Some conversation starters:
- For new readers, the title is what the shortened “QandO” means.
- I’m constantly amused by the anecdotal evidence I gather while on the road that says if you’re over 65 you have to drive a Buick.
- One thing to keep in mind as you listen to all of these proponents tell you that government can do health care better than the private sector – The private sector is a net producer of wealth. The government sector is a net consumer of wealth. That’s why the more of the economy a government takes over the less wealth is produced and thus available within the economy.
- Interesting chart showing the level of spending in the last 12 months compared to the spending over the last 206 years in inflation adjusted dollars. How do people believe that such a massive increase in spending doesnt have to be paid for at some point?
- Is Obama’s honeymoon over? Is enough resistance building to derail some of these economy killing policies and programs now on the table?
- Former President Bush speaks out, apparently tired of a president 150 days into his own administration continuing to blame the previous administration. Appropriate or should he remain silent? And interestingly, since the left excused Jimmy Carter’s criticism of the Bush administration, does that mean they’re fine with Bush speaking out?
- Is it “IGgate”? What’s up with this story about the Americorps IG and are there more IGs with whom the administration has messed? Wasn’t this the administration which was going to “return” us to the “rule of law”? Why aren’t they following it?
Daniel Henninger gives us a little walk down memory lane to remind us of the effect of our first attempt at “health care” reform.
Back before recorded history, in 1965, Congress erected the nation’s first two monuments to health-care “reform,” Medicaid and Medicare. Medicaid was described at the time as a modest solution to the problem of health care for the poor. It would be run by the states and “monitored” by the federal government.
The reform known as Medicaid is worth our attention now because Mr. Obama is more or less demanding that the nation accept another reform, his “optional” federalized health insurance program. He suggested several times before the AMA that opposition to it will consist of “scare tactics” and “fear mongering.”
Whatever Medicaid’s merits, this federal health-care program more than any other factor has put California and New York on the brink of fiscal catastrophe. I’d even call it scary.
Anyone who has paid any attention to the health care debate know full well that Medicare and Medicaid have become huge black holes with future funding obligations in the tens of trillions of trillions of dollars.
Now, pointing that out and doubting the government’s ability to do any better is apparently “scare tactics” and “fear mongering”. Reminds me of the AGW nonsense.
After 45 years, the health-care reform called Medicaid has crushed state budgets. A study by the National Governors Association said a decade ago that because of “new requirements” imposed by federal law — meaning Congress — “Medicaid has evolved into a program whose size, cost and significance are far beyond the original vision of its creators.”
There is nothing to convince anyone that the same won’t happen with a “public option”. And although the present plan is to have such an option pay for itself through premiums, there’s nothing to stop Congress from deciding the taxpayer should pick up the tab at some point in the future.
In his speech, Mr. Obama said the cost of the Public Option won’t add to the deficit: “I’ve set down a rule for my staff, for my team — and I’ve said this to Congress — health-care reform must be, and will be, deficit-neutral in the next decade.” If we’re honest, that means tax increases are inevitable.
The thing to remember – “deficit-neutral” doesn’t necessarily mean cuts in spending. It means that revenue must equal spending and that obviously means that spending increases must have added revenue – tax increases.
There is some resistance starting to form to the “reform”. The Democrats plan on rushing this through with limited debate. If they succeed, “Son of Medicare” will wander out the government lab and bankrupt this nation much more quickly than now anticipated.
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).
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”.
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?
On the night of June 24, the media and government become one, when ABC turns its programming over to President Obama and White House officials to push government run health care — a move that has ignited an ethical firestorm!
Highlights on the agenda:
ABCNEWS anchor Charlie Gibson will deliver WORLD NEWS from the Blue Room of the White House.
The network plans a primetime special — ‘Prescription for America’ — originating from the East Room, exclude opposing voices on the debate.
If this is indeed the plan then it is simply unacceptable. It flies in the face of one of the media’s self-stated reason for existing – a watchdog, not a lapdog, over the government.
Ken McKay, Chief of Staff of the RNC has sent letter to ABC protesting this. In part he says:
Next Wednesday, ABC News will air a primetime health care reform “town hall” at the White House with President Barack Obama. In addition, according to an ABC News report, GOOD MORNING AMERICA, WORLD NEWS, NIGHTLINE and ABC’s web news “will all feature special programming on the president’s health care agenda.” This does not include the promotion, over the next 9 days, the president’s health care agenda will receive on ABC News programming.
Apparently the Republican party asked to be included and was rejected. McKay concludes:
In the absence of opposition, I am concerned this event will become a glorified infomercial to promote the Democrat agenda. If that is the case, this primetime infomercial should be paid for out of the DNC coffers. President Obama does not hold a monopoly on health care reform ideas or on free airtime. The President has stated time and time again that he wants a bipartisan debate. Therefore, the Republican Party should be included in this primetime event, or the DNC should pay for your airtime.
Obviously McKay has to be somewhat circumspect in how he says things, but I don’t. It will be an infomercial and it is a shameful example of how poorly the media, now led by ABC, has done its primary mission when it comes to this administration and this president.
ABC not only should have the DNC pay for the air time, that should be prominently and permanently displayed at the bottom of the screen throughout this planned infomercial.
And ABC – anyone who works for them should hang their head in shame. They should also avoid associating the word “journalism” with anything they do from now on as well.
UPDATE: ABC’s Kerry Smith responds. You can read the response in full here. Essentially they tell the Republicans and opponents to stuff it, that ABC and only ABC will decide who will provide the other side of the argument:
Second, ABC News prides itself on covering all sides of important issues and asking direct questions of all newsmakers — of all political persuasions — even when others have taken a more partisan approach and even in the face of criticism from extremes on both ends of the political spectrum. ABC News is looking for the most thoughtful and diverse voices on this issue. ABC News alone will select those who will be in the audience asking questions of the president. Like any programs we broadcast, ABC News will have complete editorial control. To suggest otherwise is quite unfair to both our journalists and our audience.
But, of course, ABC isn’t choosing who will be on the pro-government takeover side, are they? Instead, it is Obama’s “townhall” meeting and, one assumes, he will bring who the heck he wants to that dance and if ABC doesn’t like it, I’m sure they were told they could find something else to do that night.
How freakin’ stupid does Kerry Smith and ABC think we are out here!?
I‘m not sure what part of this Obama doesn’t understand.
On the one hand, he told doctors at the AMA convention yesterday that he was not a fan of tort reform and felt that limits on malpractice cases was a disservice to those who were truly injured.
On the other hand he made this case:
Not long ago, doctors’ decisions were rarely questioned. Now they are being blamed for a big part of the wasteful spending in the nation’s $2.5 trillion health care system. Studies have shown that as much as 30 cents of the U.S. health care dollar may be going for tests and procedures that are of little or no value to patients.
The Obama administration has cited such findings as evidence that the system is broken. Since doctors are the ones responsible for ordering tests and procedures, health care costs cannot be brought under control unless they change their decision-making habits.
Somehow, apparently, he doesn’t understand the linkage. But AP’s Ricardo Alonso-Zaldivar thinks there’s a much more basic reason than Obama not understanding the linkage:
If Obama announced support for malpractice limits, that would set trial lawyers and unions—major supporters of Democratic candidates—on the attack. Not to mention consumer groups.
Somebody has to go under the Obama bus and the apparent choice is doctors.
USA Today led its story about Obama at the AMA convention with this:
President Obama told wary doctors Monday that the nation’s health system is “a ticking time bomb for the federal budget” and said those who call his plan for a taxpayer-funded coverage option a step toward a government takeover of health care “are not telling the truth.”
Of course the one “not telling the truth” in this case is President Obama. Any “public” option funded by taxpayers is not going to be competing on the same level of the playing field as private insurance carriers. Right now there are 1,300 private choices out there. The introduction of a taxpayer funded “public” option will, according to many economic and health care experts, end up seeing employers dump private health care coverage in favor of public health care coverage and eventually see the system become a single-payer public plan.
That’s why there is such fierce opposition to this sort of an option. Even those in favor of the public option know it is a means to single payer and willingly admit it. So to have the President stand up in front of a group of doctors and tell the whopper he told yesterday is disappointing but not unexpected. He’s lowballed the cost, he’s dissembled about how it is going to be paid for and now he’s being totally disingenuous about the eventual end-state a public option would bring.
While I’ve been monitoring the upheaval in Iran, I’ve also been fascinated by the debate (and commentary) over what President Obama should or shouldn’t say about what is going on there.
Politico makes the point that the administration doesn’t want to become is part of the story. Consequently the State Department has been studying the situation, the White House was “monitoring” it and Obama had been silent. Finally, when the silence had become awkward, and other world leaders had spoken out, Obama finally commented:
“I am deeply troubled by the violence that I’ve been seeing on television,” Obama said Monday, more than two days after protests began to break out Saturday in Tehran. “I think that the democratic process, free speech, the ability of people to peacefully dissent — all of those are universal values and need to be respected, and whenever I see violence perpetrated on people who are peacefully dissenting, and whenever the American people see that, I think they are rightfully troubled.”
Not exactly the strongest statement in the world. Certainly better than silence, but not much.
You know, here’s a chance to show a little leadership, call on the ruling mullahs to do a careful investigation, invite in election monitors from around the world and have a run off so the world can see “the democratic process” actually works in Iran. Not that any of that would happen, but putting it out there as what should happen calls Iran’s hand, and puts pressure on the regime to respond.
Instead we get a statement that is more philosophical than practical, more general than specific. Something that can easily be waved away by Iran. Obama went on to say:
“I think it’s important that, moving forward, whatever investigations take place are done in a way that is not resulting in bloodshed and is not resulting in people being stifled in expressing their views,” he said.
Again, little of substance, carefully avoiding any condemnation or judgment concerning the events of the election. More talk about a process instead of the claimed irregularities.
The closest he got to actually criticizing the regime came when he talked about the desire to talk with Iran:
Obama reasserted a promise for “hard-headed diplomacy” with any Iranian regime and stressed that he wasn’t trying to dictate Iran’s internal politics, but he also expressed sympathy with the supporters of the opposition, describing “a sense on the part of people who were so hopeful and so engaged and so committed to democracy, who now feel betrayed.”
Again, very nuanced, and, at least in my opinion, very weak. Certainly I appreciate the concerns about being perceived as “trying to dictate Iran’s internal politics”, but condemning violence, election irregularities and arrests don’t really do that, do they? And while he hits around those things, he never does, in fact, condemn them. He’s “troubled” by the violence, he’s “sympathetic” with the “opposition”, and he hopes that those with dissenting views won’t be “stifled”.
Meanwhile other world leaders have spoken out more forcefully and specificially:
French Foreign Minister Bernard Kouchner called for an investigation of the election results, and German Chancellor Angela Merkel said flatly that there were “signs of irregularities” in the results.
“Expressions of solidarity with those who are defending human rights, with students and others, are important,” former Czech President Vaclav Havel said Monday.
“We respect Iranian sovereignty and want to avoid the United States being the issue inside of Iran.”
Really? The US has been the “issue inside Iran” for 30+ years. It has been the “Great Satan” since the revolution. It can’t escape being the issue even when it remains silent.
Leaders who claim to represent democracy step up when a crisis dictates a strong response. Apparently Rahm Emanuel’s “never let a good crisis go to waste” only applies domestically in the Obama administration. With the hope of engaging who ever comes out on top in Iran, Obama is content to only give tepid support to those actually engaged in trying to establish democracy in Iran.
That’s not leadership. But it isn’t unexpected either.
The Iranian government has started making moves to quell the protests that have arisen in the wake of the contested Iranian presidential election.
Move one was for Iran’s supreme leader, Ayatollah Ali Khamenei, to meet with Mir Hussein Moussavi and agree to investigate his allegations of election irregularities. This will again provide the veneer of legitimacy when the “investigation” returns its verdict of minor irregularities but none serious enough to invalidate the election within 10 days.
In the meantime, Khamenei apparently got Moussavi to help stop the protests:
The protesters gathered in Tehran despite a government ban on further demonstrations, and at one point Mr. Moussavi apparently called off the rally. As originally planned, the rally was to begin at Tehran University and reach Azadi Square several miles away.
But it apparently never got under way.
The other reason has to do with what we talked about on the podcast last night. Most of the protests are coming from university student groups. Those groups have been thoroughly infiltrated by police informers. Last night, police moved on the information gathered:
Opposition Web sites reported that security forces raided a dormitory at Tehran University and 15 people were injured. Between 150 and 200 students were arrested overnight, by these accounts, but there was no immediate confirmation of the incident from the authorities. There were also reports of official action against students in the cities of Esfahan, Shiraz and Tabriz.
In addition, leaders of the opposition were rounded up:
The opposition members arrested late Saturday and Sunday were from all the major factions opposed to Mr. Ahmadinejad and included the brother of a former president, Mohammad Khatami, opposition Web sites reported. Some were released after several hours.
Meanwhile Ahmadinejhad wrote off the opposition protests as “unimportant” and likened them to disappointed soccer fans. He also invoked the external threat:
He suggested the accusations of fraud were the work of foreign agitators and journalists.
Classic police-state tactics, with a twist. For whatever reason the Iranian mullocracy finds it desirable to have at least the veneer of democratic legitimacy associated with their authoritarian rule. So they will go through this charade of an investigation in an attempt to maintain it. But if anyone thinks that the outcome will be any different than that announced previously by the Interior Ministry, there’s a well-known bridge in Brooklyn you may be interested in buying.
After a lot of partisan “happy talk” about how the Obama administration is handling the economic crisis here, Paul Krugman goes on record saying the world is doomed to suffer Japan’s lost economic decade on a global scale.
The thing about Japan, as with all of these cases, is how much people claim to know what happened, without having any evidence. What we do know is that recessions normally end everywhere because the monetary authority cuts interest rates a lot, and that gets things moving. And what we know in Japan was that eventually they cut their interest rates to zero and that wasn’t enough. And, so far, although we made the cuts faster than they did and cut them all the way to zero, it isn’t enough. We’ve hit that lower bound the same as they did. Now, everything after that is more or less speculation.
For example, were the problems with the Japanese banks the core problem? There are some stories about credit rationing, but they are not overwhelming. Certainly, when we look at the Japanese recovery, there was not a great surge of business investment. There was primarily a surge of exports. But was fixing the banks central to export growth?
In their case, the problems had a lot to do with demography. That made them a natural capital exporter, from older savers, and also made it harder for them to have enough demand. They also had one hell of a bubble in the 1980s and the wreckage left behind by that bubble – in their case a highly leveraged corporate sector – was and is a drag on the economy.
The size of the shock to our systems is going to be much bigger than what happened to Japan in the 1990s. They never had a freefall in their economy – a period when GDP declined by 3%, 4%. It is by no means clear that the underlying differences in the structure of the situation are significant. What we do know is that the zero bound is real. We know that there are situations in which ordinary monetary policy loses all traction. And we know that we’re in one now.
Shorter Krugman, “we’re in new territory in terms of the size of the problem, but it is all eerily similar to what happened to Japan”. Unfortunately our reaction has been eerily similar to what Japan did as well.
Krugman’s bottom line:
WH: So, one way to think about it is that self-reinforcing financial crises rooted in overstretched, overborrowed companies and governments in less developed countries – like those in Argentina and Indonesia, which were amazingly destructive in the 1990s and 2000s, but localised – are now playing out in the developed world?
PK: There are really two stories. One is the Japan-type story where you run out of room to cut interest rates. And the other is the Indonesia- and Argentina-type story where everything falls apart because of balance-sheet problems.
WH: So in a nutshell your story is …
PK: The “Nipponisation” of the world economy with a bunch of “Argentinafications” playing a role in the acute crisis. But even after those are over, we have the Nipponisation of the world economy. And that’s really something.
And of course, implicit in the “Nipponisation” of the world economy is the “Nipponisation” of the US economy – something we’ve been talking about for some time. Now, add “cap and trade” and “health care reform” into the mix.
What will we be wishing we were suffering when that all kicks in, should it pass? Nipponisation, of course. As bad as lost decade or two might be, it would be heaven compared to the economic carnage those big tax and spend programs will inflict on a very weak economy here in the US. And that, of course, will ensure the “Nipponisation” of the world economy.