Thursday, July 9, 2009

The Public Option Two-Step

An opinion article published in today’s Wall Street Journal gets to the heart of the current health care debate:

http://online.wsj.com/article/SB124709618142215031.html

Here are some of the highlights:

  • Americans unschooled in liberal health-care politics may have trouble deciphering the White House's conflicting proclamations this week about a new government insurance program for the middle class. Allow us to translate: President Obama loves this so-called public option, but he needs to sell it in a shroud of euphemism and the appearance of "compromise."

  • The reason left-flank Democrats are so adamant about a public option is because they know it is an opening wedge for the government to dominate U.S. health care.

  • Mr. Emanuel echoes his boss and says a government health plan is needed to keep the private sector "honest," but then why don't we also need a state-run oil company, or nationalized grocery store chain? (Or auto maker? Never mind.) The real goal is to create a program backstopped by taxpayers that can exert political leverage over the market.

  • Because this is so expensive, the public version Mr. Schumer favors would supposedly receive no special advantages. But this is meaningless when Democrats are planning to mandate the benefits that private insurers must provide, the patients they must accept, and how much they can charge. Oh, and a government plan would still have an implicit taxpayer guarantee a la Fannie Mae, giving it an inherent cost-of-capital advantage.

  • The other goal of a new public plan is to force doctors and hospitals to accept below-cost fees. This is how Medicare tries to control costs today, but it's like squeezing a balloon: Lower reimbursements mean that providers -- especially hospitals -- must recoup their costs elsewhere, either by shifting costs onto private payers or with more billable tests and procedures. The only way costs can conceivably be managed via price controls is if government is running the whole show, which naturally leads to severe restrictions on care while medical innovation withers.

The public option is the worst part of a very bad bill now being drafted in Congress. To learn how you can help stop this from becoming law, go to the following website:

http://www.cprights.org/

Wednesday, July 8, 2009

Obama's mythography: An Orwellian disaster

One of our friends emailed me the following opinion article published today in the Pittsburgh Tribune:

http://www.pittsburghlive.com/x/pittsburghtrib/opinion/s_632488.html

The first paragraph is very powerfully worded:

  • President Barack Obama's Orwellian rhetoric has become absolutely pathological. And it's become so blatant that you can almost guarantee that the truth is the exact opposite of what he says.

As you know I have a great admiration for Orwellian comparisons so this opinion piece is one that I find compelling. The Orwellian practice that President Obama and his administration most dramatically exhibit is the concept of “doublethink”. Doublethink is defined in Orwell’s novel “1984” as Reality Control. This is the power to hold two completely contradictory beliefs in one’s mind simultaneously, and accept both of them. Doublethink allows President Obama to insist he has no intention of taking over Chrysler and General Motors while at the same time he covets the usurpation of both corporations.

This would be an interesting study in the psychology of delusional politicians if only it did not impact our life, liberty and property.

The 7% soultion

The following article is another example of how government funding can corrupt society. The Chicago Public Schools are under constant condemnation for their high dropout rate and poor student test scores. The solution chosen by CPS officials is to falsify the attendance records:

http://www.chicagotribune.com/news/opinion/editorials/chi-0627edit1jun27,0,478588.story

These 2 paragraphs explain the motivation for committing fraud:
  • There's plenty of motivation to cook the attendance books. Attendance determines the amount of state and federal money schools receive: Depressed attendance caused by dropouts and truants costs CPS as much as $20 million a year in state funding. Attendance determines staffing levels too. As enrollment dips, jobs are threatened.
  • This type of low-grade obfuscation may keep extra dollars flowing to Bowen, but it does nothing to stem the school's tide of underachievement. Only 7 percent of Bowen Environmental students passed the state assessment tests in 2008.

You read that correctly, only 7 percent of this school’s students passed the assessment tests. And keep in mind that the State’s assessment tests are designed to pass the greatest number of students as possible.


It is incredible that a service provider can stay in business with a 93% failure rate. Could you imagine a hospital staying in business if 93% of its patients died? Would you hire an attorney who has a record of 93% of clients being convicted? What about an accountant who had 93% of his clients audited? How about dining at a restaurant where 93% of customers get food poisoning?


For more information about public education and school choice see the following website:

http://www.friedmanfoundation.org/Welcome.do

Tuesday, July 7, 2009

Pay to get appointed

When you are a Chicago politician you learn early in your carrier that you reward those who bring in the cash. President Obama has taken very good care of his major donors. This link will take you to a detailed list of presidential appointments:

http://www.verumserum.com/?p=6949

The more things “change” the more they stay the same.

Saturday, July 4, 2009

We hold these truths to be self-evident

Happy Independence Day.

As we struggle against the tyranny of government each day it may be easy to forget how this nation was founded. I encourage you to take a few minutes of your time today to read our Declaration of Independence:

http://www.archives.gov/exhibits/charters/declaration_transcript.html

We all have heard the words contained in the second paragraph:
  • We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness.--That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed

On this 4th of July it is a good time to reflect on how far our government has drifted from these founding principles. We should never forget the last sentence in the above paragraph. “Governments derive their just powers from the consent of the governed”.

Independence in 1776 to Dependence on 1776

Chris Edwards of the Cato Institute has published a chart depicting the growth of Federal subsidy programs:






It is a sad coincidence that the number of subsidy programs now equals 1,776. In the year 1776 our nation’s founders were willing to fight and die to attain liberty and economic freedom. Today the citizens of this nation have traded that liberty and economic freedom to become wards of the state and its 1,776 subsidy programs.




Independence in 1776 to Dependence on 1776

Monday, June 29, 2009

The truth about Global Warming that the EPA is trying to suppress

Al McGartland, Office Director of EPA’s National Center for Environmental Economics (NCEE) has suppressed the release of a study that directly contradicts the justification for Cap and Trade legislation and the entire hypothesis of Global Warming.

The study at the center of this controversy was authored by Dr. Alan Carlin, Senior Operations Research Analyst at NCEE. Dr. Carlin’s education and employment resume are as follows:

Education
Ph.D., Economics, Massachusetts Institute of Technology, Cambridge, MA
B.S., Physics, California Institute of Technology, Pasadena, CA

Employment
Senior Economist, U.S. Environmental Protection Agency, Washington, DC, 1971 to present
Economist, The RAND Corporation, Santa Monica, CA, 1963-71.

Note that Dr. Carlin has been employed at the EPA since 1971.

The study can be found at the following:

http://wattsupwiththat.files.wordpress.com/2009/06/endangermentcommentsv7b1.pdf

I strongly urge you to read the Executive Summary beginning on page 6 (page v as printed) of this study. All of the Executive Summary is of significance but the following sections are of major importance:

"As of the best information I currently have, the GHG/CO2 hypothesis as to the cause of global warming, which this Draft TSD supports, is currently an invalid hypothesis from a scientific viewpoint because it fails a number of critical comparisons with available observable data. Any one of these failings should be enough to invalidate the hypothesis; the breadth of these failings leaves no other possible conclusion based on current data....The failings are listed below in decreasing order of importance in my view:"

1. Lack of observed upper tropospheric heating in the tropics (see Section 2.9 for a detailed discussion).

2. Lack of observed constant humidity levels, a very important assumption of all the IPCC models, as CO2levels have risen (see Section 1.7).

3. The most reliable sets of global temperature data we have, using satellite microwave sounding units, show no appreciable temperature increases during the critical period 1978-1997, just when the surface station data show a pronounced rise (see Section 2.4). Satellite data after 1998 is also inconsistent with the GHG/CO2/AGW hypothesis.

4. The models used by the IPCC do not take into account or show the most important ocean oscillations which clearly do affect global temperatures, namely, the Pacific Decadal Oscillation, the Atlantic Multidecadal Oscillation, and the ENSO (Section 2.4). Leaving out any major potential causes for global warming from the analysis results in the likely misattribution of the effects of these oscillations to the GHGs/CO2 and hence is likely to overstate their importance as a cause for climate change.

5. The models and the IPCC ignored the possibility of indirect solar variability (Section 2.5), which if important would again be likely to have the effect of overstating the importance of GHGs/CO2.

6. The models and the IPCC ignored the possibility that there may be other significant natural effects on global temperatures that we do not yet understand (Section 2.4). This possibility invalidates their statements that one must assume anthropogenic sources in order to duplicate the temperature record. The 1998 spike in global temperatures is very difficult to explain in any other way (see Section 2.4).

7. Surface global temperature data may have been hopelessly corrupted by the urban heat island effect and other problems which may explain some portion of the warming that would otherwise be attributed to GHGs/CO2. In fact, the Draft TSD refers almost exclusively in Section 5 to surface rather than satellite data.

The Competitive Enterprise Institute (CEI) has filed comments with the EPA. Those comments contain the complete text of emails from McGartland to Dr. Carlin. The comments can be reviewed at this link:

http://cei.org/cei_files/fm/active/0/Endangerment%20Comments%206-23-09.pdf

The highlights of these emails are as follows:

1) a March 12 email from Al McGartland, Office Director of EPA’s National Center for Environmental Economics (NCEE), to Alan Carlin, Senior Operations Research Analyst at NCEE,forbidding him from speaking to anyone outside NCEE on endangerment issues;

2) a March 16 email from Mr. Carlin to another NCEE economist, with a cc to Mr. McGartland and two other NCEE staffers, requesting that his study be forwarded to EPA’s Office of Air and Radiation, which directs EPA’s climate change program. The email notes the quantity of peer-reviewed references in the study, and defends its inclusion of new research as well. It states Mr. Carlin’s view that “the critical attribute of good science is its correspondence to observable data rather than where it appears in the technical literature.” It goes on to point out that the new studies “explain much of the observational data that have been collected which cannot be explained by the IPCC models.”

3) a March 17 email from Mr. McGartland to Mr. Carlin, stating that he will not forward Mr. Carlin’s study. “The time for such discussion of fundamental issues has passed for this round. The administrator and the administration has decided to move forward on endangerment, and your comments do not help the legal or policy case for this decision.
…. I can only see one impact of your comments given where we are in the process, and that would be a very negative impact on our office.” (Emphasis added);

4) a second March 17 email from Mr. McGartland to Mr. Carlin, dated eight minutes later, stating “ I don’t want you to spend any additional EPA time on climate change.”

The Heritage Foundation has published an interview with Dr. Carlin tilted “An Inconvenient Voice”. This interview can be found here:

http://blog.heritage.org/2009/06/29/an-inconvenient-voice-dr-alan-carlin/

The following are quotes from the Heritage Foundation interview:


  • EPA responded by burying the report. As for Dr. Carlin himself, he was put under a strict gag order by superiors. They forbade him from writing, speaking or e-mailing about global warming to anyone outside his group at EPA.

  • We spoke to an embattled Dr. Carlin on the phone today, and, though he does fear losing his job because of his opinion, he has the strength of his beliefs. He told us that in 40 years of working for the government, he can’t remember any other time such pressure has been put on him.

  • “I’ve been involved in public policy since 1966 or 1967,” he said. “There’s never been anything exactly like this. I am now under a gag order.”

  • As for travel, “it’s been made abundantly clear that I was not to attend anything to do with climate change.” When he did attend a conference in Washington that was open to the public, he was reprimanded by a superior who told Dr. Carlin that he had “shown poor judgment” in daring to ask a question.

  • Dr. Carlin’s problems are far from unique. He is one of many who pay the price of Al Gore’s insistence that “the science is settled” on climate change, that we should no longer debate the issue. The media has happily gone along with this suppression. News reports present the questionable relationship between carbon dioxide and climate change as absolute fact. Skeptics are derided as “deniers” and are treated in the same way Galileo was by the Inquisition for suggesting the Earth revolved around the Sun. Today in President Obama’s America, a modern day Galileo has been told to shut up and go away.
If you would like to support the Competitive Enterprise Institute follow this link:
http://cei.org/support

Thursday, June 25, 2009

Cap and Trade

A vote will be held on 6/26/09 to discharge the “Cap and Trade” legislation from the House Committee on Energy and Commerce and will send this bill to the House floor for a vote. This bill would enact the largest tax increase in the history of the US. Estimates of the taxes and mandated costs range from $800 billion to $2 trillion dollars over the life of the bill. The official title of this bill is H.R. 2454, American Clean Energy and Security Act of 2009. This bill is also known as the Waxman-Markey cap-and-trade bill.

Raising taxes may be the least damaging aspect of this bill. This law will give the Federal Government the authority to set the level of production across all industries. Socialists have always wanted to set the level of wages and production to control the economy. The bill to repeal union certification elections will allow the government to set wages. Now the cap and trade legislation will provide the means to set production. The USA will finally become a “workers’ paradise”.

This bill also provides a provision which imposes stiff tariffs on our trading partners if they don't adopt aggressive carbon restrictions of their own. Thus solving one of the great dilemmas suffered by organized labor, “how do we eliminate foreign competition?” This is the 21st century equivalent to the Smoot-Hawley Tariff Act of 1930. The Waxman-Markey will by itself recreate 2 of the 3 policies of the 1930’s that caused the great depression, 1 - raise taxes and 2 - start a trade war. Brilliant!

The following is an enlightening discussion:

http://www.cato.org/pub_display.php?pub_id=10313

The complete wording of the bill is at the following link:

http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=111_cong_bills&docid=f:h2454ih.txt.pdf

See the cost estimate for this legislation at the Congressional Budget Office website:

http://www.cbo.gov/ftpdocs/102xx/doc10262/hr2454.pdf

Take action against this bill:

http://ga1.org/campaign/0906capandtradetaxhike

Saturday, June 20, 2009

"cash for clunkers"

A new government program to promote fraud:

http://online.wsj.com/article/SB124545300084032817.html?mod=googlenews_wsj

  • Owners of vehicles that get less than 18 miles per gallon will receive a voucher worth up to $4,500 if they scrap their car and buy a new, higher-mileage one. The program is modeled on similar efforts that have boosted sales in Europe and is aimed at raising the overall efficiency of the nation's vehicles.

My advice is to purchase a $500.00 used pickup truck and then trade it in on a new car and collect the $4,500.00 voucher.

"not take a dime"

President Obama has promised to “not take a dime” from lobbyists or political action committees. His recent fundraiser in Washington, DC at the Mandarin Oriental hotel on Thursday, 6/18/09 is a good example of how our president keeps his promises:

http://www.nytimes.com/2009/06/19/us/politics/19obama.html?em

This activity brings a new level of hypocrisy to our capital. The following quotes from the above article describe the current fundraising process:

  • But at the same downtown hotel on Friday morning, registered lobbyists have not only been invited to attend an issues conference with Democratic leaders, but they have also been asked to come with a $5,000 check in hand if they want to stay in good favor with the party’s House and Senate re-election committees.

  • A ticket went for $5,000 on Thursday night, but most people contributed far more. The top tier for contributors was $100,000, known as the United Committee, which was assigned to those who donated their own money and helped raise even more. Most people gave $30,400 per couple, which included a photograph with the president.

  • The familiar faces of Democratic donors, like Maurice Sonnenberg, a New York financier, and Wade Randlett, a San Francisco technology executive...

The following website provides campaign contribution data:

http://www.campaignmoney.com/political/campaigns/barack-obama.asp?cycle=08#MoneySummary

If you scroll down to the bottom of the page in the above link there is a list of the top 150 individual Obama donors during the 2008 presidential election cycle.