I think this is one of those “gift horses” one would really want to look in the mouth. It has a whole lot of government, but very little in the way of health care improvement. I can’t wait to see the hokey name they dream up for the bill. Whatever it is, the opposite will most likely be true. And, as noted in other posts, it will leave a significant portion of the uninsured, well, uninsured, even though that was supposely the entire reason for all of this nonsense.
The final product in the House, reflecting many of President Barack Obama’s priorities, includes new requirements for employers to offer insurance to their workers or face penalties, fines on Americans who don’t purchase coverage and subsidies to help lower-income people do so. Insurance companies would face new prohibitions against charging much more to older people or denying coverage to people with health conditions.
The price tag, topping $1 trillion over 10 years, would be paid for by taxing high-income people and cutting some $500 billion in payments to Medicare providers. The legislation would extend health coverage to around 95 percent of Americans.
What do you get for your trillion dollars? Higher debt, fines and penalties galore, cuts in Medicare, etc. etc.
Of course this is the House version, and the Senate version would include prison time for those who “choose” not to participate and a hefty tax on those “cadillac” plans which dare to offer those paying for them better benefits than average.
Both, of course, will offer a form of the “public option”, aka, government health insurance, with the House bill making it a mandatory part of the bill while the Senate version has an opt-out clause for the states (but, of course, no “opt-out” clause for the individual).
I’m sure the House vote will be very close because a number of blue-dogs are going to be seeking cover in a “no” vote. So Pelosi will be closely counting noses before a vote is taken. In the Senate, it is more problematic for the Democrats. The usually dependable Olympia Snowe (dependable for the Dems) has said she won’t vote for a bill with a public option and that has been seconded by Joe Lieberman (who, as usual, is being called everything but a child of God by the left). Mary Landreau and Ben Nelson are also not in favor of such a provision. So Reid is short of the 60 votes he needs to end debate.
That leaves the Senate with the nuclear option – reconciliation. But that too has its perils and pitfalls for them. Bottom line though is your future is being determined by a bunch of people who have no interest or desire in anything but gathering power for themselves. They’re about to vote in a costly and bureaucratic nightmare which will, by all indications, make health care worse for the vast majority of Americans.
And, unfortunately, there isn’t much that can stop them.
It is a dream all central planners have – the ability to change the laws of economics to the extent that the planner can decide on what a “fair price” might be and market dynamics will adjust themselves to the price and all will be unicorns and rainbows.
Of course we know from our experience with that application in various areas that the market doesn’t adjust to price and it is never unicorns and rainbows when price controls are applied. In fact price controls consistently spawn pretty predictable market reactions and, depending on how vast the price controls are, have the ability to bring down whole economies, or at least put them into a shambles. The latest price control paradise is Zimbabwe where a wheelbarrow full of Zimbabwean currency may be enough to buy an egg in the morning but not in the afternoon.
I bring this up because there’s a growing call for lawmakers to consider price controls for health care insurance, as demonstrated yesterday in the LA Times.
In the drive to bring health coverage to almost every American, lawmakers have largely rejected restrictions on how much insurers can charge, sparking fears that consumers will continue to face the skyrocketing premium increases of recent years.
The legislators’ reluctance to control premium costs comes despite the fact that they intend to require virtually all Americans to get health insurance, an unprecedented mandate — long sought by insurance companies — that would mark the first time the federal government has compelled consumers to buy a single industry’s product, effectively creating a captive market.
Nancy Pelosi has articulated the price control “dream” for health insurance – “a cap on what you pay and no limit on what you get back” if I recall correctly. Of course what she doesn’t say is not even Medicare does that and it has about 43 trillion in unfunded liabilities at this point. But understand that at the bottom of Pelosi’s statement is the reality of imposing price controls – you can’t have a “cap” on what you pay without them.
Thomas Sowell touches on the real intent that sort of Pelosi-talk:
Liberals especially tend to think up all sorts of good things we want — a “living wage,” “affordable housing,” “universal health care,” and an ever-expanding wish-list of things that everyone should receive as “rights” — with little or no awareness of the economic repercussions of turning that wish list into laws.
He then provides a little primer about price control:
Prices are perhaps the most misunderstood thing in economics. Whenever prices are “too high” — whether these are prices of medicines or of gasoline or all sorts of other things — many people think the answer is for the government to force those prices down.
Prices are not just arbitrary numbers plucked out of the air or numbers dependent on whether sellers are “greedy” or not. In the competition of the marketplace, prices are signals that convey underlying realities about relative scarcities and relative costs of production.
Those underlying realities are not changed in the slightest by price controls. You might as well try to deal with someone’s fever by putting the thermometer in cold water to lower the reading.
What most who believe they can thwart the laws of economics and use price controls never seem to understand is that economic law requires the price mechanism in order to properly allocate goods. Without it, some other mechanism must take its place. Those are usually found in forms of evasion. One evasion is deterioration of quality. The old saw “you get what you pay for” is never more true than under price controls. The time allocated to a doctor visit might get shorter and shorter in order for the doctor to see enough patients to meet his and his practice’s financial needs. That could also mean he can’t afford the newest equipment or diagnostic tools. Consider what price controls would mean to a pharmaceutical company and its incentive to create new and better drugs. Or a medical implements company, etc.
Another evasion may be alternate markets – you pay a physician a yearly fee and don’t use the price controlled system in place – that has already begun in anticipation of this. Doctor’s networks are springing up all over the country. Of course with a mandatory insurance requirement, you’d still have to pay into the price controlled system. But that sort of evasion takes doctors out of the price controlled market and creates another shortage with which that market has to contend.
And, of course, there’s queuing. If the price imposed is low, the tendency for those paying is to use it more frequently. There’s no penalty for doing so. That leads to a shortage (in the case of medicine, doctors still only have 24 hours in a day and can still see only a finite number of patients during that time) of available appointments and thus it extends the time before you can see a physician.
Some would call these “unintended consequences” of price controls. But they’re certainly not unknown consequences. They’re consequences on display all over the world in systems which do, in fact, impose such price controls.
Costs don’t go away because you refuse to pay them, any more than gravity goes away if you refuse to acknowledge it. You usually pay more in different ways, through taxes as well as prices, and by deterioration in quality when political processes replace economic process.
But the lure of the free lunch goes on.
With the same disastrous results it has always had. Yet our would-be central planners seem obvious to the fact. That’s one reason government debt is at the horrendous level it is today and headed for even higher levels.
Charlie Cook, one of the most respected of the political prognosticators, continues to sound the alarm for Congressional Democrats. Since August, Cook has been telling them they’re headed for electoral disaster in the 2010 midterms if they don’t change their ways.
Most of the erosion of support has taken place among independents. Although the country still seems willing to give President Obama the benefit of the doubt, at latest for the time being, they’re not willing to extend that to Congress. The threat to the Democratic majority in the House, unsurprisingly, comes in the districts of the Blue Dogs:
I am becoming convinced, based on this and other research, that although many independent voters are disappointed in specific things that Obama has done, they still hope that he will do well and believe that he might. To be sure, red America has already given Obama the thumbs down. And blue America just wishes he would be more liberal. But it’s purple America, the independents who voted for Democrats in the 2006 midterm election by an 18-point margin, that makes the biggest difference right now. Most House Democrats live in blue America and show little awareness that their party has a problem. However, the Democrats’ majority is built on a layer of 54 seats that the party picked up in 2006 and 2008 that are largely in purple — or even red — America. Democrats ought to keep in mind that 84 of their current House members represent districts won by President Bush in 2004 or John McCain in 2008.
A whopping 48 of those Democrats — eight more than the size of their party’s majority — are from districts that voted for both Bush and McCain. That America is very different from the Democratic base in blue America, and it sees many major issues very differently.
Two things to note – as Cook notes, the number of Blue Dog districts comprise more than the Democratic majority in the House. If independents continue to desert Democrats in the numbers they have, it is not at all inconceivable that they could lose every one of those districts (all of which voted for Bush and McCain).
Secondly, the other point to understand is the leadership comes from the “blue” side of the tracks – safe blue districts – consequently they’re most likely not going to back off on their more liberal agenda (Pelosi’s claim that the health care bill will not pass the House without a “public option” being a perfect example). That could end up mortally wounding Democrats chances in those 84 districts that are traditionally red districts – enough so the Republicans regain the majority.
The political tea leaves continue to point to trouble from Democrats as well:
The 17-point advantage that Democrats enjoyed in the January Gallup Poll (when “leaners” were included) shrank to 5 points in August. Their edge on the generic congressional ballot test has vanished, according to most national polls. For three years, Democrats enjoyed high single-digit or low double-digit leads on this question — a very good indicator of which direction (and how hard) the political winds are blowing as a congressional election nears.
Of course the question is “can Democrats recover before November, 2010?”
What we are seeing is an electorate growing just as disgusted with the Democratic majority as it did with the Republican one in 2006. The mounting ethics problems of House Ways and Means Committee Chairman Charles Rangel, D-N.Y., combined with ongoing allegations about House Defense Appropriations Subcommittee Chairman John Murtha, D-Pa., and others on his panel threaten to make matters still worse for their party.
Despite Nancy Pelosi’s promises to have the “most ethical Congress ever” when Democrats were swept into the majority in Congress, she’s shown no stomach for actually taking on the tough ethical problems the House Democrats face. Cook is implying that unless they do (and they won’t), that combined with their agenda and the growing disgust among independents with both, could doom their chances of maintaining their majorities in 2010 (much less likely in the Senate, but the Democratic majority may be much less than at present by the end of election night).
Some Democrats are beginning to see the possibility of such an occurrence. Joe Biden said recently that the agenda the administration is pursuing is over if Republicans win in 2010.
We can only hope Cook is correct – mixed government would be a God send given this president.
Nancy Peolsi will be the first to tell you that the experts are wrong when they say the public option described by President Obama last night won’t work.
At a separate event, House Speaker Nancy Pelosi told reporters that half the bill “will be paid for by squeezing excesses out of the system” by finding $500 billion in reduced waste, fraud, abuse and redundancy. The rest will be paid for in pay-as-you-go funding and cuts in other spending.
“Squeeze it out of the system, and that means out of the providers and the rest as well,” she said.
She added that despite the price tag, there’s no limit on the help people will receive.
“There’s a cap on what you pay in in premiums. There’s no cap on what you receive back,” Pelosi added.
My guess, given the current state of the Nobel Prize, her prize for economics is in the bag. She’s discovered a condition where price controls work and are in perfect equilibrium with unlimited payouts thereby never leading to funding deficits.
It’s freakin’ magic!
Why? To take the heat off of them and to counter the Republican message about “government run health care”.
The message in the memo, though, won’t fit on a bumper sticker:
“Remove the insurance companies from between you and your doctor— capping what they can force you to pay in out of pocket expenses, co-pays and deductibles, and giving you the peace of mind you will be covered for the care you need, if get sick, or if you change or lose your job.”
Or, “replace the insurance companies with the government which is sure to do a much better job”.
And the brains behind this message?
House Speaker Nancy Pelosi (D-Calif.) brought out the new message in an exchange with reporters in the Capitol, when she said, “They are the villains in this.”
Ah demonization – one of Pelosi’s favorite tactics. Apparently she didn’t learn much when she did it to the CIA.
You really can’t blame her for trying to put – excuse the expression since it seems to have become cliche – lipstick on a pig, but Nancy Peolsi’s attempt to change China’s mind concerning curbing its CO2 seems to have been an abject failure.
Pelosi called them “hopeful”. That’s diplo-speak for “absolutely nothing substantial changed from the previously held position”. The fact that they even saw her would be deemed as “hopeful” but certainly not substantive.
Rep. James Sensenbrenner (R-WI) sums up the trip:
“It’s business as usual for China,” said Mr. Sensenbrenner, the ranking Republican on the House Select Committee for Energy Independence and Global Warming. “The message that I received was that China was going to do it their way regardless of what the rest of the world negotiates in Copenhagen.”
“Their way” consists of giving lip service to curbs while demanding the “rich nations” pay the freight for curbing such emissions in China (and the rest of the “emerging nations”). China refuses to jeopardize its economic growth for something it obviously believes is much less of a threat than others do. And why should they when it appears the upcoming conference plans on exempting them anyway?
We, on the other hand, seem bound and determined to try to do what would be tantamount to the task of cleaning up the ocean up by putting economy wrecking filters only on our shore line. Little or no effect. China and India share similar philosophies on this question and are emerging as the number one and two emitters on the planet. I think they’re right. The threat, if there is one, is minimal at best. Wrecking one’s economy to hopefully make a less that one degree Celsius change at some distant point in the future (maybe) seems to me to be the height of folly.
But that’s certainly where our politicians seem to be headed. And, to compound the problem, they’ve adopted a “damn the torpedoes, full speed ahead” philosophy, ignoring the 10 year cooling trend torpedo as well as the “China and India” aren’t going to play along” torpedo.
No one wants dirty air or dirty water – no one. But this hysterical reaction to what seems to be a natural earth cycle and the human hubris which claims we both effect and can change that cycle is going to put us all in the poor house unless some sanity (like in China) prevails.
In this podcast, Bruce and Dale discuss the Nancy Peolosi’s beclownment, and the state of the economy
The direct link to the podcast can be found at BlogTalkRadio, since I inadvertently failed to record a local copy of the podcast.
The intro and outro music is Vena Cava by 50 Foot Wave, and is available for free download here.
As a reminder, if you are an iTunes user, don’t forget to subscribe to the QandO podcast, Observations, through iTunes. For those of you who don’t have iTunes, you can subscribe at Podcast Alley. And, of course, for you newsreader subscriber types, our podcast RSS Feed is here. For podcasts from 2005 to 2007, they can be accessed through the RSS Archive Feed.
Wow … just that thought should make you cringe and wish both Obama and Biden a long life (or at least a “long enough life”).
Jennifer Rubin, as usual, has an excellent update on the disasterous Pelosi presser yesterday. I’ve got to tell you, watching this woman at work almost makes you pine for good old incompetent and inept Denny Hastert.
UPDATE: CIA Director Leon Panetta, in a memo to members of the CIA, implies Ms. Pelosi is being less than honest about what she knew about waterboarding:
Panetta, President Obama’s pick to run the clandestine agency and President Clinton’s former chief of staff, wrote in a memo to CIA employees Friday that “CIA officers briefed truthfully on the interrogation of Abu Zubaydah, describing ‘the enhanced techniques that had been employed,'” according to CIA records.
“We are an agency of high integrity, professionalism and dedication,” Panetta said in the memo. “Our task is to tell it like it is — even if that’s not what people always want to hear. Keep it up. Our national security depends on it.”
Kimberley Strassel has a good article in today’s WSJ about what she sees as Democrats overreaching on climate legislation.
For one, they seem to be misreading the public’s support for the radical type legislation that Nancy Pelosi and Henry Waxman favor. Since the recession has hit, people are much less concerned about the environmental impact of certain industries and much more concerned about preserving the jobs they provide.
But it is more than that – the Democratic leadership seems to be misreading the political tea-leaves as well:
To listen to Congressman Jim Matheson is something else. During opening statements, the Utah Democrat detailed 14 big problems he had with the bill, and told me later that if he hadn’t been limited to five minutes, “I might have had more.” Mr. Matheson is one of about 10 moderate committee Democrats who are less than thrilled with the Waxman climate extravaganza, and who may yet stymie one of Barack Obama’s signature issues. If so, the president can thank Democratic liberals, who are engaging in one of their first big cases of overreach.
Not that you couldn’t see this coming even last year, when Speaker Nancy Pelosi engineered her coup against former Energy chairman John Dingell. House greens had been boiling over the Michigan veteran’s cautious approach to climate-legislation. Mr. Dingell’s mistake was understanding that when it comes to energy legislation, the divides aren’t among parties, but among regions. Design a bill that socks it to all those manufacturing, oil-producing, coal-producing, coal-using states, and say goodbye to the very Democrats necessary to pass that bill.
Of course, that’s precisely what the Waxman’s of the party intend to do. As Strassel notes, Pelosi engineered the replacement of Dingell with Waxman precisely to push the more radical agenda.
And 2010 looms:
There’s Mr. Matheson, chair of the Blue Dog energy task force, who has made a political career championing energy diversity and his state’s fossil fuels, and who understands Utah is mostly reliant on coal for its electricity needs. He says he sees several ways this bill could result in a huge “income transfer” from his state to those less fossil-fuel dependent. Indiana Democrat Baron Hill has a similar problem; not only does his district rely on coal, it is home to coal miners. Rick Boucher, who represents the coal-fields of South Virginia, knows the feeling.
Or consider Texas’s Gene Green and Charles Gonzalez, or Louisiana’s Charlie Melancon, oil-patch Dems all, whose home-district refineries would be taxed from every which way by the bill. Mr. Dingell remains protective of his district’s struggling auto workers, which would be further incapacitated by the bill. Pennsylvania’s Mike Doyle won’t easily throw his home-state steel industry over a cliff.
Add in the fact that a number of these Democrats hail from districts that could just as easily be in Republicans’ hands. They aren’t eager to explain to their blue-collar constituents the costs of indulging Mrs. Pelosi’s San Francisco environmentalists. Remember 1993, when President Bill Clinton proposed an energy tax on BTUs? The House swallowed hard and passed the legislation, only to have Senate Democrats kill it; a year later, Newt Gingrich was in charge. With Senate Democrats already backing away from the Obama cap-and-trade plans, at least a few House Dems are reluctant to walk the plank.
Never mind that passage of this bill would most likely retard economic recovery for the foreseeable future, it might also begin to flip the House politically when its consequences are made clear to the public. Waxman and his allies are attempting to poltically arm-twist and bribe enough Democrats to push this through the House, but it apparently faces tough sledding in the Senate, even with a filibuster-proof majority in the offing.
How this ends up is anyone’s guess, but as strange as it sounds, the recession is our best friend in this case. Cap and trade would be disasterous now – not that it wouldn’t be even in a strong economy. And there seems to be building support on both sides to stop it. What you have to hope is that somehow it will then be delayed enough that the mix in Congress changes to the point that the Dem’s radical environmental policy ends up being DOA.
You know, when you’re in DC it seems such a calm and beautiful place, and yet, the cynical machinations of politicians continue unabated.
We now have Nancy Pelosi under fire for essentially sanctioning the “advanced interrogation techiniques” by not speaking up against them or opposing them when she was briefed about their use many years ago:
Nancy Pelosi didn’t cry foul when the Bush administration briefed her on “enhanced interrogation” of terror suspects in 2002, but her team was locked and loaded to counter hypocrisy charges when the “torture” memos were released last week.
Many Republicans obliged, led by former CIA chief Porter Goss, who is accusing Democrats like Pelosi of “amnesia” for demanding investigations in 2009 after failing to raise objections seven years ago when she first learned of the legal basis for the program.
She and her staff can be as “locked and loaded” as they wish, but the fact remains that she’s said nothing about the use of those techniques for 7 years – not a single, solitary word to anyone about opposing them on any grounds.
So the use of these techniques wasn’t something which was going on in a dark corner out of the view or knowledge of Congressional leadership. Democrats have tried to sell that as the “conventional wisdom” – a fascist and authoritarian president making decisions that violate human rights behind closed doors and without the knowledge of the enlightened Dems who would surely have stopped it if they had only known.
But they did know – and said nothing. In the realm of Washington politics that is the same as giving something sanction.
More importantly, Democrats would like for you to believe that these things took place due to an out-of-control executive branch. However, and as usual, this all took place because both Republicans and Democrats in Congress allowed it to take place. When you have the information necessary to stop something you supposedly oppose and do nothing, you become as complicit as anyone.
So as I said in the beginning, Pelosi’s staff as “locked and cocked” as they wish, and they can spin it until they puke, but the fact remains she can’t plead ignorance and she certainly can’t say she did or said anything in opposition, and that that speaks louder than anything her spin machine can gin up in her defense.
Whether or not you agree with the use of the techniques doesn’t change the fact that when it came to “put up or shut up” time where leadership and principle were called to the fore, Nancy Pelosi blew it and any criticism or spin she or her staff now puts forward has the horrific stench of hypocrisy emanating from it.