Questions and Observations

Free Markets, Free People

Questions And Observations

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?

~McQ

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Health Care “Reform”: A Little History Is Always Useful

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.

~McQ

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Hate To Say “I Told You So”

President Obama’s tapdancing attempt to avoid taking a stand on Iran has come to naught and made him look weak:

The Iranian government, meanwhile, accused the U.S. for the first time of interfering in the postelection dispute. Iran protested to the Swiss ambassador, who represents U.S. affairs in Iran because the two nations have no diplomatic ties. White House spokesman Robert Gibbs said that President Barack Obama stands by his defense of principles such as the right of people to demonstrate.

Even had Barack Obama maintained his silence, this was almost a given. Totalitarianism 101 – seek an external enemy to blame your problems on before you crack down hard internally (although the split in Qom among the mullahs is interesting and adds a new dimension to the story).

And I disagree with the talking heads that calling for free and fair elections is “meddling in the internal affairs of another state” such as Moorhead Kennedy was blathering on about on CNN this morning. That’s not meddling nor is it an attack on a state’s sovereignty – its a call for a state to actually do what they’re claiming they’re doing.

~McQ

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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.

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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

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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

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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

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Obama Media

While it comes at no real surprise given how they behaved during the presidential campaign, the MSM has finally decided to go all in with its support for the President. Next Wednesday night, June 24, ABC News will host a program about health care reform from inside the White House, but only one side will be presented — i.e. Obama’s. The Chief of Staff for the RNC is not happy about this decision and sent the following letter to David Westin, the President of ABC News:

Dear Mr. Westin:

As the national debate on health care reform intensifies, I am deeply concerned and disappointed with ABC’s astonishing decision to exclude opposing voices on this critical issue on June 24, 2009. 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.

Today, the Republican National Committee requested an opportunity to add our Party’s views to those of the President’s to ensure that all sides of the health care reform debate are presented. Our request was rejected. I believe that the President should have the ability to speak directly to the America people. However, I find it outrageous that ABC would prohibit our Party’s opposing thoughts and ideas from this national debate, which affects millions of ABC viewers.

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.

Respectfully,
Ken McKay
Republican National Committee
Chief of Staff

This comes on the heels of a Politico report about how Obama has been “wooing” the New York Times (as if it needed wooing), and further evidences a disturbing level of acquiescence to the White House. It’s one thing to have a broadcast from inside the White House, although it does strike an appearance of impropriety, but its another thing altogether to so blatantly snub an opposing views when the production is supposed to be one of news reporting. Presenting the view of those in power without question or examination, and refusing to allow any other voice, is pretty much the textbook definition of propaganda.

Since there is sure to be an uproar over this in the blogosphere, however, I’m wondering whether ABC News will back down and either allow some token opposition voice, bring on a known opponent of the President’s plan to raise some issues, or allow some questions of the President from actual reporters (Jake Tapper does still work for ABC News, doesn’t he?). Either way, its awfully pathetic that the MSM can’t seem to figure out how to get it right the first place. They are so blinded by their fascination with all things Obama, apparently, that any semblance of actual news reporting has gone out the window, and is being replaced with unabashed cheerleading for The One.

UPDATE: Oops! I didn’t realize that Bruce was writing on the same topic until after I posted. See his take below as well.

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ABC: Absolutely Shameful (update)

Per Drudge:

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!?

~McQ

[HT: Neo]

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Obama’s Visit With The AMA

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.

~McQ

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