Obamacare and H.R. 2 – The Perfect Match

Posted by PITHOCRATES - January 19th, 2011

When Healthcare Insurance becomes Welfare

Well, the Republican controlled House passed H.R. 2 (Repealing the Job-Killing Health Care Law Act).  But the Democrat controlled Senate is vowing to defy public opinion.  Harry Reid won’t even bring it up to a vote.  Probably because he’s afraid some of his Democrat colleagues worried about reelection in 2012 may vote to repeal it. 

So they’re rolling out the usual sob stories.  Repealing the bill will kill kids.  Plunge the country into a depression worse than FDR’s Great Depression.  You know, the usual stuff (see House votes on repeal of healthcare law by Michael A. Memoli, Washington Bureau, posted 1/19/2010 on the LA Times).

The move by House Republicans has spurred a vigorous defense of the law by many Democrats and the Obama administration, even as they were reluctant to do so in the fall campaign. They cited emotional stories of constituents who are benefitting from the law — particularly children who can no longer be denied insurance coverage for preexisting conditions.

Repeal, Democrats said, could cause more than 5 million Americans with preexisting conditions to be denied coverage, and add $230 billion to the deficit in the next 10 years.

Think for a minute why insurance companies exclude preexisting conditions.  Better yet, let’s say you own an insurance company.  You make money by collecting insurance premiums.  You pay claims out of those paid premiums.  Now, the key for this to work is that more people have to pay premiums than collect claims.  If not, you will run out of money and go out of business.  See?  It’s business.  Your income (paid premiums) has to be greater than your costs (claims).  Ergo the exemption of preexisting conditions.  If you didn’t exclude them, people would only buy insurance when they’re sick and need benefits.  Costs (claims) would be greater than your income (premiums).  And your insurance company would go out of business.

Allowing preexisting conditions.  It sounds nice.  In a touchy feely caring kind of a way.  But it will kill the insurance industry.  Then the government will have to step in and make healthcare insurance welfare.  Supported by an ever growing tax burden.  Like in every other nation with nationalized health care.  So they’re being a bit disingenuous by pulling on the old heartstrings.  Then they just flat out lie.

“Democrats have made a firm commitment that we would judge every proposal that comes to the floor by whether it creates jobs, strengthens the middle class, and reduces the deficit. The repeal of patients’ rights fails on all three counts,” House Minority Leader Nancy Pelosi (D-San Francisco) said before the vote.

The Economically Challenged:  Nancy Pelosi and her Constituents

What they call deficit reduction is a huge tax increase and a gutting of Medicare.  But raising taxes doesn’t create jobs.  If it did we would never cut them during bad economic times.  We cut them because lowering taxes creates jobs.  Even Obama admitted this in the big compromise to extend the Bush tax cuts.

When you kill jobs you crate unemployment.  With fewer people working there are fewer people paying taxes.  This is one of the reasons why we have record deficits now.  We have record unemployment rates that just go on and on and on with no end in sight.  (The other is the explosive government spending corresponding with this fall in tax revenue).  Making this problem worse will add to the deficit, not reduce it.

Higher taxes and unemployment and a reduction of Medicare benefits is not going to help anyone in the middle class.  It’s going to make their lives that much harder.  So Pelosi is wrong on all three counts.  Of course, it’s hard to blame her.  It must be the water in her district.  Makes people economically challenged.  For her constituents all think like she does.  At least the 80% or so that keeps voting for her.  No, passing H.R. 2 will be the best thing to happen to the middle class since the 2010 midterm elections.

Obamacare is so Good that it Insured the Uninsured – Even before it was Passed

And the lies keep coming.  This from Karen G. Mills, administrator of the Small Business Administration, on January 18, 2011.

Every day America’s entrepreneurs and small-business owners are finding more ways to access affordable health care insurance because of the Affordable Care Act. We have some very important data recently, which is that after years of dropping coverage, the number of small businesses offering health insurance to their workers is actually going up. This is according to the Kaiser Family Foundation: nine percent more small businesses with less than 200 employees provided coverage in 2010 compared with 2009, and for those with less than 10 employees, the expansion in coverage was even bigger. It was 13 percent.

Funny.  Because small business (and unions) have been asking for Mini-Med plan waivers.  Because the cost to comply with Obamacare would otherwise force some 1.5 million people off of their current health care plans.  So how does Ms. Mills reconcile this fact with the rosy statement above?  Why, you lie about polling results (see Small business and the health care repeal by Glenn Kessler posted 1/19/2011 on The Washington Post).

Mills, to her credit, cited her source, the Kaiser Family Foundation 2010 annual survey of Employer Health Benefits. And her statistics are correct. It’s just that they have nothing to do with the new health care law.

First, the survey was taken between January and May of last year, so much of the data was collected before the law even passed… Second, the Kaiser report specifically says the analysts were puzzled by the shift in small business figures, but were pretty sure it did not mean more firms were signing up to provide health insurance to their employees… “A possible explanation is that non-offering firms were more likely to fail during the past year, and the attrition of non-offering firms led to a higher offer rate among surviving firms.”… A third problem is that the data set for small firms is too small to be significant.

So the administrator of the Small Business Administration, Karen G. Mills, is making less than honest statements.  She’s saying that polling data shows Obamacare is already having a positive impact on small business.  With the poll numbers taken before the passage of Obamacare, this is just impossible.  It would appear that Ms. Mills, the Small Business Administration, is not a friend of small business.  Because she lied about the poll results.  Put the two together and one must conclude that Obamacare is not good for small business.  If not, why would she lie?

Yes, Nancy, Let’s Pass H.R. 2 to Find out what’s in It

Remember how they passed Obamacare.  Quickly.  With backroom deals (the Louisiana Purchase, the Corn Husker kickback, etc.).  And, of course, without reading it.  Nancy Pelosi said they’d have to pass it to learn what was in it.  Why?  Because they were afraid that if people knew what was in it the people would pressure their representatives and senators to not pass it.  What other reason could there be?

But in the new spirit of civility, let’s extend an olive branch to Nancy Pelosi.  Let’s follow her advice.  Let’s pass H.R. 2.  Then let’s see what will happen.  If the recession turns into depression, if the deficit continues to grow, then we’ll concede that she was right.  Then we can reinstate Obamacare.  Increase taxes.  Gut Medicare.  Ration health care.  And make this nation the liberal paradise they so long for.  But first let us pass H.R. 2 to see what’s in it.

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FUNDAMENTAL TRUTH #15: “Most people would rather hear a pleasant lie than an unpleasant truth.” -Old Pithy.

Posted by PITHOCRATES - May 25th, 2010

“DO THESE JEANS make my ass look big?”  Men don’t like this question.  And when their wife or girlfriend ask it, they know to tread lightly.  Unless the relationship is on the outs.  In which case they may answer with something like, “No, it’s your fat ass that makes those jeans look big.”

If the man cares for the woman.  If he loves her.  If he ever expects to have sex with her again, he’ll say something nice.  No matter how much more of her there is to love back there.  It’s called a white lie.  Normally, we don’t base our relationships on lies.  But when it comes to the butt, though, lies are good.  They spare hurt feelings.  Should a person’s genes not bless them with a heavenly derriere to display in a tight pair of jeans.

White lies don’t hurt people.  In fact, we use them in order not to hurt people.  Such lies don’t have consequences.  And people may know you are lying.  Even expect you to lie.  It shows you care enough to make someone feel better about something you know they’re sensitive about.  Like her big butt.  Or his performance in bed (“Whew, that was the best five minutes of my life.  Really.”).

WHEN YOUR CHILD IS learning a musical instrument, he may make more noise than music.  But you encourage him.  Or her.  You tell them they’re good.  That they’re getting better every day.  And, yes, you would love for them to play in front of your visiting family.  And when they do, the family applauds and tells them they’re good, too.  Your child is encouraged.  And he or she keeps practicing.  A little white lie and no one gets hurt.

Suppose your daughter wants to sing.  She listens to the reigning pop queens and sings along.  Only thing is, she’s tone deaf.  She doesn’t sing well at all.  In fact, when she does sing, you start looking for a hurt cat because you’re sure no human could make such inhuman noise.  But you don’t want to hurt her feelings.  And you’re sure it’s just a passing phase.  So you tell her how wonderful she sounds.  No one gets hurt.  Nothing can go wrong with that, can it?

Well, suppose her school is having a talent show. Anyone can simply walk up to an open mike and do whatever they want.  And she wants to sing.  In front of her friends.  In front of her classmates.  In front of the 2 kids that always tease her.  Now the issue is a little more complex.  Do you tell her the truth about her singing and hurt her feelings.  Or do you let her sing.  And risk the kids laughing at her.  And teasing her about it afterwards?

BUT IT’S NOT just the white lies we want to hear.  Say your husband is staying later and later at work.  You call to see what time to expect him for dinner but there’s no answer.  When he comes home late you tell him you were worried.  You called and there was no answer.  He apologizes for worrying you and says he was with a client.  You’re relieved.

Or you come home from work and your wife isn’t there.  Concerned, you call her and there’s no answer.  When she comes home she says she was at the gym with a friend and left her cell in her gym bag.  You’re relieved.  Then she goes upstairs to shower.  Funny, you think.  She usually showers at the gym.

Learning about infidelity is not easy.  And it’s painful.  You ignore signs as long as you can.  You believe the lies.  You want to.  You need to.  Then you find an earring in the car that isn’t yours.  Or you bump into your wife’s friend who says she misses her now that she quit going to the gym.  Soon, the evidence forces you to face the awful truth.  And it kills you inside.  Divorce.  The children.  It’s just the beginning of so much bad to come.

SO WE LIKE it when people lie to us.  At times.  For the truth can be disagreeable.  Ugly.  Painful.  And we’d rather not have that pain.  No, we’d rather live life in a sitcom where there is always a good laugh and rarely anything bad ever happens. 

Politicians know this.  They know that most people don’t like the harsh realities of life.  So when they need to get elected, they lie to us.  No one wants to pay more taxes.  So the politicians promise that only the rich will pay any new taxes.  But massive government spending requires massive taxation.  And taxing the rich just can’t pay for it all. 

George Herbert Walker Bush promised no new taxes.  He said, “Read my lips.  No new taxes.”  He raised them.  Didn’t want to.  Said he had to.  To balance the budget.  Because he and Congress didn’t want to cut spending.  Same with Bill Clinton.  He promised there would be no middle class tax increase.  But there was.  He said he tried as hard as he could not to but had to.  Again, the spending thing.  No one wants to cut spending.  It doesn’t help win elections.

But we wanted to believe the lie during the campaign.  They promise us everything and say it won’t cost anything.  That’s what we want to hear.  We don’t want to hear the intricacies of monetary and fiscal policy.  That increased taxation dampens economic activity.  Decreases incentive for risk takers.  So they take fewer risks.  Create fewer jobs.  Which increases unemployment.  But we don’t want to hear this.  We just want the free stuff.  Just promise it.  Tell us it’s free.  And we’ll vote for you.

LITTLE WHITE LIES have little consequence.  We say them because we care about someone.  Other lies, though, do.  Big ones.  If we fall for them.  If we believe in an ever-expanding welfare state, we’ll keep voting ourselves the treasury.  Until we’ve emptied it.  And when there’s no more money, we’ll say, well, it was nice while it lasted.  But all good things must come to an end.  Or we’ll riot.

Or we’ll cut spending elsewhere to fund our insatiable appetite for free stuff.  Maybe we won’t build a new aircraft carrier.  Or we’ll close an overseas Air Force base.  Or we’ll reduce the size of our conventional forces.  Because we’ve been lulled into a false sense of security, we may think a large standing army is not necessary anymore.  But it was that large projection of force that gave us that sense of security.  It scared the bad guys.  Because the ability to project force, and the will to do so, will create consequences if the bad guys do act. 

During the dot.com boom of the 1990s, times were good and we got complacent.  During those good times, though, the bad guys hit Americans in a series of attacks (World Trade Center bombing, Tanzanian Embassy bombing, Kenyan Embassy bombing, Khobar Towers bombing, the USS Cole attack).  We didn’t fight back.  We lied to ourselves.  We didn’t want to believe that America was under attack.  Head in the sand, we wanted to continue to enjoy the good times.  This only emboldened our enemies.  They saw that America didn’t have the will to fight back.  So they upped the ante.  And in 2001, they attacked on 9/11.  And that attack was just too great not to awake a slumbering giant.

WE MAY NOT like the unpleasant things in life.  But they are part of life.  And we have to deal with them.  However unpleasant they are.  They are what they are.  No matter how we try to rationalize them away.

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