With the Senate now beginning debate on a healthcare bill, it is time to step back and really think about where America could end up. The bills – and ideas – that are prevalent in Congress are devoid of commonsense. Under the current system of thinking, any bill, such as the current one on the Senate floor will be disastrous.
No one disagrees with the fact that American healthcare is in desperate need of reform. However, the current proposals do not offer good solutions. They attempt to patch a broken system without understanding what is not working. Like a charlatan doctor peddling a homemade cough syrup, they offer the wrong medicine.
The essential problem with America’s healthcare system is cost. Some may frame it in terms of accessibility – too many people do not have health insurance. However, accessibility is, in essence, an issue of cost. People that want, but do not have, insurance are precluded due to prohibitive prices. However, the present top-down approaches advocated by Congress do not address the fundamental cost issues. Instead, they attempt to make healthcare “more-affordable” by redistributing costs between different parties - whether taxpayers, the young, insurance companies, the poor, etc.
Not only is this a divisive and politically-charged (as we all know) approach, but it ultimately will fail to make substantial, lasting change. For instance, if insurance companies are simply forced to ignore pre-existing conditions, they will need to find ways to pay for these more expensive patients. This means either increasing premiums for everyone or lowering services across the board. In essence the current Congressional proposals create a zero-sum game, with clearly defined winners and losers.
What needs to be done is to develop a solid system of proposals that counter the inanity in Congress. America needs a reform that fixes the system and benefits all. The fundamentals of any successful reform rely on the mechanisms of the free market to create a cost efficient system. As Soviet Russia has shown us, centrally planned economies end in dismal failures. Regulatory bodies that determine maximum prices, public-options, individual mandates, and outrageous restrictions on private enterprise will not solve the problem, but exacerbate it.
Over the next few articles I will try to outline a few points that may serve as a rough skeleton for some detailed reform. In particular, (1) greater competition needs to be created between insurance companies by ending the employer based system, (2) medical costs need to be driven downward through tort reform, digitization of records, and realigning incentives, and (3) new financial instruments should be established to cover emergency room visits of the uninsured.
Ultimately, healthcare is a financial not a health-related issue. Insurance is one tool to make healthcare affordable. However, it is not the only, nor always the best way, to pay for healthcare costs. The desirability of health insurance is, and should be, an individual’s decision, based on relative risk and one’s financial situation. By failing to acknowledge and address these issues, Congress is suppressing true reform that could have a lasting impact on America’s future. The government should serve as an impartial referee, not a troublesome participant, in the realm of healthcare.
The discussion continues with Part II: A More Competitive Market.
Showing posts with label Congress. Show all posts
Showing posts with label Congress. Show all posts
Tuesday, December 1, 2009
Friday, September 18, 2009
A Cracked Nut: ACORN's Implosion
In a recent series of sting-operation videos, ACORN, the community organizer association affiliated with President Obama, was exposed for being corrupt and aiding people in committing illegal acts. The videos, posted on Andrew Breitbart’s BigGovernment.com, show a young couple, posing as a prostitute and pimp, get advice from ACORN workers on how to avoid paying taxes, run a prostitution ring, engage underage girls in prostitution, smuggle illegal immigrants into the country, and other heinous crimes.
ACORN has been forced to respond, naming a self-appointed ‘independent’ auditor to review the organization. It is doubtful that this auditor will uncover anything truly independent. However, the damage has seemingly already been done as Congress voted to cancel the copious funds that were earmarked for the organization.
ACORN’s actions are shameful, yet unsurprising. The left-leaning group, which has strong ties, to the Obama administration, has been continually been connected with controversy and corruption. The scariest part is that the tentacles of ACORN and its sister organizations run deep into the administration. Obama’s choice of allies and advisors is becoming increasingly damnable as more corruption is revealed.
ACORN’s sleaze, the resignation of Obama advisor Van Jones , and other Obama disasters, raise the question of the President’s competency in choosing his associates. He is either grossly inept at vetting his connections or is ideologically committed to their atrocious worldviews. Either way, it is a scary fact that these people are so tied into the leadership of our country.
This has given Republicans much fodder to lash out at Obama and has resonated strongly with many Americans. Obama’s popularity is in a steady decline, falling at an extremely fast rate. In fact, as The Economist points out, if Obama’s popularity continues its descent he will fall below the 50% approval rate faster than any post-War President except Bill Clinton and Gerald Ford.
This trend was somewhat predictable. As more controversies in Obama’s inner circle come to light, it is clear that America did not really understand the relatively unknown candidate when he was running for the presidency. Whether it was implicit bias in the media or simply anti-Bushism, Obama was given a free pass that is coming back to haunt America. As has been argued here before Obama was not elected on his own merits, but on a rejection of the prior eight-years. America, having duped itself, is regretting this mistake as the administration’s ideologies and associations are becoming clearer. Hopefully, we can avoid some of the damage still to come.
ACORN has been forced to respond, naming a self-appointed ‘independent’ auditor to review the organization. It is doubtful that this auditor will uncover anything truly independent. However, the damage has seemingly already been done as Congress voted to cancel the copious funds that were earmarked for the organization.
ACORN’s actions are shameful, yet unsurprising. The left-leaning group, which has strong ties, to the Obama administration, has been continually been connected with controversy and corruption. The scariest part is that the tentacles of ACORN and its sister organizations run deep into the administration. Obama’s choice of allies and advisors is becoming increasingly damnable as more corruption is revealed.
ACORN’s sleaze, the resignation of Obama advisor Van Jones , and other Obama disasters, raise the question of the President’s competency in choosing his associates. He is either grossly inept at vetting his connections or is ideologically committed to their atrocious worldviews. Either way, it is a scary fact that these people are so tied into the leadership of our country.
This has given Republicans much fodder to lash out at Obama and has resonated strongly with many Americans. Obama’s popularity is in a steady decline, falling at an extremely fast rate. In fact, as The Economist points out, if Obama’s popularity continues its descent he will fall below the 50% approval rate faster than any post-War President except Bill Clinton and Gerald Ford.
This trend was somewhat predictable. As more controversies in Obama’s inner circle come to light, it is clear that America did not really understand the relatively unknown candidate when he was running for the presidency. Whether it was implicit bias in the media or simply anti-Bushism, Obama was given a free pass that is coming back to haunt America. As has been argued here before Obama was not elected on his own merits, but on a rejection of the prior eight-years. America, having duped itself, is regretting this mistake as the administration’s ideologies and associations are becoming clearer. Hopefully, we can avoid some of the damage still to come.
Tuesday, September 15, 2009
"You Lie" Is Joe Wilson a Racist?
In an overwhelmingly partisan vote, the House of Representatives expressed its disapproval of Representative Joe Wilson’s outburst during President Obama’s speech last week. Wilson’s interruption of the President was certainly inappropriate, prompting the Representative to properly apologize to Obama. Some Democrats, however, are increasing the poisonous atmosphere in Congress through their insistence on drawing race into the picture.
Before Congress’s vote, Hank Johnson, D-Ga absurdly stated that without action taken against Wilson people would be wearing “white hoods and white uniforms again and riding through the countryside" – a direct reference to the Ku Klux Klan. Likewise, the head of the Congressional Black Caucus, Barbara Lee, D-Ca, said that we “can't sweep race under the rug — racism is still a factor and must be addressed.” While not directly in response to the Wilson affair, former President Jimmy Carter echoed this sentiment. He stated that “I think an overwhelming portion of the intensely demonstrated animosity toward President Barack Obama is based on the fact that he is a black man."
The Left’s fixation with bringing race into the discussion is disingenuous and reprehensible. There is absolutely no reason for anyone to suggest that Rep. Wilson’s or any American’s disagreement with Obama’s and the Democrat’s policies have anything to do with race. Wilson’s outburst, while unacceptable in that forum, was the result of well-thought out policy differences, not a deep-seeded racism. The fact that this was the first time a President has been shouted down while speaking on the floor of the House is a testament to the divisiveness and partisanship that has grown under the current administration. The fact that a Representative, who by all accounts is respected and respectful, broke such rules of decorum only speaks to the fact that the administration’s policies are threatening to a vast swath of America.
The Democrat’s endeavors to paint this as racism, is simply an attempt to stifle discussion. By trying to divert the discussion, they are seeking to avoid real discourse over the issues. While Wilson should have addressed his concerns in another forum, Democrats are willing to pull out every stop to silence him. President Carter’s blanket statement is even more dangerous. To label any disagreement with the President as racism takes America down a perilous path. Under such a Carteresque world-view dissent is not allowed and the opposition is silenced.
The only issue of race in any of this is in the heads of these Democratic statesmen. Whether they truly believe these disagreements with the administration are race-based or whether they are simply using race as a political tool to silence Republicans, the Democrats are sorely misguided. It is time for the Democrats to mature past the siren’s call of race as their fall-back explanation for every disagreement with Republicans. Americans care far more about good policy than the skin-color of the individual proposing it. If Democrats are so naïve to think otherwise, they are hurting themselves and America.
Before Congress’s vote, Hank Johnson, D-Ga absurdly stated that without action taken against Wilson people would be wearing “white hoods and white uniforms again and riding through the countryside" – a direct reference to the Ku Klux Klan. Likewise, the head of the Congressional Black Caucus, Barbara Lee, D-Ca, said that we “can't sweep race under the rug — racism is still a factor and must be addressed.” While not directly in response to the Wilson affair, former President Jimmy Carter echoed this sentiment. He stated that “I think an overwhelming portion of the intensely demonstrated animosity toward President Barack Obama is based on the fact that he is a black man."
The Left’s fixation with bringing race into the discussion is disingenuous and reprehensible. There is absolutely no reason for anyone to suggest that Rep. Wilson’s or any American’s disagreement with Obama’s and the Democrat’s policies have anything to do with race. Wilson’s outburst, while unacceptable in that forum, was the result of well-thought out policy differences, not a deep-seeded racism. The fact that this was the first time a President has been shouted down while speaking on the floor of the House is a testament to the divisiveness and partisanship that has grown under the current administration. The fact that a Representative, who by all accounts is respected and respectful, broke such rules of decorum only speaks to the fact that the administration’s policies are threatening to a vast swath of America.
The Democrat’s endeavors to paint this as racism, is simply an attempt to stifle discussion. By trying to divert the discussion, they are seeking to avoid real discourse over the issues. While Wilson should have addressed his concerns in another forum, Democrats are willing to pull out every stop to silence him. President Carter’s blanket statement is even more dangerous. To label any disagreement with the President as racism takes America down a perilous path. Under such a Carteresque world-view dissent is not allowed and the opposition is silenced.
The only issue of race in any of this is in the heads of these Democratic statesmen. Whether they truly believe these disagreements with the administration are race-based or whether they are simply using race as a political tool to silence Republicans, the Democrats are sorely misguided. It is time for the Democrats to mature past the siren’s call of race as their fall-back explanation for every disagreement with Republicans. Americans care far more about good policy than the skin-color of the individual proposing it. If Democrats are so naïve to think otherwise, they are hurting themselves and America.
Tuesday, August 4, 2009
What Are They Thinking?!! – Socializing and Destroying Our Economy
On Friday, the House voted to give the government sweeping control over pay in the private sector. This plan continues the radical-leftist Congress’s assault on free enterprise and the capitalist system. Essentially the bill, H.R. 3269, prevents large companies from rewarding their employees in ways that may cause excessive risk taking. What excessive risks are is undefined.
Such a power grab greatly hampers the abilities of companies to structure their businesses according to what works best. While companies certainly have, and will continue, to make mistakes, there is no reason to assume that the government can make better decisions. In fact, there is much reason to believe that government interest does not coincide with what is best for a company. Governments have a whole host of groups that they must pander to; including, constituents, lobbyists, party members, and others.
Government meddling in corporate business strategy can only lead to bad situations where politics trump good business sense, sapping initiative and dampening the industrious and innovative American spirit. In such instances, the government role is inefficient, impractical, and downright foolish. It brings politics into a realm where they don’t belong. The very motivation for greater government involvement is completely imbued with political motivations. Such bills are precisely motivated by the populist rage that the Congressional Democrats are nurturing and harnessing, rather than any objective logic. Destroying the fictitious ‘fat-cat Wall Street’ apparently wins votes, even if it hurts the very Americans who cry for blood.
The damage that this bill could cause is foreshadowed by the government’s meddling in the relationship between Citigroup and one of its prime breadwinners, Andrew Hall. Hall, who runs a division of Citigroup called Phibro, which often earns a large chunk of revenue for the company, is admittedly a well compensated man (he owns a castle). He is now demanding a contractually committed bonus of $100 million. Citigroup, which received a lot of taxpayer cash through the bailout, is under immense pressure to renege.
The tensions in this are obvious. However, whether he is right or wrong, Hall, and his massive amounts of revenue, will leave Citigroup if his contract is not upheld. Citigroup is naturally in a tough position– stuck between the same populist anger that is pressuring the government and a large capital outlay that may reap future rewards. This tough decision is only complicated by the presence of government decision makers who, motivated by reasons not necessarily in line with Citigroup’s financial success, can severely influence what happens.
Proponents argue that government intervention is necessary to mitigate excessive risk taking on Wall Street. However, the excessive risk taking that this bill attempts to eradicate, is the very same excessive risk taking that Congress has helped build into the system. The financial bailout and other such programs encourage risky behavior. After all, if one knows one will not have to suffer the consequences, one will be more likely to take risks. When the suffered consequences do not match the risk level it encourages individuals to have a surplus of hazard. The bailout encourages just that.
Congress is in the process of establishing such a backwards system. If a system cushions the consequences of missteps, it simultaneously encourages missteps to be taken. Ultimately, people and institutions need to be able to feel the pinch in order to learn to avoid behavior in the future. The only alternative to eradicate risk is to have one party dictate every action– compensation, production, consumption. This is a failed political system often called communism.
Such a power grab greatly hampers the abilities of companies to structure their businesses according to what works best. While companies certainly have, and will continue, to make mistakes, there is no reason to assume that the government can make better decisions. In fact, there is much reason to believe that government interest does not coincide with what is best for a company. Governments have a whole host of groups that they must pander to; including, constituents, lobbyists, party members, and others.
Government meddling in corporate business strategy can only lead to bad situations where politics trump good business sense, sapping initiative and dampening the industrious and innovative American spirit. In such instances, the government role is inefficient, impractical, and downright foolish. It brings politics into a realm where they don’t belong. The very motivation for greater government involvement is completely imbued with political motivations. Such bills are precisely motivated by the populist rage that the Congressional Democrats are nurturing and harnessing, rather than any objective logic. Destroying the fictitious ‘fat-cat Wall Street’ apparently wins votes, even if it hurts the very Americans who cry for blood.
The damage that this bill could cause is foreshadowed by the government’s meddling in the relationship between Citigroup and one of its prime breadwinners, Andrew Hall. Hall, who runs a division of Citigroup called Phibro, which often earns a large chunk of revenue for the company, is admittedly a well compensated man (he owns a castle). He is now demanding a contractually committed bonus of $100 million. Citigroup, which received a lot of taxpayer cash through the bailout, is under immense pressure to renege.
The tensions in this are obvious. However, whether he is right or wrong, Hall, and his massive amounts of revenue, will leave Citigroup if his contract is not upheld. Citigroup is naturally in a tough position– stuck between the same populist anger that is pressuring the government and a large capital outlay that may reap future rewards. This tough decision is only complicated by the presence of government decision makers who, motivated by reasons not necessarily in line with Citigroup’s financial success, can severely influence what happens.
Proponents argue that government intervention is necessary to mitigate excessive risk taking on Wall Street. However, the excessive risk taking that this bill attempts to eradicate, is the very same excessive risk taking that Congress has helped build into the system. The financial bailout and other such programs encourage risky behavior. After all, if one knows one will not have to suffer the consequences, one will be more likely to take risks. When the suffered consequences do not match the risk level it encourages individuals to have a surplus of hazard. The bailout encourages just that.
Congress is in the process of establishing such a backwards system. If a system cushions the consequences of missteps, it simultaneously encourages missteps to be taken. Ultimately, people and institutions need to be able to feel the pinch in order to learn to avoid behavior in the future. The only alternative to eradicate risk is to have one party dictate every action– compensation, production, consumption. This is a failed political system often called communism.
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