Aging Populations and Replacement Birthrate

Posted by PITHOCRATES - April 28th, 2014

Economics 101

(Originally published July 8th, 2013)

Trying to follow a Baby Boom with a Baby Bust creates Problems in Advanced Economies with Large Welfare States

In the late 1960s began a movement for zero population growth.  It called for women to have only enough babies to replace the current population.  Not to have too many babies that would increase the population.  Nor have too few babies that the population declines.  Something that women could easily do because of birth control.  And, later, abortion.  The drive behind this was to save the planet.  By keeping large populations becoming like a plague of locusts that devour the earth’s resources and food until the planet can no longer sustain life.

China did these zero population growth people better.  By promoting a negative population growth rate.  Limiting parents to one child.  They did this because during the days of Mao’s China the country set some world records for famine.  Their communist state simply couldn’t provide for her people.  So to help their communist system avoid future famines they tried to limit the number of mouths they had to feed.  Of course, trying to follow a baby boom with a baby bust creates other problems.  Especially in advanced economies with large welfare states.

China’s one-child policy and the preference for boys have led to a shortage of women to marry.  Some Chinese men are even looking at ‘mail-order’ brides from surrounding countries.  But China is going to have an even greater problem caring for her elderly.  Just like Japan.  Japanese couples are having less than 1.5 babies per couple.  Meaning that each successive generation will be smaller than the preceding generation.  As couples aren’t even having enough children to replace themselves when they die.  Leaving the eldest generation the largest percentage of the overall population.  Being paid and cared for by the smallest percentage of the overall population.  The younger generation.

States with Aging Populations are Suffering Debt Crises because they Spend More than their Tax Revenue can Cover

As nations develop advanced economies people develop careers.  Moving from one well-paid job to another.  As they advance in their career.  Creating a lot of income to tax.  Allowing a large welfare state.  Which is similar to a Ponzi scheme.  Or pyramid scheme.  As long as more people are entering the workforce than leaving it their income taxes can pay for the small group at the top of the pyramid that leaves the workforce and begins consuming pension and health care benefits in their retirement.  And there is but one requirement of a successful pyramid scheme.  The base of the pyramid must expand greater than the tip of the pyramid.  The wider the base is relative to the top the more successive the pyramid scheme.  As we can see here.

Babies per Generation - Constant Replacement Birthrate

Generation 1 is at the top of the pyramid.  It is the oldest generation.  Which we approximate as a period of 20 years.  In our example Generation 1 are people aged 78-98.  They’re retired and collecting pension, health care and other benefits.  Some combination of Social Security, Medicare, Medicaid, food stamps, heating assistance, etc.  All paid for by Generation 2 (58-78), Generation 3 (38-58) and Generation 4 (18-38).  Each generation is assumed to bring 6 children into the world.  So these couples are not only replacing themselves but adding an additional 4 children to further increase the size of the population.  Which really makes running a pyramid scheme easy.  For if we assume each member in Generation 1 on average consumes $35,000 annually in benefits that Generations 2 through 4 pay for that comes to $555.56 per person annually.  Or $46.30 per person monthly.  Or $10.68 per person weekly.  Or $1.53 per person daily.  Amounts so small that Generations 2 through 4 can easily pay for Generation 1′s retirement.  Now let’s look at the impact of a declining birthrate with each successive generation.

Babies per Generation - Declining Replacement Birthrate

When all couples in each generation were having on average 6 children this added 1.9 billion new taxpayers.  Which greatly reduced each taxpayer’s share of Generation 1′s retirement costs.  But thanks to birth control, abortion and the growing cost of living each successive generation has fewer babies.  Generation 2 only has 3 children.  Enough to replace themselves.  And add one new taxpayer.  Generation 3 has only 2 children.  Only enough to replace the parents.  Providing that zero population growth that was all the rage during the late 1960s and the 1970s.  While Generation 4 only has 1 child.  Not even enough to replace the parents when they die.  Causing a negative population growth rate.  Which is a big problem in an advanced economy with a large welfare state.  For instead of adding 1.9 billion new taxpayers they only add 217.5 million new taxpayers.  Greatly increasing each taxpayer’s share of Generation 1′s retirement costs.  Instead of paying $555.56 per taxpayer they each have to pay $5,384.62 annually.  Or $448.72 per taxpayer monthly.  Or $103.55 per taxpayer weekly.  Or $14.79 per taxpayer daily.  Numbers that prove to be unsustainable.  The state simply cannot tax people this much for Generation 1′s retirement.  For if they did this and added it to the rest of government’s spending they’re taxing us to fund it would take away all of our income.  This is why advanced economies with aging populations are suffering debt crises.  Because their spending has grown so far beyond their ability to pay for it with tax revenue that they borrow massive amounts of money to finance it.

If you want a Generous Welfare State you need Parents to have More Children

If you carry this out two more generations so every generation only has one child the per taxpayer amount tops out at $14,736.84 annually.  Or $1,228.07 per taxpayer monthly.  Or $283.40 per taxpayer weekly.  Or $40.49 per taxpayer daily.  Amounts far too great for most taxpayers to pay.  This is what an aging population does in a country with a large welfare state.  It makes the population top-heavy in elderly people who no longer work (i.e., pay taxes) but consume the lion’s share of state benefits.  When couples were having 6 children each across the generations there was a ratio of 84 taxpayers per retiree.  When there was a declining replacement birthrate that ratio fell to 15 taxpayers per retiree.  If we look at this graphically we can see the pyramid shape of this generational population.

Generational Population - Constant Replacement Birthrate

With 84 taxpayers per retiree we can see a nice and wide base to the pyramid.  While the tip of the pyramid is only a small sliver of the base (Generation 4).  Making for a successful Ponzi scheme.  Far more people pay into the scheme.  While only a tiny few take money out of the scheme.  This is why Social Security and Medicare didn’t have any solvency problems until after birth control and abortion.  For these gave us a declining replacement birthrate over time.  Greatly shrinking the base of the pyramid.  Which made the tip no longer a small sliver of the base.  But much closer in size to the base.  That if it was an actual pyramid sitting on the ground it wouldn’t take much to push it over.  Unlike the above pyramid.  That we could never push over.  Which is why the above Ponzi scheme would probably never fail.  While the one below will definitely fail.

Generational Population - Declining Replacement Birthrate

If you want a generous welfare state where the state provides pensions, health care, housing and food allowances, etc., you need parents to have more children.  For the more children they have the more future taxpayers there will be.  Or you at least need a constant replacement birthrate.  But if that rate is below the rate of a prior baby boom the welfare state will be unsustainable UNLESS they slash spending.  The United States has a replacement birthrate below the rate of a prior baby boom.  While the Obama administration has exploded the size of welfare state.  Especially with the addition of Obamacare.  Making our Ponzi scheme more like the second chart.  As we currently have approximately 1.75 taxpayers supporting each social security recipient.  Meaning that it won’t take much pushing to topple our pyramid. We’re at the point where a slight breeze may do the trick.  For it will topple.  It’s just a matter of time.

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FT208: “Good liars can make anyone like them while those who don’t lie can’t.” —Old Pithy

Posted by PITHOCRATES - February 7th, 2014

Fundamental Truth

Having Government remake our Health Care System is not the Limited Government of our Founding Fathers

According to a Gallup poll approximately 38% of people identify themselves as conservative while only 23% identify themselves as liberal (see Liberal Self-Identification Edges Up to New High in 2013 by Jeffrey M. Jones posted 1/10/2014 on Gallup).  With most of the rest (34%) identifying themselves as moderate.  Or, in other words, 77% of the people do NOT identify themselves as liberal.  That’s over three-quarters of the population.  Which means if you were in a group of four people only one of the four would be a liberal.

And yet we have Obamacare.  Thanks to the Affordable Care Act passed on partisan lines when the Democrats controlled both chambers of Congress.  The most liberal change to our health care system (the government will charge people a fine/tax if they don’t buy health insurance).  The only time in history that government has forced people to buy something against their will.  Without having any kind of say in the matter.  Like we do with car insurance.  If you don’t want to buy car insurance all you have to do is NOT drive a car.  But with Obamacare there is no choice.  Everyone has to buy health insurance.  Period.

Having government remake our health care system is not the limited government of our Founding Fathers.  It is actually more in keeping with a royal decree issued by the king the Founding Fathers fought for their independence from.  Ye shall do this.  For the ruler has spoken.  And ye shall pay more taxes to fund this huge growth of government.  Another thing not in keeping with our Founding Fathers.  Higher taxes.  So how have we come to this when 77% of the people don’t want any of this?  Because liberals are some of the best liars in the world.  That’s how.

Discounted Reimbursements are causing Doctors and Hospitals to leave the Obamacare Network

To make Obamacare work they needed to get people to pay more for their health insurance.  So they could raise a lot of money to subsidize health insurance for those who could not afford to buy it.  Which they couldn’t do if people kept the policies they liked and wanted to keep.  Especially those lower-cost ones.  So they made the policies people liked and wanted to keep noncompliant with the Affordable Care Act.  Forcing their insurers to cancel them.  And forcing people to buy more costly policies.  This providing the subsidy money Obamacare needed.

So this was the plan.  To cause mass cancellations.  And then force those people with cancelled policies to buy more expensive policies.  But this was only part of the formula.  To keep more of those higher insurance premiums they also raised deductibles.  So not only did people pay more for their health insurance policies.  Those policies paid for less.  Forcing people to spend a lot more out-of-pocket before their insurance kicked in.

We have huge budget deficits.  And growing national debt.  A big part of that debt is from Medicare and Medicaid (and Social Security).  Getting people to pay for other people’s health insurance won’t cut these costs.  But there is something that will, though.  The same thing the government is doing with Medicare.  Pay doctors and hospitals less.  By discounting their reimbursements.  It worked pretty well with Medicare.  So they were sure it would work well with Obamacare.  Of course, health care providers overcharged private insurers to recoup what the government didn’t pay.  So this will no longer be an option under Obamacare.  Which has caused a lot of doctors and hospitals to already leave the Obamacare network.

People would rather hear a Pleasant Lie than an Unpleasant Truth

There was a lot if opposition to the Affordable Care Act.  For the people did not want national health care.  And they felt that was where Obamacare would lead to.  So President Obama told people in person.  And looked into the camera.  Making a promise to the American people.  “If you like your health care plan you can keep your health care plan.  If you like your doctor you can keep your doctor.  If you like your hospital you can keep your hospital.  Period.  No one was going to take these away from you.  All we’re going to do is give you better health insurance while saving the average family $2,500 on their annual insurance premium.”  None of which was true.

Of course, had the president told the truth he would only have confirmed everyone’s fears.  Which is why he lied.  A lie so big PolitiFact named it the Lie of the Year.  And he told the lie so easily.  He was so reassuring that the people believed him.  In fact, they wanted to believe him.  For they liked this president.  And they trusted him.  Despite his economic policies having failed to produce a strong economic recovery.  For even when polls showed the people thought his policies were taking the country in the wrong direction the people still liked him.  Because he tried.  Always saying things the people wanted to hear.  A lot of feel-good things.  Affordable health care for everyone.  Leveling the playing field.  Making the rich pay their fair share.  Free birth control.  Not enforcing federal drug laws in Colorado and Washington.  With talk like that no wonder the people liked him.  And why it was so easy for him to lie to the people.  As they were willing to believe just about anything he said.

President Obama is everything our parents aren’t.  Who tell us what we need to do.  What we should do.  And what we shouldn’t do.  Regular killjoys.  Unlike the president.  And the Democrats.  Who don’t mind people having a little fun in their lives.  Unlike the Republicans.  Who are as bad as our parents.  Always telling us things we don’t want to hear.  Like truths.  Facts.  And how things are.  Reality.  While the president and the Democrats tell us how things could be.  How life can be more fun and more carefree their way.  Whereas life requires a lot of hard work and sacrifice the Republicans’ way.  Because reality can suck.  Which is why some people use intoxicants to escape it.  Or vote Democrat.  Willing to accept on faith their fictional
alternative to escape reality.  For it turns out people would rather hear a pleasant lie than an unpleasant truth.  And people will like you if you tell them pleasant lies.  While they won’t like you very much if you tell them unpleasant truths.  Which is why good liars can make anyone like them while those who don’t lie can’t.  This is why people didn’t like Mitt Romney.  He told the truth.  And why people liked President Obama.  Because he told them what they wanted to hear.  Such as things like the Lie of the Year.

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Health Care Economics

Posted by PITHOCRATES - January 20th, 2014

Economics 101

Because Obamacare Insurance pays for everything Under the Sun it is anything but Insurance

Do you know what the problem is with health care?  Insurance plans that give away free flu shots.  Not that flu shots are bad.  They’re not.  And it’s a good thing for everyone to get one every year at the onset of the flu season.  For it does seem to limit the spread of the flu virus.  It’s because we get a flu shot every year is why insurance shouldn’t pay for it.  Because we know about this expense.  And we can budget for it.  Just like we can budget for our monthly cellular bill.  Which is in most cases more than ten times the cost of one annual flu shot.

When Lloyds of London started selling marine insurance at that coffee shop they were selling insurance.  Not welfare.  Losing a ship at sea caused a huge financial loss.  And shippers wanted to mitigate that risk.  So every shipper paid a SMALL premium to protect against a LARGE loss.  A POTENTIAL sinking and loss of cargo.  Not every ship sank, though.  In fact, most ships did not.  Which is why that little bit from everyone was able to pay the financial loss of the few shippers that lost their ship and cargo.  But that’s all that Lloyd’s of London paid for.  They didn’t pay a dime to shippers whose ships didn’t sink.  No, those shippers paid every cent they incurred (crew, food, rum, etc.) to ship things across those perilous oceans.  Because they could expect those costs.  And they could budget for them.

This is how insurance works.  Which isn’t how our current health insurance system works.  No.  Today people don’t want to pay for anything out-of-pocket.  Not the unexpected catastrophic costs.  Or the EXPECTED small costs that everyone can budget for in their personal lives.  Like an annual flu shot.  Childhood vaccinations.  Annual checkups.  Childbirth.  Etc.  Even the unexpected things that aren’t that expensive.  Like the stitches required when a child falls off of a bike.  Things that would cost less than someone’s monthly cellular bill.  Or things that people can plan and save for.  Like a house.  A car.  Or a child.  Which is why Obamacare insurance is not insurance.  It pays for way too many expected costs that we can budget for.  And because it does it only increases the cost of our health insurance policies.  Which are now anything but insurance.

Free Market Forces and Insurance for Catastrophic Costs will Fix any Problems in our Health Care System

When we pay these things out-of-pocket there are market forces in play.  For a doctor is not going to charge someone they’ve been seeing for years as much as he will charge a faceless insurance company.  Even today some doctors will waive some fees to help some of their long-time patients during a time of financial hardship.  Because there is a relationship between doctor and patient.  And they want to help.  Which is why they sometimes overcharge insurance companies to recover costs they can’t recover in full from other patients.  (Which is why insurance companies are vigilant in denying overbillings).  Especially those things government pays for.  Medicaid.  And Medicare.  Which the government discounts.  Leaving health care providers little choice but to overbill others to pay for what the government does not.

When we pay out-of-pocket doctors can’t charge as much.  Because they need patients.  If they charge too much their patients may find another good doctor that charges a little less.  Perhaps a younger one trying to establish a practice.  These are market forces.  Just like there are everywhere else in the economy.  Even a cancer patient requiring an expensive miracle drug benefits from market forces.  If there was true insurance in our health care system, that is.  Cancer is an unexpected and catastrophic cost.  But not everyone gets cancer.  Just as every ship does not sink.  Everyone would pay a small fee to insure against a financial loss that can result from cancer.  Where that little bit from everyone buying a catastrophic health insurance policy was able to pay the financial loss of the unfortunate few that require cancer treatment.  Even one including a costly miracle drug.  Because only a few from a large pool would incur these financial losses insurers would compete against other insurers for this business.  Just like they do to insure houses.  And ships crossing perilous oceans.

Health care would work better in the free market.  It doesn’t today because government changed that.  Starting with FDR putting a ceiling on wages.  Which forced employers to offer generous benefits to get the best workers to work for them when they couldn’t offer them more pay.  This was the beginning.  Now the health insurance industry is so bastardized that it doesn’t even resemble insurance anymore.  It’s just a massive cost transfer from one group of people to another.  Instead of a pooling of money to insure against financial risk.  For the few unexpected and catastrophic costs we cannot afford or budget for to pay out-of-pocket.

Because our Health Care System is the Most Expensive in the World it is the Best in the World

The American health care system is the finest in the world.  When you have a serious health care issue and you have the wherewithal there’s only one place you’re going for your medical care.  The United States.  And the best costs.  And it’s because it is so costly that people enter into the health care industry to do wonderful things.  Such as pharmaceutical companies.  Who many rail against for charging so much for the miracle drugs only they produce.  It’s a free country.  Anyone could have created that miracle drug.  All they had to do was to spend a boatload of money for years on other drugs that were losers.  Until they finally found one that wasn’t a loser.  That’s all you had to do.  Yet few do it.  Why?

Because creating miracle drugs is an extremely expensive and often futile endeavor.  Which is why we award patents to the few who do.  Which is the only reason they pour hundreds of millions of dollars into research and development and pay massive liability insurance premiums for taking a huge risk to put a drug onto the market that may harm or kill people.  They do this on the CHANCE that they may develop at least one successful drug that will pay for all of the costs incurred to develop this one drug, the costs for the countless drugs that failed AND provide a profit for their investors.  Who took a huge risk in paying their employees over the many years it took to come up with at least one drug that wasn’t a loser.  Their investors do this only because of the CHANCE that this pharmaceutical will develop that miracle drug that everyone wants.  But most don’t.  And investors just lose their investment.  But it’s the only way miracle drugs become available to us.  Because of rich investors who were willing to risk losing huge amounts of money.

This is what the profit incentive gives us.  The best health care system in the world.  Why the countries based on free market capitalism have the finest health care systems in the world.  And why North Korea, Cuba, the former East Germany, the former Soviet Union, Venezuela, etc., have never given us miracle drugs.  There never was an economic incentive throughout the economy to do so.  Like there is in countries with free market capitalism.  Where everyone at every level pursues profits that result overall in a pharmaceutical industry that produces these miracle drugs.

There is an expression that says you get what you pay for.  Our health care system is the most expensive in the world.  And because it is it is the best in the world.  Trying to inhibit the profit incentive for research and development and forcing medical providers to work for less (steeper Medicaid, Medicare and now Obamacare discounts) will change that.  Because you do get what you pay for.  And those who live/have lived in North Korea, Cuba, the former East Germany, the former Soviet Union, Venezuela, etc., can attest to.

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Medicaid, Medicare and Frivolous Lawsuits make the Best Health Care System in the World more Expensive

Posted by PITHOCRATES - November 23rd, 2013

Week in Review

The American left loves Canada.  In particular their single-payer health care system.  This is what they wanted in the US.  Not Obamacare.  But they settled for Obamacare.  Until they get what Canada has one day.  Because it’s better.  At least, according to a chart.  That shows how wonderful Canadian health care is and how horrible American health care is (see The U.S. Health Care System Is Terrible, In 1 Enraging Chart by Mark Gongloff posted 11/22/2013 on the Huffington Post).

Yes, among this group of big countries, the U.S. spends far and away more on health care than any other. And yet it has among the lowest life expectancies of any developed country. People live longer in pretty much every country in Europe, including Greece, where the economy has been wracked by austerity for years…

Why is our system so terrible? Largely because it is built for profit. Unlike many other countries, the government has no role in either providing care or setting prices, and so prices skyrocket. It’s also too complex, which is one reason the Affordable Care Act, President Obama’s signature reform law, has gotten off to such a bad start.

The health care law is supposed to help with the cost problem somewhat. But it is built on the existing privatized system, which means it will probably not make a significant difference. A public option, also known as a “single payer” plan, would help. But that still seems like a pipe dream — although maybe Obamacare’s clumsy rollout will bring it closer to reality.

First of all it should be noted that Canada has one of the finest private health care networks in the world.  Outside of their single-payer system.  Which is something they share with all nations that have some form of national health care.  A private health care network for those who want and can pay for it.  And why is Canada’s private health care network the best in the world?  Perhaps you can guess why when you hear the name of it.  The Untied States health care system.  Just south of the border.

That’s right, for those with the means don’t wait in line for less than the best of health care.  They spend their own money to go to the front of the line to get the best health care available.  In the United States.  Often administered by Canadians.  Because the US pays the best doctors and nurses more than they can get in Canada.  So Canadian doctors and nurses, too, travel south across the border.

The US is one of the only countries where their poor suffer from obesity.  Because of generous food assistance programs.  Also, because we are a for-profit nation our food industry has figured out to give us more food for less.  Our beverage sizes have gotten so big giving us so much value for the money that Mayor Bloomberg tried to limit the size of beverages in New York.  And all American restaurants give us free refills.  Because they can.  While some European countries will charge extra for a package of ketchup.  All of this more food for less has led to our obesity problem.  Giving Americans heart disease and diabetes.  Shortening life expectancies.

US doctors are dropping out of Medicaid.  And Medicare.  More so now that the Affordable Care Act (Obamacare) is rolling out.  Why?  Because the government pays for these nonprofit programs.  And they are constantly trying to reduce their reimbursements.  Because the aging population is straining the Medicaid and Medicare programs.  And the government has addressed this problem by ‘discounting’ Medicaid and Medicare billings.  For years doctors and hospitals have tried to recover these shortfalls by charging more.  Especially insurance companies.  Greatly increasing the cost of health care and health insurance.  But the discounting grew so great that many health care providers just dropped these programs.  Because they couldn’t pay their people, their lab costs, their overhead, etc.  Especially since Obamacare has taken money from Medicare.  And ‘forced’ states to expand their Medicaid rolls.  But these discounted reimbursements aren’t the only thing raising health care costs.

While most of Europe has loser-pay laws to curtail frivolous lawsuits the United States doesn’t.  Because of the trial lawyers.  Who get quite wealthy suing doctors, hospitals and pharmaceuticals.  Exploding the cost of malpractice and liability insurance.  Which increase the cost of doctors, hospitals and pharmaceuticals.  Forcing them to raise their prices to recover these costs.  Making American health care more costly.

These are the reasons why the US spends more per capita on health care than all other nations.  Because they have the best health care system in the world.  And the best costs more.  While the government forcing health care providers to work below costs (Medicare and Medicaid) and the cost of frivolous lawsuits raise these costs even more.

The American health-care system is not terrible.  Single-payer systems are.  Because they all have a private health care network.  Which they wouldn’t have if single-payer systems were the best systems.  Just ask the Canadians who use their private network.  The US health care system.  Who will probably be the second greatest losers under the Affordable Care Act.  After the Americans.

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FT197: “Global warming insurance would probably sell as well as Obamacare.” —Old Pithy

Posted by PITHOCRATES - November 22nd, 2013

Fundamental Truth

The Scam of the Ponzi Scheme is that there is no Investment

A Ponzi scheme is a pyramid scheme.  An investment scam.  Here’s how it works.  Say three scammers build an investment fund that they promise will return an 18% return on investment.  A pretty good return these days.  If they have 100 investors who invest $25,000 each that brings in $2.5 million into the investment fund.  Now here’s where the scam comes in.

They pay each investor an 18% return each year.  So their $25,000 returns $4,500.  A return they can’t get anywhere else.  An investment just too good to be true.  Some take that $4,500 check and spend it on something special for themselves.  Others leave it in the fund.  While others beg to get into the fund.  Of course they wouldn’t do these things if they understood what happened to the $2.125 million that the fund didn’t pay out to investors.  That went into the pockets of the three scammers.

That’s the scam of the Ponzi scheme.  There is no investment.  The scammers collect the money people invest.  Put aside some money to pay out as a generous return on investment.  While keeping the rest.  These scammers sit on top of the pyramid.  And the more people that join the investment fund the wider the base of the pyramid gets.  Pouring more money into the scam.  Providing more money to pay out even higher returns on investments.  Getter ever more people begging to get into the fund.  While burying the scammers under an avalanche of cash.

Our Aging Population is sending the Health Insurance Industry into a Death Spiral

All Ponzi schemes share these characteristics.  And one other one.  They all fail.  And the scammers go to jail.  Why?  Simple.  The scam works as long as the base of the pyramid continues to grow greater than the top of the pyramid.  As the base grows larger the scammers spend more money, though.  Because there is more money to spend.  And spend they do.  Putting down deposits and paying on large mortgages and loans.  Buying very costly things that have a voracious appetite for cash.  So over time more money flows out at the top of the pyramid.  Which isn’t a problem until money stops flowing into the bottom of the pyramid.  Or begins to flow out.  Because people want to use their money for something else.  Like for a down payment on a house.  And once the money flowing out of the bottom of the pyramid exceeds the ‘return’ on investment the fund pays those high returns on investments shrink and disappear.  Exposing the scam.

This is what has happened to Social Security and Medicare.  Thanks to an aging population.  Women are having fewer babies than they did during the baby boom generation.  So today we have fewer taxpayers entering the workforce who pay the taxes that pay for Social Security and Medicare.  While the baby boomers are retiring and leaving the workforce.  And living longer into retirement.  Consuming far more money than they ever paid into these entitlement programs.  So there is far more money flowing out of the top of the pyramid than is flowing into the bottom.  Inverting the pyramid.  And putting these programs onto the path to bankruptcy.

Health insurance is little different.  It just covers so much these days that insurance premiums have soared to pay for this ever expanding coverage.  And the aging population just makes a horrible situation worse.  The elderly are living longer and consuming the lion’s share of health care services.  Further raising the cost of health insurance.  Making it unaffordable to many.  So people simply choose not to buy it in their youth when they are young and healthy.  And wait to buy it later in life when they need it.  Such as when they start raising a family.  At which time they’ll try to find employment somewhere that has good health insurance.  When they start consuming health care services.  Creating adverse selection.  Where only those who consume health care services buy health insurance.  While those who don’t consume health care services (i.e., the young and healthy) don’t.  Creating a death spiral.  As there are no non-consumers of health care services subsidizing the high cost of the large consumers of health care services.  So premiums rise.  To allow fewer people pay for more.  More people drop their insurance because they can no longer afford it.  Shrinking the insurance pool.  So premiums rise.  To allow fewer people pay for more.  More people drop their insurance because they can no longer afford it.  And so on until the cost of health insurance equals the cost of the health care services.  And the insurance market goes the way of every Ponzi scheme before it.

When Reality hits People in the Pocketbook they tend to Lose their Idealism

Enter the Affordable Care Act and the mandates.  Forcing the young and healthy to buy insurance they won’t use.  So they can use their premiums to pay for the old and sick.  The greatest generational theft in history.  Something the young and healthy see.  And don’t like.  For they are not running out and buying health insurance on the health exchanges.  In fact the majority of the people to enroll thus far are the high consumers of health care services.  Which is basically the opposite of the goal of Obamacare.  The young and healthy may have supported President Obama and the Affordable Care Act but that was only in generalities.  Yes, we should help those who don’t have insurance.  And, yes, we should do something to save the environment.  We should stop discriminating against the LGBT community and let them get married.  In the abstract these are all noble goals.  But when the reality hits their pocketbook then it’s no longer an abstract thing to feel good about.  Especially when they can’t get a job with their college education because they had the misfortune to enter the workforce during the worst economic recovery since that following the Great Depression.  The Obama recovery.

This is when youthful idealism turns into skepticism.  As reality settles in hard.  This isn’t raising taxes on the rich.  Something they won’t have to deal with until much later in their career.  This is in the here and now.  When they stop hearing inspiring words from the president about what we can do if only we implement his policies.  But only hear B.S. and lies.  For if they had that youthful idealism they would be rushing to the health exchanges to buy health insurance to make the world a better place.  But they’re not.  And this has the left worried.  Not just about trying to fix the broken Obamacare website.  But will this skepticism spread to other items on their liberal agenda?  Such as the fight against manmade global warming?  They still want their carbon tax.  And they’ve worked hard to get kids graduating from high school convinced that we’re destroying the planet and need to make polluters pay.  If the young lose their faith on Obamacare they may just stop fearing global warming to the point that they may start driving big SUVs again.

In the abstract the youth will support many things.  Until it starts hitting them in the pocketbook.  And if we make the fight against global warming hit them in the pocketbook they would quickly become indifferent about manmade global warming.  Even becoming manmade global warming skeptics.  Perhaps even noting that the glaciers once stretched down from the poles to near the equator.  And moved back towards the poles.  Before there was any manmade global warming.  Something that probably bothers them today but they’re not yet ready to question the left about manmade global warming.  But if we made them buy insurance to protect themselves from the ravishes of global warming they probably would.  The prognosticators can run off a list of calamities that will befall us from unchecked global warming.  So actuaries should be able to put a cost on that.  And set insurance premiums to cover the cost when the calamities of manmade global warming hit us.  Putting these premiums into a Save the Planet from Manmade Global Warming Trust Fund.  Just like the Social Security Trust Fund that has nothing in it but government IOUs.  Let the youth start paying a monthly premium to save us from manmade global warming and see how soon they become global warming deniers.  If we did this global warming insurance would probably sell as well as Obamacare.  Because when reality hits people in the pocketbook they tend to lose their idealism.  And this is the biggest fear the left has.  Because they count on that youthful idealism to win elections.  For once people lose their idealism they tend to vote Republican.

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Unlike the July Effect the High Inpatient Mortality of the Obamacare Effect will be Year Round

Posted by PITHOCRATES - November 9th, 2013

Week in Review

The Affordable Care Act is making health insurance unaffordable for many.  Especially for those young and healthy who are being whacked open like a cash piñata to pay for the poor, old and sick.  Which is why they are losing their health insurance.  So they must enter the exchanges.  And pay for a lot of insurance coverage they will never use.  Well, to be fare, chances are they will never use any of their insurance with those sky-high deductibles.  Making any doctor visit an out-of-pocket visit.

But that isn’t the only place the Affordable Care Act is shaking down people.  Obamacare is also shaking down doctors.  By cutting their Medicare and Medicaid reimbursements.  Making them take pennies on the dollars.  Making it hard for those in a private practice to pay their staff.  And their bills.  Which isn’t why they went into medicine.  So these doctors are leaving Medicare and Medicaid.  Some are even retiring.  Leaving the profession instead of being beaten up by Obamacare.  So just as Obamacare is giving more free health care to people there will be fewer health care providers.  Which puts a story like this into a new light (see Sicker heart attack patients fare worse in July by C. E. Huggins posted 11/7/2013 on Reuters UK).

Rumor has it the worst time and place to be sick is in a teaching hospital in July, when new doctors-in-training enter the wards and others are promoted. A new study of heart attack patients shows this pattern of worse outcomes known as the “July effect” may indeed be true – but only for the sickest people.

“Patients who are already at high risk of inpatient mortality – because of their age and other (co-existing) diseases – are likely the most to be affected by physician inexperience in July,” Dr. Anupam Jena told Reuters Health in an email. He led the research at Harvard Medical School in Boston…

“Our study is different because it recognizes that the July effect should not be present for all patients, but primarily those patients for whom small clinical errors or relative physician inexperience can substantively impact patient outcomes,” Jena said.

There will be a new name to explain another rise in inpatient mortality.  The Obamacare effect.  Where fewer health care providers will have to do more with less.  Increasing wait times.  Overworked doctors will spend less time with each patient.  And they will make mistakes.  Or miss things they might have caught if they had more time.

So in the future as you sit around with your grandchild on your knee you can talk about the good old days.  Before the Obamacare effect.  When we rushed people to the hospital to make them well.  And most got well.  Unlike after the Obamacare effect.  Which turned the once envied U.S. health care system into the VA hospitals of the Seventies.  Places to avoid like the plague.  Which is why after the Obamacare effect people would rather take their chances with heart attacks and strokes at home.  Instead of going into an Obamacare hospital for near certain death.

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Obamacare forces Seniors to give up their Doctors and Medicare Advantage

Posted by PITHOCRATES - October 27th, 2013

Week in Review

During the 2012 campaign the Obama campaign attacked Mitt Romney as a guy that didn’t care if people with cancer lost their health insurance.  In fact, the company he co-founded, Bain Capital, was accused of being so heartless that it wanted people to die from cancer. 

An employee of a steel plant lost his job and his health insurance after Bain took over the failing company and later closed the plant.  And because of this his wife died from cancer.  Even though she had lost her health insurance before the plant had closed.  Yet this one cancer death was very effective in demonizing Mitt Romney during the 2012 campaign.  Ironically, President Obama will willingly let many people die from cancer to achieve a political end; national health care (see Elderly patients sick over losing doctors under ObamaCare by Carl Campanile posted 10/25/2013 on the New York Post).

Elderly New Yorkers are in a panic after getting notices that insurance companies are booting their doctors from the Medicare Advantage program as a result of the shifting medical landscape under ObamaCare.

That leaves patients with unenviable choices: keep the same insurance plan and find another doctor, pay out of pocket or look for another plan where their physician is a member…

The [sic] are 2.6 million elderly New Yorkers who receive Medicare, the public heath [sic]-insurance program for the elderly.

But one in three patients — nearly 900,000 — are enrolled in Advantage, Medicare HMOs run by private insurers…

Federal funding to Medicare Advantage is being pared back by billions of dollars in coming years under the national Affordable Care Act. Obama said spending on the program was higher than regular Medicare and unsustainable.

President Obama said if you like your insurance you can keep your insurance.  And if you like your doctor you can keep your doctor.  Unless, of course, he wants to gut Medicare Advantage to pay for Obamacare.

He screws his young supporters by forcing them under penalty of law to buy health insurance to pay for the old and sick.  And now he’s screwing the old and sick by taking away their doctors and health insurance.  If he’s willing to screw two large voting blocks that support him imagine what he’ll do to people he doesn’t like.  Like Republicans, conservatives and Tea Party members.  The same conservative group that got special IRS scrutiny during the 2012 campaign.  An election where the Republican base did not turn out like they did during the 2010 elections.  Now imagine how eager they’ll want to be politically active when in addition to special IRS scrutiny the government can take away their doctor.  And deny them treatment for their health problems.  If you want a glimpse into that world you can look here.

Or you can look here.

It can get a little scary when the state becomes all powerful.  Some people at the Founding wanted a more powerful government.  For they were all students of the Enlightenment.  And believed that only like-minded people would ascend to government.  But the Founding Fathers knew their history.  And knew better.  No person should be trusted with power.  For what Lord Acton wrote in 1887 is as true today as it was throughout history.  “Power tends to corrupt, and absolute power corrupts absolutely. Great men are almost always bad men.”

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The Petulant President scolds Republicans, Conservatives and Anyone Else who dares to Oppose Obamaism

Posted by PITHOCRATES - October 17th, 2013

Politics 101

The government shutdown is over. And we avoided defaulting on the national debt  Or so they say.  So who won and who lost?  Well, at this point in time it looks like the Democrats lost less than the Republicans.  But it is the American people who lost.  For they are stuck with Obamacare for the time being.  And President Obama can raise the national debt to a new record high.  But it gets worse.  This morning the president gave a petulant, God-awful speech scolding the Republicans, the Tea Party, talk radio, the blogosphere and pretty much anyone else who dares to oppose Obamaism (see Transcript of Obama Remarks on End of Standoff posted 10/17/2013 on The Wall Street Journal).

Good morning, everybody.  Please have a seat.

Well, last night, I signed legislation to reopen our government and pay America’s bills.  Because Democrats and responsible Republicans came together, the first government shutdown in 17 years is now over.  The first default in more than 200 years will not happen.  These twin threats to our economy have now been lifted.  And I want to thank those Democrats and Republicans for getting together and ultimately getting this job done.

There was never a risk of default.  With $2.45 trillion in annual revenue coming into the treasury from the taxpayers there was never a risk of the $415.7 billion annual interest payment on the debt going unpaid.  Lying about it just helped a petulant child get his way.  Waaa.

Now, there’s been a lot of discussion lately of the politics of this shutdown.  But let’s be clear:  There are no winners here.  These last few weeks have inflicted completely unnecessary damage on our economy.  We don’t know yet the full scope of the damage, but every analyst out there believes it slowed our growth.

What growth?  Since coming to office the president’s policies have lost approximately 9,966,000 jobs through the September jobs report.  That’s just shy of 10 million jobs he’s lost.  So what recovery?  Or is he just setting the stage to blame the worst economic recovery since that following the Great Depression on this 16 day shutdown?  And not the lost economic activity from those 10 million or so lost jobs?  Of course he is.  Because what are 10 million jobs when he can stick it to the Republicans?

We know that families have gone without paychecks or services they depend on.  We know that potential homebuyers have gotten fewer mortgages, and small business loans have been put on hold.  We know that consumers have cut back on spending, and that half of all CEOs say that the shutdown and the threat of shutdown set back their plans to hire over the next six months.  We know that just the threat of default — of America not paying all the bills that we owe on time — increased our borrowing costs, which adds to our deficit.

Yes, pity the government bureaucrats who had to go 16 days without reporting to work.  Even though they will be paid for those 16 days they missed.  Yes, pity the government bureaucrats.  And not the 10 million who have disappeared from the labor force since President Obama assumed office.  I mean, what are 5 years without a paycheck compared to missing 16 days of work?  Which the taxpayers will still pay them for?

Businesses cut back on spending and hiring because of the great uncertainty of a 16-day shutdown?  Are you sure it wasn’t the regulatory requirements of Obamacare that is forcing employers with close to 30 ‘full time’ employees (30 hours or more per week) to not hire any more workers?  Even pushing full-time workers to part time?  Are you sure this isn’t the reason why they’re not hiring?  Especially with the cost of health insurance going through the roof now that it must cover everything under the sun (such as pediatric care for a couple whose children are now grown adults) as well as pre-existing conditions?  Where someone can walk in off the street who was just diagnosed with cancer and buy an insurance policy for the first time in their life?  Are you absolutely sure it’s the 16-day shutdown and not Obamacare?   If so someone needs to attend a high school economics class to learn the first thing about economics.

And, of course, we know that the American people’s frustration with what goes on in this town has never been higher. That’s not a surprise that the American people are completely fed up with Washington.  At a moment when our economic recovery demands more jobs, more momentum, we’ve got yet another self-inflicted crisis that set our economy back.  And for what?

Again, are you sure it was the 16-day shutdown and not the 4 years or so of Obamacare?

There was no economic rationale for all of this.  Over the past four years, our economy has been growing, our businesses have been creating jobs, and our deficits have been cut in half. We hear some members who pushed for the shutdown say they were doing it to save the American economy — but nothing has done more to undermine our economy these past three years than the kind of tactics that create these manufactured crises.

The last fiscal year ending deficit while George W. Bush was president was $498.37 billion (adjusted for inflation).  At the end of the first fiscal year with President Obama in office the deficit soared to $1.539.22 trillion.  An increase of 208.9%.  It is this deficit number that he cut in half.  The one he exploded with his near trillion dollar stimulus that did not stimulate anything but unions and the president’s cronies on Wall Street and in Big Business.  Especially Big Green Business.

And the president had something else preventing him from spending as much as he did during his first term.  Sequestration.  Which the Democrats hate with a passion and want to get rid of.  So they can turn on the spending spigot once again.  Like they did during his first term.

And you don’t have to take my word for it.  The agency that put America’s credit rating on watch the other day explicitly cited all of this, saying that our economy “remains more dynamic and resilient” than other advanced economies, and that the only thing putting us at risk is — and I’m quoting here — “repeated brinksmanship.”  That’s what the credit rating agency said.  That wasn’t a political statement; that was an analysis of what’s hurting our economy by people whose job it is to analyze these things.

Really?  Brinkmanship?  You don’t think adding $6.2 trillion to the national debt during your presidency had anything to do with the credit rating agency’s concern about our debt paying ability?  A high school economics student can understand that the greater your debt is the greater your debt-paying problem.  Funny how you don’t, Mr. President.

That also happens to be the view of our diplomats who’ve been hearing from their counterparts internationally.  Some of the same folks who pushed for the shutdown and threatened default claim their actions were needed to get America back on the right track, to make sure we’re strong.  But probably nothing has done more damage to America’s credibility in the world, our standing with other countries, than the spectacle that we’ve seen these past several weeks.  It’s encouraged our enemies.  It’s emboldened our competitors.  And it’s depressed our friends who look to us for steady leadership.

I thought it would have been your bad foreign policy that did all those things.  Starting with the Green Revolution in Iran.  An uprising of the people against the Islamist and oppressive government of Iran.  The precursor to the Arab Spring.  Where you did nothing.  Leaving the good Iranian people with that oppressive Islamist government.  Which is currently working to produce a nuclear bomb.  Then there was the Arab Spring and you telling our friend and ally and anchor to peace and stability in the Middle East, Hosni Mubarak, that he had to go.  Turning Egypt over to the anti-Western Muslim Brotherhood.  And then there was Libya.  Another ally in the War on Terror, Muammar Gaddafi (who joined the fight against terrorism after our invasion of Iraq), that he had to go.  Turning Libya over to radical Islamists.  Who killed four Americans in Benghazi.  Then there was the red line fiasco with Syria.  If you cross that red line I will hem and haw and stammer.  Then I might say something else.  Then Vladimir Putin steps in and saves the day for their Syrian ally.  Russia.  Who suspended all adoptions to Americans to spite America.  Who are also helping the Iranians with their nuclear program.  All the while laughing at President Obama who they see as weak.  Who couldn’t get one nation to join him for military strikes against Syria.  If you want to talk about our prestige on the world stage you gave that up long ago.  For today no one fears the wrath of the United States these days.  With some nations seeing the United States becoming irrelevant in the world.  Especially Russia and China.  As well as radical Islam.

Now, the good news is we’ll bounce back from this.  We always do.  America is the bedrock of the global economy for a reason.  We are the indispensable nation that the rest of the world looks to as the safest and most reliable place to invest — something that’s made it easier for generations of Americans to invest in their own futures.  We have earned that responsibility over more than two centuries because of the dynamism of our economy and our entrepreneurs, the productivity of our workers, but also because we keep our word and we meet our obligations.  That’s what full faith and credit means — you can count on us.

And today, I want our people and our businesses and the rest of the world to know that the full faith and credit of the United States remains unquestioned.

There is a difference between economic investment and buying our bonds.  Any money that buys government bonds is money pulled out of the economy.  Investing in government bonds doesn’t create economic activity.  It actually destroys economic activity.  And the only worry the rest of the world had was what you were going to do, Mr. President.  Would you not pay the interest on the national debt out of spite to attack the Republicans?  That’s what they were worried about.  For even they knew we had the money to pay our debt without new borrowing.  They just don’t trust you.

But to all my friends in Congress, understand that how business is done in this town has to change.  Because we’ve all got a lot of work to do on behalf of the American people — and that includes the hard work of regaining their trust.  Our system of self-government doesn’t function without it.  And now that the government is reopened, and this threat to our economy is removed, all of us need to stop focusing on the lobbyists and the bloggers and the talking heads on radio and the professional activists who profit from conflict, and focus on what the majority of Americans sent us here to do, and that’s grow this economy; create good jobs; strengthen the middle class; educate our kids; lay the foundation for broad-based prosperity and get our fiscal house in order for the long haul.  That’s why we’re here.  That should be our focus.

Strong words coming from a professional activist.  For he was a community organizer.  And taught activism.  Funny how there are two types of activism.  The good kind in his world.  When it advances a liberal agenda.  And the bad kind in his world.  The kind based in conservatism.  The president hates conservative activism, otherwise known as a government of the people, by the people and for the people, and believes it should be silenced and replaced with one-party rule.

Now, that won’t be easy.  We all know that we have divided government right now.  There’s a lot of noise out there, and the pressure from the extremes affect how a lot of members of Congress see the day-to-day work that’s supposed to be done here. And let’s face it, the American people don’t see every issue the same way.  But that doesn’t mean we can’t make progress.  And when we disagree, we don’t have to suggest that the other side doesn’t love this country or believe in free enterprise, or all the other rhetoric that seems to get worse every single year.  If we disagree on something, we can move on and focus on the things we agree on, and get some stuff done.

And the Democrats calling the political opposition terrorists, arsonists, hostage takers, the Taliban, etc., how is that coming together to focus on the things we agree on?  To get some stuff done?  Well, Mr. President, it is obvious you believe compromise is the Republicans caving and becoming your bitch.  This is not a government of the people, by the people and for the people.  This is a government of, by and for you.

Let me be specific about three places where I believe we can make progress right now.  First, in the coming days and weeks, we should sit down and pursue a balanced approach to a responsible budget, a budget that grows our economy faster and shrinks our long-term deficits further.

At the beginning of this year, that’s what both Democrats and Republicans committed to doing.  The Senate passed a budget; House passed a budget; they were supposed to come together and negotiate.  And had one side not decided to pursue a strategy of brinksmanship, each side could have gotten together and figured out, how do we shape a budget that provides certainty to businesses and people who rely on government, provides certainty to investors in our economy, and we’d be growing faster right now.

The last time we did this little dance it was the same.  You want to raise taxes and cut no spending.  That’s your idea of a balanced approach.  Oh, you’ll promise spending cuts after we raise some taxes.  But those spending cuts will never come.  Democrats just don’t cut spending.  Unless they get themselves stuck in a sequester.  And that’s not even real spending cuts.  It’s only smaller increases in future spending.

Now, the good news is the legislation I signed yesterday now requires Congress to do exactly that — what it could have been doing all along.

And we shouldn’t approach this process of creating a budget as an ideological exercise — just cutting for the sake of cutting.  The issue is not growth versus fiscal responsibility — we need both.  We need a budget that deals with the issues that most Americans are focused on:  creating more good jobs that pay better wages.

Can the nation afford anymore of your job creation?  After losing some 10 million jobs we should just cut our losses.  And refuse anymore of your ‘help’ with the economy.

Cutting for the sake of cutting?  What, we don’t have a debt crisis that requires our debt ceiling to be raised again and again?  We’re spending too much.  Hence the need to keep raising our debt ceiling.  And Obamacare only makes this worse.  A lot worse.  Hence that 16-day government shutdown.  Or did he miss that?

And remember, the deficit is getting smaller, not bigger.  It’s going down faster than it has in the last 50 years. The challenges we have right now are not short-term deficits; it’s the long-term obligations that we have around things like Medicare and Social Security.  We want to make sure those are there for future generations.

Oh, you are devious, Mr. President.  The deficit is going down faster than in the last 50 years only because you raised it to record highs in your first year in office.  Your smallest deficit is still larger than George W. Bush’s last deficit.

Medicare?  You cut Medicare spending so you can spend that money on Obamacare.  And Social Security?  The Social Security Trust Fund has no cash in it.  It’s stuffed with government IOUs.  Because the government is spending so much money that they have to raid the Social Security Trust Fund to pay for it.  And even that’s not enough to prevent deficit spending.  So they’re robbing Peter to pay Paul.  This out of control spending is why Medicare and Social Security may not be there for future generations.

So the key now is a budget that cuts out the things that we don’t need, closes corporate tax loopholes that don’t help create jobs, and frees up resources for the things that do help us grow — like education and infrastructure and research.  And these things historically have not been partisan.  And this shouldn’t be as difficult as it’s been in past years because we already spend less than we did a few years ago.  Our deficits are half of what they were a few years ago.  The debt problems we have now are long term, and we can address them without shortchanging our kids, or shortchanging our grandkids, or weakening the security that current generations have earned from their hard work.

More on education?  That’s to shore up the teachers’ underfunded pensions.  Infrastructure?  That’s just pork-barrel spending.  Building airports where no one wants to fly.  Or high-speed rail that requires constant government subsidies.  Money that buys votes in Congress to pass huge spending bills.  Like Obamacare.  Which passed only by buying off Democrats with the Cornhusker Kickback, the Louisiana Purchase, the Florida Flim Flam, etc.

So that’s number one.  Number two, we should finish fixing the job of — let me say that again.  Number two, we should finish the job of fixing our broken immigration system.

There’s already a broad coalition across America that’s behind this effort of comprehensive immigration reform — from business leaders to faith leaders to law enforcement.  In fact, the Senate has already passed a bill with strong bipartisan support that would make the biggest commitment to border security in our history; would modernize our legal immigration system; make sure everyone plays by the same rules, makes sure that folks who came here illegally have to pay a fine, pay back taxes, meet their responsibilities.  That bill has already passed the Senate. And economists estimate that if that bill becomes law, our economy would be 5 percent larger two decades from now.  That’s $1.4 trillion in new economic growth.

There’s a reason why people hire illegal aliens.  So they can pay them less than legal citizens.  So once these illegals become legal they’re not going to work for illegal wages anymore.  So it will raise labor costs.  Forcing businesses to lay off some workers.  Creating no net economic benefit.  But the Democrats don’t care.  Because it’s not about the economy.  It’s about all those new Democrat voters.  To turn the nation, like they turned California, Democrat.

The majority of Americans think this is the right thing to do.  And it’s sitting there waiting for the House to pass it.  Now, if the House has ideas on how to improve the Senate bill, let’s hear them.  Let’s start the negotiations.  But let’s not leave this problem to keep festering for another year, or two years, or three years.  This can and should get done by the end of this year.

Really?  A majority of people want immigration reform?  And because of that we should pass it?  Well, the majority of people want to repeal Obamacare.  So perhaps this is a negotiation the Republicans and Democrats can agree on.  To please the majority of people.  Exchange immigration reform for the repealing of Obamacare.

Number three, we should pass a farm bill, one that American farmers and ranchers can depend on; one that protects vulnerable children and adults in times of need; one that gives rural communities opportunities to grow and the long-term certainty that they deserve.

You know, it was a farm bill that helped precipitate the Great Depression.  Price parity.  Increasing the price of farm goods so they were closer to the price of nonfarm goods.  In response to their increased productivity due to the mechanization of the farm that produced bumper crops.  Increasing supply beyond demand.  Causing the price of farm goods to fall.  So Hoover passed legislation raising the price of food.  Making it harder to put food on the table for the average American.  An example of the unintended consequences of government intervention.  Such as requiring gasoline to include a portion of the corn crop.  Thus raising the price of corn.  And everything in the food chain downstream from corn.  Like beef, chicken, milk, eggs, etc.  No, the last thing consumers need who are trying to put food on the table is another farm bill.

Again, the Senate has already passed a solid bipartisan bill.  It’s got support from Democrats and Republicans.  It’s sitting in the House waiting for passage.  If House Republicans have ideas that they think would improve the farm bill, let’s see them.  Let’s negotiate.  What are we waiting for?  Let’s get this done.

So, passing a budget; immigration reform; farm bill.  Those are three specific things that would make a huge difference in our economy right now.  And we could get them done by the end of the year if our focus is on what’s good for the American people. And that’s just the big stuff.  There are all kinds of other things that we could be doing that don’t get as much attention.

I understand we will not suddenly agree on everything now that the cloud of crisis has passed.  Democrats and Republicans are far apart on a lot of issues.  And I recognize there are folks on the other side who think that my policies are misguided — that’s putting it mildly.  That’s okay.  That’s democracy.  That’s how it works.  We can debate those differences vigorously, passionately, in good faith, through the normal democratic process.

And sometimes, we’ll be just too far apart to forge an agreement.  But that should not hold back our efforts in areas where we do agree.  We shouldn’t fail to act on areas that we do agree or could agree just because we don’t think it’s good politics; just because the extremes in our party don’t like the word “compromise.”

When the Republicans wanted to add tax breaks for small business in the stimulus bill President Obama refused to listen.  Because he won the election.  And elections have consequences, he said.  And to the winner goes the spoils.  When the Democrats had the House, Senate and the White House they had no interest in compromise.  And didn’t.  But when they don’t have all the power they expect the other side to compromise.  And give them what they want.  That’s their idea of compromise.  Unconditional surrender.

I will look for willing partners wherever I can to get important work done.  And there’s no good reason why we can’t govern responsibly, despite our differences, without lurching from manufactured crisis to manufactured crisis.  In fact, one of the things that I hope all of us have learned these past few weeks is that it turns out smart, effective government is important.  It matters.  I think the American people during this shutdown had a chance to get some idea of all the things, large and small, that government does that make a difference in people’s lives.

We hear all the time about how government is the problem.  Well, it turns out we rely on it in a whole lot of ways.  Not only does it keep us strong through our military and our law enforcement, it plays a vital role in caring for our seniors and our veterans, educating our kids, making sure our workers are trained for the jobs that are being created, arming our businesses with the best science and technology so they can compete with companies from other countries.  It plays a key role in keeping our food and our toys and our workplaces safe.  It helps folks rebuild after a storm.  It conserves our natural resources.  It finances startups.  It helps to sell our products overseas.  It provides security to our diplomats abroad.

Really?  You want to go there?  Security of our diplomats?  The administration that let 4 Americans die in Benghazi on its watch?  Despite ample warnings?  Warnings so serious that the British pulled out of Benghazi?  Before our four diplomats were killed?  But there was an election, wasn’t there?  And we just couldn’t have trouble with terrorists during an election, could we?  Not for the president that won the War on Terror with the killing of Osama bin Laden.

So let’s work together to make government work better, instead of treating it like an enemy or purposely making it work worse.  That’s not what the founders of this nation envisioned when they gave us the gift of self-government.  You don’t like a particular policy or a particular president, then argue for your position.  Go out there and win an election.  Push to change it. But don’t break it.  Don’t break what our predecessors spent over two centuries building.  That’s not being faithful to what this country is about.

The Founding Fathers created LIMITED government.  What we have today is far from limited.  The progressives/liberals have destroyed what the Founding Fathers gave us.  Today we have a big, fat, bloated bureaucracy.  And the Republicans would like to change it by winning elections.  Which isn’t that easy when the Obama administration suppresses the vote by turning the IRS loose on the Tea Party.  Limiting their fundraising ability.  Causing their turnout to be less than it was in the 2010 midterm election.  When the Tea Party stirred the people to vote the House of Representatives back to the Republicans.  Which they weren’t going to let happen in 2012.  Hence using the IRS to suppress the Republican vote.

And that brings me to one last point.  I’ve got a simple message for all the dedicated and patriotic federal workers who’ve either worked without pay or been forced off the job without pay these past few weeks, including most of my own staff: Thank you.  Thanks for your service.  Welcome back.  What you do is important.  It matters.

You defend our country overseas.  You deliver benefits to our troops who’ve earned them when they come home.  You guard our borders.  You protect our civil rights.  You help businesses grow and gain footholds in overseas markets.  You protect the air we breathe and the water our children drink.  And you push the boundaries of science and space, and you guide hundreds of thousands of people each day through the glories of this country. Thank you.  What you do is important.  And don’t let anybody else tell you different.  Especially the young people who come to this city to serve — believe that it matters.  Well, you know what, you’re right.  It does.

And those of us who have the privilege to serve this country have an obligation to do our job as best we can.  We come from different parties, but we are Americans first.  And that’s why disagreement cannot mean dysfunction.  It can’t degenerate into hatred.  The American people’s hopes and dreams are what matters, not ours.  Our obligations are to them.  Our regard for them compels us all, Democrats and Republicans, to cooperate, and compromise, and act in the best interests of our nation –- one nation, under God, indivisible with liberty and justice for all.

Thanks very much.

The majority of people want to repeal Obamacare.  But the president doesn’t care about these American people.  Because they don’t share his vision of expanding government power in our lives.  People who would prefer to keep the health insurance they have.  And the doctors they have.  As well as not paying more for their health insurance.  But what they want isn’t as important to President Obama as what he wants.  So there is no compromise.  No cooperation.  Or acting in the best interest of the United States.  For this may be one nation, under God, indivisible with liberty and justice for all.  Where all Americans are equal.  Only some are more equal than others.  Like those who share President Obama’s vision.

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Medicare Fraud is only a Prelude to Obamacare Fraud

Posted by PITHOCRATES - October 5th, 2013

Week in Review

It is remarkable how so many people believe the government can do things better.  That somehow fraud just doesn’t happen with government people involved.  This despite those hundred dollar toilet seats the government bought.  Which is a lot for a toilet seat if you’ve never bought one.  I mean, you can buy one for less than $10.  But because the government is so large and handles so much money they attract fraud like fresh dog poop attracts flies.  There are just too many people.  And too much money.  Making it too easy for someone to slip in a bill for hundred dollar toilet seats.  Which is why fraud is rampant in government programs.  Like Medicare (see ‘Death doctor’ accused of misdiagnosing cancer patients to scam millions out of Medicare a ‘serious risk’ to flee the country posted 10/2/2013 on Mail Online).

A Michigan oncologist charged with intentionally misdiagnosing patients with cancer as part of a major Medicare fraud operation will remain in prison until trial, with court officials scared he will flee to the Middle East.

It is alleged Fata received about $35 million from Medicare via his insurance scam over a two year period.

So what’s the difference between private health insurers and the federal government?  People hate the private insurers for refusing to pay for their medical bills.  To prevent fraud.  Someone concealing a pre-existing condition when buying health insurance is committing an act of fraud.  The whole idea of Obamacare is to prevent this kind of fraud.  By forcing everyone to buy health insurance.  Instead of living their lives without ever contributing to the insurance pool until the day they find out that they have a catastrophic health problem.  And then lie to an insurance company to conceal that catastrophic health problem.  So they can get the health insurance pool to pay for their medical care.  Even though they never contributed to that insurance pool when they were healthy.

This is why people hate private insurance companies.  For preventing fraud.  Which is why you don’t see fraud in the private health insurance companies on the scale you see in Medicare.  Because Medicare uses taxpayers’ money.  So the people in charge of Medicare don’t suffer a loss in any fraud.  Unlike the private health insurers.  So the private health insurers are more aggressive in preventing fraud.  While the federal government just raises taxes to pay for the fraud committed on their watch.  That’s the difference between private health insurers and the federal government.

And if you think the Medicare fraud was bad you ain’t seen anything yet.  Thanks to Obamacare.  With the federal government taking over one-sixth of the national economy we will see fraud like we’ve never seen before.  More money.  More people.  An organization so big the left hand won’t know what the right hand is doing.  Making Obamacare a fraud paradise.  Not to mention a gift for hackers and identity thieves.  Who can find out everything on everyone from one location.  Making that $35 million Medicare fraud seem like child’s play.

Don’t think so?  You’re willing to trust the harden defenses of the government’s computer system?  If so, ask yourself this.  How well did the rollout of Obamacare go this past week?  How well did those computer systems do in collecting the data upfront?  Not well.  And knowing how poorly the rollout was are you any more confident that once they have all of your personal information that their system will work any better?  Or do you think it will just make it easier for people like this doctor in Michigan?

Every bad thing that happened in Medicare will be worse in Obamacare.  Because Obamacare is bigger than Medicare.  And as this fraud takes a bigger bite out of the Obamacare cash-flow there will be less money for treating patients.  Meaning longer wait times.  And rationing.  As well as higher taxes to pay for the fraud.  So we will end up paying more for less under Obamacare.  Just like with Medicare.  Only worse.

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The NHS is all about keeping Labour in Power just as Obamacare is about keeping Democrats in Power

Posted by PITHOCRATES - July 20th, 2013

Week in Review

Why did FDR give us Social Security?  To connect retiring Americans with the Democrat Party.  Why did LBJ give us Medicare and Medicaid?  To connect retiring and poor Americans with the Democrat Party.  And why has national health care been the Holy Grail of the Democrat Party?  Because that will connect ALL Americans to the Democrat Party.

During each election it’s the same thing.  Social Security and Medicare are going broke.  Republicans put forth plans to save these programs.  While the Democrats shout out, “See!!!  The Republicans want to take away your Social Security benefits and your Medicare benefits, seniors.  They want you to die.  They want to roll Grandma off the cliff.  Because they are nothing but a bunch of greedy, vicious, heartless bastards.  So remember to vote Democrat.  Unless you want to become homeless and die an excruciatingly painful death.  If so, then vote Republican.”  They scare seniors to vote for them and win elections.  And Social Security and Medicare become even more broke.

The Labour Party in Britain scored big with the creation of the National Health Service (NHS).  For the NHS was their baby.  And people would forever remember that fact.  And that was electoral gold.  But to maintain appearances they had to make sure everything looked hunky dory in the NHS.  Even when appalling care was killing thousands a year (see Labour must bear the blame for the shameful decline of the NHS by Sean Worth posted 7/15/2013 on The Telegraph).

One of the most depressing experiences in politics is to listen to a focus group discuss Labour and the NHS. Time after time, the voters’ attitude is simple: unconditional praise. No matter how bad the health service’s performance, there is a feeling that it is safest in the hands of the party that created it… The NHS is such an electoral asset that Ed Miliband is expected to make it a central part of his campaign to be Prime Minister – not least because he lags so badly on so many other issues, such as economic competence and personal credibility.

But does Labour really have cause to be proud of its record on the NHS? Today, the results of an investigation into suspicious death rates at 14 hospitals – carried out in the wake of the scandals at Mid Staffordshire – are revealed. The facts are appalling: their performance was so poor that up to 13,000 people may have died needlessly. So severe are the problems that Prof Sir Bruce Keogh, the medical director of NHS England, is expected to place many in special measures, or replace management teams entirely.

This comes on the back of a number of revelations about abuse and neglect in the NHS, stretching back over many years. Yet while the agencies set up by Labour to monitor patient safety have been shown to be either negligent – with many of the 14 trusts on the “death list” receiving clean bills of health from the Care Quality Commission – or actively complicit in covering up hospitals’ errors, no politician has had to carry the can. In fact, the polls show that in the wake of revelations about Labour-era scandals such as at Mid Staffs, it is actually the Tories who are blamed.

That, however, could be about to change. A parliamentary question tabled by the Tory MP Priti Patel shows that Labour ministers – including Andy Burnham, the party’s current health spokesman and former health secretary – received more than 1,500 warnings over the safety of care at the 14 hospitals on this “death list”, many from concerned staff, patients or members of the public…

In addition, people around the last government are starting to speak out. Prof Sir Brian Jarman – the expert who uncovered the original problems at Mid Staffs, Morecambe Bay and Basildon hospitals – has claimed that his work was “suppressed” by Labour ministers, describing the Department of Health as “a denial machine”, focused on producing good news stories rather than getting to the bottom of the death-rate data. Two former NHS regulators who worked under Labour, Dr Bill Moyes and Baroness Young, have also described the “pressure” exerted on the system by ministers to keep quiet about unsafe care…

One central reason why Labour has been allowed to get away with the idea that it is the “party of the NHS”, while presiding over such a shameful record, is that it benefits from the axis within the public services that tirelessly attacks those who dare to suggest that the health service might need to change. Most notorious is the treatment of Julie Bailey, the ex-nurse whose mother was killed by neglect at Mid Staffs, who has been the targeted of venomous abuse for speaking out about it. In 2011, union activists posted an internet video which stated they hoped she would die; she has since been subjected to a campaign of nuisance calls, threats and online vitriol; has been hounded from her business and her home and even seen her mother’s grave desecrated.

Fast and Furious.  Benghazi.  The IRS abuse of conservatives.  All scandals that the Obama administration was going to look into and get to the bottom of.  And here we are.  With the Obama administration getting to the bottom of nothing.  Everything is an ongoing investigation that they can’t comment on.  And time advances on.  Hopefully to the point that people get tired asking about these scandals.  So is there any question that what’s happened in the NHS could very well happen in Obamacare?

One of the reasons why Democrats want to nationalize health care so badly is to unionize those health care workers.  Because if they’re unionized they will pay union dues.  Which will be a windfall into Democrat coffers.  The administration will fight to give these health care heroes a decent living wage.  The higher the better.  For the more of the taxpayers’ dollars they get the more of the taxpayers’ dollars flow into Democrat coffers.  And once that big money revenue stream is set up you will see the public sector unions pulling out all stops to protect it.  Just like they are in Britain.  To protect the windfall of the NHS to Labour coffers.

The NHS isn’t in the health care business.  They’re in the election business.  And so far that business has been very successful.  Even if the health care side of it has not.  This is what Obamacare is all about.  To set up the same cash windfall to Democrat coffers.  And they have been salivating for that day to arrive.  And will do anything to attack their enemies that try to deny them their Holy Grail.

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