Cuba is Slashing Jobs from the American Left’s Favorite Health Care System

Posted by PITHOCRATES - April 12th, 2014

Week in Review

The American left loves Cuba.  A communist/socialist regime just a short boat ride from Florida.  Where they put people before profits.  And the left likes people.  Just as much as they hate profits.  And best of all Cuba has a national health care system.  American film maker and darling of the left Michael Moore even made a movie about how great that health care system is.  Sicko.  Which showed how there are no health insurance companies in Cuba. No.  Just a government that loves its people.  A large number of who for some reason risk their lives to float their way to Florida.  To escape that beautiful paradise Moore rhapsodizes about but never chooses to live in.  Which probably has something to do with this (see Cuba slashes more than 100,000 health care jobs by The Associated Press posted 4/7/2014 on the Star-Telegram).

Cuban authorities say they have eliminated more than 100,000 jobs in health care, considered one of the pillars of the 1959 revolution.

The cuts come as President Raul Castro tries to streamline government as part of a broader economic reform package.

The weekly labor newspaper Trabajadores said Monday that 109,000 health care positions have been cut…

Cuba’s health care sector is entirely run by the state. Authorities have said that like other areas of the economy it is plagued by inefficiency, redundancies and bloated payrolls.

This is what Michael Moore and others on the left want for America.  A health care system plagued by inefficiency, redundancies and bloated payrolls.  Which, of course, consumes so many of the limited health care resources that there is little left for patients.  This is national health care.  This is a government bureaucracy doing what it does best.  Incompetence and corruption.  And the left is fine with this as long as they get their hands on those health care dollars.  So they can create a vast, inefficient bureaucracy that is full of high-paying jobs to consume those health care dollars.  Allowing anyone working for the national health care service to get rich.  Just like those health insurance companies the left so hates.  Only without being able to do what the private health insurance companies have been able to do.  Create the world’s best health care system.

For the American people aren’t risking their lives to float to Cuba to get that health insurance-free national health care.  At least, not yet.  But with further economic reform President Castro may end up one day with a privatized health care system as the Americans move in the other direction.  Which could very well create a health tourism paradise in Cuba after all.  For Americans wishing to escape what President Obama and the Democrats are doing to the health care system they liked and wanted to keep.

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The Government Bureaucracy will make Health Care as Abysmal as the Obamacare Rollout

Posted by PITHOCRATES - March 16th, 2014

Week in Review

Government wants to run everything.  And they think they can fix anything.  But few people want to deal with the government.  No one enjoys renewing their driver’s license.  Or dealing with any other government bureaucracy.   Because they know it will not be a quick or an enjoyable experience.  They’d much rather go to a store or a restaurant.  Any place in the private sector where the customer is king.  This is what people prefer.  And yet here we are.  Turing over our health care to the people we least like having to deal with.  But really now, how bad can it be (see HHS official resigns with scathing letter, rips ‘dysfunctional’ bureaucracy by Kellan Howell posted 3/15/2014 on The Washington Times)?

A top Department of Health and Human Services (HHS) official resigned, accusing the agency of fostering a “dysfunctional” environment on the way out…

Mr. Wright wrote that his research was rewarding but that it only accounted for 35 percent of his job. The rest of his time was spent “navigating the remarkably dysfunctional HHS bureaucracy.”

According to Mr. Wright’s letter, tasks that took a couple of days at a university research center, required weeks or months and that the budget was micromanaged by senior officials.

If you ever wondered why the rollout of Obamacare was so abysmal this is why.  Because HHS is abysmal.  As all government bureaucracies are.  A bunch of career bureaucrats who are more interested in maintaining their beloved bureaucracy than making the customer king.  For the more complex and convoluted their bureaucracy is the more their jobs are secured.  And the bigger they grow the more funding they can get.  Bureaucrats love that.  Because there will always be a place for them in the government.  So they will never have to get a job in the private sector.  Where people hire based on merit.  Where they only keep people who have value.  And fire anyone doing a horrible job.  Like the kind of job the people who rolled our Obamacare did.  Which is why they want nothing to do with the private sector.  Preferring to stay snug and warm in the cocoon of their bureaucracy.  Comforted by the fact they can remain there no matter how incompetent or irrelevant they are.

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FT212: “If liberals keep winning elections the United States will fall like the Roman Empire.” —Old Pithy

Posted by PITHOCRATES - March 7th, 2014

Fundamental Truth

The Roman Empire survived for about 1500 Years

The Roman Empire was one of the greatest empires of all time.  It lasted some 500 years in the West.  And another thousand years in the East.  Give or take.  As empires go they don’t come much bigger.  Or last longer.  The Romans ruled the world.  It stretched from Northern Africa to Britain.  And from Spain to the Middle East.  It was huge.

There have been bigger empires.  The British Empire.  The Mongol Empire.  The Russian Empire.  The Spanish Empire.  And others.  But none of them lasted as long as the 1500 years of the Roman Empire.  The British Empire lasted about 400 years.  The Mongol Empire lasted about 50 years.  The Russian Empire lasted about 200 years.  And the Spanish Empire lasted about 500 years.  Adolf Hitler said the Third Reich would last a thousand years.  But it lasted only 12.  Proving that empire building—and empire maintaining—are easier said than done.

Yet the Romans did it for 1500 years.  Give or take.  So they knew a thing or two about empire building.  And maintaining that empire.  Yet even this mighty empire fell.  Why?  Historians still debate this question today.  As do the laymen.  With a person’s political persuasion sometimes determining what they believe.

A Debased Coin and High Taxes made the Roman Citizenry very Unhappy

Empires are costly.  As Rome built her empire she paid for it by conquering new lands.  So as her borders pushed out treasure flowed back the other way to Rome.  Which paid for her massive military.  And her massive bureaucracy to govern that sprawling empire.  So the Roman people went about their business.  Shielded from the cost of empire.  Farming and taking their goods to market.  Safe within their empire.  For her enemies were outside the borders of the empire.  And those borders were pushed a very long way out.

But then something happened.  Those borders stopped moving.  They were not conquering new lands.  And there was no more treasure flowing back to Rome.  Which was a problem.  For the Roman Empire covered a lot of land that they had to govern.  And defend.  So the cost of the Roman Empire was never higher than when her borders stopped pushing out.  While her revenue to pay for that empire was never smaller.  So they had to do something.  And that something was taxes.  Lots of them.  All of a sudden the Roman citizenry was feeling the cost of their bloated bureaucratic state.  And the cost of that massive military that defended the frontier.

So taxes soared.  Making the Roman citizenry unhappy.  But the tax revenue proved to be insufficient.  So they started debasing their currency.  Adding more and more lead to their silver coins.  But not their gold coins.  For they used gold to pay the military and to pay the government bureaucrats.  So they only debased the silver coin.  The coin of the Roman citizenry.  Which, of course, resulted in inflation.  As the coins had less and less silver in them they bought less and less.  So prices soared.  As did taxes.  Making the Roman citizenry very unhappy.

The Cost of Mercenaries and the Roman Bureaucracy and Welfare State bankrupted the Roman Empire

So the Romans started building things to entertain the people.  And they grew a welfare state to help feed those who could not afford to buy food.  Public works and the new welfare state may have eased some of the animosity towards the state.  But it only increased the costs of the state.  Requiring higher taxes.  So high that people lost money on their farms and businesses.  So they quit.  Causing food and goods shortages.  So the Romans passed laws forcing them to stay in their jobs.  And forcing their children to do the same work their parents did.  Which eventually evolved into feudalism.

Eventually the Roman citizenry no longer wanted to serve the empire.  Leading to the use of mercenary armies.  Which were costly.  And only increased the cost of empire.  With the silver coin so debased the Roman government would not even accept it in payment of taxes.  So the government took a portion of the food grown and goods made.  Making it more difficult to pay for the welfare state (just imagine your employer paying you in food, toilet paper, soap, etc.).  And the mercenary armies guarding the frontier.  Which could prove troublesome.  As they had no loyalties to the Roman Empire.  They were just hired muscle.  Their blood loyalties were often to people on the other side of the border they were guarding.  Having come from those people.

So the massive cost of hired mercenaries and the massive cost of the Roman bureaucracy and welfare state basically bankrupted the Roman Empire.  Of course the American left prefers not to think about this.  As they are very fond of their large welfare state.  So some on the left often cite the decadence of the Roman Empire that caused her fall.  They talk about the feasts, the drink, the gladiators, the orgies and other acts of debauchery that caused a societal decay that eroded the empire from within.  Even while they are in the business of societal decay themselves.  Free birth control, abortion on demand, the decriminalization of marijuana, the rejection of virtue and morality, their extreme secularism to remove any vestige of restraint from their lives of excess, etc.  The kind of things a debauched Roman citizenry no doubt would have enjoyed.  So either way the Roman Empire fell because of principles the American left embraces.  Which means if liberals keep winning elections the United States will fall like the Roman Empire.

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Obamacare already has more Ignored Complaints than they have in the NHS

Posted by PITHOCRATES - February 8th, 2014

Week in Review

People hate government bureaucracies.  They can’t stand getting their driver’s license renewed.  They hate getting the necessary approvals before making an improvement on their property.  They especially hate having to deal with the IRS.  Giving the choice we would all gladly have our dentists fix our cavities then endure those ordeals.  Without Novocain.  Because it is so frustrating dealing with a slow-moving, inefficient and inept government bureaucracy.  Which is why people don’t want national health care.

Obamacare is already showing what a slow-moving, inefficient and inept government bureaucracy it is.  From the abysmal rollout.  To those 22,000 people trying to get that slow-moving, inefficient and inept government bureaucracy to correct the mistakes that bureaucracy made.  They submitted complaints through the proper channels.  Where they promptly disappeared in the system and went ignored.  Something we can expect more of with this new slow-moving, inefficient and inept government bureaucracy.  As it is a common feature of a national health care system (see NHS watchdog accused of ‘throwing away’ complaints by Laura Donnelly posted 2/3/2014 on The Telegraph).

An NHS watchdog has been accused of failing thousands of patients and bereaved relatives after admitting it fully investigated less than 400 of 16,000 patient complaints made last year.

The figures emerged as a leaked report, seen by The Telegraph, discloses a litany of errors investigating a death at the heart of the Morecambe Bay hospital scandal, where up to 16 babies died amid poor care.

Last night bereaved parents said the Health Service Ombudsman – the body with ultimate responsibility for complaints against the NHS – was “a disaster for patients” while health experts said the organisation was “virtually ignoring” the desperate pleas of families seeking explanations for poor care.

The watchdog’s own records disclose that during the year 2012/13, less than three per cent of complaints which came to them were “fully investigated”.

Unlike Obamacare these complaints are not about data entry errors.  These complaints are about substandard care resulting in patient harm.  And death.  But what happens when the bungling bureaucracy investigates itself?  They tend to circle the wagons to protect their beloved bureaucracy.  While failing the people.  Which will happen with Obamacare.  Where they are already circling the wagons to protect their beloved bureaucracy over data entry errors.  Imagine the callousness that will enter the system when people suffer harm and death from substandard care.

Of course we can trust the government to prevent this from happening.  After all have they let us down yet in the investigation of their ineptitude and callousness over Benghazi?  And let us not forget how they got to the bottom of IRS targeting conservative groups to silence them during the 2012 election.  That thing where there wasn’t even a “smidgen of corruption.”  Yet the woman in charge of that pleaded the Fifth Amendment.  Which defendants do for only one reason.  So they don’t incriminate themselves.  But there wasn’t even a “smidgen of corruption” here.

Is it any wonder 22,000 people can’t get someone to respond to their complaints?  Or that government bureaucracies rarely do a good job when they investigate themselves?  So get ready for a similar fate the British people are suffering with their NHS.  But instead of 16,000 complaints being ignored there will be about 80,000 complaints that will be ignored.  Or more.  As we have about 5 times the population the UK has.  And we don’t have the 66 years of experience in doing national health care they have.

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President Obama’s 2014 State of the Union Address

Posted by PITHOCRATES - January 30th, 2014

Politics 101

Democrats offered Enthusiastic Applause for Unsound Policy Proposals that have no Basis in Reality

President Obama’s 2014 State of the Union address was a little longer than an hour.  But if you didn’t look at a clock it felt a lot longer.  For it was the same tripe you hear all the time from this administration.  And the political left.  It was full of misleading statements.  Inaccurate facts and figures.  And some lies.  The usual stuff you expect from the liberal left.  But what was really disturbing was the enthusiastic applause for some really unsound policy proposals that have no basis in reality.  Showing either how clueless these enthusiastic Democrats are about economics, business, national security, etc.  Or how amoral they are in their quest for power.  As they judge and implement policy not by how it will improve the lives of Americans.  But how it will improve their lives in government.

Some Big Reasons why Businesses export Jobs are Taxes, Regulations and Labor Costs

If there was ever an example of what people not to have in power this state of the union theater was it.  Following are excerpts from President Obama’s speech (see FULL TRANSCRIPT: Obama’s 2014 State of the Union address posted 1/28/2014 on The Washington Post).  Comments and analysis follow each excerpt.

And here are the results of your efforts: the lowest unemployment rate in over five years; a rebounding housing market — (applause) — a manufacturing sector that’s adding jobs for the first time since the 1990s — (applause) — more oil produced — more oil produced at home than we buy from the rest of the world, the first time that’s happened in nearly twenty years — (applause) — our deficits cut by more than half; and for the first time — (applause) — for the first time in over a decade, business leaders around the world have declared that China is no longer the world’s number one place to invest; America is.

The total number of people who left the civilian labor force since President Obama took office is 11,301,000 (see The BLS Employment Situation Summary for December 2013 posted 1/13/2014 on PITHOCRATES).  Which means the unemployment rate is meaningless.  The only reason why it’s falling is that the BLS doesn’t count unemployed people who gave up looking for jobs that just aren’t there.  Oil production on private land may be up.  While overall oil consumption is down because of the Great Recession that just won’t end.  Which is helping to keep gas prices down.  Unemployed people just don’t have the money to buy gas.  So they don’t.  Greatly reducing the demand for gas.  Thus reducing gas prices and oil imports.  George W. Bush’s last deficit was $498.37 billion.  President Obama’s first deficit was $1,539.22 billion.  And it was over $1 trillion in 2010, 2011 and 2012.  It fell to $680 billion in 2013 thanks to the sequester.  But the deficit is larger now than when President Obama assumed office.  The only reduction in the deficit is a reduction in the amount he increased it.

Now, as president, I’m committed to making Washington work better, and rebuilding the trust of the people who sent us here.

Really?  You’re committed to rebuilding the trust of the people?  Mr. “If you like your health insurance you can keep your health insurance.  Period.”  Otherwise known as the lie of the year.  You’re going to rebuild the trust of the people?  Good luck with that.  What with your pants on fire and all.

Today, after four years of economic growth, corporate profits and stock prices have rarely been higher, and those at the top have never done better. But average wages have barely budged. Inequality has deepened. Upward mobility has stalled. The cold, hard fact is that even in the midst of recovery, too many Americans are working more than ever just to get by; let alone to get ahead. And too many still aren’t working at all.

Well, finally something Republicans can agree with the president about.  Yes, his economic policies have benefitted Wall Street.  While hurting Main Street.  Finally some bipartisan agreement.

So let’s make that decision easier for more companies. Both Democrats and Republicans have argued that our tax code is riddled with wasteful, complicated loopholes that punish businesses investing here, and reward companies that keep profits abroad. Let’s flip that equation. Let’s work together to close those loopholes, end those incentives to ship jobs overseas, and lower tax rates for businesses that create jobs right here at home. (Cheers, applause.)

There are only a few reasons why businesses export jobs.  And the big three are taxes, regulations and labor costs.  The Obama administration wants to raise taxes.  They’ve increased regulatory costs.  And they support costly union labor.  So everything they stand for encourages businesses to export jobs.

But — but I’ll act on my own to slash bureaucracy and streamline the permitting process for key projects, so we can get more construction workers on the job as fast as possible. (Applause.)

So how’s that approval for the Keystone XL pipeline coming along?  That thing you’ve been studying since 2010?  Which by the laws of arithmetic is approximately 4 years ago.  Is this slashing bureaucracy and streamlining the permitting process?  At this rate it would probably be quicker to elect a Republican president in 2016.  You know, someone who, when it comes to economic activity, walks it while the Democrats only talk it.

We also have the chance, right now, to beat other countries in the race for the next wave of high-tech manufacturing jobs. And my administration’s launched two hubs for high-tech manufacturing in Raleigh, North Carolina, and Youngstown, Ohio, where we’ve connected businesses to research universities that can help America lead the world in advanced technologies.

Universities are in the grant business.  They want as many grants as they can get to help bring money into the university.  And to do so they will study anything the government wants them to.  No matter how wasteful it is.  While some of the biggest high-tech companies started in garages.  Apple, Google, Hewlett Packard and Microsoft.  To name a few.  Yes, there is a lot of university-driven research.  But the big innovation is more entrepreneurial.  Created by people thinking up new stuff no one thought of yet.  Which is the last thing you want government involved in.  That same government that can’t build a website using 1990s technology.

Let’s do more to help the entrepreneurs and small business owners who create most new jobs in America. Over the past five years, my administration has made more loans to small business owners than any other. And when 98 percent of our exporters are small businesses, new trade partnerships with Europe and the Asia-Pacific will help them create even more jobs. We need to work together on tools like bipartisan trade promotion authority to protect our workers, protect our environment and open new markets to new goods stamped “Made in the USA.” (Applause.)

You want to help entrepreneurs and small business?  Get rid of Obamacare.  And slash tax rates.  This will provide incentive.  And allow them to reinvest more of their earnings to grow their business.  Allowing them to create those jobs.

Now, one of the biggest factors in bringing more jobs back is our commitment to American energy. The “all the above” energy strategy I announced a few years ago is working, and today America is closer to energy independence than we have been in decades. (Applause.)

‘All of the above’ as long as it isn’t coal, oil or nuclear.  But if it’s solar power and wind power they are committed to giving more tax dollars to their friends and bundlers in the green energy industry.

Meanwhile, my administration will keep working with the industry to sustain production and jobs growth while strengthening protection of our air, our water, our communities. And while we’re at it, I’ll use my authority to protect more of our pristine federal lands for future generations. (Applause.)

You can’t sustain production and jobs growth by strengthening protection of our air, water and pristine federal lands.  That’s just more regulatory costs.  And raising energy costs by not allowing any oil or natural gas production on those pristine federal lands.  Raising energy costs by restricting supply.  Which raises business costs.  In addition to those new regulatory costs.

Every four minutes another American home or business goes solar, every panel pounded into place by a worker whose job can’t be outsourced. Let’s continue that progress with a smarter tax policy that stops giving $4 billion a year to fossil fuel industries that don’t need it so we can invest more in fuels of the future that do. (Cheers, applause.)

That says it all.  Fossil fuels don’t need subsidies because their costs are affordable.  While solar (and wind power) are so costly that they are unaffordable.  Unless government heavily subsidizes them.

But the debate is settled. Climate change is a fact. (Applause.) And when our children’s children look us in the eye and ask if we did all we could to leave them a safer, more stable world, with new sources of energy, I want us to be able to say yes, we did. (Cheers, applause.)

There is no such thing as settled science.  Only science that has yet to be disproved.  Besides, once upon a time glaciers stretched down from the poles to near the equator.  And then receded back to where they are now.  All without any manmade carbon in the atmosphere to warm the planet.  As we were still simple hunter and gatherers then.  So if the glaciers moved more before there was manmade global warming they’ll move again regardless of what man is doing to warm the planet.

Finally, if we’re serious about economic growth, it is time to heed the call of business leaders, labor leaders, faith leaders, law enforcement — and fix our broken immigration system. (Cheers, applause.) Republicans and Democrats in the Senate have acted, and I know that members of both parties in the House want to do the same. Independent economists say immigration reform will grow our economy and shrink our deficits by almost $1 trillion in the next two decades. And for good reason: When people come here to fulfill their dreams — to study, invent, contribute to our culture — they make our country a more attractive place for businesses to locate and create jobs for everybody. So let’s get immigration reform done this year. (Cheers, applause.) Let’s get it done. It’s time.

Funny how that argument doesn’t apply to birth control and abortion.  The reason we need to “fix our broken immigration system.”  For if we were having babies at the rate when government created the welfare state we could pay for that welfare state today.  But thanks to the Sixties, birth control, abortion and feminism women stopped having babies.  Which is fine if a woman doesn’t want to.  But the progressives designed the welfare state based on them being baby machines.  Creating a greater number of taxpayers with each generation.  So more people pay into the welfare state than collect from it.  The way it must be for a Ponzi scheme to work.

That’s why I’ve been asking CEOs to give more long-term unemployed workers a fair shot at new jobs, a new chance to support their families. And in fact, this week many will come to the White House to make that commitment real.

When you raise the cost of labor (union labor, Obamacare, etc.) businesses tend to look at automating production instead of hiring that costly labor.  They may not be able to do anything about the higher regulatory costs but they can do something about higher labor costs.  Use more machines than people.  If you want CEOs to create new jobs stop making labor so costly.  And you can start with getting rid of Obamacare.

Of course, it’s not enough to train today’s workforce. We also have to prepare tomorrow’s workforce, by guaranteeing every child access to a world-class education. (Applause.)…

Five years ago we set out to change the odds for all our kids. We worked with lenders to reform student loans, and today more young people are earning college degrees than ever before. Race to the Top, with the help of governors from both parties, has helped states raise expectations and performance. Teachers and principals in schools from Tennessee to Washington, D.C., are making big strides in preparing students with the skills for the new economy — problem solving, critical thinking, science, technology, engineering, math.

Yes, more kids are going to college than ever before.  But they’re going there to have fun.  And to facilitate their fun many are getting easy, worthless degrees in the social sciences and humanities.  Costly degrees that universities sold them promising them future riches.  Enriching the university.  While impoverishing their graduates.  For a high-tech company has no use for these degrees.  Which is why a lot of these people end up in jobs they didn’t need that costly degree to do.  And our high-tech companies are using the visa program to get foreigners who have the skills they want.  Problem solving, critical thinking, science, technology, engineering and math.

It requires everything from more challenging curriculums and more demanding parents to better support for teachers and new ways to measure how well our kids think, not how well they can fill in a bubble on a test. But it is worth it — and it is working.

If you want kids to do better we need to champion marriage and family more.  And they should embrace religion a little more.  Instead of encouraging our young women to use birth control and abortion to avoid marriage and family.  And pulling every last vestige of religion from our lives.  Kids growing up in a household with a mother and a father who go to church do far better on average than kids growing up in a single-parent household and don’t go to church (see Strong families steeped in Conservative Values and Traditions do Well in America posted 1/11/2014 on PITHOCRATES).

Research shows that one of the best investments we can make in a child’s life is high-quality early education. (Applause.) Last year, I asked this Congress to help states make high-quality pre-K available to every 4-year-old. And as a parent as well as a president, I repeat that request tonight.

Actually, research doesn’t show that.  Yet they keep saying that.  For it’s like that line in the musical Evita, “Get them while they’re young, Evita.  Get them while they’re young.”  The sooner they can take them away from their parents the sooner they can start turning them into Democrat voters.  Such as teaching them to blame their parents for the manmade global warming that is killing the polar bears as they have no ice to rest on while eating their baby seals.

You know, today, women make up about half our workforce, but they still make 77 cents for every dollar a man earns. That is wrong, and in 2014, it’s an embarrassment.

Women deserve equal pay for equal work. (Cheers, applause.)

Actually, it’s closer to 91 cents (see The White House’s use of data on the gender wage gap by Glenn Kessler posted 6/5/2012 on The Washington Post).  And the small difference is not due to discrimination but personal choice.  When you look at aggregate wages women will make less than men.  Because more women are teachers (with 3 month off without pay) than men are.  Some women work fewer hours at work to spend more time with their children. While men tend to work more overtime.  Men also work the more dangerous and higher paying jobs.  And are more likely to belong to a union.  When you compare childless, single men and women with a college degree some women are actually earning more than men.  Figures don’t lie but liars figure.  And for the contortions the Obama administration did here The Washington Post’s The Fact Checker gave the president one Pinocchio.

Now, women hold a majority of lower-wage jobs, but they’re not the only ones stifled by stagnant wages. Americans understand that some people will earn more money than others, and we don’t resent those who, by virtue of their efforts, achieve incredible success. That’s what America’s all about. But Americans overwhelmingly agree that no one who works full-time should ever have to raise a family in poverty. (Applause.)

In the year since I asked this Congress to raise the minimum wage, five states have passed laws to raise theirs.

You’re not going to have a lot of upward mobility when you pay people more to remain in the jobs they hate.  All the talk about making college more affordable and bringing employers and community colleges together to help give people the skills they need to fill the jobs employers have is all for nothing if they just pay people more for doing an entry-level job.

Let’s do more to help Americans save for retirement. Today most workers don’t have a pension. A Social Security check often isn’t enough on its own. And while the stock market has doubled over the last five years, that doesn’t help folks who don’t have 401(k)s. That’s why tomorrow I will direct the Treasury to create a new way for working Americans to start their own retirement savings: MyRA. It’s a — it’s a new savings bond that encourages folks to build a nest egg.

Once upon a time people opened a savings account at their local bank and they saved to buy a house.  And they saved for their retirement.  That’s how people saved when they didn’t have a pension or a 401(k).  They can’t do that today because of the Federal Reserve destroying the banking industry by keeping interest rates at zero.  If the Fed stopped printing money and let investment capital come from our savings like they did before the Keynesians gave us the Federal Reserve people would be saving like we once did.  And we’d stop having Great Depressions, stagflation and Great Recessions.  Created by their prolonging the growth side of the business cycle.  Which raises prices higher than they normally would go.  Making the contraction side of the business cycle that much more painful.  As those prices have a much longer way to fall than they normally would.  Thanks to the Fed’s meddling with interest rates.

MyRA guarantees a decent return with no risk of losing what you put in. And if this Congress wants to help, work with me to fix an upside-down tax code that gives big tax breaks to help the wealthy save, but does little or nothing for middle-class Americans, offer every American access to an automatic IRA on the job, so they can save at work just like everybody in this chamber can.

You know why they want these MyRAs?  Because they can’t stand people saving money.  They love Social Security.  Because they can borrow from the Social Security Trust Fund.  Which is what they will do with these MyRAs.  They will take this money and spend it.  Filling the MyRA Trust Fund with a bunch of IOUs.  Just like they do with the Social Security Trust Fund.  And then provide a retirement benefit like Social Security.  That is too small to live on.  Whereas if we saved the money ourselves our retirement nest-egg will be much larger.  And it will provide for our retirement.  Unlike Social Security.

And since the most important investment many families make is their home, send me legislation that protects taxpayers from footing the bill for a housing crisis ever again, and keeps the dream of homeownership alive for future generations. (Applause.)

It was Bill Clinton that set the stage for the subprime mortgage crisis with his Policy Statement on Discrimination in Lending (see Bill Clinton created the subprime mortgage crisis with his Policy Statement on Discrimination in Lending posted 11/6/2011 on PITHOCRATES).  Using the heavy hand of government to get lenders to qualify the unqualified.  Then the Fed’s artificially low interest rates were the bait for the trap.  Enticing people to borrow huge sums of money because those interest rates were just too good to pass up.  Even if they weren’t planning to buy a house to begin with. The subprime mortgage crisis and the resulting Great Recession were government made.  If we want to prevent the taxpayers from footing the bill for another housing crisis we need to get the Keynesians out of government.

Already, because of the Affordable Care Act, more than 3 million Americans under age 26 have gained coverage under their parents’ plans. (Applause.)

More than 9 million Americans have signed up for private health insurance or Medicaid coverage — 9 million. (Applause.)

The Washington Post gave this lie three Pinocchios (see Warning: Ignore claims that 3.9 million people signed up for Medicaid because of Obamacare by Glenn Kessler posted 1/16/2014 on The Washington Post).  For they’re counting some 3.9 million who would have signed up anyway for Medicaid regardless of the Affordable Care Act.  Also, the government was counting people who put a health care plan into their shopping cart as if they signed up for it.  Which many couldn’t.  As they haven’t programmed the back end of the health care website yet to actually accept payment or to pass that information on to the insurers.

And here’s another number: zero. Because of this law, no American, none, zero, can ever again be dropped or denied coverage for a pre-existing condition like asthma or back pain or cancer. (Cheers, applause.) No woman can ever be charged more just because she’s a woman. (Cheers, applause.) And we did all this while adding years to Medicare’s finances, keeping Medicare premiums flat and lowering prescription costs for millions of seniors.

That’s right.  Women with reproductive systems that men don’t have won’t pay more for their health insurance than men pay for theirs.  How can they do that?  Simple.  They just are charging men more.  To cover the cost of a reproductive system they don’t have.

Citizenship means standing up for the lives that gun violence steals from us each day. I have seen the courage of parents, students, pastors, and police officers all over this country who say “we are not afraid,” and I intend to keep trying, with or without Congress, to help stop more tragedies from visiting innocent Americans in our movie theaters and our shopping malls, or schools like Sandy Hook. (Applause.)

If you take away guns from law-abiding gun owners that won’t keep dangerous people with mental health issues that want to harm people out of our movie theaters, our shopping malls or schools like Sandy Hook.  For there are other ways to harm people.  Just look at the Boston Marathon bombers.  The people he’s talking about not only had mental health issues but they were also smart.  Many were even college students.  Who probably could think of other ways to hurt people.  And you just can’t take away everything they might use to harm people.  But you can place these people somewhere where they can’t harm anyone.

You see, in a world of complex threats, our security, our leadership depends on all elements of our power — including strong and principled diplomacy. American diplomacy has rallied more than 50 countries to prevent nuclear materials from falling into the wrong hands, and allowed us to reduce our own reliance on Cold War stockpiles.

Since President Obama assumed office he did nothing to support the Green Revolution in Iran.  Which kept the hard-line Islamists in power there.  He gave Egypt to the Muslim Brotherhood by telling Hosni Mubarak that he had to go.  Removing the stable anchor of the Middle East.  And moved Egypt closer to Iran.  (The Egyptian people eventually rose up to overthrow the oppressive Muslim Brotherhood).  He went to war in Libya and helped to overthrow Colonel Muammar Qaddafi.  Who at the time was a quasi ally in the War on Terror.  After the Iraq invasion frightened him into believing he may be next.  President Obama was thanked for his Libyan war by al Qaeda with 4 dead Americans in Benghazi on the anniversary of 9/11.  He waited too long to act in the Syrian civil war.  Which only brought al Qaeda into the conflict.  He failed to attain a status of forces agreement in Iraq.  So he pulled all U.S. forces out of Iraq which has only invited al Qaeda in.  And it looks like this will be repeated in Afghanistan.  He blamed George W. Bush’s wars as recruitment tools for al Qaeda.  While his extensive drone use is doing the same thing.  Especially in Yemen.  The hotbed of al-Qaeda in the Arabian Peninsula.  All that his diplomacy and leadership has done was to make the world a more dangerous place.

American diplomacy, backed by the threat of force, is why Syria’s chemical weapons are being eliminated. (Applause.) And we will continue to work with the international community to usher in the future the Syrian people deserve — a future free of dictatorship, terror and fear.

His diplomacy with Bashar al-Assad in Syria only gave his oppressive regime legitimacy in the civil war he was raging against his people.  Making it easier for Assad to kill Syrians with conventional arms while he gives up a token amount of his chemical weapons.  While also making Russia who brokered the deal the dominate player in the region.

And it is American diplomacy, backed by pressure, that has halted the progress of Iran’s nuclear program — and rolled back parts of that program — for the very first time in a decade. As we gather here tonight, Iran has begun to eliminate its stockpile of higher levels of enriched uranium.

It’s not installing advanced centrifuges. Unprecedented inspections help the world verify every day that Iran is not building a bomb. And with our allies and partners, we’re engaged in negotiations to see if we can peacefully achieve a goal we all share: preventing Iran from obtaining a nuclear weapon. (Applause.)

All Iran is doing is pausing their program.  And chemically altering some of their enriched uranium to meet the requirements of this diplomatic deal.  But this chemical process is reversible.  And they will reverse it once they get what they want.  This deal makes the world no safer.  If anything it makes it more dangerous.  For it does not diminish the Iranian nuclear program in the least.  But gives them more time to work on it as they prop up their regime with much needed supplies thanks to a relaxation of the sanctions against them.

These negotiations will be difficult; they may not succeed. We are clear-eyed about Iran’s support for terrorist organizations like Hezbollah, which threaten our allies; and we’re clear about the mistrust between our nations, mistrust that cannot be wished away. But these negotiations don’t rely on trust; any long-term deal we agree to must be based on verifiable action that convinces us and the international community that Iran is not building a nuclear bomb. If John F. Kennedy and Ronald Reagan could negotiate with the Soviet Union, then surely a strong and confident America can negotiate with less powerful adversaries today. (Applause.)

The sanctions that we put in place helped make this opportunity possible. But let me be clear: if this Congress sends me a new sanctions bill now that threatens to derail these talks, I will veto it. (Applause.) For the sake of our national security, we must give diplomacy a chance to succeed.

The Soviet Union never attacked U.S. soil.  And there was a reason they didn’t.  They were rational.  And knew they would lose a great deal in a war with America.  Especially a nuclear one.  Which is why they never used their nuclear weapons.  But Iran giving a nuclear weapon to a shadowy group that is not a state?  With little to lose in using a nuclear weapon?  If it’s not a nuclear missile there will be no way in knowing where the nuclear bomb came from.  We can have our suspicions that Iran made it and gave it to someone.  But do we nuke Iran over that?  What if there are more nukes in the hands of al Qaeda, Hezbollah, al-Qaeda in the Arabian Peninsula, etc.?  You could nuke Iran back to the Stone Age but it won’t stop those others being used.  The president insists this will not happen as Iran signed an agreement.  The only problem with that is the Iranians are liars.  And they call the United States the Great Satan.   These two facts suggest that replacing those sanctions with a promise not to build nuclear bombs was probably not a wise trade.

But for more than two hundred years, we have put those things aside and placed our collective shoulder to the wheel of progress: to create and build and expand the possibilities of individual achievement; to free other nations from tyranny and fear; to promote justice and fairness and equality under the law, so that the words set to paper by our founders are made real for every citizen.

Use our collective shoulder to expand individual achievement?  The president believes in the former more than the latter.  He didn’t help the Iranians get free from tyranny when he had the chance.  And he turned the Egyptian people over to tyranny.  The Muslim Brotherhood.  Who were oppressing women and Christians.  Fairness and equality under the law?  Ask those Tea Party groups who were targeted by the IRS about fairness and equality under the law.  The Constitution?  That document of negative rights?  The left hates it.  And insists it’s a living document that can evolve over time to suit the needs of an expanding government.  So they can do exactly what the Founding Fathers wrote the Constitution to prevent from happening.

The Left endorses Unsound Policy Proposals with no Basis in Reality to improve their Chances of Winning Elections

The country is more conservative than liberal (see Liberal Self-Identification Edges Up to New High in 2013 by Jeffrey M. Jones posted 1/10/2014 on Gallup).  Which is why liberals want state-funded pre-K to start indoctrinating our children as soon as possible.  To get them away from their parents so they can begin the process of turning them into Democrat voters.  It’s why kids are getting worthless social science and humanities degrees.  To further indoctrinate them.  Because their views are minority views.  So they need to play loose with the facts.  And lie.  Which is easier to do with indoctrinated kids than educated adults.  You’ll even hear Democrats talk about lowering the voting age.  To get a few more years of voting out of these kids before they grow old and wise.  And begin voting conservative.  So they do what they can to dumb down education.  Lie.  Cheat.  And buy as many votes as they can by giving away free stuff.  And the thing they really want to give away is citizenship for illegal aliens.  Who they are sure will be forever grateful.  And show it by voting Democrat.

This explains the enthusiastic applause for unsound policy proposals that have no basis in reality.  For the left is not interested in improving the lives of Americans.  They just want to improve their chances of winning elections.

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Hinchingbrooke Hospital breaks free from the NHS Bureaucracy and Improves Health Care

Posted by PITHOCRATES - October 13th, 2013

Week in Review

Britain has government-run national health care.  The National Health Service (NHS) provides free health care to all Britons.  And the medical tourists who travel to the country for free health care.  Straining the NHS budget.  At a time when Britain’s aging population is stretching their limited resources thin.  Leading to longer wait times.  Longer travel times as they close local hospitals to consolidate their resources in fewer locations.  And rationing.

Even with their longer wait times, travel times and rationing of services they are still running a deficit in the NHS.  To address these chronic cost overruns they are trying to find £20 billion ($30.54 billion) in efficiency savings over three years.  But there is a beacon of hope for the NHS.  At Hinchingbrooke Hospital (see Set doctors and nurses free to use their common sense – as Hinchingbrooke Hospital does by Charles Moore posted on The Telegraph).

Last month, I visited Hinchingbrooke Hospital, near Huntingdon, the only NHS Trust in the country operated by a private partner…

I spent half a day at Hinchingbrooke, talking to doctors, nurses, administrators and patients, and seeing several wards…

One can visit a large organisation without being aware of big problems. Indeed, one of the great difficulties of the NHS is that internal communications are so bad that people can work well in one area without being aware of utter disaster a few yards away. In the case of Hinchingbrooke, under previous management, maternity was very good while the colorectal unit was shameful. So what follows is not definitive; but I feel I learnt something.

Uniquely in the NHS, Hinchingbrooke’s executive board is dominated by clinical practitioners (doctors and nurses, to you and me). The chief executive is an obstetrician. Only three of the 14 board members have non-clinical backgrounds.

In the only trust that has a private partner doctors and nurses determine how best to treat patients.  Instead of the faceless bureaucracy in the rest of the NHS.  Or what the proponents of Obamacare hope to force onto the American people.

One of the key working methods, borrowed from Toyota, is “Stop the Line”. Anyone in the hospital can stop the line if he or she believes that there might be a “serious untoward incident” or danger to a patient…

A similar, lesser action is a “swarm”. If you are urgently worried about something, you can summon all the relevant people together immediately. Unlike “whistle-blowing”, which is inevitably retrospective and often involves grievance and disloyalty, these ways of acting are instant and preventative. You are encouraged to use them. Someone stops the line in Hinchingbrooke most days.

Nurses work differently from most parts of the NHS. They all wear uniform, even if in managerial roles, and they are encouraged to take part in management without abandoning clinical work…

But what struck me about Hinchingbrooke was not that it was brilliantly original – simply that it was free to act according to common sense. Involve staff in decisions. Make sure that doctors and nurses can run things. Learn from commercial examples of how to improve services. Let the right hand know what the left is doing. Encourage innovation. Don’t “benchmark to the middle”, but to the top. And little things: get A&E nurses to wear identifiable name-badges; get rid of hospital car-park fines. Most of this is simple, but, in the leviathan of the NHS, it is not easy. And at present there are about 2,300 NHS hospitals in the United Kingdom, and only one Hinchingbrooke…

This is far behind the public. As you understand better if you spend a morning in Hinchingbrooke Hospital, the public want health care free at the point of use, but have no ideological prejudice about who delivers it, or how. They rightly judge by results – are they, their spouses, parents, children, well or ill? Are the staff medically competent, efficient and kind? They are not sentimental about the most shocking producer interest ever to have gained power in this country.

The one hospital where things are greatly improving is the one hospital that is moving away from bureaucratic national health care and towards private health care.  Like it once was in the United States.  While President Obama and the Democrats want to move the American health care systems towards the bureaucratic national health care of the NHS.  Where there are longer wait times.  And service rationing.  Well, everywhere in the NHS but Hinchingbrooke Hospital.

Do President Obama and the Democrats care that they will destroy the American health care system?  No.  Because it’s not about health care.  It’s about creating the “most shocking producer interest ever to have gained power in this country.”  Yes, it’s about the power.  Social Security and Medicare made the elderly dependent on government.  Giving the government power over the elderly.  If they can’t raise taxes they just threaten to cut Social Security and Medicare benefits.  National health care, though, makes everyone dependent on government.  Giving the government power over everyone.

Until the day they can no longer maintain that power.  And that day has come in Britain.  Their aging population is breaking the system.  Which is in essence a Ponzi scheme.  The masses in the workforce pay in via taxes.  And the few sick consume health care services at the top of the pyramid.  While a bloated bureaucracy makes sure to take very good care of itself.  But the aging population is shrinking the workforce paying the taxes.  And swelling the number of sick consuming the health care services.  Inverting the pyramid of the Ponzi scheme.  As it will in America thanks to Obamacare.  Because the United States has an aging population, too.

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Corporate Politics, Bureaucracy and Obamacare

Posted by PITHOCRATES - September 5th, 2013

Politics 101

(Originally published April 4th, 2013)

You won’t find many Union Workers filling out TPS Reports

In the movie Office Space we see how frustrating it is to work in a big corporation.  The office politics.  The bureaucracy.  The policies and procedures.  The frustration of having to answer to 8 different bosses after making a mistake.   Bumping heads with management at all levels.  And the mind-numbing frustration of getting your paperwork right.

Anyone who has ever worked in an office no doubt had their own TPS report moments.  And dealt with their own Bill Lumbergh.  So we laugh at poor Peter.  For we’ve been there.  And know his frustration.  For there is nothing worse than trying to work through a company’s bureaucracy.  Or dealing with layers of management that often appeared to be working at cross purposes.  And suffering under bad bosses.

Which is the whole purpose of labor unions.  To protect their workers from a business’ management.  And bad bosses.  Because unions say if they don’t management will just abuse their workers.  So unions shield workers from these unfeeling and inefficient bureaucracies.  Who are always introducing new policies and procedures to improve business efficiencies.  Things like TPS reports.  Which unions say only makes things worse for the worker.  So you won’t find many union workers filling out TPS reports.  Just the non-union office workers.

Dealing with a Bureaucrat is like a Grizzled Sergeant with 20 Years Experience reporting to a Junior Officer

Junior officers get no respect.  Comedian George Carlin served in the Air Force.  And said a common joke was to say when someone broke wind, “Captain who?”  They get no respect because they are bureaucrats.  They come out of their officer training with only book-learning.  While enlisted people have been gaining experience and learning how to do things on the job.  Then these junior officers come in with their book-learning.  And start telling these enlisted people how to do their jobs.  Despite these junior officers having never done their jobs.  Or understanding how to do their jobs.  But they will tell these people how to do their jobs better.

This is less of a problem in combat.  As junior officers typically have a short lifespan in combat.  For all the book-learning cannot replace the experience gained in actual combat.  Which is why lieutenants may command units but it is the grizzled sergeants with the combat experience that lead men into battle.  And a smart junior officer will learn everything he can from his senior sergeants.

Small business owners feel the same way about government.  For a lot of small business owners often go into business after working for someone else.  They’re like those grizzled sergeants in the military.  They’ve learned and done pretty much everything in a business.  Then decided to quit and start their own business.  And one of the first things they have to deal with is the mind-numbing bureaucracy of government at all levels.  City, county, state and federal.  A bunch of bureaucrats who never ran a business.  Who have no experience in their field.  And here they are.  Telling them how to run their businesses.  Like a junior officer out of the academy trying to tell a grizzled sergeant with 20 years experience how to do his job.

Under Obamacare Professional Bureaucrats will tell our Doctors how to administer our Health Care

In these complicated times if there is one thing everyone can agree on it’s this.  Bad managers, bosses, and officers are insufferable.  No one likes putting together ‘TPS reports’.  Or being told by 8 different bosses that they did something wrong.  And they sure don’t like people who don’t understand the first thing about their job or business telling them how they should do their job or run their business.  They especially hate people that can cite rules and regulations by chapter and verse who mete out some penalty or fine because they can’t cite those same rules and regulations by chapter and verse.

This will be the world of Obamacare.  And as much as EVERYONE hates these things at their workplace there are some who still want these same clueless bureaucrats and politicians to take over health care.  As if somehow these people who don’t know the first thing about treating sick people can do a better job than the grizzled veterans working in the health care industry.  Who spend more and more time filling out paperwork these days than actually seeing patients.  And the last thing they want is an even more bureaucratic system where they will have to report to 8 different people and agencies to treat a patient.  Where bureaucrats at the Department of Health and Human Services as well as the IRS will have their own coversheets for their ‘TPS reports’.

In the movie The Usual Suspects the character played by Kevin Spacey said, “The greatest trick the devil ever pulled was convincing the world he didn’t exist.”  For if you don’t fear the devil you may live a life more in line with the devil’s wishes.  Making it easier for the devil to get your soul.  Government is a little like that.  For it has a horrible track record of doing anything right.  Even in the finest military in the world the bureaucrat side of the military pays $100 for a $15.00 toilet seat.  And yet the government has tricked so many people into believing they want more government in their lives.  Even though government is nothing but the managers and bosses people hate where they work.  Bureaucrats who tell others how they should do their job by citing rules and regulations by chapter and verse.  But who really don’t know what you do.  Or how you do it.  Now these professional bureaucrats will tell our doctors how to administer our health care.  And God help you if you get sick and put the wrong coversheet on your Obamacare health care services requisition form.  Or leave an important income tax field blank.

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The City of Detroit Bankruptcy

Posted by PITHOCRATES - July 22nd, 2013

Economics 101

There is nothing more Dangerous to a City’s Finances than a Shrinking Tax Base

The federal debt is at record levels.  Because federal spending is at record levels.  But those on the left say there’s nothing to worry about.  And try to expand federal spending further.  With more government benefits to hand out to the people.  And an ever growing federal bureaucracy.  Full of new jobs with generous pay and benefits.  All funded by the taxpayer.

Businesses in the private sector cannot operate like this.  Because businesses have to pay their costs with the things and/or services they sell.  That people willingly buy.  So there is a limit on the costs a business can incur.  But not so with government.  For the government has the power to tax.  To forcibly take more money from the people against their will.  Something businesses just can’t do.  And when that fails they can borrow money by issuing bonds.  Which are generally easy to sell.  Because governments have the power to tax.  All but guaranteeing that they will repay those bonds.  And when that’s not enough the federal government has one other benefit businesses don’t have.  They can print money.  Further guaranteeing that they will be able to redeem their bonds.  Making them that much easier to sell.

Government below the federal level, though, doesn’t have that last option.  So when they want to spend more money than they have they have no choice but to borrow.  And hope that their tax base doesn’t erode over time.  For there is nothing more dangerous to a city’s finances than a shrinking tax base.  Especially when the city has a huge and growing public sector.  Enjoying generous pay and benefits.  Especially pension and health care benefits for retirees.  Where promises made must be kept decades into the future.  During which time a lot of things can happen.  Such as that tax base shrinking.

Detroit’s Tax Base plummeted while the Size of the Public Sector did not for Government Never grows Smaller

This is the problem the City of Detroit has.  And it is why they filed the largest municipal bankruptcy in U.S. history.  Thanks to the automotive industry and World War II destroying most of the industrial economies of the world, Detroit became an economic power house.  And one of America’s grandest cities in the 1950s.  Paris of the Midwest they called Detroit.  Automotive capital of the world.  The Motor City.  The mecca of American manufacturing.  Having one of the richest middle class.  And one of the largest black middle classes.  Everyone was doing well in Detroit.  So the City of Detroit did the only rational thing a city could do with a swelling tax base.  They exploded the public sector.  All paid for with higher taxes.  Including a new city income tax.

But that growing public sector soon turned Detroit into a business unfriendly city.  With more red tape, regulatory costs and a corporate income tax.  And rising union demands during contract negotiations made it even less business friendly.  So businesses started leaving the city.  Taking their jobs with them.  And people followed.  Then the race riots hit in 1967.  Five days of unprecedented violence.  Thus beginning the great white flight from the city.  And the great population decline of the City of Detroit.  Culminating in the nation’s largest municipal bankruptcy in history.

At Detroit’s peak her population topped out at about 1.8 million people.  Today there are but 680,000 people remaining.  A loss of 1.12 million people.  About 62% of her peak population.  So Detroit’s tax base plummeted.  But the size of the public sector didn’t.  For government never grows smaller.  So Detroit continued on with the overhead expenses of a city with a population of 1.8 million people.  With the tax revenue of a city with a population of 680,000 people.  Making bankruptcy inevitable.

The Problems of the City of Detroit are the Problems of the Nation Writ Large

At the height of Detroit’s industrial might there were approximately 300,000 automotive or manufacturing jobs in the city.  Today there are a mere 27,000.  That’s a loss of 273,000 jobs.  That’s 273,000 breadwinners whose families are no longer in the city.  If each of them had on average 2.5 children who remained in the city with their parents that would have added about 1.2 million to the city’s population.  Which corresponds pretty closely to the 1.12 million the city actually lost.  So we can see how the loss of the jobs devastated the population.  But we can also see what it did to the city’s finances.

Let’s assume these breadwinners had their children when they were in their 20s.  So the breadwinner was still in the workforce when their children were 20 and had entered the workforce.  Let’s say this happened over a 40-year period.  So, on average during that 40-year period, there were an additional 136,500 jobs per year.  Let’s say they each owned a house and paid property tax of $750.  Over 40 years that’s about $4.1 billion in lost property tax revenue.  If each of these workers earned $35,000 on average over those 40 years and paid a 3% city income tax that’s about $9.8 billion in lost personal income tax revenue.  Finally, if we figure a 50-50 split between labor and material, a 15% overhead and a 2% net profit we can extrapolate that $35,000 average personal income into approximately $448 billion in lost corporate revenue over those 40 years.  At a city corporate income tax rate of 2% that’s about $9 billion in lost corporate income tax revenue.  Adding these all together we see a total loss of tax revenue to the city of approximately $18.8 billion due to the loss of 273,000 jobs.  Plus or minus.

This is a crude guesstimate with an emphasis on crude but it could be close enough to explain what happened in Detroit.  For with the falling tax base Detroit turned to borrowing more and more money to pay for an oversized public sector.  To service a disappearing population.  With those pension and retiree health care benefits being especially burdensome.  Which forced the city to borrow so much it left them with a debt of $18.5 billion (very close to the $18.8 billion in our little exercise above) that they don’t have a chance in hell of ever repaying.  Leaving bankruptcy as the only option.  Unless the federal government steps in.  Which probably won’t happen.  And shouldn’t happen.  For Detroit is not the only government suffering under the weight of unfunded pension obligations and retiree health care benefits.  If they bail out Detroit then they’ll have to bail out all other states and municipalities.  Which they can’t afford to do.  For the federal government has its own problems with pensions (Social Security) and retiree health care benefits (Medicare).  And they’ve just added a new government benefit that will dwarf the costs of Social Security and Medicare.  Obamacare.  All while burdening the economy with a slew of anti-business regulations that has chased jobs out of the economy.  And out of the country.

So the federal government can’t step in to save Detroit.  For the federal government is working to ‘out Detroit’ Detroit.  As the problems of Detroit are the problems of the nation writ large.  What’s happening in Detroit will happen in other states and cities across the country.  That are spending more money than they have to support an oversized public sector.  And in time what’s happening in Detroit will happen to the federal government.  Bailing out these states and cities will only hasten the downfall of the federal government.  Which the federal government will do whatever it can to prevent.  For while the nation can survive a city like Detroit going bankrupt the nation cannot survive a federal bankruptcy.  Because the numbers are just too big at the federal level.

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Obamacare may cause up to 65,000 Needless Deaths based on what’s happening in the NHS

Posted by PITHOCRATES - July 14th, 2013

Week in Review

The problem with national health care is simple economics.  Supply and demand.  Things that cost more are in lower demand.  Things that cost less are in higher demand.  And free things are over consumed.

In Britain they have the NHS.  The National Health Service.  It’s not health insurance.  Like Obamacare is.  It is health care funded by the taxpayers.  What they designed Obamacare to become.  After causing businesses to drop costly mandated health insurance for their employers.  And making it near impossible for private health insurers to remain in the insurance business.  Once they meet these objectives then the government can transform Obamacare more into something like the NHS.  Where people get ‘free’ health care.  Paid for not by private insurance policies.  But from the tax revenue of the federal government.  Where they can over consume all the free health care they can get their hands on.  Such as demanding antibiotics every time they get the sniffles.

Sounds good to some.  Primarily to those who don’t have health insurance.  Because they choose not to pay for it.  Why?  Because it is so expensive.  And it’s so expensive because health insurance is no longer insurance.  Because it covers almost everything.  Instead of just the large, unexpected, catastrophic expenses.  The things insurance used to pay for.  While we paid for checkups and routine doctor visits out of pocket.  So we paid for the little things that we could expect and budget for.  While buying insurance for the things we could not expect or budget for.  And the system worked.  It kept costs under control because we were paying for most of what we were receiving.  Creating a direct relationship between the services we received and the money we spent.  Which introduced market forces into the equation.  But ever since health insurance became an employee benefit there have been fewer and fewer market forces in the equation.  Which has lead to the explosion in health care costs.

Nationalizing health care only removes market force from the equation further.  Which will, of course, raise costs.  As there will be nothing to keep health providers efficient while maintaining high standards of quality.  For if their customers aren’t paying them they don’t have to please their customers with efficiency or high quality care.  They just have to meet the minimum state requirements.  And keep asking the government for more money.  Until the government has no money to give.

And as a large health bureaucracy develops things become more impersonal.  More machine like.  Where patients are units of input.  That have to be processed according to strict bureaucratic guidelines.  Not necessarily what’s best for the patient.  The amount of paperwork rises.  And health care providers spend more time pushing paper than interacting with units of input.  Patients.  People at the hospital must bow to the distant health care authority.  Often following rules and regulations that don’t make sense all of the time.  Frustrating them.  And making them apathetic in their jobs.

Then efficiencies fall.  And costs rise.  Health care providers are forced to do more with less.  Spreading their limited resources over more and more patients.  Unable to provide high quality to everyone they do just the minimum for everyone.  While their apathy turns to indifference to their patients’ wellbeing.  You create an environment like this eventually over time you get this (see ‘Up To 13,000 Needless Deaths’ In NHS Hospitals posted 7/14/2013 on Sky News).

Up to 13,000 people may have died needlessly in NHS hospitals since 2005, according to a report to be published in the coming days…

The report, to be released on Tuesday, will criticise care standards and management failures, fuelling concerns about a problem with the NHS’s culture where whistleblowers are afraid to speak out and regulators often fail to do their job…

Sir Bruce examined not just mortality rates, but measurements including infection levels, the number of patients suffering from preventable and potentially fatal signs of neglect, and the numbers harmed by so-called “never events” such as operations on the wrong part of the body, or surgical instruments left inside a patient.

National health care will eventually poison the greatest assets of the health care system.  Its people.  Taking a good system and making it bad over time.  And you know it’s bad when ‘surgical instruments left inside a patient’ is a metric they track.  Apparently because it happens so often that it is something that they can count.

So take a good look.  This is national health care.  The ultimate destination of Obamacare.  Which will kill some 65,000 people over 8 years (the U.S. has about five times the population of Britain so they will have five times the number of needless deaths).  That comes to about 8,125 a year.  Which isn’t that far below the national homicide rate.  Imagine that.  Raising deaths in our health care system to near the national homicide rate.  That’s what we can expect with Obamacare.  As our health care system struggles to do more with less.  Overwhelming our heath care providers.  And making them grow ever more apathetic.  Just like they have in Britain.

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The Swedes reintroduce the Profit Incentive into the Health Care Equation to fix their National Health Care

Posted by PITHOCRATES - May 19th, 2013

Week in Review

Obamacare will transform American health care into a more top-down national health care system.  Because the American left always wanted national health care.  For the power over the economy it will give them.  Not so much for the quality of health care.  For the quality of national health care has not been historically as good as the quality of private health care.  But the left doesn’t care.  Because it’s not about the quality of health care.  It’s about having power over one-sixth of the U.S. economy.

But they tell us it’s about providing high-quality health care to everyone.  Not just for the rich people who can afford it.  Which they can do if they take out the profit incentive from the health care equation.  For that’s what is driving up health care costs.  Greedy doctors and hospitals.  Who are profiting on sick people.  Which is just immoral to those on the left.  No.  The only way to fix health care is by removing the profit incentive from the health care equation.  Like they’ve done in Sweden.  The model of socialism the left so wants to see in the United States (see A hospital case posted 5/18/2013 on The Economist).

SAINT GORAN’S hospital is one of the glories of the Swedish welfare state. It is also a laboratory for applying business principles to the public sector. The hospital is run by a private company, Capio, which in turn is run by a consortium of private-equity funds, including Nordic Capital and Apax Partners. The doctors and nurses are Capio employees, answerable to a boss and a board…

Welcome to health care in post-ideological Sweden. From the patient’s point of view, St Goran’s is no different from any other public hospital. Treatment is free, after a nominal charge which is universal in Sweden…

Staff used to waste precious time looking for defibrillator machines and the like. Then someone suggested marking a spot on the floor with yellow tape and insisting that the machines were always kept there…

St Goran’s is the medical equivalent of a budget airline. There are four to six patients to a room. The decor is institutional. Everything is done to “maximise throughput”. The aim is to give taxpayers value for money. Hospitals should not be in the hotel business, the argument goes…

Spreading efficiency will not be easy, however. Europeans instinctively recoil from private companies making money from health care. British placards protest against modest reforms with pictures of fat cats helping the health minister to disembowel a patient labelled “NHS” (National Health Service). Even in Sweden, the mood has grown more hostile since some private-equity companies were embroiled in scandals at nursing homes…

Private health-care companies have several advantages over public organisations. They have more incentive to make services more efficient, since they typically keep some of the savings. They are better at persuading their employees to adopt new ideas. And they are better at spreading new ideas across borders. Europe should be proud of its public-health services. But if it wants them still to be affordable in the future, it should allow more private companies into the mix.

Hmmm.  The model socialism that the left so admires is using the profit incentive to fix their national health care.  Which means it must have been broken.  Just to show the differences in the way bureaucrats and ‘for profit’ people think consider the tape ‘X’ on the floor to mark the spot where a defibrillator should be stored.  The centralized authority couldn’t make that happen.  The top-down bureaucracy couldn’t figure a way to make people spend less time looking for a defibrillator.  Just something else to look forward to as Obamacare begins to reorganize American health care from the top down.

Maximizing throughput?  That’s a business term.  An alien concept to those in government.  And to their friends in labor unions.  Which will descend on the health care system under Obamacare.  Who will represent health care workers.  Not patients.  And their answer to everything will be more people working fewer hours.  Which will increase the cost of health care.  Just as it increased costs in American manufacturing.  Chasing it out of the country.  So there will be no maximizing throughput under a government/union controlled health care system.  Just more of what the Swedes are trying to get away from by reintroducing the profit incentive into the health care equation.

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