Essential Liberty

In honor of the establishment and preservation of Essential Liberty, we offer a few remarks from an young American Patriot standing watch on the front lines in Afghanistan, followed by insights from our Founding Fathers, as fitting reminders of the constant vigil which must be maintained in defense of Liberty.

Wisdom from the Warfront -- Enemies Foreign and Domestic:

"As an officer who faces combat challenges daily, and who has experienced my share of heartache in defense of our great nation in accordance with my oath, it pains me to see our elected 'leaders' so willfully defy their oaths to support our Constitution. But, war has taught me that we just take today at our best, because we never know what tomorrow will bring.

"The seemingly insurmountable battle to salvage what is left of American Liberty simply means God will provide a great movement and great leaders to get the job done in His timing. While we may see no solution, it's undoubtedly already in the making and I can only pray that He continues to use me in His service, along with all the other great Americans Patriots across our country.

"Battles would not be great and triumphant if they were easy. The more the Left undermines Rule of Law, the more glorious the reconstitution and restoration will be, the mightier the battle, and the mightier the men who will fight it. I simply pray that I continue to grow to fight that war, just as I am fighting this one, and that God preserves me to do so. God provided us with the means and the personal example to triumph over the greatest of evils, He has provided us with the solutions to our own problems, we simply must trust it is within His plan.

"Keep fighting the good fight, do not despair on the 4th of July, but celebrate that Providence provided us with the greatest blueprint for governments among men in 1789, with the spirit of 1776. As Alexander Hamilton said, 'The sacred rights of mankind are not to be rummaged for among old parchments or musty records. They are written, as with a sunbeam, in the whole volume of human nature, by the Hand of Divinity itself, and can never be erased or obscured by mortal power.' Our rights are only referenced by the Declaration, but endowed by our Creator, and as such, are self-evident. Obama cannot erase them and long after we are dead and gone, the rights of man will be preserved in the essence of God's creation available only through reflection in His gift of reason. Evil ultimately will not prevail -- we are blueprinted with Victory."

SOURCE

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Obamacare: 21 New or Higher Taxes

Ryan Ellis puts together some important data on the tax impact of Obamacare:


1. Individual Mandate Excise Tax(Jan 2014): Starting in 2014, anyone not buying "qualifying" health insurance must pay an income surtax according to the higher of the following

	1 Adult	2 Adults	3+ Adults
2014	1% AGI/$95	1% AGI/$190	1% AGI/$285
2015	2% AGI/$325	2% AGI/$650	2% AGI/$975
2016 +	2.5% AGI/$695	2.5% AGI/$1390	2.5% AGI/$2085

Exemptions for religious objectors, undocumented immigrants, prisoners, those earning less than the poverty line, members of Indian tribes, and hardship cases (determined by HHS)

2. Employer Mandate Tax(Jan 2014):  If an employer does not offer health coverage, and at least one employee qualifies for a health tax credit, the employer must pay an additional non-deductible tax of $2000 for all full-time employees.  This provision applies to all employers with 50 or more employees. If any employee actually receives coverage through the exchange, the penalty on the employer for that employee rises to $3000. If the employer requires a waiting period to enroll in coverage of 30-60 days, there is a $400 tax per employee ($600 if the period is 60 days or longer). Combined score of individual and employer mandate tax penalty: $65 billion/10 years

3. Surtax on Investment Income ($123 billion/Jan. 2013):  This increase involves the creation of a new, 3.8 percent surtax on investment income earned in households making at least $250,000 ($200,000 single).  This would result in the following top tax rates on investment income

	Capital Gains	Dividends	Other*
2010-2012	15%	15%	35%
2013+ (current law)	23.8%	43.4%	43.4%
2013+ (Obama budget)	23.8%	23.8%	43.4%

  *Other unearned income includes (for surtax purposes) gross income from interest, annuities, royalties, net rents, and passive income in partnerships and Subchapter-S corporations.  It does not include municipal bond interest or life insurance proceeds, since those do not add to gross income.  It does not include active trade or business income, fair market value sales of ownership in pass-through entities, or distributions from retirement plans.  The 3.8% surtax does not apply to non-resident aliens.  

4. Excise Tax on Comprehensive Health Insurance Plans($32 bil/Jan 2018): Starting in 2018, new 40 percent excise tax on "Cadillac" health insurance plans ($10,200 single/$27,500 family). For early retirees and high-risk professions exists a higher threshold ($11,500 single/$29,450 family).  CPI +1 percentage point indexed.

5. Hike in Medicare Payroll Tax($86.8 bil/Jan 2013)

6. Medicine Cabinet Tax($5 bil/Jan 2011): Americans no longer able to use health savings account (HSA), flexible spending account (FSA), or health reimbursement (HRA) pre-tax dollars to purchase non-prescription, over-the-counter medicines (except insulin)

7. HSA Withdrawal Tax Hike($1.4 bil/Jan 2011): Increases additional tax on non-medical early withdrawals from an HSA from 10 to 20 percent, disadvantaging them relative to IRAs and other tax-advantaged accounts, which remain at 10 percent.

8. Flexible Spending Account Cap - aka"Special Needs Kids Tax"($13 bil/Jan 2013): Imposes cap of $2500 (Indexed to inflation after 2013) on FSAs (now unlimited). There is one group of FSA owners for whom this new cap will be particularly cruel and onerous: parents of special needs children.  There are thousands of families with special needs children in the United States, and many of them use FSAs to pay for special needs education.  Tuition rates at one leading school that teaches special needs children in Washington, D.C. (National Child Research Center) can easily exceed $14,000 per year. Under tax rules, FSA dollars can be used to pay for this type of special needs education. 

9. Tax on Medical Device Manufacturers($20 bil/Jan 2013): Medical device manufacturers employ 360,000 people in 6000 plants across the country. This law imposes a new 2.3% excise tax.  Exemptions include items retailing for less than $100. 

10. Raise "Haircut" for Medical Itemized Deduction from 7.5% to 10% of AGI($15.2 bil/Jan 2013): Currently, those facing high medical expenses are allowed a deduction for medical expenses to the extent that those expenses exceed 7.5 percent of adjusted gross income (AGI).  The new provision imposes a threshold of 10 percent of AGI; it is waived for 65+ taxpayers in 2013-2016 only.

11. Tax on Indoor Tanning Services($2.7 billion/July 1, 2010): New 10 percent excise tax on Americans using indoor tanning salons

12. Elimination of tax deduction for employer-provided retirement Rx drug coverage in coordination with Medicare Part D($4.5 bil/Jan 2013)

13. Blue Cross/Blue Shield Tax Hike($0.4 bil/Jan 2010): The special tax deduction in current law for Blue Cross/Blue Shield companies would only be allowed if 85 percent or more of premium revenues are spent on clinical services

14. Excise Tax on Charitable Hospitals(Min$/immediate): $50,000 per hospital if they fail to meet new "community health assessment needs," "financial assistance," and "billing and collection" rules set by HHS

15. Tax on Innovator Drug Companies($22.2 bil/Jan 2010): $2.3 billion annual tax on the industry imposed relative to share of sales made that year.

16. Tax on Health Insurers($60.1 bil/Jan 2014): Annual tax on the industry imposed relative to health insurance premiums collected that year. The stipulation phases in gradually until 2018, and is fully-imposed on firms with $50 million in profits.    

SOURCE

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The Joy of Government-Run Healthcare: The UK’s Gilded Bureaucrats and Dying Patients

I’m not sure whether this is a post about America’s dismal future if Obamacare is allowed to take root or whether this is a post about bureaucrats ripping off taxpayers.

But I do know that it shows that the insiders take care of themselves quite nicely when the government seizes more control of a nation’s healthcare sector.

Here’s a report from the UK-based Telegraph about how bureaucrats at a Scottish branch of the National Health Service are bilking taxpayers.

National Procurement, a branch of the NHS National Services Division, arranged for staff who are deemed to be “regular users” of cars for business to get the cars through a taxpayer-backed vehicle-leasing scheme. …Figures provided by National Procurement in response to a Freedom of Information request showed that…one in eight members of staff, had used the 4x4s and convertibles to drive to work. Much of the insurance, petrol, road tax and leasing is funded by the state.

And we’re not talking cheap automobiles. Keep in mind, when you read this next passage, that £25,000 is almost $40,000.

One employee was leased a £27,000 Mercedes, while three other workers have been driving £23,000 S-line Audi A3 sports cars. Another employee received a £28,300 Audi TT. Since the beginning of this year, five new cars have been leased to staff, including a four-door BMW worth more than £30,500. Other leased vehicles include another Audi sports car worth more than £25,000 and three Range Rover Evoques costing up to £29,500.

So how do they work this scam? Simple, they take needless trips.

…staff have had to clock up a minimum of 5000 business miles during office hours to qualify for the scheme. …A department source told the Herald newspaper that some members of staff were using their leased cars for 80-mile round trips between National Procurement’s two offices, in Larkhall, Lanarkshire, and South Gyle in Edinburgh, even though there are adequate video conferencing facilities at both locations.

One hopes that this scandal in a Scottish branch is an exception and that most bureaucrats don’t behave in a similarly reprehensible fashion.

But given the bloated size of the National Health Service bureaucracy, it’s more likely that this is just the tip of the iceberg.

There is an entitlement culture in most government bureaucracies, and I would be shocked in the paper pushers and memo writers hadn’t figured out how to manipulate the system

And since there are more than 1.6 million of them, the magnitude of the fraud is presumably enormous.

The obvious follow-up question is whether taxpayers in the United Kingdom are getting some good value from this army of cosseted bureaucrats?

Unfortunately, that’s not the case. Here are some chilling excerpts from a story in the Daily Mail.

NHS doctors are prematurely ending the lives of thousands of elderly hospital patients because they are difficult to manage or to free up beds, a senior consultant claimed yesterday. Professor Patrick Pullicino said doctors had turned the use of a controversial ‘death pathway’ into the equivalent of euthanasia… There are around 450,000 deaths in Britain each year of people who are in hospital or under NHS care. Around 29 per cent – 130,000 – are of patients who were on the LCP. Professor Pullicino claimed that far too often elderly patients who could live longer are placed on the LCP and it had now become an ‘assisted death pathway rather than a care pathway’.

Here are a couple of horrifying examples.

Professor Pullicino revealed he had personally intervened to take a patient off the LCP who went on to be successfully treated. He said this showed that claims they had hours or days left are ‘palpably false’. In the example he revealed a 71-year-old who was admitted to hospital suffering from pneumonia and epilepsy was put on the LCP by a covering doctor on a weekend shift. Professor Pullicino said he had returned to work after a weekend to find the patient unresponsive and his family upset because they had not agreed to place him on the LCP. ‘I removed the patient from the LCP despite significant resistance,’ he said. ‘His seizures came under control and four weeks later he was discharged home to his family,’ he said.

In other words, government-run healthcare in the United Kingdom is a great scam if you’re an insider. But not such a good deal if you’re someone who needs, well, healthcare.

Sort of makes you wonder what Paul Krugman was thinking when he wrote, “In Britain, the government itself runs the hospitals and employs the doctors. We’ve all heard scare stories about how that works in practice; these stories are false.”

I guess the English newspapers are making up stories to denigrate their own nation. If you want to see more of these “false” stories, click here, here, here, here, here, here, here, here, here, here and here.

SOURCE

Also see EYE ON BRITAIN for daily updates on the NHS

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ELSEWHERE

Affordable Health Care Act: Not affordable: "Now that the U.S. Supreme Court has upheld the constitutionality of Obama Care and the individual mandate to purchase health insurance or pay a fine, individuals are starting to face the sobering reality that the costs of health care and health care insurance are going to go up -- way up -- instead of down"

Obama’s victory is now his challenge: "'In my first term, we passed healthcare reform,' President Obama joked this spring. 'In my second term, I guess I'll pass it again.' Thanks to the Supreme Court, Obama can take that item off his agenda. But Chief Justice John G. Roberts Jr. guaranteed Thursday that healthcare will still be at the center of this year's presidential race."

Mexican politics: "Thousands of people rushed to stores on Tuesday to redeem prepaid gift cards they said were given them by the party that won Mexico’s presidency, inflaming accusations that the election was marred by massive vote-buying. At least a few cardholders were angry, complaining they didn’t get as much as promised."

How Amazon survives the State: "Here's a snapshot from the American landscape of convoluted crony capitalism: starting this September, if a man in Los Angeles buys a book from Amazon.com, the local sales tax he pays could go to the city of San Bernardino, which will then give 80 percent of the tax money back to Amazon itself."

We’re all socialists now, except for libertarians: "The Sunday edition of the New York Times published an interesting article that is certain to make some Americans who read it uncomfortable. Why is that? Because the article, which is entitled, 'What’s a Socialist?' makes a point that many ordinary Americans hate hearing: that by adopting the welfare state, Americans in principle became socialists, just like Europeans."

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My Twitter.com identity: jonjayray. I have deleted my Facebook page as I rarely access it. For more blog postings from me, see TONGUE-TIED, EDUCATION WATCH INTERNATIONAL, GREENIE WATCH, POLITICAL CORRECTNESS WATCH, GUN WATCH, FOOD & HEALTH SKEPTIC, AUSTRALIAN POLITICS, IMMIGRATION WATCH INTERNATIONAL, EYE ON BRITAIN and Paralipomena

List of backup or "mirror" sites here or here -- for readers in China or for everyone when blogspot is "down" or failing to update. Email me here (Hotmail address). My Home Pages are here (Academic) or here (Pictorial) or here (Personal)

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The Big Lie of the late 20th century was that Nazism was Rightist. It was in fact typical of the Leftism of its day. It was only to the Right of Stalin's Communism. The very word "Nazi" is a German abbreviation for "National Socialist" (Nationalsozialist) and the full name of Hitler's political party (translated) was "The National Socialist German Workers' Party" (In German: Nationalsozialistische Deutsche Arbeiterpartei)

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Two Muslim men suspected of trying to hijack a flight in China were beaten to death by passengers

I won't comment on the obvious comparison but it cries out for explanation

Two men who allegedly tried to hijack a plane in China were beaten to death by passengers and crew, state media said today. The men were part of a six-strong gang, aged 20 to 36, who attempted to hijack a Tianjin Airlines flight bound for Urumqi last Friday.

Minutes after the flight carrying 101 people took off from Hetian, southwest Xinjiang, three men in the front and three in the back stood up and announced their plans to terrified passengers, according to reports.

The group, all from the city of Kashgar in the west of Xinjiang, then broke a pair of aluminum crutches and used the pieces to attack passengers while trying to break into the cockpit, a regional government spokesman said.

They were tackled by police and passengers who tied them up with belts before the plane returned to the airport safely just 22 minutes later.

Several passengers and crew members were injured in the tussle. The alleged hijackers were taken to hospital where two of them later died, the state-run Global Times reported.

The newspaper said two others were hospitalised after mutilating themselves, but gave no others details.

The regional government spokesman added the men had smuggled suspected explosives on board. These were still being tested by police today.

Xinjiang is home to a large population of minority [Muslim] Uighurs (pronounced WEE'-gurs), but is ruled by China's ethnic majority Hans.

There have been clashes between authorities and Uighurs resentful of government controls over their religion and culture.

SOURCE

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Is Fourth of July still worth celebrating?

"After a long nasty war these colonies coalesced into a nation-state that called itself the United States of America. It was a constitutional republic based on self-rule operating under a document meant to guarantee minimal government coercion and maximum individual freedom. That country no longer exists."

More HERE

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Freedom and Frugality

I am told there is an Italian saying that translates as “It is raining again… PIG OF A GOVERNMENT!” The saying makes me wince because I can see myself raising a fist and shaking it in reproach at the drizzling sky. I spend so much time railing against statism that I risk defining myself by what I oppose. I risk taking the state inside me and allowing it to filter my approach to life.

This is another reason to Go Galt: to reclaim an unfiltered life and carpe the heck out of every diem. One of the ways to do so is deceptively simple. For want of a better word, it is “frugality,” by which I mean something quite different than most people.

For centuries, the North American way has been for people to work harder and earn more to ensure that their children had a better life. For centuries, the strategy succeeded. But today’s children are more likely to be crushed by debt than to inherit their parents’ wealth. Today, hard work is discouraged and punished. It is discouraged by a maze of regulations that police home businesses, for example. It is punished by soaring taxes and disappearing retirement funds.

Meanwhile, the political elites maintain power by draining productivity from society and funneling it into entitlements for the unproductive. As white-hot printing presses increase both the currency supply and prices, the average working person reaches out for some control of his own economic future.

Many people turn to frugality in response to economic bad times. That is, they view it as a necessary, but bitter pill they are forced to swallow, but would rather spit out. Viewing frugality as a form of poverty, they are driven to it through desperation, rather than a desire to increase control over their lives. To them, frugality must be a dreary thing, but in my life, the contrary is true.

A few years ago, my view of frugality changed due to an obvious realization that I had never fully grasped before. Material goods cost money; money is acquired in exchange for my time; my time is literally my life. If X costs $100 and I make $25 an hour, then X costs me four hours of life. Or rather, it costs four hours plus whatever time is consumed by the transaction costs of making money, such as the time and expense of a commute.

This was a paradigm shift for me. I ceased viewing possessions in terms of money and saw them in terms of time. And my time is a scarce good. The hours available can sometimes feel boundless, and it is easy to fall into the trap of valuing each unit as if it were part of an infinite supply. Of course, it is not. There are only so many hours left for me to live.

With no morbidity, I apply a version of “marginal utility” to those hours. This economic law says that a person values the first unit of a thing according to its highest use and values subsequent units less. For example, if you have one unit of water, then you value it highly for staving off dehydration and death. If you have a large number of units, then you value the last one for watering a house plant. You would be willing to spend far more for the first unit than for the last. I try to view my hours as though each one were a first unit and, so, highly valuable.

When I look in my closet, many possessions now represent wasted time: a dress I never wear, shoes that go with nothing… I won’t waste more time reproaching myself, but I need to learn a lesson from that closet. I traded irreplaceable units of my life for possessions I do not value; I call these possessions “the useless shoes of life.” They are things that are neither necessary nor worth the time I traded to acquire them. Instead, I could have been reading or writing, laughing with friends or watching movies with my husband.

And then there are the purchases I will never regret: books, DVDs, my sporty little econocar, our farm, the ingredients for a superb meal. Those items provide a utility that is well worth the cost. And yes, I include pleasure as a “utility.” Pleasure is one of the most useful things in the world. It makes you spring out of bed with energy in the morning; it makes you fall asleep with a smile on your face at night. But even pleasure should be balanced against the cost in time and purchased at bargain rates, if possible.

People respond to the idea of possessions representing units of their lives in different ways.

Some people redouble their efforts to earn more and so reduce the amount of time that any one purchase represents. This is a return to the traditional American dream: Work hard and prosper economically. I wish these people the best, but their choice is not mine. At this point, I find it difficult to understand why anyone would spend years at a job they don’t enjoy in order to own a bigger home than they can use, especially since the upkeep absorbs more time and cash. The trade-off doesn’t make sense.

Also, for the political reasons mentioned earlier, I no longer believe the American dream is functioning.

My choice is to earn and spend less in order to control my own time and to avoid fueling the State through more taxes. I have called this choice “frugality,” but some people are more comfortable with the term “voluntary simplicity.” The point of such simplicity is not to save every possible penny. It is to ensure that your time and money are expended on your goals. Voluntary simplicity can be viewed as a “business plan” for getting the most out of life. Ask yourself what your goals are and what is necessary to get there. Of equal importance, ask what is not necessary.

Every person will have a different answer. Some of my choices, for example, seem to run counter to frugality. For one thing, I live on a 40-acre farm, not in a small apartment. The choice is odd only if you equate frugality with cheapness, however. If you equate it with spending your resources to achieve your own values, then the farm is eminently frugal. An apartment would be cheaper, but it would also impoverish my life: no dogs, no walks down a gravel road, no garden, no privacy…

I look forward to my garden each spring and to cooking complicated ethnic meals so that the aromas of the world flood my kitchen. I intend to travel and experience the places that fired my fantasies as a child; someday, I will know what the stars look like in Africa and how a jungle smells. Rather than diverting time into “useless shoes,” I intend to live.

That is, after all, the purpose of freedom.

SOURCE

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Obamacare was not killed off but it is still terminally ill

The Supreme Court’s upholding of the Obamacare legislation on Thursday does not settle the healthcare question because that legislation is largely unworkable. Equally, the pre-Obamacare U.S. healthcare system was unsatisfactory in a number of ways and becoming progressively more so. Under the assumption that either in 2013 or 2017 Congress and a new Administration will sit down and try to design a more rational healthcare system, I thought it worth outlining the basics of what such a system might entail.

It is unlikely that the Obamacare legislation will survive in the long term. First, it controls costs by capping Medicare payments and by the Independent Payment Advisory Board restricting expensive treatments. This is likely to be as unpopular and ineffective in the United States as is the equivalent National Institute for Health and Clinical Excellence (the Orwellianly named “NICE”) in Britain. Over time, both measures will also result in the degradation of healthcare quality. Second, the system will only work effectively if the tax on not joining becomes high enough to ensure universal participation. This will cause hardship in the lower income brackets that will be highly unpopular and become a political issue. As healthcare costs continue to rise, both for the state and for participating individuals, the demand for further healthcare reform will become overwhelming.

Start with the liberal demand that the impoverished should not go without health insurance. Phrasing the demand in that way itself increases costs, because it interposes a third party, an insurance company, between consumers and producers. In a free market, consumers and producers negotiate directly, thus ensuring that costs are minimized and quality maximized. Poor people have a right to healthcare, but they do not have a right to purchase that healthcare through insurance, and it makes no sense that they should.

Currently, the impoverished have two mechanisms by which healthcare is delivered to them. First, if their income is sufficiently low and they are fully documented in the U.S. bureaucracy, they have a right to Medicaid, which provides healthcare of variable quality and is paid for through taxes on the general population. Second, even if they are not fully accounted for in the state bureaucracy (for example, illegal immigrants, but also including the transient unemployed and the mentally ill) the hospitals have an obligation to provide emergency care if it is needed. In that sense therefore, few are denied healthcare altogether. However if even middle income people contract one of the ailments that requires huge amounts of spending to overcome it, they will end up with bankrupting medical bills and their life will be ruined.

The bankrupting effect of healthcare bills is exacerbated by two anomalies of the medical care payments system (apart from the excess costs of medical treatment generally, which I’ll get to). First, the emergency room mandate on hospitals, imposed by legislation in 1986, is entirely without compensation to them. Naturally, the hospitals have to pay for these services from somewhere, and they do so by raising rates on other customers. Second, the big insurance companies negotiate discounts with the hospital chains, which lessen their effect by raising their nominal rates, imposing inflated charges on the unfortunates who seek treatment paid for directly, without insurance. This combination of effects results in hospitals near big cities charging $10,000 per night for use of their facilities, an outrageous amount even in areas where a top-class hotel room can run as high as $500-600. Price gouging at this level, resulting in hospital costs five or ten times the full costs of hospitals in Europe, destroys the integrity of the system and makes it impossible to deal with.

Three other areas of excess systemic cost also need to be removed. First, the litigiousness of U.S. society has led to an immense class of parasitic lawyers attaching themselves to healthcare, their costs and settlements costing about 1.5-2% of GDP. When malpractice insurance for a newly registered doctor runs well north of $100,000, doctors’ earnings need to be inflated commensurately, not only by the $100,000 directly but also by the additional cost of the early years of practice, in which a doctor may be paying the full insurance premium but not yet earning enough to cover it.

Second, the insurance and legal bureaucracy surrounding medical care has made it uneconomic in many areas for doctors to operate as sole practitioners. In consequence, large clinics have been able to take over much medical practice. The result is lower earnings for the clinic doctors and inferior care for the patients, who find there is no alternative to visiting bureaucratically managed clinics in which personal knowledge of patients is impossible.

Whereas U.S. medical treatment thirty years ago was of incomparable quality, far better than available elsewhere, this is no longer the case. The belief among the general public that “doctors don’t make house calls” is valid, and is not adequately compensated for by the greater technological sophistication and lower error rate of today’s medicine.

Finally, today’s doctors are often overqualified. At an eminent heart surgeons’ conference on Chinese medicine at which I spoke two years ago, there was considerable complaint that U.S. doctors were not interested in undertaking primary care, and admiration of the Chinese system, in which primary care was readily available. “But then you have to remember” one eminent practitioner said, “that many Chinese doctors have only a bachelor’s degree.”

Immediately the problem became clear. In the medical as in the legal profession (where Law school is a pre-requisite in most states, as well as a bachelor’s degree) restrictive practices have been allowed to limit access to primary care and drive up its costs.

With the burden of litigiousness lifted, insurance companies largely removed from at least primary care and restrictive practices in the medical profession itself removed, the cost of much medical treatment could be reduced, not simply by 10-20% but by more than half. Remove also the cross-subsidization to insurance companies and the indigent inherent in the payment scheme, and medical care would become truly affordable for most people.

We then come to the essential problem of healthcare, that some people are healthier than others. In the public mind currently, this is thought to demand universal health insurance. But of course it does no such thing. For the vast majority of people, the premiums they pay in insurance and the Medicare/Medicaid taxes they pay are greater than the cost of the medical services they receive – otherwise medical insurance companies would go bankrupt. Costs are further increased by nonsenses required by a nanny state, such as forcing insurance companies to cover contraception and sex change operations.

In reality, public health insurance is indeed desirable, but only for catastrophic illnesses, either chronic or critical. There is no point in involving insurance companies in this provision, which simply adds another layer of cost. Instead, catastrophic insurance could be universal and provided by the state (or, in reality, by taxpayers) – thus satisfying the dreams of the left. However, it would involve an annual deductible of say $25,000 in any calendar year. Medical costs below this level would be covered by the individual, with wages being garnisheed if necessary to reimburse medical costs below the $25,000 level.

This system would cause occasional moderate hardship, but no catastrophes (individual hardship cases could be handled by local charities.) Medical costs would mostly be paid for directly, and in any case would be sharply reduced by the reforms described above. Individuals wishing to remove even the $25,000 annual risk could still purchase insurance, which would smooth their incomes and allow them to plan properly.

And overall, medical costs would be reduced from their current 17% of GDP to around the 10% of GDP that prevents the sector from bankrupting the economy. As in most areas it’s possible to design a decent medical and insurance system for the United States; only vested interests and political axe-grinding prevent us from doing so.

More HERE

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My Twitter.com identity: jonjayray. I have deleted my Facebook page as I rarely access it. For more blog postings from me, see TONGUE-TIED, EDUCATION WATCH INTERNATIONAL, GREENIE WATCH, POLITICAL CORRECTNESS WATCH, GUN WATCH, FOOD & HEALTH SKEPTIC, AUSTRALIAN POLITICS, IMMIGRATION WATCH INTERNATIONAL, EYE ON BRITAIN and Paralipomena

List of backup or "mirror" sites here or here -- for readers in China or for everyone when blogspot is "down" or failing to update. Email me here (Hotmail address). My Home Pages are here (Academic) or here (Pictorial) or here (Personal)

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The Big Lie of the late 20th century was that Nazism was Rightist. It was in fact typical of the Leftism of its day. It was only to the Right of Stalin's Communism. The very word "Nazi" is a German abbreviation for "National Socialist" (Nationalsozialist) and the full name of Hitler's political party (translated) was "The National Socialist German Workers' Party" (In German: Nationalsozialistische Deutsche Arbeiterpartei)

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National Rottenness

No single area of public life threatens what previously was known as the American Dream more than the apathy of our public officials regarding their fiduciary responsibilities towards their citizens.

They are mismanaging our money and, worse yet, letting others mismanage it, with a wink and a nod that is, for all practical purposes, destroying the concept of personal property.

Recent scandals involving Congressional inside trading, federal investments in bankrupt green companies, inside banking deals that benefited millionaires and billionaires, along with the collapse of investment manager MF Global have contributed to public skepticism, amounting to cynicism, that those we have entrusted to leadership positions have done what British kings, Nazis and Communists have failed to do: namely, kill free and open markets in the US.

Free markets and free governments require public confidence in order to operate successfully. Confidence comes from the public’s perception that the markets and governments are fair- or at least neutral- arbiters for investment and public policy.

Over the last several years, however, there has been mounting evidence that the game of life has been rigged against the general public, not just a little bit, but a lot.

With that realization, our confidence, thus our freedom, has been eroded.

And if either political party is serious about gaining the trust of the electorate again, they had better address some of these scandals before the torches and pitchforks end up on their steps.

Gone are the days when a change of party in Congress or the White House was enough to placate an electorate spoon feed morsels from a media elite of a few dozen national editors. Free and open markets in news and media have replaced a half century old oligarchy. The result has been the slow realization that we have tolerated being wedded to the political equivalent of a bunch of spousal abusers.

For example, the Department of Energy has spent $36 billion on clean energy technology in the form of loan guarantees. And all you need to know about those gauarntees which were originally intended to create jobs, is that the Obama administration has stopped talking about how many jobs they have created, but instead, in a reprise of their bogus stimulus claims, now brag about the jobs they have saved through the program.

Count the Solyndra bankruptcy scandal as a one time charge and be thankful it wasn’t worse. Worse is coming. Instead, look at NRG Energy with a loan guarantee of $1.3 billion creating a whopping 15 permanent jobs. The explanation? According to an analysis of loans made through the D.O.E. program by Peter Schweizer, 80 percent of the loans went to political donors of Obama.

We’ve gotten so used to government graft that plain-old government incompetence would be a welcome relief. But no, we just have to accept the fact that all of our politicians are venial, making legal for themselves what they throw others in jail for.

“Not only can members of Congress legally trade [stocks] on confidential information; they do, despite the potential cost to their reputations,” writes CNN. “The U.S. television program 60 Minutes recently reported that several current members of Congress allegedly used confidential information that they acquired on the job for personal gain.”

At least now they have to report that they are trading strocks, like other insiders.

In fact, Senate Majority Leader Harry Reid dumped his holdings in energy companies in 2008, right before the energy market crashed and bought healthcare stocks with the proceeds. Within 6 months Reid was heavily involved in re-writing healthcare laws.

The corruption goes way beyond Congress too.

Former US Senator, New Jersey Governor and Obama pal, Jon Corzine- according to Veep Joe Biden, Corzine was the first person Obama called for economic advice after the election and a key architect of the stimulus law passed by Obama- ran futures firm MF Global so solidly into the ground in a little over a year after being bounced from office that the firm dipped into customer accounts to pay their bills. Not only is that an ethical problem, it’s also illegal.

No arrests have yet been made, as of December 1st. Charlie Gasparino at Fox News says that as much as $1.2 billion dollars in customer money may be missing. Oops.

MF Global is one of the ten largest US bankruptcies of all time, according to the UK’s Independent.

Government insiders have also discovered ways of channeling profits toward their friends when government sponsored enterprises go belly-up for public investors.

In 2008, then-Secretary of the Treasury, Henry Paulson dropped by the offices of Eton Park Capital Management LP in Manhattan. There he shared with a gathering of hedge fund managers how the government would seize Fannie Mae and Freddie Mac, essentially wiping out private shareholders. But publicly, at the same time, he was telling the press that the government intended that Fannie and Freddie remain in the hands of investors.

The discrepancy could have allowed the hedge fund managers present at the meeting to benefit from non-public information. “There's no evidence that they did so after the meeting,” reports BusinessWeek, “[and] tracking firm-specific short stock sales isn't possible using public documents.”

But BusinessWeek says that at least one participant was so shaken by the disclosures that he immediately called his attorney to make sure that he wasn’t breaking any laws. The lawyer’s advice was to immediately stop trading in any securities of Fannie Mae and Freddie Mac because trading those securities while possessing inside information is against the law for mere mortals who don’t work for the federal government.

How did the hedge fund manager know he risked breaking the law, when Secretary Paulson had no clue? What was legal for Paulson as Secretary of the Treasury is illegal for the rest of us.

Living under different laws than the rest of us is so ingrained in our national leadership, that it seems they hardly give it a second thought. “The present era of incredible rottenness is not Democratic,” wrote Mark Twain, “it is not Republican, it is national.”

And that’s the paradox that all of us must grapple with seriously if we wish to preserve both our free markets and our free people.

SOURCE

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The benefits of victimhood

(Don't forget that Hitler thought Germany was a victim of the Jews)

Imagine this: A future Republican president invites Tea Party leaders to the White House. Some of them have themselves photographed standing in front of a portrait of President Barack Obama with their middle fingers extended. They then posted these photos on Facebook with the caption "F--k Obama." (Needless to say, the F-word was spelled out.)

Some questions:

1. How much coverage do you think the national press would give to this?

2. How would Democratic -- and Republican -- leaders react?

3. How would Tea Party activists react?

The answers:

1. The mainstream media across America would widely report what had happened and repeatedly show these photos. "The New York Times" would editorialize about the racism of the Tea Party. Liberal columnists would be relentless in their condemnations of the Tea Party as a low life movement of yahoos.

2. Democrats and Republicans alike would condemn these leaders and demand their resignation.

3. Tea Party activists would feel embarrassed by these people who represented them, and they would be deeply concerned that their movement's good name had been permanently tarnished.

Now let's explore a real-life situation from this past week.

President Barack Obama invited activists to the White House's 2012 LGBT pride reception. Two of them, Matthew "Marty" Hart, a director of the leftist organization, Solutions for Progress, and an activist photographer, Zoe Strauss, posed for a photo in front of a portrait of President Ronald Reagan with both their middle fingers extended. They then posted the photo on Facebook with the caption "F--k Reagan" (the F-word is spelled out).

Now let's answer our questions:

First, the liberal, or "mainstream," media never mentioned the incident. Not a word about it appeared in "The New York Times," "The Washington Post," the "Los Angeles Times" or on NPR (which had given Zoe Strauss extensive and laudatory attention just a few weeks earlier). There was no coverage on ABC News, NBC News, or CBS News. "The Huffington Post" reported the incident in this way: "If several raised fingers are any indication, some LGBT activists who visited the White House last week are fully evolved on what they think of President Ronald Reagan."

It was reported by Fox News, on conservative talk radio shows, by the "The Weekly Standard," "National Review" and other conservative journals and websites.

Second, aside from one tepid rebuke from a man named Shin Inouye, the "Director of Specialty Media in the White House Office of Communications," the Democratic Party and other left-wing organizations said nothing.

And, of course, not a word of condemnation from the world of gay activism, other than the conservative gay organization, Log Cabin Republicans.

What are the lessons?

One is that without Fox News, talk radio and conservative journals and websites, one gets an utterly skewed view of the world. If you want to know how the left wins so many elections despite the fact that many more Americans consider themselves conservative rather than liberal, the filtered news they receive is a major reason -- in America and even more so around the world. (I cover this is in detail in my just-published book " Still the Best Hope.")

The other lesson may be even more important: Contempt for norms of decency -- a form of nihilism -- permeates the left generally and leftist activism (among gays and straights) on behalf of gays specifically. Compare, for example, the behavior of the Occupy movement with that of the Tea Party. Both are equally angry at what they deem injurious to society -- economic inequality for the Occupy movement, ever-expanding government and debt for the Tea Party -- but the latter acts so much more civilly and maturely than the former.

Whether it is the notorious art work "Piss Christ" (a crucifix submerged in "artist" Andres Serrano's urine), the Los Angeles Museum of Contemporary Art's recent "graffiti art" exhibition, the ubiquitous public use of expletives, the defense of public nudity (the highest court in New York State ruled that there is no difference between women's and men's breasts, therefore women, like men, can go topless in public), the abolition of dress codes in schools, the left revels in giving the finger to religious and civil norms.

Why did these activists for gay causes feel they could act this way in the White House, the most prestigious and revered building in America? Aside from contempt for social norms, the reason is that those who see themselves as victims have impaired consciences. Nothing dulls the conscience quite like regarding oneself and/or one's group as victims. The vast majority of violent criminals believe they are victims of society, poverty, racism, etc.; Islamic terrorists see themselves as victims of the West's alleged "war on Islam;" Germans in the 1930s saw themselves as victims of the Versailles Treaty; and in America today, no one sees themselves as victims as much as gay rights activists do.

What are they victims of? Society's desire to maintain the man-woman definition of marriage, and in Ronald Reagan's case, his alleged ignoring of the AIDS crisis. That explains why gay groups label everyone who supports retaining the man-woman definition of marriage as people filled with hate, and why these activist groups try to destroy the reputations and, where applicable, the businesses of such people. Along with the nihilism -- and immaturity -- that characterizes the activist left, a sense of victimization also explains this defamation of the White House. And it doesn't hurt to know that America's news media will not call you on it.

SOURCE

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Trickle Up Economics

The political left wing has long tried to cast doubt on the fairness, and even the efficacy, of free market capitalism by branding it as a "trickle down" system. This epithet is meant to show how the middle and lower classes are dependent on scraps of wealth that happen to fall from the buffet table of the rich. This characterization of an unfair and inefficient system has helped them demonize policies that lower taxes (if they also extend to the wealthy) and reduce regulation on business.

To correct these supposed problems, they have long called for policies to redistribute wealth or for government to inject funds directly into the economy. Either mechanism puts money into the hands of everyday consumers who they claim to be the true engines of economic growth. They believe that consumer spending lies at the root of the economic pyramid. When people spend, business owners are able to sell more products, hire more workers, and reap more profits. In essence, they believe in a system of "trickle up" economics, whereby prosperity flows upward from government into the lower and middle classes and ultimately to the upper class.

But as usual, they have it exactly backwards. The savings that they find so unproductive is actually the foundation upon which the economy rests. Nothing can be consumed until it is produced. The act of spending is meaningless without something to buy. The savings of the rich forms the capital that funds business investment which increases productivity. The more that society produces, the more that can be consumed. The key here is the supply, not the demand. The grass that feeds the zebras comes from seeds, not rain. Capitalists provide the surplus seeds that are planted.

Demand always exists and does not need to be stimulated by cash redistribution. 21st century Americans are no more desirous of cell phones than their parents were. But in 1980 cell phones were in very limited supply and were therefore very expensive. They were the trophy possessions of the super-rich. The reason why they are now as ubiquitous as key chains is not that government stimulated demand, but that industry figured out how to supply them far more efficiently. The supply satisfied the demand. Investment in the telecom sector, which came from real savings of Americans, allowed for that increased productivity.

In this example, the savings of the wealthy and the innovation of entrepreneurs combined to create a huge benefit for society. Call it trickle down if you want, but it would be more honest to simply call it effective. This is the system that built this country. Relying on trickle up will surely destroy it.

SOURCE

There is a new lot of postings by Chris Brand just up -- on his usual vastly "incorrect" themes of race, genes, IQ etc.

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My Twitter.com identity: jonjayray. I have deleted my Facebook page as I rarely access it. For more blog postings from me, see TONGUE-TIED, EDUCATION WATCH INTERNATIONAL, GREENIE WATCH, POLITICAL CORRECTNESS WATCH, GUN WATCH, FOOD & HEALTH SKEPTIC, AUSTRALIAN POLITICS, IMMIGRATION WATCH INTERNATIONAL, EYE ON BRITAIN and Paralipomena

List of backup or "mirror" sites here or here -- for readers in China or for everyone when blogspot is "down" or failing to update. Email me here (Hotmail address). My Home Pages are here (Academic) or here (Pictorial) or here (Personal)

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The Big Lie of the late 20th century was that Nazism was Rightist. It was in fact typical of the Leftism of its day. It was only to the Right of Stalin's Communism. The very word "Nazi" is a German abbreviation for "National Socialist" (Nationalsozialist) and the full name of Hitler's political party (translated) was "The National Socialist German Workers' Party" (In German: Nationalsozialistische Deutsche Arbeiterpartei)

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Why Don't People Get It?

Even now, people think nothing of professing their attachment to socialist ideology at cocktail parties, at restaurants serving abundant foods, and lounging in the fanciest apartments and homes that mankind has ever enjoyed. Yes, it is still fashionable to be a socialist, and — in some circles within the arts and academia — socially required. No one will recoil. Someone will openly congratulate you for your idealism. In the same way, you can always count on eliciting agreement by decrying the evils of Walmart and Microsoft.

Isn't it remarkable? Socialism (the real-life version) collapsed nearly 20 years ago — vicious regimes founded on the principles of Marxism, overthrown by the will of the people. Following that event we've seen these once-decrepit societies come back to life and become a major source for the world's prosperity. Trade has expanded. The technological revolution is achieving miracles by the day right under our noses. Millions have been made far better off, in ever-widening circles. The credit is wholly due to the free market, which possesses a creative power that has been underestimated by even its most passionate proponents.

What's more, it should not have required the collapse of socialism to demonstrate this. Socialism has been failing since the ancient world. And since Mises's book Socialism (1922) we have understood that the precise reason is due to the economic impossibility of the emergence of social order in the absence of private property in the means of production. No one has ever refuted him.

And yet, even now, after all this, professors stand in front of their students and decry the evil of capitalism. Bestselling books make anticapitalism the theme. Politicians parade around telling us about the glorious things that the government will accomplish when they are in charge. And every evil of the day, even those directly caused by the government (airline delays, the housing crisis, the never-ending crisis in public schooling, the lack of healthcare for everyone) are blamed on the market economy.

As an example, the Bush administration nationalized airline security after 9/11, and hardly anyone even questioned that this was necessary. The result was an amazing mess that is visible to every traveler, as delays pile on delays and humiliation became part of the rubric of travel by flight. And yet who gets the blame? Read the letters to the editor. Read the mountains of copy written by journalists covering this issue. The blame is heaped on the private airlines. The solution follows: more regulation, more nationalization.

How can we account for this appalling display? There are two primary factors. The first is the failure of people to understand economics and its elucidation of cause and effect in society. The second is the absence of imagination that such ignorance reinforces. If you don't know what causes what in society, it is impossible to intellectually grasp the proper solutions or imagine how the world would work in the absence of the state.

The educational gap can be overcome. To think in economic terms is to realize that wealth is not a given or an accident of history. It is not bestowed on us like rain from above. It is the product of human creativity in an environment of freedom. The freedom to own, to make contracts, to save, to invest, to associate, and to trade: these are the key to prosperity.

Without them, where would we be? In a state of nature, which means a dramatically shrunken population hiding in caves and living off what we can hunt and gather. This is the world in which human beings found themselves until we made something of it, and it is the world we can slip back into should any government ever manage to take away freedom and private property rights completely.

This seems like a simple point but it is one that evades vast swaths of even the educated public. The problem comes down to a failure to understand that scarcity is a pervasive feature of the world and the need for a system that rationally allocates scarce resources to socially optimal ends. There is only one system for doing so, and it is not central planning but the free-market price system.

Government distorts the price system in myriad ways. Subsidies short-circuit market judgments. Product bans cause the ascendance of less desirable goods and services over more desirable ones. Other regulations slow down the wheels of commerce, thwart the dreams of entrepreneurs, and foil the plans of consumers and investors. Then there is the most deceptive form of price manipulation: monetary management from the Federal Reserve.

The larger the government, the more our living standards are reduced. We are fortunate as a civilization that the progress of free enterprise generally outpaces the regress of government growth, for if that were not the case, we would be poorer each year — not just in relative terms, but absolutely poorer too. The market is smart and the government is dumb, and to these attributes do we owe the whole of our economic well-being.

The second part of our educational task — imaging how a market-run world would function — is much more difficult. Murray Rothbard once remarked that if the government were the only producer of shoes, most people would be unable to imagine how the market could possibly produce them. How could the market accommodate all sizes? Wouldn't it be wasteful to produce styles for every taste? What about fraudulent shoes and poor quality producers? And shoes are arguably too important a good to turn over to the vicissitudes of market anarchy.

Well, so it is with many issues today, such as welfare. Among the first objections to the idea of a market society is that the poor will suffer and have no one to care for them. One response is that private charity can handle it, and yet we look around and see private charities handling only comparatively small tasks. The sector just isn't big enough to pick up where government leaves off.

This is where imagination is required. The problem is that government services have crowded out private ones and reduced private-sector services beyond what they would be in a free market. Before the age of the welfare state, charities in the 19th century were a vast operation comparable in size to the largest industries. They expanded according to need. They were mostly provided by the churches through donations, and the ethic was there: everyone gave a portion of the family budget to the charitable sector. A nun like Mother Cabrini ran a charitable empire.

But then in the progressive era, ideology changed. Charity came to be considered a public good, something to be professionalized. The state began to encroach on territory once reserved to the private sector. And as the welfare state grew throughout the 20th century, the comparative size of the private sector shrank. As bad off as we are in the United States, it is nothing compared with Europe, the continent that gave birth to charitable services. Today, few Europeans donate a dime to charity, because everyone is of the belief that this is a government service. Moreover, after high taxes and high prices, there isn't much left over to donate.

It is the same in every area the government has monopolized. Until FedEx and UPS came along to exploit a loophole in the letter of the law, people couldn't imagine how the private sector could deliver mail. There are many similar blind spots today in the area of justice provision, security, schooling, medical care, monetary policy, and coinage services. People are aghast at the suggestion that the market should provide all these, but only because it requires mental experiments and a bit of imagination to see how it is possible.

Once you understand economics, the reality that everyone sees takes on a new significance. Walmart is not a pariah but a glorious achievement of civilization, an institution that has finally put to rest that great fear that has pervaded all of human history: the fear that the food will run out. In fact, even the smallest products dazzle the mind once you understand the incredible complexity of the production process and how the market manages to coordinate it all toward the end of human betterment. The achievements of the market suddenly appear in sharp relief all around you.

And then you begin to see the unseen: how much more secure we would be with private security, how much more just society would be if justice were privatized, how much more compassionate we would be if the human heart were trained by private experience rather than government bureaucracies.

And what makes the difference? The socialist and the advocate of free markets observe the same facts. But the person with economic knowledge understands their significance and implications. It is that bit of education that makes the difference. This is why we must never underestimate the central role of teaching about economics. Facts will always be with us. Wisdom, however, must be taught. Achieving a culture-wide understanding of liberty and its implications has never been more important.

SOURCE

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Another Great Society Joins the Trash Heap of History

While the exact date of the fall of the Roman Empire is disputed — there are even some of us, myself included, who say Rome never fell — many, if not most, historians accept English historian Edward Gibbons’ date of Sept. 4, A.D. 476.

He chose that date in his seminal work, “The History of the Decline and Fall of the Roman Empire,” which, ironically, was published in six volumes, the first at the beginning of the American Revolutionary War and the last just before ratification of the current U.S. Constitution. The date was the day when Emperor Romulus Augustus was deposed by the German Odoacer, leader of the Foederati, or foreign mercenaries.

Odoacer, for his part, refused to take the title “emperor” though he essentially ruled as one. A few years later, the Roman Senate officially dissolved the Western Empire, though the Eastern Empire would exist for another millennium.

Choosing the date of the fall of the Roman Empire is really an academic exercise. If you were to borrow my time machine and go back to that fateful Sept. 4 day and talk to average Romans in the streets, they would tell you the empire had not fallen. Indeed, Odoacer and his successors maintained most of the Roman administrative state and all its trappings.

Sometimes it seems as though people believe that one day the Roman Empire was there and the next day, everything was gone.

In reality, what had fallen on that date was the “essence” of what made the Roman Empire the Roman Empire.

If you once again borrow my time machine and travel two millennia into the future and ask historians when the American empire fell, most will probably say it occurred on June 28, A.D. 2012, or the equivalent in whatever dating system is in place in 2,000 years.

That is the date that U.S. Chief Justice John Roberts and four of his colleagues declared the federal government no longer has any limitations to its power over our daily lives. That is not hyperbole. NFIB v. Sebelius will go down in legal history as the worst Supreme Court decision since 1857’s Dred Scott v. Sandford.

However, and for this you need no time machine, very few Americans today will agree that the American empire has fallen. Similar to their Roman counterpart of the fifth century, the average American will fail to recognize the significant change that occurred.

That is the typical way empires fall. There is no huge crash. They just gradually die from within until historians begin debating when the collapse took place. Just as in the Sept. 4, 476, date for the fall of Rome, June 28, 2012, is when the essence of America ended.

The American experiment was one that entailed limited and specifically enumerated powers for its central government. Now, with Roberts’ linguistic gymnastics and sophomoric logic turning a penalty into a tax, there are no limits to what the federal government can do.

If, for example, the U.S. Congress wished to mandate that everyone buy anything from electric cars to broccoli, or zoot suits to jelly beans, it can now do so. The only limitation, really, is that Congress can’t use the Commerce Clause to do so but, instead, will have to rely on its taxing authority. That, of course, has no significance to anyone outside the legal profession. The result is the same: A federal government with unlimited power to control our daily lives.

That, my friends, is, for all intents and purposes, the end of the American experiment. The Constitution is now meaningless because the idea of the Enumerated Powers Doctrine, already weakened by 80 years of Commerce Clause abuse, is now dead. Congress can do what it wants, when it wants. Only politics stands in the way. And politics is no protector of liberty.

To be sure, the decision, in the end, will be a victory for Republicans. I have no doubt that it will result in a huge GOP win in November. And the GOP might even actually repeal Obamacare because, despite its unconstitutionality, it is simply bad law. It is unaffordable, irresponsible and unaccountable. It is overly expensive at $1.76 trillion and will increase taxes by $500 billion in the next 10 years. It puts bureaucrats between doctors and patients and ultimately will decrease the quality of care in the United States, just as similar measures in other countries have done.

It is also simply wrong in a free country.

The idea that the central government (I doubt we can even call it a “federal government” anymore) can force Americans to purchase a product is repugnant to those who value living in a free country, or at least what used to be a free country.

Even so, the long-term damage is done. Recall, Dred Scott led to a war and took a constitutional amendment to cleanse. I doubt even that can salvage the former American empire.

SOURCE

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The Obamacare decision also imposed some limits on the Feds

Some concerns from the Left below

The Supreme Court’s decision in National Federation of Independent Business v. Sebelius—the healthcare cases—was a tremendous political victory for the Obama administration and, more importantly, the tens of thousands of Americans who will be saved from illness and death by the law. But make no mistake: the decision could also be a significant legal victory for the political forces committed to limiting the state’s ability to care for the weak and fragile among us.

In the hours after the health care decision was handed down, many commentators crowed over Chief Justice John Roberts’s statesman-like craft in putting together a moderate opinion that, in different parts, managed to unite the left and the right of the Court. They are half right. The opinion may be statesman-like, but it’s ultimately radical, endorsing a view of Congress’s power that had few, if any, takers until it was embraced by the Republican Party and its Tea Party flag-bearers. Indeed, it may even contain a seed that could unravel important benefits of the Affordable Care Act.

The immediate effect of the decision, of course, is that the law’s implementation can proceed. But on the one hand, Roberts, with four liberal justices, held that the individual mandate was constitutional as an exercise of Congress’s taxing power. On the other hand, Roberts joined the four conservative justices in stating that he believed that the same mandate could not be upheld under Congress’s Commerce Clause power. This should not to be overlooked. The Commerce Clause is the central plank of Congressional authority, employed to support everything from the Environmental Protection Agency to the civil rights laws. Flouting the usual rule that judges must avoid addressing unnecessary constitutional questions, Roberts made it clear that his new limitation on the Commerce Clause power was necessary to his opinion, and hence arguably binding on future courts.

In the second part of his opinion, Roberts and a coalition of six justices invalidated one aspect of the Medicaid expansion. Medicaid is one of many important “conditional spending” programs, in which Congress uses its spending power to give money to the states, but attaches conditions to the grant. The Court had never invalidated such a program on constitutional grounds. Yesterday, though, the Court held that although the federal government could condition the Medicaid expansion on the specific funding assigned to that expansion, it could not defund a state’s Medicaid program entirely if the state refused to expand the program. In effect, the Court viewed the states as akin to Methadone addicts, so dependent on their ongoing fiscal fix that the federal government had a constitutional obligation to hook them up.

Remember, there were two key points of constitutional controversy before the Court in the health care cases: first, whether the mandate is valid under the Commerce Clause, and second, whether the Medicaid expansion is a use of federal spending that improperly coerces the states.

But it is the spending clause part of the opinion that may have the more significant ramifications. While the Court has previously invalidated rules related to federal grants to states with strings attached on the ground that those strings were not articulated clearly enough, it has never before struck down a conditional spending effort as coercive—until yesterday. Apart from the puzzling question of how a non-natural entity such as a state can be “coerced,” Roberts’s explanation of this holding is unclear. Provided a federal grant is large enough and has continued for long enough, he might be read to say, the states acquire a right to it in perpetuity.

The reason this portion of the opinion is ground for concern is that it opens the door to extensive new litigation by the states to fight off regulatory mandates in other policy areas, from education to highway maintenance. The federal government often uses conditions on federal grants to pressure states into complying with important legal and policy mandates. Now it’s unclear how many of those conditions are good law. Precisely because it cannot be clearly understood, Roberts’s opinion invited new challenges by the states and new judicial decisions unraveling the regulatory net that keeps states in compliance with many important mandates on everything from civil rights to the environment.

SOURCE

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My Twitter.com identity: jonjayray. I have deleted my Facebook page as I rarely access it. For more blog postings from me, see TONGUE-TIED, EDUCATION WATCH INTERNATIONAL, GREENIE WATCH, POLITICAL CORRECTNESS WATCH, GUN WATCH, FOOD & HEALTH SKEPTIC, AUSTRALIAN POLITICS, IMMIGRATION WATCH INTERNATIONAL, EYE ON BRITAIN and Paralipomena

List of backup or "mirror" sites here or here -- for readers in China or for everyone when blogspot is "down" or failing to update. Email me here (Hotmail address). My Home Pages are here (Academic) or here (Pictorial) or here (Personal)

****************************

The Big Lie of the late 20th century was that Nazism was Rightist. It was in fact typical of the Leftism of its day. It was only to the Right of Stalin's Communism. The very word "Nazi" is a German abbreviation for "National Socialist" (Nationalsozialist) and the full name of Hitler's political party (translated) was "The National Socialist German Workers' Party" (In German: Nationalsozialistische Deutsche Arbeiterpartei)

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Did CJ Roberts exercise the Judicial Restraint conservatives have been asking for?

Judicial restraint is the idea that judges should defer to the will of lawmakers whenever possible, turning to the U.S. Constitution on only the rarest of occasions in order to nullify a duly-enacted law. One of the earliest and most influential proponents of this idea was Supreme Court Justice Oliver Wendell Holmes (1841-1935), who routinely criticized his fellow justices for striking down legislation and preventing “the right of the majority to embody their opinions in law.” As Holmes once put it, “If my fellow citizens want to go to Hell I will help them. It’s my job.”

Holmes was a great hero to the left-leaning activists of the Progressive era, who enjoyed reading his sharply-worded dissents attacking the Court’s majority for striking down various economic regulations. But judicial restraint has also had its champions on the American right. Conservative legal icon Robert Bork, for example, famously argued that “in wide areas of life majorities are entitled to rule, if they wish, simply because they are majorities,” and that judges should therefore act accordingly by deferring to lawmakers on most matters.

Chief Justice John Roberts also believes in judicial restraint, or judicial modesty, as he described it during his 2005 Senate confirmation hearings, and that belief came shining through yesterday in his majority opinion in National Federation of Independent Business v. Sebelius. Although Roberts rejected the Obama administration’s novel claim that Congress may force Americans to buy health insurance as part of its power to regulate interstate commerce, he nonetheless found the health insurance mandate to be lawful under a different constitutional provision, Congress’ power to “lay and collect taxes.”

“The text of a statute can sometimes have more than one possible meaning,” Roberts wrote, before proceeding to embrace the only possible meaning that would allow the statute to survive. “The Government asks us to interpret the mandate as imposing a tax, if it would otherwise violate the Constitution,” he continued. “Granting the Act the full measure of deference owed to federal statutes, it can be so read.”

And so judicial restraint reared its head. In fact, as an authority for his deferential maneuvering, Roberts turned to none other than Justice Holmes, citing the famous jurist’s concurring opinion in the 1928 case of Blodgett v. Holden, which declared, “between two possible interpretations of a statute, by one of which it would be unconstitutional and by the other valid, our plain duty is to adopt that which will save the Act.”

In other words, the tie goes to the government.

Many of Roberts’ critics will no doubt be tempted to denounce this ruling as an example of judicial activism. But in fact the opposite is true. By employing a method of statutory interpretation designed to give Congress and the White House the benefit of the doubt, Roberts exhibited the hallmarks of judicial restraint. “It is not our job,” he declared, taking yet another page from Holmes’ playbook, “to protect the people from the consequences of their political choices.”

Today’s conservatives frequently complain about the dangers of judicial activism. Perhaps now they’ll be more alert to the dangers of judicial restraint.

SOURCE

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Legislative Dishonesty: The Indian Child Welfare Act doesn’t promote child welfare

By Thomas Sowell

Nowhere is political rhetoric more shameless — or more dangerous — than in the pious names that politicians give to the legislation they pass. Perhaps the most egregious example is the so-called Indian Child Welfare Act, which callously sacrifices the welfare of Indian children.

Time and again, children with some American Indian ancestry, who have been adopted by families that are not of that ancestry, have been suddenly taken by law from the only parents they have ever known and transferred to some distant Indian reservation, to live among strangers in a world they know nothing about.

You might think that the sight of bewildered, desperate, and weeping children in court, crying out for Mommy and Daddy as they are forcibly removed from people who have cared for them for years, might cause those who are seizing them to relent. But no! Such children are routinely sacrificed on the altar of the Indian Child Welfare Act.

The child might be two years old or twelve. But the legal rights of a biological relative and tribal authorities trump the well-being of the child, even if that biological relative has been a complete stranger to the child.

Some years ago, the chairman of the U.S. Civil Rights Commission visited a 14-year-old girl who had been removed from her adoptive parents and was living on an Indian reservation, where she was miserable. But when the story came out, outrage was directed not at those who had ruined this girl’s life, but at the member of the Civil Rights Commission who had dared to intrude on the sacred soil of the Indian reservation.

Similar things have happened to black children raised by white foster parents. There is no congressional legislation in these cases, but the dogmatism of social workers and so-called social-welfare departments can lead to the same results. However, the absence of federal legislation enables those judges who have common sense, and common decency, to prevent similar tragedies.
What is behind such perverse racial policies? Theories, ideologies, and presumptions of superior wisdom and virtue. It has been known for centuries that there are people, especially among the intelligentsia, who love humanity in the abstract but are not all that concerned about what happens to the actual flesh-and-blood human beings who are subjected to their grand visions and policies.

If the vogue is that children should be raised in their own racial culture, that overrules other considerations. As T. S. Eliot said, long ago: “Half of the harm that is done in this world is due to people who want to feel important. They don’t mean to do harm — but the harm does not interest them. Or they do not see it, or they justify it because they are absorbed in the endless struggle to think well of themselves.”

But the rest of us need to be on guard against their rhetoric. Nor is the Indian Child Welfare Act the only piece of legislation whose effects are the direct opposite of its title.

The Obama administration introduced legislation called the “Employee Free Choice Act.” What would it do? Destroy the free choice of workers as to whether or not they want to be represented by a labor union.

The National Labor Relations Act of 1935 gave workers the right to a federally conducted secret-ballot election, in which they could vote to have a union or not have a union. But, as more and more workers in recent years have voted not to have a union, union bosses have pushed for a law to allow this decision to be made without a secret ballot. This would allow union organizers to use pressure and coercion on those who don’t want to have a union.

Since union bosses contributed both money and manpower to the election of Barack Obama, it is hardly surprising that he was willing to reciprocate with the Employee Free Choice Act.

In this case, the act failed to pass in Congress. But President Obama accomplished some of its goals by appointing pro-union members to the National Labor Relations Board, whose regulations tilted elections in the unions’ favor.

If you can’t be bothered to look beyond rhetoric to realities, don’t complain about bad laws, or even about the degeneration of law itself into arbitrary rule over what was once a free people.

SOURCE

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The worldwide Leftist program: Creating dependency

It's already well underway in Britain, where ever larger numbers of young people choose a life on welfare rather than work

by RALPH PETERS

In an age of the globalization of everything from bird flu to bad debts, we still try to compartmentalize, pretending that what happens in Athens, stays in Athens. Thus, too many Americans fail to connect the massive attempt at wealth transfer (and wealth destruction) behind Obamacare to the wild irresponsibility of southern Europe's socialist government models that have led multiple states to practical, if not yet formal, bankruptcy.

But problems ranging from the Democratic Party's efforts to turn illegal immigrants into still more electoral slaves, to Greek or Spanish demands that hardworking Germans pick up their lifestyle tabs, all have the same roots: The Left's lust for power and its preferred means of seizing power today: Addicting the least-productive and utterly unproductive members of society to giveaway programs funded by the diminishing number of citizens willing to study, work and pay taxes.

Obamacare isn't about alleviating suffering. It's about keeping poor people poor by enmeshing them in a web of addictive hand-outs that keep them dependent on government. Every leftwing "social" program has the ultimate goal of destroying incentives for self-improvement, while piling on the incentives for parasitical behavior.

Whenever a leftist politician speaks of "social justice" or "justice" of any kind, get ready to write a check to the government, if you earn an honest living. To Leftists, social justice means only two things: First, empowering the Lumpenproletariat (society's bottom-feeders, against whom Karl Marx warned us, by the way) to create an electoral mob that will always vote to preserve and increase hand-outs; and, second, punishing responsible citizens who have done something constructive with their lives.

In Europe itself, we see a sharp north-south divide (with France, under its new idiot-left president, opting to align itself with the bankrupt south, the financial equivalent of Napoleon's invasion of Russia). In the north, most governments pursue sound fiscal policies and restrain their socialist impulses within the limits of affordability. In the German case, two traditions have resulted in one of the world's soundest economies, despite soft-core socialism: The old, unfashionable, academically derided "Protestant Work Ethic," and the worthy old Prussian admonition to live a life of Mehr sein als schein ("Live within your budget and don't flash bling"). [Literally: More being than appearing -- JR]

In Europe and here, the Left has proven that the old saying "There's no free lunch!" is a lie, at least for a while. There's a free lunch every day, as long as someone else can be conned or forced into picking up the tab. Eventually, though, the famine years arrive.

Here at home, it's often been observed that a fundamental problem is that "we've made poverty too comfortable," thus removing incentives for people to study, work and better their lives. That's absolutely true: When you willfully contribute nothing to society throughout your lifetime, while using food stamps to buy chips, candy, soda and frozen dinners, and then bill the government for your self-inflicted health problems while couch-surfing through a "life of poverty" that includes a cell phone and a flat-screen television, well, there are, unfortunately, plenty of human beings content to be narcotized into slavery on the left's vast, soul-destroying electoral plantations. The left uses government giveaways to bribe the poor to stay poor.

Why? The left craves power. Once upon a time, it craved power for imagined noble ends. Now it's just about the power itself. Leftists know full well how soul-crushing conditions are in the ghettos, barrios and poor-white communities in which they confine their supporters, keeping them on a life-support drip-feed of benefits (brilliantly constructed so that anyone who tries to fight their way out of the poverty trap immediately loses multiple advantages reserved for those content to remain willing slaves).

What has our Left done for the poor except to addict them to poverty? What has the European left done for the poor except to promise a fairy-tale ending, only to leave the "workers and peasants" to face the Big Bad Wolves of mass unemployment, endless debt and lifelong disappointment?

There is no dignity in living on hand-outs. But that's just fine with the Left: The destruction of individual dignity, the reduction of pride from a matter of real achievement to status based on running shoes, is one of the left's most vital tools in subverting our republic ("How ya gonna keep ‘em down on the block, once that they've read Ayn Rand?" The ultimate nightmare of the American left is a literate minority population). Note that, on the rare occasion when a minority celebrity calls for personal responsibility and educational reform, the left attacks him or her immediately, savagely and enduringly.

For that matter, what has our self-declared-as-black president done to improve education for minorities and reduce minority unemployment? How many black or Latino executives, exactly, worked at Solyndra?

For me, the Obamacare agenda was never really about the health of the American people. Instead, it's another wealth-transfer (and wealth-destruction) tool that removes yet another incentive for individual citizens to better their lives. It's also about further dismantling our sense of personal responsibility, broadening the sense of victimhood yet again. The "free lunch" of universal health care would be paid for by those who work in order to provide endless care, premium for those who refuse to work or to take any responsibility for their own physical condition.

The message of the Left long has been: Nothing is your fault, you're all victims of the dark forces of free enterprise ("Freedom is slavery," as Big Brother put it). Obamacare was designed to extend that message to: "Eat like a pig, smoke like a chimney, drink life a fish and stay put on your sofa-and, as long as you vote the Left's party line, you'll get the same benefits as someone who has worked steadily for fifty years to support a family.

The worst addiction crisis in our country isn't to illegal drugs, but to life-numbing government giveaway programs that purposely kill ambition among the poor.

Oh, and the Left's recent discovery of the suffering middle class (suffering because of the Left's bankrupting programs)? Don't believe it. The academic left has always despised the petty bourgeois, while merely envying the wealthy. The middle-class shopkeeper or small-town entrepreneur was always immune to the Left's inanity, while at least some of the rich could be conned into a guilt-trip and big donations.

As for those of us with jobs, the Left wants us to be in debt, in doubt, and hurting. The new dream of the American Left is to turn productive citizens into a new class of victims. And, true to the European model the American left emulates, our leftists close their eyes to the fact that somebody has to make money to pay taxes, or, eventually, there's no funding for anything. When it comes to balancing the books, the Left has always taken the Mr. Micawber view that "Something will turn up."

Welcome to Greece: It's always about wealth transfers, even as the last wealth disappears.

At a time when the American Left dreams of turning ten million illegal immigrants into ten million permanently impoverished voters, it's time to relook the entire leftist experiment we've endured for the last half-century. Food stamps? Sure, for the deserving or disabled. But no junk food or desserts of any kind. Computerized supermarket inventory and check-out programs could easily manage this-but it won't happen, because politicians from both parties would rather foster obesity than take on potato-chip manufacturers. And let's routinely recheck eligibility and make it a felony to sell food stamps to a third party. Benefits fraud? Lose all government benefits for the rest of your life. Voting rights? Time for a step backward (the Left's outrageous objections to voter ID laws show just how corrupt the Democrats have become). No individual or family tax return? No right to vote. No high-school diploma? No right to vote. Citizens don't just have rights. Responsibilities come first.

As for health care, I support enlightened rationing that, while allowing for "no-fault" serious diseases or accidents caused by others, incentivizes citizens to take at least some responsibility for their own health. If I bust my ass to stay in shape, I shouldn't have to pay for extravagant care for the shamelessly self-indulgent. Past a reasonable point, you should have to pay your own way if you've abused your body for decades. If you want endless platinum care for ailments you've inflicted on yourself, take out your checkbook.

Not a single cowardly politicians in either party will admit it, but without laws that foster personal responsibility for our health, our health-care system will bankrupt us, whether Obamacare can be repealed or not.

Frau Bundeskanzlerin Merkel, stick to your refusal to pay off the credit cards of spendthrift Greeks. My fellow Amerians, stand up for the fundamental value that, above all, made this country great, the belief that personal responsibility is the building block of freedom.

I would not undo "social" programs that help the genuinely needy, but I'd damned well make sure that "needy" meant physically or mentally helpless to help themselves, not lazy, cynical and content to remain illiterate.

There's a line from the 1960s that I used to trot out for a laugh. Faced with today's degenerate entitlement culture, I've come to see authentic wisdom in the saying. It's from the Reverend Ike, the Little Richard of evangelists, who, when asked about his Cadillacs and jewelry, said, "The best thing you can do for the poor is not to be one of them."

Work hard, pay your bills, and take responsibility for your own life. That, my friends, is true American patriotism.

SOURCE

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My Twitter.com identity: jonjayray. I have deleted my Facebook page as I rarely access it. For more blog postings from me, see TONGUE-TIED, EDUCATION WATCH INTERNATIONAL, GREENIE WATCH, POLITICAL CORRECTNESS WATCH, GUN WATCH, FOOD & HEALTH SKEPTIC, AUSTRALIAN POLITICS, IMMIGRATION WATCH INTERNATIONAL, EYE ON BRITAIN and Paralipomena

List of backup or "mirror" sites here or here -- for readers in China or for everyone when blogspot is "down" or failing to update. Email me here (Hotmail address). My Home Pages are here (Academic) or here (Pictorial) or here (Personal)

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The Big Lie of the late 20th century was that Nazism was Rightist. It was in fact typical of the Leftism of its day. It was only to the Right of Stalin's Communism. The very word "Nazi" is a German abbreviation for "National Socialist" (Nationalsozialist) and the full name of Hitler's political party (translated) was "The National Socialist German Workers' Party" (In German: Nationalsozialistische Deutsche Arbeiterpartei)

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The Feds can penalize you for anything as long as they call it a tax

Today is my Sabbath and I would not normally be posting anything today but the decision by SCOTUS (above) completely alters the ball game for America so I felt I had to put up a few bits on at least this blog, if not on my others.

If Americans want to know where their healthcare is heading now, have a good look at my EYE ON BRITAIN blog. Every day I put up at least one horror story there about how socialized medicine treats people.



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GOP governors vow to ignore Obamacare

Republican governors are planning to ignore the Supreme Court's decision Thursday to uphold Obamacare hoping that the issue will drive voters to dump President Obama in favor of Mitt Romney who has vowed to kill the Affordable Care Act.

After the decision, the Republican Governors Association said that nothing should be done by the states until after the election, a clear signal that they believe a GOP president, House and Senate will kill the health care reform pushed through by Democrats and opposed by Republicans.

RGA Chairman Bob McDonnell said, "Today's ruling crystallizes all that's at stake in November's election. The only way to stop Barack Obama's budget-busting health care takeover is by electing a new president. Barack Obama's health care takeover encapsulates his presidency: Obamacare increases taxes, grows the size of government and puts bureaucrats over patients while doing nothing to improve the economy."

The Virginia governor, who is on Mitt Romney's list of potential vice presidential candidates, added, "By replacing Barack Obama with Mitt Romney, we will not only stop the federal government's healthcare takeover, but will also take a giant step towards a full economic recovery."

Other governors have urged a similar strategy. Scott Walker, the newly re-elected Wisconsin governor, said that he won't put into place any elements of Obamacare until after the election. Other governors are taking a similar position.

SOURCE

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Is The Roberts Ruling Good For ObamaCare Opponents?

By upholding all of ObamaCare on the grounds that the individual mandate falls under Congress’ taxing power, it seems like Chief Justice John Roberts has given liberty a very bad day.

But maybe not.

Roberts has now taken away the ability of proponents to obfuscate on the individual mandate. During the ObamaCare debate in Congress, many supporters insisted that the mandate wasn’t a tax knowing that its passage would be much harder if it was, indeed, called a tax. During legal arguments, supporters started referring to it as a tax as a sort of “legal insurance policy” against the Supreme Court throwing it out.

The Roberts ruling in effect says, “Sorry, but you can’t have it both ways. And since you let me decide this, I’m calling it a tax.”

That leaves ObamaCare proponents politically vulnerable in a number of ways.

First, supporters will now have to call the mandate a “tax,” something that will make it even less popular than it is now.

Second, their flank will be unprotected against the charge that ObamaCare is one of the largest tax increases in history.

Third, opponents can now say, “Do you want to be taxed to force you to buy insurance?” and “If you don’t buy insurance, your taxes go up.” I’m betting those are winning soundbites.

Fourth, since the mandate is now a tax, it is a no-brainer that it can be repealed using budget reconciliation rules. In other words, you don’t need 60 votes in the Senate get rid of the mandate.

To know if the above analysis is correct, watch for what the Democrats don’t do. If you don’t see Democrats and others on the left running around proudly touting the mandate as a tax, you’ll know that they know that they don’t have a winning argument.

Longer term, if Obama is not touting that the Court found ObamaCare constitutional in his stump speeches, you’ll know this is an issue that he wants to avoid.

Just guessin’, but telling voters that you’ve just raised their taxes probably isn’t a good reelection strategy.

SOURCE

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Regulations to fix problems caused by regulations?

Congress has passed the FDA Safety & Innovation Act in response to the recent prescription drug shortages. The Act’s solution to the shortages includes increasing the FDA’s regulatory power. Over-zealous regulation and bureaucrats at FDA had been a main cause of the problem.

The Act will increase the number of pharmaceutical manufacturers that must report to the FDA any discontinuation of certain drugs at least six months before ending production. Additionally, the Act would require the Secretary of the FDA to implement a “task force” to enhance the Secretary’s response to shortages. Neither of these proposed solutions will attenuate another drug shortage but instead exasperate one. It is expected that President Obama will sign the bill into law in early July.

Paul Howard, a senior fellow at the Manhattan Institute’s Center for Medical Progress, has argued against more government intervention into the market, stating, “Medicare restrictions on average sale prices (which can only be updated every six months) for generic medicines, just-in-time inventory supply practices at hospitals, reverse-auction contracts from large group purchasing organizations for supplying generic drugs, tougher FDA manufacturing and inspection standards for domestic companies (which can raise costs), and increased global competition from low-cost suppliers in India and China have all created a “perfect storm” for creating shortages of some vital generic medicines.”

Howard pointed out that the pharmaceutical market exists beyond the United States, and in order for our companies to stay competitive we need less red tape.

Congressman Darrell Issa (R-CA), chairman of the House Committee of Oversight and Government Reform, found the FDA to be the primary cause of the drug shortages, and concluded in the Committee’s report, “This shortage appears to be a direct result of over aggressive and excessive regulatory action.”

The report continued, “Addressing this shortage requires a common sense regulatory approach that considers market conditions and the overall impact. These drugs can save lives and keep people who need them living healthy lives. The FDA is failing to ensure the availability of quality products.”

Chairman Issa argues that if the FDA’s purpose is to ultimately save lives than it should not be preventing life-extending drugs from entering into hospitals and the market.

A recent academic article by Assistant Professor Ali Yurukoglu of the Stanford Graduate School of Business found a strong, positive correlation between A) the fraction of revenue received from Medicare Part B for a drug and B) the probability of a shortage for that drug. Specifically, each 10 percent market share accounted for by Medicare is linked with an increase of shortage frequency by 7.5 percent.

Preventing future shortages, according to John R. Graham—director of Health Care Studies at the Pacific Research Institute and an adjunct scholar with the Mackinac Center for Public Policy—would entail freeing up the pharmaceutical market to allow for more competition and shift medicines from Medicare Part B to Medicare Part D to ensure manufacturers receive adequate compensation. Unlike Part B, which fixes prices, Part D depends on a less market-intrusive mechanism to provide health care. Part D relies on private health insurers to compete against one another in annual auctions in order to provide drug plans to Medicare beneficiaries.

Graham concludes that ultimately the FDA’s monopoly on the approval of drugs for medical use should be ended to allow competing manufacturers to enter the market in case of future shortages.

If Congress wishes to contribute a viable solution, it should first understand the primary cause of the problem it wishes to solve. In this case, instead of addressing the Center for Medicare and Medicaid’s price-fixing powers and the FDA’s over-regulation of pharmaceutical markets — the major contributing factors of the drug shortages — Congress has granted even more power to the government, either to little effect or making the problem even worse.

SOURCE

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More verbal trickery from the Left

Thomas Sowell on "social justice". If it were "justice" it would not need the "social" adjective

If there were a Hall of Fame for political rhetoric, the phrase "social justice" would deserve a prominent place there. It has the prime virtue of political catchwords: It means many different things to many different people.

In other words, if you are a politician, you can get lots of people, with different concrete ideas, to agree with you when you come out boldly for the vague generality of "social justice."

Justice Oliver Wendell Holmes said that a good catchword can stop thought for 50 years. The phrase "social justice" has stopped many people from thinking, for at least a century -- and counting.

If someone told you that Country A had more "social justice" than Country B, and you had all the statistics in the world available to you, how would you go about determining whether Country A or Country B had more "social justice"? In short, what does the phrase mean in practice -- if it has any concrete meaning?

In political and ideological discussions, the issue is usually whether there is some social injustice. Even if we can agree that there is some injustice, what makes it social?

Surely most of us are repelled by the thought that some people are born into dire poverty, while others are born into extravagant luxury -- each through no fault of their own and no virtue of their own. If this is an injustice, does that make it social?

The baby born into dire poverty might belong to a family in Bangladesh, and the one born to extravagant luxury might belong to a family in America. Whose fault is this disparity or injustice? Is there some specific society that caused this? Or is it just one of those things in the world that we wish was very different?

If it is an injustice, it is unjust from some cosmic perspective, an unjust fate, rather than necessarily an unjust policy, institution or society.

Making a distinction between cosmic justice and social justice is more than just a semantic fine point. Once we recognize that there are innumerable causes of innumerable disparities, we can no longer blithely assume that either the cause or the cure can be found in the government of a particular society.

Anyone who studies geography in any depth can see that different peoples and nations never had the same exposure to the progress of the rest of the human race. People living in isolated mountain valleys have for centuries lagged behind the progress of people living in busy ports, where both new products and new ideas constantly arrive from around the world.

If you study history in addition to geography, you are almost forced to acknowledge that there was never any realistic chance for all peoples to have the same achievements -- even if they were all born with the same potential and even if there were no social injustices.

Once I asked a class of black college students what they thought would happen if a black baby were born, in the middle of a ghetto, and entered the world with brain cells the same as those with which Albert Einstein was born.

There were many different opinions -- but no one in that room thought that such a baby, in such a place, would grow up to become another Einstein. Some blamed discrimination but others saw the social setting as too much to overcome.

If discrimination is the main reason that such a baby has little or no chance for great intellectual achievements, then that is something caused by society -- a social injustice. But if the main reason is that the surrounding cultural environment provides little incentive to develop great intellectual potential, and many distractions from that goal, that is a cosmic injustice.

Many years ago, a study of black adults with high IQs found that they described their childhoods as "extremely unhappy" more often than other black adults did. There is little that politicians can do about that -- except stop pretending that all problems in black communities originate in other communities.

Similar principles apply around the world. Every group trails the long shadow of its cultural heritage -- and no politician or society can change the past. But they can stop leading people into the blind alley of resentments of other people. A better future often requires internal changes that pay off better than mysticism about one's own group or about "social justice."

SOURCE

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Religion as a bulwark against big government

The ongoing debate in the United States over Obamacare recalls the value of religion in the debate on liberty. Key to the religious perspective on the debate are efforts by the US Department of Health and Human Services (HHS) to require Catholic organisations to provide contraceptive, abortifacient and sterilisation services to their employees as part of their health insurance programmes; an attempt which the Catholic Church has staunchly resisted as infringing on matters of conscience.

The opposition from the Catholic Church of course hinges on religious freedoms guaranteed under the First Amendment, but galvanises awareness among religious groups of the broader personal freedoms at stake under the other Obamacare mandate, requiring all Americans to purchase health insurance on pain of a fine. Indeed, a Gallup poll now shows that a majority of Americans regardless of political persuasion view the mandate central to the health reform package as unconstitutional.

In some ways, the circumstances resemble the manner in which the first New Deal was brought down by provisions which violated the kosher practices of Jewish butchers, as recounted in an article in The Freeman this month. In that case, the butchers’ challenge did not rest on First Amendment grounds, but it was motivated by religion and ultimately resulted in the economic regulation being struck down by the Supreme Court.

As the religiously-minded classical liberals of the 19th-century wrote, religion was valuable in a free society because it reminded the people that their sole duty was not to the state, and could thus serve as a means of protecting civil liberties from encroaching government. As historian Ralph Raico says of Alexis de Tocqueville, who penned Democracy in America in 1835, the Frenchman believed that religious sentiment:

“...sets up barriers to the heedless trampling on individual rights. It is ultimately because of these influences, he holds, that ‘no one in the United States has dared to advance the maxim that everything is permissible for the interests of society, an impious adage which seems to have been invented in an age of freedom to shelter all future tyrants.’ ” (p. 99)

Whatever the Supreme Court may decide this week – whether it overturns or upholds the individual mandate which affects all citizens, or the HHS contraceptive mandate which affects employers – the religious dimension of this debate will hopefully sharpen awareness of individual liberties in future political discourse. Many secular libertarians today, like their 19th-century forerunners, suspect authority including religious authority. Rather, it is coercive authority which is to be suspect. Ultimately, the first protection in upholding the rule of law in a free society is not the court or legislature, but the sentiment of the people, wherein religious sentiment can perform a valuable role.

SOURCE

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My Twitter.com identity: jonjayray. I have deleted my Facebook page as I rarely access it. For more blog postings from me, see TONGUE-TIED, EDUCATION WATCH INTERNATIONAL, GREENIE WATCH, POLITICAL CORRECTNESS WATCH, GUN WATCH, FOOD & HEALTH SKEPTIC, AUSTRALIAN POLITICS, IMMIGRATION WATCH INTERNATIONAL, EYE ON BRITAIN and Paralipomena

List of backup or "mirror" sites here or here -- for readers in China or for everyone when blogspot is "down" or failing to update. Email me here (Hotmail address). My Home Pages are here (Academic) or here (Pictorial) or here (Personal)

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The Big Lie of the late 20th century was that Nazism was Rightist. It was in fact typical of the Leftism of its day. It was only to the Right of Stalin's Communism. The very word "Nazi" is a German abbreviation for "National Socialist" (Nationalsozialist) and the full name of Hitler's political party (translated) was "The National Socialist German Workers' Party" (In German: Nationalsozialistische Deutsche Arbeiterpartei)

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