Friday, May 18, 2018



European Officials Bribed Into Accepting Iran Nuke Deal?

After President Donald Trump's decision last Tuesday to pull out of Barack Obama's dubious Iran nuclear deal, which was followed by threats to reimpose economic sanctions against the number-one state sponsor of terrorism, Iran's foreign affairs minister issued his own threat via a bombshell revelation. H.J. Ansari Zarif stated, "If Europeans stop trading with Iran and don't put pressure on the U.S. then we will reveal which western politicians and how much money they had received during nuclear negotiations to make #IranDeal happen."

Now, the Iranians aren't exactly the most trustworthy bunch. That's a huge part of the problem with the deal. But Zarif's charge that several European leaders were essentially bribed into accepting the Iran deal is entirely plausible.

Recall that after Obama completed the Iran deal back in 2015, Fox News commentator Charles Krauthammer wondered, "The most astonishing thing [about the deal] is that in return, they [the Iranians] are not closing a single nuclear facility. Their entire nuclear infrastructure is intact. They are going to have the entire infrastructure in place either for a breakout after the agreement expires or when they have enough sanctions relief and they want to cheat and to break out on their own."

Krauthammer's observation was accurate. So what exactly did the rest of the world get from the Iran deal? Why did so many of Europe's leaders sign on to such a bad deal? The answer is twofold: As far as reining in a rogue regime's efforts to gain nuclear weapons, the West got nothing; as for opportunities for lucrative business deals, that was most definitely in the cards, as Zarif may have just alluded to. And this revelation might also explain why European leaders are scrambling to salvage the deal. French Finance Minister Bruno Le Maire argued, "Do we want to be vassals who obey decisions taken by the United States while clinging to the hem of their trousers? Or do we want to say we have our economic interests, [and that] we will continue to do trade with Iran?"

Memo to Le Maire: U.S. GDP ranks first in the world and accounts for 23% of the world's GDP. Iran is 29th, accounting for less than 0.5%. What was that about economic interests again?

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What Trump is quietly (and effectively) doing to fix our broken health care system

Since ObamaCare’s passage and failed implementation, patient premiums and out of pocket expenses have gone way up, not down as promised. Consumers now have less options in terms of policies and benefits to choose from, not more as they were told.  Countless patients can no longer see their doctors or be treated at local facilities of their choice.

On the campaign trail, candidate Donald Trump said he would work with a Republican Congress to repeal ObamaCare so that patients and doctors, rather than bureaucrats and unelected boards, would have more control over individuals’ health care decisions. He also vowed to roll back government obstacles to bring new medicines to market faster, speed generic drug approvals, and address the high costs of insurance premiums and prescription drugs, all to reduce unsustainable health care costs.

Detractors of President Trump like to highlight that ObamaCare is still in existence, despite Republicans controlling both houses of congress. But President Trump has quietly gained the upper hand on several crucial health care reforms including the repeal of Obama cares individual mandate, the laws core, in last years tax bill. Another victory is the repeal of ObamaCare's independent payment advisory board, aka the ObamaCare death panel. Naturally the media gives him no credit for these achievements.

The changes that are already underway spurring greater competition which will help further drive down costs without sacrificing new medical innovations, or bringing new treatments to market.   Several of the most significant reforms have come from the U.S. Department of Health and Human Services (HHS) and the agencies housed within it, the Food and Drug Administration (FDA) and the Centers for Medicare & Medicaid Services (CMS).

HHS Secretary Alex Azar is a seasoned veteran who brings experience as a health care reformer in the federal government and as an innovating private sector executive.  Commissioner Scott Gottlieb, an FDA alum, is reforming the regulatory system to expedite reviews and ignite greater competition.  Over the past decade, competition from generic drugs has saved the U.S. health care system $1.67 trillion. Expect much more. Gottlieb is working to eliminate regulatory barriers that stand in the way of bringing more of these drugs to market.

He’s prioritized FDA reviews for the first three generic alternatives to any original brand name drug, and these efforts are having an impact.  In fact, the FDA approved more than 100 generic drugs in the month of October 2017 – more than ever before.  And in July, the FDA will host a pioneering program focused on “Patient Focused Drug Development” that elevates patient perspectives and priorities in both the development of new treatments and their evaluation by regulators.

Much attention of late has been made about patients who have picked up prescriptions at the pharmacy counter only to find the costs under their insurance plan are sky high -and rising even higher. That’s because Pharmacy Benefit Managers (PBMs) – middlemen that negotiate discounts and rebates from drug manufacturers – and health plans don’t always pass along those savings, sometimes up to 50 percent, to patients.  This unfairly inflates drug costs, including those of senior Medicare beneficiaries.  CMS Administrator Seema Verma is working to address this through a new proposed Medicare rule, which will ensure patients benefit directly from these substantial discounts. And it’s a change that could yield more than $10 billion in savings for seniors.

Similarly, Verma has proposed reforms to Medicare’s 340B Program that would save patients hundreds of millions of dollars on drug copayments in 2018 alone. The 340B program was originally intended to help low income patients pay for medicines through large discounts provided by drug manufacturers to 340B designated hospitals. The program was expanded significantly as part of ObamaCare. Alas, the 340B program has subsequently been widely abused by hospitals who have turned the discounts into profit centers instead of passing savings on to patients. For context, a recent House Energy and Commerce Committee report calculated that the number of hospitals participating in the 340B program has more than quadrupled  from 591 in 2005 to 2,479 in 2017. Furthermore, a study in the New England Journal of Medicine found that the financial gains for hospitals from the 340B program didn’t lead to expanded care or lower mortality for low- income patients.

Despite representing less than 14 percent of total health care spending, drug costs now have more visible public price tags in the wake of ObamaCare. This largely is because health insurers, even after dramatically spiking premiums, have also vastly increased deductibles, co-pays and other out -of -pocket expenses. Add to this, the misguided practice of insurers and PBMs not passing along negotiated savings from manufacturers to patients, and it is evident that the “system” created under ObamaCare has effectively shifted much of the cost burden directly on to patients in visible, invisible and painful ways. That said, as President Trump noted in his State of the Union address, the cost of drugs remains too high.

Reforms that help to lower drug costs without stifling medical innovation and investment is a critical goal, but one that can only be achieved through an approach that examines the entire “system.” This includes biopharmaceutical manufacturers, health insurers, PBMs, trial lawyers and patent trolls, regulators and our foreign trading partners. Price controls such as those that are routine in Europe would suffocate the development of life-saving, life- improving medicines and medical devices. This is what has happened overseas.

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Is it rational to trust your gut feelings? A neuroscientist explains

My survey of the academic literature relevant to stereotyping (See here and here) reached a similar conclusion.  The brain is continually monitoring and integrating new information and changing its responses accordingly -- not necessarily at the conscious level

Imagine the director of a big company announcing an important decision and justifying it with it being based on a gut feeling. This would be met with disbelief – surely important decisions have to be thought over carefully, deliberately and rationally?

Indeed, relying on your intuition generally has a bad reputation, especially in the Western part of the world where analytic thinking has been steadily promoted over the past decades. Gradually, many have come to think that humans have progressed from relying on primitive, magical and religious thinking to analytic and scientific thinking. As a result, they view emotions and intuition as fallible, even whimsical, tools.

However, this attitude is based on a myth of cognitive progress. Emotions are actually not dumb responses that always need to be ignored or even corrected by rational faculties. They are appraisals of what you have just experienced or thought of – in this sense, they are also a form of information processing.

Intuition or gut feelings are also the result of a lot of processing that happens in the brain. Research suggests that the brain is a large predictive machine, constantly comparing incoming sensory information and current experiences against stored knowledge and memories of previous experiences, and predicting what will come next. This is described in what scientists call the “predictive processing framework”.

This ensures that the brain is always as prepared to deal with the current situation as optimally as possible. When a mismatch occurs (something that wasn’t predicted), your brain updates its cognitive models.

This matching between prior models (based on past experience) and current experience happens automatically and subconsciously. Intuitions occur when your brain has made a significant match or mismatch (between the cognitive model and current experience), but this has not yet reached your conscious awareness.

For example, you may be driving on a country road in the dark listening to some music, when suddenly you have an intuition to drive more to one side of the lane. As you continue driving, you notice that you have only just missed a massive pothole that could have significantly damaged your car. You are glad you relied on your gut feeling even if you don’t know where it came from. In reality, the car in the far distance in front of you made a similar small swerve (since they are locals and know the road), and you picked up on this without consciously registering it.

When you have a lot of experience in a certain area, the brain has more information to match the current experience against. This makes your intuitions more reliable. This means that, as with creativity, your intuition can actually improve with experience.

Biased understanding

In the psychological literature, intuition is often explained as one of two general modes of thinking, along with analytic reasoning. Intuitive thinking is described as automatic, fast, and subconscious. Analytic thinking, on the other hand, is slow, logical, conscious and deliberate.

Many take the division between analytic and intuitive thinking to mean that the two types of processing (or “thinking styles”) are opposites, working in a see-saw manner. However, a recent meta-analysis – an investigation where the impact of a group of studies is measured – has shown that analytic and intuitive thinking are typically not correlated and could happen at the same time.

So while it is true that one style of thinking likely feels dominant over the other in any situation – in particular analytic thinking – the subconscious nature of intuitive thinking makes it hard to determine exactly when it occurs, since so much happens under the bonnet of our awareness.

Indeed, the two thinking styles are in fact complementary and can work in concert – we regularly employ them together. Even groundbreaking scientific research may start with intuitive knowledge that enables scientists to formulate innovative ideas and hypotheses, which later can be validated through rigorous testing and analysis.

What’s more, while intuition is seen as sloppy and inaccurate, analytic thinking can be detrimental as well. Studies have shown that overthinking can seriously hinder our decision-making process.

In other cases, analytic thinking may simply consist of post-hoc justifications or rationalisations of decisions based on intuitive thinking. This occurs for example when we have to explain our decisions in moral dilemmas. This effect has let some people refer to analytic thinking as the “press secretary” or “inner lawyer” of intuition. Oftentimes we don’t know why we make decisions, but we still want to have reasons for our decisions.

Trusting instincts

So should we just rely on our intuition, given that it aids our decision-making? It’s complicated. Because intuition relies on evolutionarily older, automatic and fast processing, it also falls prey to misguidances, such as cognitive biases. These are systematic errors in thinking, that can automatically occur. Despite this, familiarising yourself with common cognitive biases can help you spot them in future occasions: there are good tips about how to do that here and here.

Similarly, since fast processing is ancient, it can sometimes be a little out of date. Consider for example a plate of donuts. While you may be attracted to eat them all, it is unlikely that you need this large an amount of sugars and fats. However, in the hunter-gatherers’ time, stocking up on energy would have been a wise instinct.

Thus, for every situation that involves a decision based on your assessment, consider whether your intuition has correctly assessed the situation. Is it an evolutionary old or new situation? Does it involve cognitive biases? Do you have experience or expertise in this type of situation? If it is evolutionary old, involves a cognitive bias, and you don’t have expertise in it, then rely on analytic thinking. If not, feel free to trust your intuitive thinking.

It is time to stop the witch hunt on intuition, and see it for what it is: a fast, automatic, subconscious processing style that can provide us with very useful information that deliberate analysing can’t. We need to accept that intuitive and analytic thinking should occur together, and be weighed up against each other in difficult decision-making situations.

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Jobless in Seattle

Here's irony for you: Seattle is penalizing the companies most responsible for employing people while rewarding the city officials most responsible for creating a crisis of homelessness. What do we mean? We're referring to Seattle's new "head tax" of $275 per full-time employee for companies earning at least $20 million in annual revenue. Nearly 600 employers will be hit by the tax, which was dialed back from the initially proposed $500 per job. It was unanimously passed by the Democrat-run city council this week with the ostensible aim of raising nearly $50 million per year to pay for affordable housing and other "homeless services" — services needed because Democrat policies cause poverty. Seattle and King County, "home" to the third-highest number of homeless people in America, already spent $200 million on the problem last year.

The resurrected and greatly expanded tax is significant for two reasons: First, and most important, it serves as a Democrat model for other cities. Democrats always aim to punish the successful so they can redistribute to their favored constituency groups in return for votes and, thus, power.

Second, Seattle is home to both Starbucks and Amazon, two of the nation's largest employers, both of which oppose the tax. Now, don't get us wrong, we have little sympathy for either company. Starbucks has been at the forefront of leftist social justice battles, albeit recently getting a taste of its own medicine. And Amazon founder Jeff Bezos is the world's richest man and a stalwart financier of leftist causes, not least of which is owning The Washington Post. Amazon recently justified some anti-conservative discrimination based on the work of the radical leftist hate group known as the Southern Poverty Law Center.

But Amazon Vice President Drew Herdener sounded downright conservative in denouncing this "tax on jobs." He hammered the city, saying, "City of Seattle revenues have grown dramatically from $2.8 billion in 2010 to $4.2 billion in 2017, and they will be even higher in 2018. This revenue increase far outpaces the Seattle population increase over the same time period. The city does not have a revenue problem — it has a spending efficiency problem. We are highly uncertain whether the city council's anti-business positions or its spending inefficiency will change for the better." Indeed, Amazon is looking to expand elsewhere.

A letter signed by more than 100 Seattle business leaders likewise nailed it: "We oppose this approach, because of the message it sends to every business: if you are investing in growth, if you create too many jobs in Seattle, you will be punished." Companies won't hire more workers, and they've stop shy of earning $20 million.

As Fox News dryly notes, "Seattle once had a $25-a-year per head tax, but killed it in 2009 because leaders said it sent the wrong message to businesses during the recession."

Back to homelessness, again, Seattle's city council helped create the problem. Investor's Business Daily reports, "From 2010 to 2013, the city saw an explosion in the construction of 'congregate housing units' — basically, affordable, dorm-room size apartments with shared kitchen and living areas. Within those three years, private developers constructed 1,800 units. But by 2015, not one was built. Why? In 2014, the city stepped in and smothered this option with regulations that required the apartments to be bigger, banned them from more desirable areas, and forced builders to jump through costly design reviews." Voila, housing shortage.

And that's on top of Seattle's job- and pay-crushing $15/hour minimum wage, its income-redistributing tax on high-earners (that was struck down as illegal), its tax on property owners to pay for political speech, its soda tax and its gun tax, just to name a few.

It sure seems Seattle's Democrat overlords are doing everything possible to follow in the footsteps of the socialists killing Venezuela.

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For more blog postings from me, see  TONGUE-TIED, EDUCATION WATCH INTERNATIONAL, GREENIE WATCHPOLITICAL CORRECTNESS WATCH, AUSTRALIAN POLITICS, and Paralipomena (Occasionally updated),  a Coral reef compendium and an IQ compendium. (Both updated as news items come in).  GUN WATCH is now mainly put together by Dean Weingarten. I also put up occasional updates on my Personal blog and each day I gather together my most substantial current writings on THE PSYCHOLOGIST.

Email me  here (Hotmail address). My Home Pages are here (Academic) or  here (Pictorial) or  here  (Personal)

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