Free Markets, Free People

Government

An update of a couple of topics we’ve been following

First, the University of Missouri, where the SJWs, with the help of a professor who didn’t think much of the 1st Amendment and was fine with committing battery to deny it, is having a rough year.  Consequences from this bit of nonsense have really hit the bottom line:

Following a drop in students applying for housing, the University of Missouri will not be placing students in two dorms for the fall 2016 semester.

Mizzou will be closing the Respect and Excellence halls (ironic names, given the circumstances) in order to utilize dorm space “in the most efficient manner” to keep costs down.

In March, the university announced that it saw a sharp drop in admissions for the coming school year, and will have 1,500 fewer students. This will lead to a $32 million budget shortfall for the school, prompting the need to close the dorms in order to save money.

“Dear university community,” wrote interim chancellor Hank Foley in an email to the school back in March. “I am writing to you today to confirm that we project a very significant budget shortfall due to an unexpected sharp decline in first-year enrollments and student retention this coming fall. I wish I had better news.”

You see, those who are looking for a college have alternatives.  And when they see a college or university that they perceive, right or wrong, to be out of control, they are likely to take their business elsewhere.  Afterall, they’re paying the bill.  So, take note all you institutions of higher learning who tend to fold like a wet paper box when a few students protest, you too may end up closing a couple of dorms if it goes the way of Mizzou.  Fair warning.

Oh, and speaking of alternatives, New York government has decided to be “wonderful” with other people’s money and has hiked the minimum wage to $15 (over a time period).  That’s double the wage of today.  White Castle, an NY institution, isn’t taking that well since it will have a very heavy impact on their profitability (they make a 1 to 2% profit after expenses, including labor).  White Castle’s CEO says there are few alternatives.  If it was about price increases only, they’d have to increase their prices by 50%.  He’s pretty sure that’s a no-go because of competition for dining out dollars.  So, what’s he left with?

In the hyper-competitive restaurant industry, margins are slim — Richardson says that, in a typical year, White Castle hopes to achieve a net profit of between 1 and 2 percent — and if labor costs go up, many restaurants will turn toward labor-cost-cutting automation or business models that don’t require many employees. That means a lot of kids won’t get that first job. After decades of baggage check-in kiosks at airports, ATMs, and self-check-out lines at the supermarket, is it really so hard to imagine automation replacing the kid behind the counter at burger joints?

And what is lost to more young, inexperienced and thereby low-wage workers?

“We know that Millennials aren’t thinking they’ll stay at White Castle for 30 years,” Richardson says. “We view it as the start of the path. That’s true if you stay at White Castle or move on to something else. The skills you gain, you can take to the next role: learning how to apply for and get a job, learning how to show up, learning a work ethic, making a paycheck, and having fun.”

But this is about more than wages — White Castle has offered benefits and retirement programs for decades. It’s about the opportunity to work, to take the first step up the ladder of life, to get started.

“Out-of-work kids who don’t have an opportunity to work get in trouble. We want to offer kids jobs, offer kids work,” Richardson says. “There’s dignity in that.”

Somehow, though, the concept of starter jobs that pay low wages (and with the minimum wage, it’s usually more than they are worth) has become lost in all of this and we see government stepping in to make them “career” jobs for some idiotic and economically unsound reason. The result is predictable, although it will likely be hidden. You won’t see numbers because the numbers in question are those who are never hired because the wage floor is too high. And they’re going to be the “out-of-work” kids who don’t get that first chance to experience a job and what it takes to succeed.

Instead an alternative will do the work. A kiosk will greet the customer, takes his order and money and do so at a price point well below a $15 an hour worker. This isn’t rocket science and the math isn’t hard at all – $15 times 0 hours equals what?

~McQ

Venezuela gives new meaning to black (out) Friday

Indeed, not only can you not get any staples at grocery stores in the socialist paradise of Venezuela, now there’s an energy shortage.

Solution!?  Take Friday off for a couple of months (because no one uses electricity at home)!

President Nicolas Maduro said Venezuelans will have “long weekends” in an appearance on state television on Wednesday night, announcing the measure as part of a 60-day plan to fight a power crunch.

“This plan for 60 days, for two months, will allow the country to get through the most difficult period with the most risk. I call on families, on the youth, to join this plan with discipline, with conscience and extreme collaboration to confront this extreme situation,” Maduro said.

Yes, discipline, conscience and extreme collaboration because your government has so screwed the pooch that the poor thing is dying.  And it is your responsibility, dear Venezuelans, to do with out to fix their mess.

You see, they’ve flat run out of yours and other people’s money and they’re now calling on you to sacrifice even more!

And even with Venezuela and Cuba as prime examples of what Senator Sanders is pushing, there is a significant portion of the voting public that is trying to “feel the Bern”.

All the Venezuelans want is to “feel” a little electricity, oh, and milk and toilet paper, and diapers, and vegetables and meat, meat would be nice, and …

~McQ

 

Being “wonderful” with other people’s money

Or, the definition of politics today (and how Margret Thatcher defined socialism).  Today’s “wonderful” people?  Well they’re all in California.  Example one:

San Francisco on Tuesday became the first city in the United States to approve six weeks of fully paid leave for new parents — mothers and fathers, including same-sex couples, who either bear or adopt a child.

California is already one of only a few states that offer paid parental leave, with workers receiving 55 percent of their pay for six weeks, paid for by employee-financed public disability insurance. The new law in San Francisco, passed unanimously by the city’s Board of Supervisors, mandates full pay, with the 45 percent difference being paid by employers.

That’s right friends, the price of being nice means charging employers 45% more for paid family leave just for the privilege of doing business in San Francisco. Isn’t that just “wonderful”?

Well of course it is … just ask the clueless:

The United States, which guarantees up to 12 weeks of unpaid parental leave, is the only developed country that does not guarantee all new parents paid parental leave. Expectant mothers get 18 weeks of paid leave in Australia, 39 weeks in the UK, and 480 days in Sweden.

That’s right, they do it in … say it with me, Europe!  You know, the group of countries, all of which were they states in the US, would be poorer than Mississippi.  That’s what we want, isn’t it boys and girls!

It is the responsibility of others to pay for our choices! Because, you know, it’s the fault of the employer its employees get pregnant and miss work.  They should pay them for that time.  And what the heck, they can just socialize the payment by raising their prices, can’t they?

And, of course, they can socialize even more with California’s new $15 minimum wage.  Because everyone knows that employers ‘owe’ employees a “living wage”.  However, don’t forget members of California’s various governments up to their necks in giving away other people’s money – employers still have choices, and you can believe when they are feasible and affordable, they will exercise them.

When that happens, Cal Pols, you can hold a math quiz with everyone who finds themselves looking for work because employers took their business elsewhere or automated.

The question?

“What’s $15 dollars times zero hours?

Oh, wait, I forgot  … government run schools.

Never mind.

~McQ

When government interferes in a market, results are predictable

And it is neck deep in health care.  So, with the passage of ObamaCare, what is the state of medicine?

Oh, just great:

The doctor is disappearing in America.

And by most projections, it’s only going to get worse — the U.S. could lose as many as 1 million doctors by 2025, according to a Association of American Medical Colleges report.

Primary-care physicians will account for as much as one-third of that shortage, meaning the doctor you likely interact with most often is also becoming much more difficult to see.

Now, 2025 is 9 years away and, the “primary-care physician” is the star of ObamaCare because he or she is the “gatekeeper”.  However, which doctor is the worst compensated of all doctors?

Why the gatekeeper of course.  And, that’s by design.  Government design:

Starting salaries in high-paying specialties can range from $354,000 (general surgery) to $488,000 (orthopedic surgery), while primary-care fields tend to bring a sub-$200,000 starting salary, from$188,000 (pediatrics) to $199,000 (family medicine), according to a Merritt Hawkins report.

Why?

The pay disparities reflect America’s “fee for service” health-care model, which compensates providers based on the number and type of services they complete, and which inherently favors specialists.

Anyone know what entity pushes the “fee for service” model?  Can you say “Medicare”?  And yes, the insurance companies follow their lead. Hence, we have doctors in the primary care field looking at specializing because as gatekeepers, they are mostly the chief “referrer” to the other medical specialties … the ones that get paid more.

Wow … what a surprise then that the field of primary care is looking at a future shortage.  It’s another one of those “human nature” things that central planners simply can’t wrap their brains around.

Then there’s the exacerbation of the problem by ObamaCare:

The shortage is one that’s been stewing for decades but of late was exacerbated by passage of the Affordable Care Act, which increased the number of insured people and along with that the demand for doctor access, experts say.

As we’ve mentioned countless times, having insurance does not equal having care.  And as the number of gatekeepers dwindles, that problem will become even more acute.

Of course everyone knows what the answer that will be put forth by our political leaders don’t they?  Why of course more government.  You know, like the UK, where the former head of the NHS just died because the operation she needed was postponed 4 times.

~McQ

It all depends on how you define “existential threat”

Our Idiot-in-Chief recently opined that we shouldn’t take the JV team very seriously because they’re just not an existential threat.  Of course when I heard that I had to ruefully shake my head and remind myself that January of next year will be here soon. To paraphrase another yahoo that once occupied the Oval office, it depends on what the meaning of “existential” is.

If we’re doing a hand wave and pretending they’re a conventional force, then yes, they are not an “existential” threat.  They have no airforce capable of penetrating American airspace.  Certainly they have no navy.  And they haven’t any airlift capability or conventional weaponry that poses any threat to the American mainland.

But that’s not the war they’re waging is it?

Of course it isn’t.  They are, instead, waging what used to be termed “unconventional warfare”.  They’re using guerrilla tactics.  They’re targeting soft targets in far away lands.  And, according to a new study, they’ve upped the ante by plenty:

The deadly toll of terrorism around the globe has jumped nearly 800 percent in the past five years, according to an exhaustive new report that blames the alarming expansion of Islamist groups across the Middle East and Africa.

The nonprofit Investigative Project on Terrorism found that an average of nearly 30,000 people per year have been killed by terrorists since 2010, when terrorism’s death toll was 3,284. The authors of the study, which tabulated the numbers through the end of 2015, say that the exponential increase shows two troubling trends: More attacks are happening, and they tend to be deadlier than ever.

“Everyone has known that terrorist attacks have generally been increasing yearly since 9/11,” Steven Emerson, executive director of IPT, tells FoxNews.com. “But the magnitude of the increase of the attacks surprised us, especially in the past five years. Even if you look back at the annual reports issued by the most senior analysts in the top five intelligence and counter-terrorism agencies, there is not one report that predicted or forecasted that we would likely see such a massive escalation of attacks.”

The study notes that most of the attacks have been centered in the Middle East and Africa.

In addition to ISIS, groups like Boko Haram in Nigeria and Al Shabaab in Somalia have been on the rise in the last few years. The Taliban has been resurgent in Afghanistan and Pakistan, where it took responsibility for Sunday’s Easter attack on Christians in Lahore; Kurdish-affiliated groups have been blamed for bombings in Turkey; Palestinian terrorists have waged at least two uprisings in Israel and Al Qaeda has continued to be active in Syria and Yemen, among other locations.

The terror groups, particularly those in the Middle East, have new access to deadlier weapons, which they have used to destabilize governments and terrorize citizens, said Emerson.

There is a method to their madness in the regions mentioned.  Many of the countries in which they’ve waged their terror campaigns have become failed states. So using their tactics of choice, they’ve certainly shown themselves to be a proven existential threat to weaker nations.

But we’re apparently not in that category according to our Prez.  And that’s because we’re big, we’re powerful and we are arrogant.  We also apparently don’t think outside the conventional box.

Meanwhile, as we watch and assess conventionally, the enemy moves and executes unconventionally to the point that the kill rate now is 10 times what it was a mere few years ago.

Oh, and it’s moving from the Middle East and Africa … to Europe and Asia:

They also predict that Asia will see more terror attacks as countries like Thailand, The Philippines and India are perceived as soft targets, and that due to the migrant crisis, violence in Europe will increase over the next two years as extremists continue to exploit the immigration system throughout the EU.

Meanwhile, where we are having “conventional” success against them, they are shifting away from there to more amenable soft targets:

“With ISIS losing large swaths of territory as well as key commanders, its center of operational gravity definitely appears to be shifting to Europe, where it can recruit among the more than 30 million Muslims who live in Europe,” Emerson said.

“Add to this mix the fact that thousands of mosques in Europe are controlled by Salfists, Wahabists and the Muslim Brotherhood – which indoctrinate their followers,” he said, “and you have a future recipe for a massive increase in Islamist terrorist violence.”

But remember, we don’t say “Islamic extremists”.  And what we won’t say and won’t acknowledge, we can’t defeat.  And what we won’t address and thus can’t defeat remains a very real existential threat, simply because we won’t confront them in the reality in which they operate.  When a mall or an airport or mass transit station go up in flames here, perhaps Mr. No Existential Threat will finally acknowledge the truth.

…. Nah!

~McQ

The Junior Varsity strikes Brussels

I think we all knew it wasn’t a matter of “if”, but when.  “When” was today.

Today in Brussels was a demonstration by ISIS.   Unlike our President, they actually back their talk with action.  They’ve been saying for quite some time they were going to strike in a different way – a mass casualty way.  Previously, they were mostly interested in targeted actions, like Charlie Hebdo.

Today, it was about terror … pure and simple.  All the attacks took place outside of secure areas.  Easy as pie.  One in the waiting area to go through security at the airport and one in a subway station.  And it certainly doesn’t take a heck of a lot of sophisticated intelligence gathering.  The timing (rush hour at the subway station, any busy hour at the airport) is pretty easy to figure out.

It could have been anywhere a crowd was gathered.   But we’re not talking rocket science here.  Identify a target, recruit one or more fanatics, explosives … some assembly required (automatic disassembly guaranteed upon detonation).

It could have also happened anywhere.  In any country.  Of course, Brussels is the capital of the EU.  ISIS is big into symbolism when they strike outside their region.

The point of course is you can look for this to happen any number of times in any number of places in the (near) future.  As I said, this is their demonstration.

So where is “next”?  A crowded shopping mall on a sale day?  A stadium sports event?  A political rally?

More importantly what can we do about it … without giving up more liberty and freedoms?

Me, I’m all for taking my chances and playing the terrorist lottery.  I figure I’ve got about as much a chance of winning that lottery as I do the state’s numbers game, er, lottery.

However, that’s not what I expect to see.

Hide and watch.

~McQ

The age of job automation

It’s closer than you think.  Last Friday I put a bit up in Stray Voltage about Dominos testing a robot delivery service in New Zealand.  And I intimated that that sort of automation would be something that would displace labor if labor got too expensive – like $15 for the minimum wage.

Over the weekend I happened across a couple of more articles.  One featured the CEO of Hardee’s and Carl Jr.’s talking about an automated restaurant he’d seen in San Francisco.  And, sure enough, his focus was on labor savings ($15 minimum wages specifically):

The CEO of Carl’s Jr. and Hardee’s has visited the 100%-automated restaurant Eatsa — and it’s given him some ideas on how to deal with rising minimum wages.

“I want to try it,” CEO Andy Puzder told Business Insider of his automated restaurant plans. “We could have a restaurant that’s focused on all-natural products and is much like an Eatsa, where you order on a kiosk, you pay with a credit or debit card, your order pops up, and you never see a person.”

Pudzer’s interest in an employee-free restaurant, which he says would only be possible if the company found time as Hardee’s works on its northeastern expansion, has been driven by rising minimum wages across the US.

“With government driving up the cost of labour, it’s driving down the number of jobs,” he says. “You’re going to see automation not just in airports and grocery stores, but in restaurants.”

Good old government.  Helping out again, aren’t they (another way to make you more dependent on them)?  As Pudzer says:

“This is the problem with Bernie Sanders, and Hillary Clinton, and progressives who push very hard to raise the minimum wage,” says Pudzer. “Does it really help if Sally makes $3 more an hour if Suzie has no job?”

Well no, it doesn’t. And then there’s this:

“If you’re making labour more expensive, and automation less expensive — this is not rocket science,” says Pudzer.

Well no, it’s not – er, except to Bernie supporters.  But then it isn’t necessarily easy to automate everyone’s jobs either.  But it is getting easier as technology develops.

Take the restaurant that Pudzer was talking about:

“I would call it different than a restaurant,” said David Friedberg, a software entrepreneur who founded Eatsa. “It’s more like a food delivery system.”

Last week, I was in a fast-moving line and browsed on a flat-screen monitor the menu of eight quinoa bowls, each costing $6.95 (burrito bowl, bento bowl, balsamic beet). Then I approached an iPad, where I tapped in my order, customized it and paid. My name, taken from my credit card, appeared on another screen, and when my food was ready, a number showed up next to it.

It corresponded to a cubby where my food would soon appear. The cubbies are behind transparent LCD screens that go black when the food is deposited, so no signs of human involvement are visible. With two taps of my finger, my cubby opened and my food was waiting.

The quinoa — stir-fried, with arugula, parsnips and red curry — tasted quite good.

And he saw no one other than other customers.  Says the author of the article:

Whether a restaurant that employs few people is good for the economy is another question. Restaurants, especially fast-food restaurants, have traditionally been a place where low-skilled workers can find employment. Most of the workers are not paid much, though in San Francisco employers of a certain size must pay health benefits and in 2018 a minimum wage of $15.

Ironic, isn’t it?  That the prototype “food delivery system” is established in a city in which government has decided it will set the wages.  The laws of economics, or “rocket science” for the Bernie supporters, begs to differ.  There’s no real advantage in terms of labor savings, if the market sets the minimum wage, but mandated wages?  Well, then it comes down to viable alternatives – and cost-wise, this is suddenly viable.  The lower wage job holders of America say – thanks government.

And beyond the obvious, there are advantages to automating:

By not hiring people to work in the front of the restaurant, he said, they save money on payroll and real estate. (There will always be at least one person available to help people navigate the iPads and to clean up.) The kitchen is also automated, though he declined to reveal how, and the company is experimenting with how to further automate food preparation and delivery.

And, fewer to call in sick, give benefits, sick days and paid vacations too.  Make an employer’s job easier, more efficient and more enjoyable and the employer will take that route every time.

“We can sit and debate all day what the implications are for low-wage workers at restaurants, but I don’t think that’s fair. If increased productivity means cost savings get passed to consumers, consumers are going to have a lot more to spend on lots of things.”

Consumers have a choice – spend more for the same thing to help someone else have more money or spend less for the same thing and have more to spend on other things they want or need.  Wal-Mart says they will choose the latter.  So do those pesky laws of economics.

The food industry isn’t the only industry that’s going to see this though:

Automation is transforming every industry. Business owners look to substitute machines for human labor. It happened to blue-collar workers in factories and white-collar workers in banks and even law firms. With self-driving vehicles, it may happen in the taxi and trucking industries. Robots and artificial intelligence machines are expected to transform health care.

Coming sooner rather than later … possibly sooner than we think.

Nowhere is the potential for job automation so obvious as it is in the on-demand economy, where many startups have grown fat with venture capital despite poor unit-economics. Uber is spending heavily to hasten the development of driverless cars. Instacart, Postmates, and other delivery-heavy startups are unlikely to stick with humans once machines—which don’t take sick days, need bathroom breaks, or threaten to unionize—can do the same jobs.

But even if you don’t work in the on-demand economy, chances are high that you or someone you know will eventually be in the same position as Fox-Hartin. Machines already exist that can flip burgers and prepare saladslearn and perform warehouse tasks, and check guests into hotels. Companies like WorkFusion offer software that observes and eventually automates repetitive tasks done by human workers. And automation has also crept into knowledge-based professions like law and reporting. When in 2013 researchers at Oxford assessed whether 702 different occupations could be computerized, they concluded that 47% of U.S. employment was at risk of being lost to machines.

~McQ

A corrupt, inept and bullying government is cause for change

Glenn Reynolds makes the following observation while talking about Merkel’s refugee debacle (one with which I agree):

Fascism, like communism, is an opportunistic infection of the body politic, one that occurs when the institutions — and officeholders — of liberal democracy are too corrupt, or too weak, or both, to sustain business as usual. If you don’t like this outcome, don’t be weak and corrupt.

We’re headed over the same waterfall.  Over the years, we’ve seen our republic sink into political cess pit of the worst sort.  Corruption, cronyism, selling of political favors, governmental bullying, factionalism .  Add to that uncontrolled and unpunished bureaucratic over reach, government infringements on rights to a previously unheard of level, the law used as an oppressive tool instead of a protective one and uncontrolled spending resulting in massive debt.

The government, as first designed, has ceased to function that way.  The lines of separation between the 3 branches of our government have become so muddled and indistinct that that the government is almost unable to do its most basic job.   What we’ve seen is the willful ignoring of the Constitution by all three branches that has brought us to the point that those in power are now thought of more as enemies of the people than representatives.

Paul Rahe points out one of the reasons we’re where we are today:

The truth is that modern liberty depends on the power of the purse. All of the great battles in England in the 17th century between the Crown and Parliament turned ultimately on the power of the purse. The members of Parliament were elected at least in part with an eye to achieving a redress of grievances, and that redress was the price they exacted for funding the Crown. Our legislature has given up that power. Our congressional leaders claim – once the election is over – that they have no leverage. If that is really true, then elections do not matter, and a redress of grievances is now beyond the legislature’s power. Absent that capacity, however, the legislature is virtually useless. Absent that capacity, it is contemptible — and let’s face it: the President and those who work under him have showered it with contempt.

That basic contempt for the law, the demonstrated weakness when it comes to doing their job, their capitulation to special interests and greed and their ignoring the fact that the vast majority of people, on both sides of the political isle, are fed up with them and what they’ve built is where the electorate’s rage is grounded.

Tell me, does this remind you of any period or periods in history?  Certainly faint echoes at least.  Many of the dynamics at work then don’t exist now, but the fact that government wasn’t working for the majority in those two instances can also be said about what is happening here now.  Why else would a billionaire reality TV show star and a clueless socialist be as popular as they are?

It is another cry for drastic change in the way our representatives do their job and the way our government is run.  Obama was the same thing.  Now the choice is even worse.

Lump that all in with a historically and economically illiterate citizenry and it is a dangerous mix.

This is all headed for a showdown somewhere down the road, either soon or in the near future.  The question is, what will survive the event when it happens?  And is it possible that we can somehow see a leader emerge who can articulate the building rage (Sanders and Trump can do that) and actually LEAD us to reforming government to the point that it is again on the track it was originally supposed to be on?

For the first question, I have no idea.  As for the second, I have no confidence that such a person exists at this point and if he or she does, that this is at all recoverable.

~McQ

This should anger and terrify any freedom loving person

This is just something that shouldn’t be “discussed” at all, much less “discussed” by law enforcement:

During Lynch’s testimony at a Senate Judiciary Committee hearing, Sen. Sheldon Whitehouse (D-R.I.) said that he believes there are similarities between the tobacco industry denying scientific studies showing the dangers of using tobacco and companies within the fossil fuel industry denying studies allegedly showing the threat of carbon emissions…

Sheldon Whitehouse (D-R.I.)… concluded his comments by posing a question to the country’s top law enforcement officer.

“My question to you is, other than civil forfeitures and matters attendant to a criminal case, are there other circumstances in which a civil matter under the authority of the Department of Justice has been referred to the FBI?” he asked.

“This matter has been discussed. We have received information about it and have referred it to the FBI to consider whether or not it meets the criteria for which we could take action on,” Lynch answered. “I’m not aware of a civil referral at this time.”

Seriously?  As flawed as the data is and as broken as the models have been shown to be, there is certainly nothing “settled” about anything to do with “global warming” or carbon.  Nothing.

But that’s not the point is it?  This is about shutting up dissent.  And why would anyone want to shut up dissent?  Well, frankly, for the usual reasons – power and control.  You have a group of true believers (or at least those who claim to be) who have positions of power and want to use it to control how you live your life.  They’ve been looking for a way for quite some time and have finally, thanks to Al Gore and the boys, found what they believe is a fail-safe way to kite more money from taxpayers and “evil corporations” and they can’t stand to have a group out there shooting their “science” in the keister with facts.  The “electricity rates are going to jump under my plan” ideologues aren’t going to pass up this chance to cripple the fossil fuel industry and they have just the pseudo-science with which to do it if they can shut these dissenters up.

Thus a US Congressman questioning the nation’s chief law enforcement officer about whether or not that officer is discussing means and  methods of doing just that.  If every anyone deserved to be impeached and thrown out of Congress, Sen. Sheldon Whitehouse is the candidate of choice in my estimation.  And to be Number 1, you have to be pretty damn bad (we could instead settle for a little tar and feathers and running him out of town, I suppose).  As I see it, any call to quash dissent by a government official acting in his official capacity is grounds for removal – unless you’re in Communist China, perhaps.

Power and control.  That’s what this is all and it is why there is anger and frustration on both sides of the political spectrum.  People have had it with both sides.

~McQ

News you might otherwise miss

Because, you know, the current political circus has sucked all the air out of the coverage of anything else … or maybe it has distracted everyone so much they aren’t paying attention. But this story is one that is and has been inevitable since the debacle of Obamacare was passed and instituted:

Federal health officials are seeking to deny medical reimbursements to doctors and hospitals that have served patients insured by failed Obamacare health insurance co-ops, according to a Daily Caller News Foundation investigation.

Instead, the Centers for Medicare and Medicaid Services (CMS) are insisting it, not medical providers, has the first right to any remaining funds as 12 of the 24 co-ops go through the liquidation process.

A legal showdown is expected over who pays for the co-op debacle that to date has lost at least $1.4 billion in federal solvency loans. The failures have forced the cancellation of health insurance policies for at least 800,000 customers.

The confrontation now pits medical providers against CMS bureaucrats who claim the federal government should be first in line to get any leftover funds.

The government’s plan has failed, those who trusted the government to implement it properly so they’d be reimbursed have been stiffed, and who is it trying to muscle their way to the front of the line for any money available?  Why the same institution that set up this enormous scam, of course.

That’s what you get when you pass laws no one has read with policies written for and by bureaucrats and special interests, and haven’t a clue as to how any of it will work in the real world.  And no one should forget, this is all on the Democrats, who wrote it, passed it and signed it into law. Every bit of it.

And now, the institution that brought about all this failure is putting those it is supposed to serve at the back of the line for reimbursement.  Of course we’ve seen this before, haven’t we? Think GM bankruptcy and bailout.  Yeah, creditors … back of the line.

Mandy Cohen, CMS’s chief operating officer, was the first Obama administration official to assert the federal government would preempt reimbursements to local or state medical providers. She did so during a Feb. 25, 2016, House oversight subcommittee hearing on health care.

“For federal loans, there is an order of repayment,” Cohen said. “I believe we are at the very top of all of the creditors.”

Well, except for a little thing like the Supreme Court saying the opposite:

Cohen’s testimony also puts CMS on the record as ignoring a 1993 U.S. Supreme Court verdict that held the federal government is next-to-last in line for payment in insurance cases and policyholders are first. Cohen claimed the Justice Department will enforce the CMS policy.

Same bullying government, same guy (and party) in charge.  And of course the Justice Department will enforce “CMS policy” even if “CMS policy” is contrary to the law, because, the law is selectively enforceable under this administration, isn’t it?

~McQ