Free Markets, Free People

Daily Archives: June 17, 2009

Conference on Health Care Reform

Cato Institute is hosting a conference on health care reform today that will be webcast live. It will feature the following speakers:

* Rep. Paul Ryan (R-WI)
* Rep. Michael C. Burgess, M.D. (R-TX)
* Rep. Jason Altmire (D-PA)
* Karen Davenport, Director of Health Policy, Center for American Progress
* Douglas Holtz-Eakin, Former Director, Congressional Budget Office, and Director of Domestic and Economic Policy for the McCain presidential campaign
* Tom G. Donlan, Barron’s
* Karen Tumulty, Time Magazine
* Susan Dentzer, Health Affairs
* John Reichard, Congressional Quarterly

This represents a wide range of views and promises to be much more interesting and informative than the White House/ABC News infomercial scheduled for next week. so if you’re interested in this topic at all, take some time to check it out.

U.S. Spurns Aid To California. Really?

In one of those “make sure you read the whole article” stories in the Washington Post, it begins like this:

The Obama administration has turned back pleas for emergency aid from one of the biggest remaining threats to the economy — the state of California.

Top state officials have gone hat in hand to the administration, armed with dire warnings of a fast-approaching “fiscal meltdown” caused by a budget shortfall. Concern has grown inside the White House in recent weeks as California’s fiscal condition has worsened, leading to high-level administration meetings. But federal officials are worried that a bailout of California would set off a cascade of demands from other states.

If you read no further than that, you’d probably think, “thank goodness, a modicum of sanity has returned to the federal government”. It is California’s mess and California, along with the other states, need to learn a hard but necessary fiscal lesson here.

But, while perfectly correct in your assessment, you’d be wrong to think that the present rejection is final. Buried a few paragraphs down is this:

These policymakers continue to watch the situation closely and do not rule out helping the state if its condition significantly deteriorates, a senior administration official said. But in that case, federal help would carry conditions to protect taxpayers and make similar requests for aid unattractive to other states, the official said. The official did not detail those conditions.

I’m sure he or she didn’t. This is another Geithner plan based in the premise that California is “too big to fail” – the 8th biggest economy in the world and its failure would slow down the economic recovery of the US.

Given that inclination on the part of Geithner, it would appear that nothing has been learned from the Chrysler and GM bailouts, failure and eventual bankruptcies. Granted, California’s “failure” would be quite a bit larger than those two, but haven’t we yet learned that propping up a unsustainable business or government model just doesn’t work?

While it may be painful for both California and the US, nothing changes in California unless massive cuts and changes are made in that government. And, as has been evident to even the most tuned out of constituents, the California government model has been unsustainable for over a decade.

Naturally, California wants to characterize their plight in the way that will appeal the most to the emotions:

“After June 15th, every day of inaction jeopardizes our state’s solvency and our ability to pay schools and teachers and to keep hospitals and ERs open,” Gov. Arnold Schwarzenegger (R) said Friday.

But the hard fact remains that the solvency of all those institutions are in jeopardy with or without a bailout. We’re simply talking about how long we want to extend the problem not how to solve it. Solutions mean massive cuts in government spending and resultant reductions in government services. Or said another way, California is finally going to have to live within its means or fail.

That’s not a condition the rest of the taxpayers in this country brought about, and it certainly isn’t one they should be on the hook to “bailout”. And that goes for every other state in that condition as well (see the article and its mention of how Treasury is thinking about doing something with auto suppliers in Michigan – is that the job of Treasury).

~McQ

Obama’s Foreign Policy Is Dangerous

Caroline Glick, writing in the Jerusalem Post, seems to have as good a measure of Barack Obama’s “foreign policy” as anyone I’ve read. Discussing that in the context of Israeli Prime Minister Binyamin Netanyahu’s Sunday speech (two state solution/demilitarized Palestine), Glick writes of Obama and his advisors:

To be moved by rational argument, a person has to be open to rational discourse. And what we have witnessed over the past week with the Obama administration’s reactions to both North Korea’s nuclear brinksmanship and Iran’s sham elections is that its foreign policy is not informed by rationality but by the president’s morally relative, post-modern ideology. In this anti-intellectual and anti-rational climate, Netanyahu’s speech has little chance of making a lasting impact on the White House.

If rational thought was the basis for the administration’s policymaking on foreign affairs, North Korea’s decisions to test long range ballistic missiles and nuclear weapons, send two US citizens to long prison terms and then threaten nuclear war should have made the administration reconsider its current policy of seeking the approval and assistance of North Korea’s primary enabler – China – for any action it takes against Pyongyang. As Nicholas Eberstadt suggested in Friday’s Wall Street Journal, rather than spending its time passing UN Security Council resolutions with no enforcement mechanisms against North Korea, the administration would be working with a coalition of the willing to adopt measures aimed at lowering the threat North Korea constitutes to regional, US and global security through its nuclear and ballistic missile programs and its proliferation activities.

But the administration has done no such thing. Instead of working with and strengthening its allies, it has opted to work with North Korea’s allies China and Russia to forge a Security Council resolution harsh enough to convince North Korean leader Kim Jung Il to threaten nuclear war, but too weak to degrade his capacity to wage one.

Similar to Obama’s refusal to reassess his failed policy regarding North Korea, his nonreaction to the fraudulent Iranian election shows that he will not allow facts to interfere with his slavish devotion to his ideological canon that claims that no enemy is unappeasable and no ally deserves automatic support. Far from standing with the democratic dissidents now risking their lives to oppose Iran’s sham democracy, the administration has reportedly expressed concern that the current postelection protests will destabilize the regime.

Obama has also refused to reconsider his decision to reach a grand bargain with the ayatollahs on Iran’s nuclear weapons program that would serve to legitimize their continued grip on power. His refusal to make a moral distinction between the mullahs and their democratic opponents – like his refusal in Cairo to make a moral distinction between a nuclear-armed Iran and a nuclear-armed America – makes clear that he is not interested in forging a factually accurate or morally clear-sighted foreign policy.

At that point in her article, she brings it home to Israel and points to why, given her assessment of Obama’s foreign policy tendencies, Netanyahu’s speech will not be met with the approbation it deserves, in her opinion, by the US. And she makes a good case for her point which you ought to read.

But I was far more interested in the general analysis than how it specifically applied to Israel because it is one of the best and most clearly stated I’ve seen yet. While she doesn’t say it directly, the path the administration is taking is an extremely dangerous path in dealing with these problems she points too.

Regimes like NoKo and Iran see any conciliatory or ineffective moves toward them as signs of weakness to be exploited. And NoKo is presently in the middle of doing precisely that. Iran, caught up in its own internal difficulties at the moment, will soon follow once those are resolved (and they will be resolved).

To bring it back to the Israeli question, the same sort of policy is at work there – lean on Israel to come up with the solution and make the concessions while mostly ignoring the Palestinian side of the equation. Netanyahu made a point, in his speech, to remind the Obama administration of the very first thing which must be done before any meaningful peace process can begin:

Netanyahu demonstrated that through their consistent rejection of Israel’s right to exist as the Jewish state, the Palestinians – not us – are the side responsible for the absence of Middle East peace.

Until that is done, nothing will change. Instead of trying to get Israel to accept Palestine and make concessions, this should be the focus of the US effort there. Without it, nothing changes. But, as Glick points out, that isn’t the focus of he US effort and thus, it is doomed to failure (and she assumes when it failure is finally admitted, it will be Israel that is blamed).

A very interesting and disheartening read. Like I said, I think Glick has nailed it, and, to quote someone close to the Obama administration, in a few years, unfortunately, these foreign policy chickens are going to “come home to roost”.

~McQ

What Would Rommel Say?

He certainly wouldn’t be happy, that’s for sure. Germany’s top soldier isn’t happy with his troops either. Speaking about German soldier complaints about their deployments he said:

“We cannot guarantee soldiers that they will have an all-round feel-good experience,” said General Wolfgang Schneiderhan.

“We have to tell a professional soldier who complains about his third tour of overseas duty that he has to get a grip — this is his profession,” said General Schneiderhan.

“Perhaps the problem is down to the general tendency in society to delegate responsibility to someone else, or perhaps it is the stress associated with change,” he told several hundred army officers and politicians at an official reception.

Ah, social welfare – it does change a culture, doesn’t it? And although the Germans have been a part of the ISAF in Afghanistan since 2001, other members of the NATO team have voiced dissatisfaction with their performance. That may be because they are participating (I hesitate to use the word “fighting”) with one hand tied behind their back:

German Medevac helicopters have to be back at base by dusk. German Tornado aircraft are restricted to unarmed reconnaissance. Der Spiegel magazine highlighted the case recently of a Taleban commander — nicknamed the Baghlan Bomber because of his role in blowing up a sugar factory in that northwestern province — who was cornered by the KSK German special service unit but allowed to escape; under the terms of engagement imposed by Parliament the KSK are not authorised to kill unless they are under attack.

So since they don’t fight at night (unless they’re willing to do it without medevac support), what do they do? Well, they drink. Forget cultural sensitivity, the German force of 3,500 goes through 90,000 bottles of wine and 1.7 million pints of beer a year:

The reports of soldiers’ complaints made to parliament by Reinhold Robbe, the ombudsman, paint a picture of a force that is concentrating more on its own wellbeing than on the peace-keeping mission.

[…]

The diet is heavy on carbohydrates, low on fruit and a higher proportion of soldiers are overweight than in the civilian population of Germany. Mr Robbe admitted that too many soldiers had a “passive lifestyle”. In short the soldiers are fat, they drink too much and spend a great deal of time moaning.

Truly signs of a very unhealthy force in more ways than one. And this is one of our primary NATO allies? And we wonder why Afghanistan is going so swimmingly?

~McQ