individually hurts the nation as a whole.
That's the crux of the health care dilemma, and Obama hasn't confronted it. His emphasis on controlling costs is cosmetic. The main aim of health care "reform" now being fashioned in Congress is to provide insurance to most of the 46 million uncovered Americans.
Profiles in Liberal Ignorance, Hate, and Intolerance: Jon Stewart
Jon Stewart Liebowitz, you are as clueless as that president you worship. Michelle Malkin and Jonah Goldberg have had hangnails with more intelligence and class than you will ever have. You are also ignorant, hateful, and intolerant of anybody who doesn’t think exactly the same as you and your not very enlightened audience.
Just like a liberal.
Look in the mirror, Liebowitz. There you’ll discover the real extremist in this scenario.
Liberal Stupid-Ass Comment: David Letterman Jokes About Statutory Rape of Willow Palin
You’d think after the deletion of last week’s Playboy article fantasizing about raping ten conservative women, liberals in the entertainment world would get the message.
Yoy thought wrong. On Monday, David Letterman joked about fourteen year-old Willow Palin being “knocked up by NY Yankee Alex Rodriguez.” And his audience laughed.
Why? Just … why?
The righto-sphere is all over this one like flies on a rib roast. Jim Treacher at Hot Air comments:
I realize I’m just an inbred backwoods moron who can’t abide by any criticism of Sarah Palin whatsoever, but is this really the precedent we want to set for our politicians and their families?
After all, Samson Obama, one of the president’s many half-brothers, isn’t allowed in the UK because he tried to assault a 13-year-old girl. Are we to impose the Letterman standard there? Is it okay to make a joke like this?
“How come the First Family never invites Uncle Samson to visit? Because whenever Sasha and Malia sit on his knee, it takes six Secret Service guys to pry them off!”
Or how about this?
“Joe Biden keeps saying he’s not really sure where all that stimulus money is going. In other news, Ashley Biden’s coke dealer just bought Luxembourg.”
Hey, I didn’t say they were good jokes. But are they really worse than what Letterman just got away with on national TV? If so, why?
We Waged a War Against Drugs, And Drugs Won
1. We have vastly increased the proportion of our population in prisons. The United States now incarcerates people at a rate nearly five times the world average. In part, that’s because the number of people in prison for drug offenses rose roughly from 41,000 in 1980 to 500,000 today. Until the war on drugs, our incarceration rate was roughly the same as that of other countries.
2. We have empowered criminals at home and terrorists abroad. One reason many prominent economists have favored easing drug laws is that interdiction raises prices, which increases profit margins for everyone, from the Latin drug cartels to the Taliban. Former presidents of Mexico, Brazil and Colombia this year jointly implored the United States to adopt a new approach to narcotics, based on the public health campaign against tobacco.
3. We have squandered resources. Jeffrey Miron, a Harvard economist, found that federal, state and local governments spend $44.1 billion annually enforcing drug prohibitions. We spend seven times as much on drug interdiction, policing and imprisonment as on treatment.
It’s now broadly acknowledged that the drug war approach has failed.
America At A Crossroads
Today's liberalism is a perversion of Classical Liberalism, which stressed the essential goodness and rationality of man and his ability to recognize and solve problems, all of which led to systematic improvement in man's life, exemplified by the Enlightenment.
The corruption began in 1848. Karl Marx and Friedich Engels, ignoring the vast improvements the Enlightenment made possible, argued that the state should advance the welfare of individuals. Since the state has no income except by taxing those who produce, those who produce were sentenced to provide for those who did not, violating the rights of producers.
The corruption spread in the 1930s when Roosevelt signed into law the minimum wage, progressive taxation, Social Security and established Fannie Mae to provide low-interest mortgages. Classical Liberalism was dead. Liberalism and the welfare state became one: socialism.
Conservatism originally supported limited government and free enterprise. But it also held that political, social and religious institutions represented ageless wisdom and that the source of individual rights were "gifts from God," not man's nature. Rights, therefore, were considered privileges meted out in obedience to God.