Free Markets, Free People

Daily Archives: August 25, 2009

Darn Right-Wing Militias

Via The Jawa Report, a little “domestic terrorism” update. First St. Louis:

A federal search warrant obtained by the Post-Dispatch connects a former Democratic campaign strategist to a Clayton bombing last year that seriously injured an attorney.

About two months after the October bombing, federal law enforcement officials searched the downtown loft of Milton H. “Skip” Ohlsen III, seeking “evidence related to the planning, execution, and/or cover-up of the bombing in Clayton, Missouri, on October 16, 2008.” Ohlsen in recent weeks has been at the center of a swirling political scandal that is threatening the political careers of at least two Missouri Democratic legislators.

Then, Austin, Texas:

A Texas woman faces trial this month in Austin on charges she threatened to kill a government informant who infiltrated an Austin-based group that planned to bomb the Republican National Convention in St. Paul, Minn., last fall…

…Crowder and McKay were part of a group of activists that had gone to the Twin Cities to take part in street demonstrations. The FBI had infiltrated the group with Darby. Crowder and McKay built eight of the gasoline firebombs but didn’t use them, a fact law enforcement officials credited to Darby.

Members of the Austin protest community heaped scorn on Darby, saying he had betrayed longtime friends and colleagues.

I’m headed over to the Southern Poverty Law Center’s website to see what they have to say about these right-wingers and their hate crimes …. oh, wait …

~McQ

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Orszag Called Newly Adjusted White House Budget “Unsustainable” In March

Back in March of this year, when both the White House and the CBO put out their budget deficit numbers, we were told that the CBO simply had it wrong and were much too pessimistic about the 10 year budget that the Obama administration was touting.

The head of the White House’s Office of Management and Budget, Peter Orszag, had this to say at the time:

White House budget chief Peter Orszag said that CBO’s long-range economic projections are more pessimistic than those of the White House, private economists and the Federal Reserve and that he remained confident that Obama’s budget, if enacted, would produce smaller deficits.

Even so, Orszag acknowledged that if the CBO projections prove accurate, Obama’s budget would produce deficits that could not be sustained.

“Deficits in the, let’s say, 5 percent of GDP range would lead to rising debt-to-GDP ratios that would ultimately not be sustainable,” Orszag told reporters.

Deficits so big put upward pressure on interest rates as the government offers more attractive interest rates to attract borrowers.

“I think deficits of 5 percent (of GDP) are unsupportable,” said economist Mark Zandi, chief economist at Moody’s Economy.com. “It will lead to higher interest rates to the point where it will force policymakers to make changes.”

Of course, today the White House’s OMB acknowledged that, in fact, the CBO’s estimates in March were indeed correct. OMB has adjusted its deficit estimate up 2 trillion dollars to over 9 trillion. That means that in 2019, the deficit will be 6% of GDP – or to quote Peter Orszag, “unsustainable“.

What does “unsustainable” mean to you, and how does one address such a problem?

Well, it certainly isn’t addressed with increased spending, new entitlements and more debt, is it?

Is there any wonder a sizable majority thinks the country is still on the wrong track despite a change of administrations?

In case the politicians still don’t get it (and after this morning’s awesomely dumb move by Republicans, they need to be reminded as well) — It’s the spending, stupid!

~McQ

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Central Planning And Health Care

One of the little discussed but probable consequences of making health care both universal and less rewarding monetarily for doctors is an inevitable shortage of doctors. The UK has had such a problem for years. They recently raised compensation for doctors by 50% in hopes of attracting more (the average salary is now 108,000 pounds). They also hoped that the raise in pay would see more British doctors working the odd shifts and weekends.

Apparently the opposite has happened:

The NHS is having to rely on doctors from overseas because a lucrative new contract for British GPs has resulted in more than 90 per cent opting out of responsibility for their patients in the evenings and at weekends.

Consequently, one-third of the primary care trusts (PCT) are flying in foreign doctors (from Poland, Germany, Hungary, Italy, etc) to treat patients “off hours” and on weekends. That obviously drives up costs, and the exhausted doctors have been killing patients, unfortunately.

So there’s a lot of hand wringing going on about the use of foreign doctors. But for anyone who has studied markets, what has happened there is a natural reaction to centrally imposed salaries. If the average is now 108,000 pounds and it is a 50% raise, you can figure that doctors previously were making less than a good auto mechanic. Why spend the time and effort to become a doctor for such mediocre compensation?

Probably more interesting is the fact that the same doctors now making better money for their type of work, have opted not to participate more in “off hours” and “weekends” figuring they’re still not being compensated enough to do that. Call it a passive but effective way of protesting their wages.

The NHS feels that its increase in wages will help solve the problem of the internal doctor shortage:

A spokesman for the Department of Health said: ‘The NHS has always used professionals trained abroad because until recently we did not train enough for our own needs.

The phrase “until recently” implies that now they are. And it stands to reason the new wage will attract more to the profession than the old wage did. However, will they be “enough”? And will they too “opt out” of “off hours” and weekend care? If so, the problem remains – central planning will decide their work is worth “X”, the doctors will decide it is worth “Y” and until they get “Y”, they will continue to opt out.

That of course means the importation of foreign doctors will continue to grow as it has in recent years. The money that could be going to British doctors will go to the foreign ones. And British doctors will continue to refuse work on off hours and weekends while foreign doctors kill their patients.

A lovely system, wouldn’t you say?

~McQ

Republicans: Dumber Than A Box Of Rocks

The Republican Party is hopeless.

Given a meta-issue from heaven (smaller government, less intrusive government, less taxation, less spending) and a building mandate as exemplified by the anger at townhall meetings, they manage to fumble it completely.

Instead of actually addressing the problem (see meta-issue) they pander and play politics. Instead of talking about market solutions and less government, they decide to establish government health care as a civil right.

The Republican Party issued a new salvo in the health debate Monday with a “seniors’ health care bill of rights” that opposed any moves to trim Medicare spending or limit end-of-life care to seniors.

[...]

Intended as a political shot at President Barack Obama, the Republican National Committee manifesto marks a remarkable turnaround for a party that had once fought to trim the health program for the elderly and disabled, which last year cost taxpayers over $330 billion.

What Republicans would commit us to by making this guarantee is debt your grandchildren, and perhaps their grandchildren will have to pay to the tune of 58 trillion in unfunded liabilities. In other words, the promised benefits for Medicare are underfunded by 58 trillion in the outlying years and the Republicans have just guaranteed them. With what is anyone’s guess, but certainly not with “less taxes and less spending”.

The other thing they do, apparently unwittingly, is make health care a “civil right” (how else do you interpret something the Republicans would call a “seniors health care bill of rights?”).

That is all the opening the left needs to, at some point, throw it back in the Republican’s lap and ask why such a right exists for one group of citizens but not another. The “fairness” police will have a field day with this and the Republicans will have no answer.

If this move is indicative of the level of intelligence and leadership within the Republican party, I say go hire any random person off the street to run the party. They could not do any worse. They have a political opponent in the middle of self-destructing, and they make a dumb move like this.

Amazing.

As they say, you can’t fix stupid.

~McQ

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