Wherein Obama Discovers The Market

Healthcare

During the healthcare debate, one of the alternatives to a government based solution was one where the market would be more free to act.  Right now, whether through insurance, private or one of the Medi’s, people are really spending someone else’s money.  This leads to two bad results:

  1. Over consumption
  2. No shopping based on price

When I’m the one paying for the services, I’m more careful on the services I buy.  Take my vision [please!  ha] coverage for example.  As I’ve aged I’ve gone through 4 phases of vision:

  1. Needing no glasses
  2. Requiring glasses to read – though my vision remained stable
  3. My vision began to deteriorate requiring new glasses often
  4. Full on transitional glasses that allow for gradient lenses.

In the past, when my vision transitioned from great to merely “kinda bad” I wouldn’t need new glasses every time I had my eyes check; my eyes did not get worse.  But because I had insurance that covered the cost of glasses, I would get a new pair each visit.  One for the bedroom, the home office, the work office and so on.  Today, however, my vision is changing.  Each visit requires a new pair of glasses.  And the cost of the new glasses is significantly more than the cost of those glasses; I am paying the large share now.

The result?  I push my vision purchases out as long as a I can.  I don’t get new glasses each visit – I push my way through older glasses for as long as I can before buying new.

On top of no longer over consuming vision services, I shop on price.  Because I now care how much the glasses cost, I find the best value.  In the past, I couldn’t care less how much the frames cost because I wasn’t paying for them.  To me, convenience mattered and if the office I was at had a product I liked, I bought ’em.

No longer.

Why is this important?  Because the government recently released how much hospitals charge for services:  [Hat tip to Ryan Grace]

For the first time, the federal government will release the prices that hospitals charge for the 100 most common inpatient procedures. Until now, these charges have been closely held by facilities that see a competitive advantage in shielding their fees from competitors. What the numbers reveal is a health-care system with tremendous, seemingly random variation in the costs of services.

In the District, George Washington University’s average bill for a patient on a ventilator was $115,000, while Providence Hospital’s average charge for the same service was just under $53,000. For a lower joint replacement, George Washington University charged almost $69,000 compared with Sibley Memorial Hospital’s average of just under $30,000.

Virginia’s highest average rate for a lower limb replacement was at CJW Medical Center in Richmond, more than $117,000, compared with Winchester Medical Center charging $25,600 per procedure. CJW charged more than $38,000 for esophagitis and gastrointestinal conditions, while Carilion Tazewell Community Hospital averaged $8,100 in those cases.

Now, if we can just get a system that builds in market forces, the price of healthcare will come down without the need of a massive government solution.

Barack Obama And Being A Manager

Barack Obama

Listening to the back and forth that the Obama White House is contributing to surrounding:

  1. Benghazi
  2. IRS
  3. AP

I have noticed a pattern.  In each of the three scandals he’s facing, Obama has been eager to point out that he’s not been involved or knew of the activities.

Which brings me to the point:

What exactly DOES he know about?  What on earth does this man do if he isn’t aware of the activities of his direct reports?  How does he not know that Eric Holder is confiscating AP phone records as a result of an investigation of leaks?  How does he not know what Hillary Clinton is doing surrounding Benghazi?  And how in the name of heaven does he not know what the IRS is doing?

As nickgb help me realize, this may not be a case of scandal, rather, Hanlon’s Razor might be at work:

Never attribute to malice that which is adequately explained by stupidity.

Though in this case, I like Napoleon’s version better:

Never ascribe to malice that which is adequately explained by incompetence

Indeed.

Introductions And Climate Change

Global Warming.Polar Bear

I have found a great new liberal voice, writer and thinker.  Further, he’s local.  Professor Steve Greene is a Political Science prof here at NC State University.  I firmly believe that the boys at PYM and the good Professor Scott Erb will find Steve’s insights, hopefully here, and at his own place, to be interesting and enjoyable.

I hope to see Steve here often.  Even if he’s wrong 😉

Anyway, while over at Steve’s place I saw one of his posts on climate change.  In it, I was reminded of a story that I’ve had in my stack for some time now.

Which is that global warming has stopped over the last 10-15 years:

OVER the past 15 years air temperatures at the Earth’s surface have been flat while greenhouse-gas emissions have continued to soar. The world added roughly 100 billion tonnes of carbon to the atmosphere between 2000 and 2010. That is about a quarter of all the CO₂ put there by humanity since 1750. And yet, as James Hansen, the head of NASA’s Goddard Institute for Space Studies, observes, “the five-year mean global temperature has been flat for a decade.”

Temperatures fluctuate over short periods, but this lack of new warming is a surprise. Ed Hawkins, of the University of Reading, in Britain, points out that surface temperatures since 2005 are already at the low end of the range of projections derived from 20 climate models (see chart 1). If they remain flat, they will fall outside the models’ range within a few years.

Economist.climate change.1

I think it’s important to point out that this gets to the skeptic’s whole point.  That while the science that suggests higher levels of CO2 contribute to a warming planet, the positive feedback that is central to the alarmist’s argument is not at all understood or accepted.

The mismatch might mean that—for some unexplained reason—there has been a temporary lag between more carbon dioxide and higher temperatures in 2000-10. Or it might be that the 1990s, when temperatures were rising fast, was the anomalous period. Or, as an increasing body of research is suggesting, it may be that the climate is responding to higher concentrations of carbon dioxide in ways that had not been properly understood before. This possibility, if true, could have profound significance both for climate science and for environmental and social policy.

I think that the jury is still out.  I don’t see indications of a catastrophic change that has or is going to occur.  Until then, I think that we need to continue to watch, to observe and accept the fact that perhaps humans only have so much influence on the climate of Mother Earth.

 

Financial Aid: Merit or Need

Budget

There is no question that education, through college, is critical to economic success in America.  Income and wealth are clearly linked to education achievement.  Therefore, it makes much sense to make sure that as many college ready kids actually make it to college as possible.  Even if this means that we provide financial resources, financial aid, to those college material kids who may not have the resources to pay for that education on their own.

However, the devil is in the details:  College Material.

We do not want to provide financial aid to kids who aren’t going to succeed at the collegiate level.  But you would never know it from reading media stories of what is going on in America:

WASHINGTON — Low-income students are increasingly bypassed when colleges offer applicants financial aid, as schools compete for wealthier students who can afford rising tuition and fees, according to a public policy institute’s analysis of U.S. Department of Education data.

The study by The New America Foundation said that colleges, in their quest to advance their U.S. News & World Report rankings, are directing more financial aid to high-achieving applicants in a bid to elevate the profile of their student population.

I had to read that twice:

  • schools compete for wealthier students
  • directing more financial aid to high-achieving applicants

How does a journalist for Reuters miss this badly?  On the one hand she is claiming that schools are competing for wealthy students.  Why?

…wealthier students who can afford rising tuition and fees…

Never mind that wealthy or not, the student attending the school is going to pay either with their own money or with the money given to them by financial assistance programs.

Yet, on the other hand, she reports that colleges are recruiting the smartest kids they can find.

Which is it?

It continues:

As part of their strategy to compete for the best students, colleges use merit-based aid, which does not take into account financial need. Under this strategy, institutions may, for instance, give four $5,000 awards to lure four wealthy students rather than award $20,000 to one needy student, the organization said.

Okay, so colleges want to admit the best and the brightest.  In order to do this, they invest on high achieving students.  I’m not sure why this is controversial or even surprising.

Now, the interesting question that I think Nawaguna misses is why are high achieving students coming from “students from the rich suburban schools”.

THAT would be an interesting study.

Obama’s Tyranny Speech

…hearing voices that incessantly warn of government as nothing more than some seperate sinister entity that’s at the root of all of our problems Some of these same voices also do their best to gum up the works.  They’ll warn that tyranny is just around the corner.

You should reject these voices.

Obama is talking about conservatives in general.  Republicans in congress and Tea Party republicans in specific.

He is referring to people who feel that we must ever be careful that government is only one day away from becoming a tyrannical mechanism that will restrict liberty.  He is referring to people, specific people.

Think those voices need to be rejected now?

IRS

Taxation And The Laffer Curve

This has been on my stack for some time.  I came across a story after reading a post by Dan Mitchell of CATO:

CIGARETTE-smuggling continues to soar in Ireland, with new Department of Finance figures showing that tobacco excise tax receipts are falling dramatically short of targets, even though taxes have increased and the number of people smoking has remained constant at 29 per cent of the population.

I especially enjoyed the assumed fact that economic gain made by the voluntary trade in an open a free market somehow first belongs to the government:

What Fianna Fail TD Niall Collins called “Premiership-style criminality” is behind the latest upsurge in smuggling, which is costing the state hundreds of millions in lost revenue.

Not one pause at the idea that the profits realized by selling tobacco from those who have it to those that want it should first be the property of the sellers.

Unreal.

IQ, Heritage and The Left

Bell Curve

Recently the Heritage Foundation released a report claiming that a currently proposed immigration plan would cost a ton of money.   I haven’t spent much time on the report, though maybe I should, largely because I don’t think that our borders ought to be opened or closed based on the fiscal calculus of the immigrant.

America is a place for anyone in the world to aspire to come to.  And we should make sure that we are accommodating anyone that wants to leave behind an oppressive regime that suppresses economic liberty.  We are, as we are fond of saying, the land of the free.

However, an interesting side story of the Heritage report is the history of one of the authors, Jason Richwine.  It turns out that Mr. Richwine received his PhD at Harvard and his doctoral thesis focused on IQ and immigration.  Last week I mentioned this:

I’ll drift over to our more liberal media sources later to see if this is making waves.

Well, I did and it did.

Everyone is ablush concerning the whole study of Mr. Richwine.

See, it turns out that some people think that intelligence, measured in terms of IQ, is a matter of genetics or, perhaps more accurately, heritability.   The difference being that genetics determines that humans have one nose, two ears and hair.  Heritability determines the size of the nose, the shape of the ear and color of the hair.

At its most basic, the argument that IQ is a matter of “genetics” is the idea that, in general, smart parents, in aggregate, will have smart children, in aggregate.  This is meant to be read in the same way that tall people, in aggregate, will have tall children while short parents will have short children.  Does this imply that all tall parents will only and ever have tall children?  Certainly not.  It’s meant to say that height, ear lobe shape, hair color and even looks are based in some part on the parents.

In short, people with high IQs will trend to have children with high IQs.  Those parents scoring low on IQ tests will, generally, have children who score lower on IQ tests.

I think it’s important to say that  IQ tests may or may not accurately measure intelligence, or G.  In fact many people, most likely correctly, feel that IQ tests are not a strict measure of intelligence but are rather measures of cultural influences and education.  That is, equally intelligent people, having been raised in vastly different homes, may score differently on the same IQ test.

Granted.  Sure, circumstances are going to differ.  Tests measuring intelligence are going to be, to a degree, biased.  However, that doesn’t change the fact that intelligence is a trait.  And people are going to enjoy the benefits or suffer from a deficit of that trait, across a spectrum.  There is no disputing that we have intelligent people and those who lack that intelligence.  Further, we all know that siblings of smart kids are often smart and vice versa.

The science behind the heritability of intelligence is overwhelming.  Intelligence, measured by the albeit flawed IQ, is massively heritable.  Some measures have it at 80% heritable while others, at the low end, have it only at 40%.

When read in this light, the claims made by people who state that some group of people is smarter than some other group of people shouldn’t be surprising.  Or controversial.  Or worthy of all the gnashing of teeth  If, for example, I were to claim that neurosurgeons were, in general, more intelligent than, say, garbage men, I don’t think anyone one would blink an eye.  And if were to take that one step further and say that the children of neurosurgeons were, in general, more intelligent than the children of garbage men, I don’t think that would be surprising either.

So, when Richwine makes a claim that immigrants have a lower IQ, read G, than native born Americans, he’s saying that people that live in America, as a group, are simply more intelligent than the group of people that decide to immigrate to America.  I don’t think he’s saying that the race of people that live in America is inherently and forever going to be more intelligent than that race of people moving to America from foreign countries.

Heck, in one way, it might even make sense.  If people who are less intelligent find that they are on the low end of the economic scale, they might be the very individuals most motivated to immigrate to America in hopes of a better life.  After all, the individuals in a nation who are most economically advanced are going to find the risk/reward calculus to be one that incents them to remain where they are.

And the left goes crazy at this notion.  The idea that some people are simply born smarter smacks them of some .. well, of some “I can’t describe it” impossibility.  We can be born of different heights that fit on a bell curve.  Of weights.  Of heart size and of athletic ability.  Hair color, eye color and freckles all can be described by heritability.  But plain old smarts?

Nope.

That goes against the whole notion that we’re all equal.  Born equal.  Living equal and should be expected to achieve equally if only we can remove the bias of wealth, power and influence.

Which is bullshit.

So, does the comment offered by Richwine:

No one knows whether Hispanics will ever reach IQ parity with whites, but the prediction that new Hispanic immigrants will have low-IQ children and grandchildren is difficult to argue against. From the perspective of Americans alive today, the low average IQ of Hispanics is effectively permanent.

sound offensive and harsh?  I think it does both.  While I don’t like the aspect that speaks to “ever reach IQ parity” I do find myself resonating with the concept that a group of people with low IQs are going to have children with equally low IQs even extending to their children’s children.

And while sensitive to discuss, I don’t think it poses a conceptual reality that we would dismiss if, instead of having differing IQ, immigrants had differing heights.

And ALL of this is not ever saying that the ability of a group of people to increase their collective IQ isn’t possible.

By the way, one of the defenses of Richwine’s statements comes from the left itself:

First, the concept of “race”: There is no “Hispanic race.” It’s a census category, not a biological one. What we call “Hispanics” in the United States includes Indian peasants from Yucat&aaccute;n and doctors from Mexico City (and Madrid).

You cannot be racist if you are describing a group of people that has nothing in common regarding race.  “The Nation” is correct in asserting that Hispanic is not a racial descriptor, rather, it is one of, perhaps arbitrary definition.  The fact that the left dances between outrage and smugness should be no surprise.  Consider, for example, how folks on the right are “racists” when it comes to immigration reform while simultaneously pointing out that George Zimmerman is a “white Hispanic”.

As if.

Finally, like a nail in the coffin, is the logical conclusion of the left’s argument.  Namely that anyone claiming that intelligence is heritable is a racists is based on the idea that racism is a result of low IQ:

The last word in this story goes a study published in 2012 the journal Psychological Science. “In an analysis of two large-scale, nationally representative United Kingdom data sets (N = 15,874),” the researchers wrote, “we found that lower general intelligence (g) in childhood predicts greater racism in adulthood.”

As I predicted, the left is going nuts regarding Wichwine and anyone who might indicate that one group of people, for whatever reason, might be more intelligent than another group of people.

You Know It’s Bad When

Maureen Dowd

You know it’s bad when you are a democrat and Maureen Down is piling on:

THE capital is in the throes of déjà vu and preview as it plunges back into Clinton Rules, defined by a presidential aide on the hit ABC show “Scandal” as damage control that goes like this: “It’s not true, it’s not true, it’s not true, it’s old news.”

The conservatives appearing on Benghazi-obsessed Fox News are a damage patrol with an approach that goes like this: “Lies, paranoia, subpoena, impeach, Watergate, Iran-contra.”

(Though now that the I.R.S. has confessed to targeting Tea Party groups, maybe some of the paranoia is justified.)

And more:

… a simple truth: The administration’s behavior before and during the attack in Benghazi, in which four Americans died, was unworthy of the greatest power on earth.

And still more:

In the midst of a re-election campaign, Obama aides wanted to promote the mythology that the president who killed Osama was vanquishing terror. So they deemed it problematic to mention any possible Qaeda involvement in the Benghazi attack.

Looking ahead to 2016, Hillaryland needed to shore up the mythology that Clinton was a stellar secretary of state. Prepared talking points about the attack included mentions of Al Qaeda and Ansar al-Sharia, a Libyan militant group, but the State Department got those references struck. Foggy Bottom’s spokeswoman, Victoria Nuland, a former Cheney aide, quashed a we-told-you-so paragraph written by the C.I.A. that said the spy agency had “produced numerous pieces on the threat of extremists linked to Al Qaeda in Benghazi and eastern Libya,” and had warned about five other attacks “against foreign interests in Benghazi by unidentified assailants, including the June attack against the British ambassador’s convoy.”

When the left begins to attack the left….you know it’s bad.

IRS Targetted Tea Party Affiliated Groups

Right now the report is only mentioning Cincinnati.  I’m not sure what caused the IRS to review its data or how they determined the discrimination took place, but it sure would be fun to see if they are willing to audit other IRS offices:

(Reuters) – U.S. tax auditors inappropriately targeted applications from conservative political groups seeking tax-exempt status, an Internal Revenue Service official acknowledged on Friday.

Lois Lerner, director of the IRS tax-exempt office, said the practice was “was absolutely incorrect and it was inappropriate.”

Lerner, speaking at an American Bar Association conference in Washington, said, “We would like to apologize for that.”

None of the groups that were given extra scrutiny have been rejected yet for tax-exempt status, she said.

Organizations that used the words “patriots” or “Tea Party” in their filings were flagged by the Internal Revenue Service for further review, something conservatives complained about during the 2012 election campaign.

I think it’s important to note that the IRS is reporting, as above, that no group given extra scrutiny has yet been rejected.

Benghazi – ABC Reports

Benghazi

ABC is finally reporting on Benghazi.  And the latest report from them has email showing the Talking Points went through multiple revisions, up to 12:

 

When it became clear last fall that the CIA’s now discredited Benghazi talking points were flawed, the White House said repeatedly the documents were put together almost entirely by the intelligence community, but White House documents reviewed by Congress suggest a different story.

ABC News has obtained 12 different versions of the talking points that show they were extensively edited as they evolved from the drafts first written entirely by the CIA to the final version distributed to Congress and to U.S. Ambassador to the U.N. Susan Rice before she appeared on five talk shows the Sunday after that attack.

White House emails reviewed by ABC News suggest the edits were made with extensive input from the State Department.  The edits included requests from the State Department that references to the Al Qaeda-affiliated group Ansar al-Sharia be deleted as well references to CIA warnings about terrorist threats in Benghazi in the months preceding the attack.

That would appear to directly contradict what White House Press Secretary Jay Carney said about the talking points in November.

“Those talking points originated from the intelligence community.  They reflect the IC’s best assessments of what they thought had happened,” Carney told reporters at the White House press briefing on November 28, 2012.  “The White House and the State Department have made clear that the single adjustment that was made to those talking points by either of those two institutions were changing the word ‘consulate’ to ‘diplomatic facility’ because ‘consulate’ was inaccurate.”

Now, I’m well aware that documents go through review and editing.  I’ve been part of that process.  However, the changes made to these talking points are to clarify some obscure detail or correct a time stamp in a timeline.  These revisions changed the story.

However, it is important to point out:

Like the final version used by Ambassador Rice on the Sunday shows, the CIA’s first drafts said the attack appeared to have been “spontaneously inspired by the protests at the U.S. Embassy in Cairo” but the CIA version went on to say, “That being said, we do know that Islamic extremists with ties to al-Qa’ida participated in the attack.”  The draft went on to specifically name  the al Qaeda-affiliated group named Ansar al-Sharia.

Once again, Nuland objected to naming the terrorist groups because “we don’t want to prejudice the investigation.”

It does appear that the initial report contained language surrounding the events in Cairo.  However, the testimony from the hearings gave no credence to the fact that anyone at anytime felt that the attacks were nothing but an organized terrorist attack.