Tag Archives: Liberal

Now Who?

While this news doesn’t take me by surprise, I am sorry to lose a guy like Lawson.  As far as I know, Lawson was a Libertarian running under the banner of the Republicans.  I thought that Lawson was a fine candidate in his own right and deserved to hold the seat no matter who was sitting there now.  But with Rep. Price sitting there, we really need someone to come along and offer Change We Can Believe In.

I have been trying to get Rep Price to clarify his position on the Health Care bill moving through the House.  I can’t do it.  His staff at all of his offices ware very vague when asked about his position.  As far as answering me:

I have not talked to Congressman Price in person.  I would not want to speak for him.

Now, with the recess in progress, I have been asking if he is going to hold any Town Halls.  As always, I am referred to his website.

It will be updated with any information.

When?

When new information is made available.

Do you think that he is going to conduct a Town Hall meeting?

I don’t know, I am not sure.  But I think that he is talking about having a Town Hall conducted over the phone.

It is the same attitudes and non-answers when I ask for more detailed information on the specifics of the bill.  For example, where does he stand on single payer?  Where does the Congressman stand on the thought of denying private plans if I want to change plans?  I get sent to the website.  From there I am able to e-mail the Congressman.  However, when you do go and send this “e-mail” you are simply sent the blurb that was the non helpful information on the website.

Silly.

We really need to see someone run and win against this man.

Minimum Wage Increase

Well, we’ve done it again.  Though this time, to be fair, we knew it was coming.  The minimum wage increased another $0.70 and is now at $7.25.

I have several personal stories from friends of mine explaining how hard it is for their teen child to find a job.  I suspect that it’s only going to get harder.  Employers are already struggling to make ends meet and now they’re forced to make due with a 10% higher labor force.  If this were any other commodity, experts would understand that somewhere the employer would have to cut.  For example, if the price of electricity went up by 10%, the businessman would be forced to make up for that cost somewhere else.  Or, if the price of milk went up by 10%, again, he would make up for it in other places.

I’ve been awfully hard on the minimum wage proponents and have done some thinking.  As one of the core pillars of my argument, raising the minimum wage may actually impact only a very few.  Only a very small percentage of Americans actually make the minimum wage.  Next, the employer may react not be cutting workers, but by reducing hours.  If done perfectly, that is each worker would see a 10% decrease in hours worked, he comes out ahead; he gets the same pay as before, but does so at a 10% discount in his time.  And last, labor may only be a small part of an individual employers expenses.  For those businesses with small labor costs, the increase will be negligible.

Last, before I walk away from this for a bit, is my favorite question for the pro-minimum wage folks.  If raising the wage 70 cents is a good idea, why not raise it to 20 bucks?

The Michigan Democratic Party is considering asking voters to raise the state’s minimum wage from the current $7.40 an hour to a national high of $10 an hour, increase unemployment benefits and require all employers to provide health coverage.

Unbelievable.

How to Raise Unemployment

Raise the cost of labor.

See, labor, like copper or plastic, oil or stamps, is a commodity.  Businesses need commodities to operate.  Businesses see how much a thing costs, calculates value analysis and then buys some.  How much depends on that analysis.  For example, if copper becomes too expensive, business will try to find a way to use less of it.  Perhaps substituting for something else; a batter value.  Stamps too high?  Go to bulk mailing, or e-mail services.  So it goes with labor.

Why people don’t see this is beyond me.  For example, if we are interested in reducing unemployment, why don’t we mandate that all McDonalds have twice the current number of workers on each shift?  If one McDdude is good, certainly two McDudes is better?  Yes?

No.

See, at some point, more labor doesn’t mean more revenue or profits.  Now, at some point it does.  If I have to wait 20 McMinutes for my McBurger, I am going to walk out the McDoor.  Here, more labor would be worth it to the store.  However, once McDonalds has reached the point that it is servicing the clientele adding more labor doesn’t add up.  The cost doesn’t justify the return.  The simple truth is that the amount of labor someone buys is limited to the business model.  Raising the unit cost of labor reduces the units.  Or, increases the price of the widget.?

So, does raising the minimum wage increase or decrease employment?  In an article from the Wall Street Journal, it seems that studies show jobs will be lost:

There’s been a long and spirited debate among economists about who gets hurt and who benefits when the minimum wage rises. But in a 2006 National Bureau of Economic Research paper, economists David Neumark of the University of California, Irvine, and William Wascher of the Federal Reserve Bank reviewed the voluminous literature over the past 30 years and came to two almost universally acknowledged conclusions.

First, “a sizable majority of the studies give a relatively consistent (though not always statistically significant) indication of negative employment effects.” Second, “studies that focus on the least-skilled groups [i.e., teens, and welfare moms] provide relatively overwhelming evidence of stronger disemployment effects.”

Now, let’s continue to pretend that we don’t know, for sure, that raising the minimum wage will result in job loss.  Let’s instead use the Global Warming argument.  What if it’s just possible that it does?  Why raise it?  What is the upside?  And there, gentle reader, is the rub.  As far as I can see, there is no upside.  Very very few people actually make the minimum wage or less.  Almost none of them will be making the minimum wage in a year.  Most of them are from families with annual family incomes well well above poverty.  The fact is, there just aren’t that many people making the minimum wage.  And for those that do, they would rather make that amount than make the true minimum wage: $0.00.

Fruits of Our Labor – II

Some time ago I wrote about the impact of the new consumer protection measures.  In fact, I was keyed onto this by a post from Dave Ribar on the subject.

Dave’s main point was that credit card companies won’t raise the annual fees they are charging their best companies; so far he is right.   But those credit card companies ARE doing other things.  According to an article in the Wall Street Journal, we are seeing:

Credit-card issuers increasingly are moving consumers into variable-rate cards rather than fixed-rate ones, due in part to the new credit-card law slated to go into effect in phases starting in August.

What this means is that credit card companies are simply determining that government regulation is correctly seen as “damage” and they are routing around it.  See, by definition, the variable rate cards are not subject to the new law passed by Congress.

The new law limits creditors’ ability to raise interest rates, but it can’t control changes in the prime rate – the index that’s the basis for most variable-rate cards. So even after the new law starts to limit rate increases, variable-rate cards will still change if and when the index they’re based on changes.

Again, this law is another example of the government stepping in to rescue people who are simply demonstrating irresponsible behavior.  If I have money to borrow, and I determine that Pete is less trust worthy than Sally, there is only on way in which I borrow to Pete; charge him more.  If Pete would like to enjoy better terms, he could accomplish that by proving that he is more trustworthy.

Again, if a certain group of people feel tha high risk borrowers should be afforded credit, they are free to do this with their own money.  Forcing others to do it by rule of law is ignoring basic laws of economics as well as going against human decency.

Priorities and Scare Tactics

Look, it’s simple.  We all do it.  There are times in every good household when something unexpected comes up.  Or, in times of over spending, perhaps it shouldn’t be unexpected, but, you get the point.  You look in the checkbook and look at the bills and confirm that it isn’t going to add up.  You are going to have to reduce spending or get another job.  It happens to all of us.  Happens to me.  Will happen to me again.  And this is healthy; it forces us to keep what is important to us and shed what isn’t.

For example, as I monitor my “play money” fund and see that it’s going to be bankrupt in 3 months I am forced to review what I am paying for in terms of “play”.  I see that I have 3 magazine subscriptions and 5 on line subscriptions.  Further, I am spending 90 bucks a month on aikido and so on and so on.  Given that I have to shave off $50 a month, I go through what everybody goes through.  I itemize my “play money” expenditures, rank them in order of value and cut the ones that are of LEAST VALUE!  Notice I say value, not dollar expenditure.  See, I really appreciate my aikido and am willing to keep that program intact even though it has a higher dollar value than say, Forbes.  Sadly, Forbes is a redundant source and it gets wacked.

What I don’t do is this:

Democrats generally agree that tax increases are needed to avoid what they say would be devastating cuts to education and social services for children and the state’s poor.

See, to me, that’s disingenuous.  Who DOESN’T want to avoid cutting these programs?  There’s not a person in the world that wants to cut education and social services.  First.  It has to be at the top, or close to it, of every single politicians value list.  Or should be.  And that’s what makes me mad about Liberals.  They want and take the easy way out every time.

  • When forced to cut, they won’t.
  • When asked to prioritize, they won’t.
  • When required to do what all adults do-they balk.

Now, this doesn’t mean that Education won’t have to cut back some.  It doesn’t mean that schools have a green light to spend spend spend.  But what it does say is that there HAVE to be places where we can cut before we have to implement “devastating cuts to education and social services”.

Sheesh.

Fruits of Our Labor

Six weeks ago Dave Ribar wrote about the affects of the new consumer protection measures.  Congress pass and Obama signed a new law that would restrict banks ability to raise rates and fees.  It seems that certain elected officials are shocked, just SHOCKED at the news that banks are responding by raising rates now:

Yesterday, Sen. Charles E. Schumer (D-N.Y.) once again requested that the Federal Reserve invoke its emergency powers to place a limit on interest rate hikes.

“This is what many of us feared about a law that didn’t take effect right away,” Schumer said. “It was never going to take this long for the credit card companies to get ready for the new reforms. Instead, issuers are using the delay in the effective date to wring more dollars out of their customers. It is against the spirit of the law, and it is just plain wrong.”

And:

Rep. Carolyn B. Maloney (D-N.Y.) said the recent rate and fee hikes were “unfair and deceptive and must be stopped.”

“Capricious actions like these are why Congress overwhelmingly passed, and President Obama signed, my credit card reform bill: to level the playing field on behalf of consumers,” she said.

However, I am not so sure why this should catch these folks, or any of us paying attention, flat footed.  It’s not as if the companies didn’t warn us:

Bank executives had warned that the new law would force them to increase rates and fees because it would keep them from properly managing borrowers’ risk.

The reason for this?

The argument is that if banks can’t raise rates on riskier customers, they will have to raise rates on all.

Silly I know.  When banks lend money they wanna be able to asses risk and base rates accordingly.  When this ability is taken away from them, how would you expect them to react?

Look, it seems reasonable that different portfolios of risk would return different rates of profitability.  Sure, there IS profit for the banks by extending credit to borrowers who payoff their balance every month.  Equally likely is the fact that these borrowers will likely never default and declare bankruptcy; low risk, low gain.  On the other hand, by extending credit to high risk borrowers increases the chance that the banks simply lose their money.  In fact, we have been seeing this:

Banks have been hit with a record number of charge-offs, or debts they give up on because the borrowers have no way of paying them back. In June, credit card losses hit a record 10.44 percent, according to Fitch Ratings.

Once again, it seems that Liberal policies meant to protect the people have only hurt the people.  But this isn’t new.  An interesting fact is that it’s currently possible for individual Liberals to lend THEIR OWN MONEY to risky borrowers.  I wonder how many do?  And if they do, would they still scream for regulations on rate and limits and such.

Finally, I love the personal story that ends the Washington Post article.  You know, the token story of one single person getting taken advantage of by these evil evil companies.

Charles Chichester Jr., a 65-year-old retired U.S. Postal Service employee who lives in Fairfax County, was trying to pay off his credit card soon but now fears he will be unable to do so at all. He received a letter from Chase, he said, notifying him that his $373 minimum monthly payment would increase to more than $900. When he called to say he could not afford that, a Chase representative told him to consult with a credit counselor, he said. That’s exactly what he plans to do.

“The 900-something-dollar minimum monthly payment is just something I cannot do,” he said.

Of course, NOT on the list of things that Charles cannot do?

  1. Rack up more than $18,000 worth of debt on a single credit card while pulling a retired U.S. Postal Service employee’s income.

The Economist Weighs In

Look, I’m just a guy with a college degree.  I’m not an economist but I am handy with numbers.  And, mostly, I am capable of free thinking.  Which is why I find this article from The Economist laughable.

We start off well, in fact I had high hopes after just the first sentence.

DIAGNOSING what is wrong with America’s health-care system is the easy part.

I happen to agree with the author’s take.  I DO think that it’s easy to diagnose what’s wrong with America’s health-care system.  Which is why I was disappointed when The Economist got it wrong.  Not even 30 seconds later we are stunned to learn that nearly 50 million Americans don’t have coverage.  This is gross and simply unacceptable for a major news source to make a statement this absurd.  50 million.  Americans.  Uninsured.  Really?  Let’s take a look.

  • The real number being used is 47 million
  • Of those 47 million it’s been reported that 9 million are enrolled in Medicaid and failed to report it
  • 8 million are kids.  These kids are now covered by SCHIP

We’re down to 30 million now.  Fully 40% off the 50 million number quoted by the Economist.  But there’s more–way more.

  • 1.7 million are parents making more than 300% of FPL [federal poverty level]
  • 5.9 million are non-parent adults making more than 300% of FPL
  • 3.1 million are adult parents eligible for assistance today
  • 2 million are non-parent adults who are eligible for assistance today

Now we’re at 17.3 million.  17.3 million people who are not covered.  Now for the best part.  Wait for it—wait…waaiit……9 million aren’t even US citizens.  How AWESOME is that?!?

So, after getting the number down to 17.3 million, we’re able to shave off another cool 9 mill  bringing us to the grand total of 6.3 million.  And we get 50 million from The Economist.  Gross.

Next the author compares the benefits of American health services with OECD and their averages.  As far as I can tell, the comparison used three metrics:

  1. Infant mortality rate
  2. Life Expectancy
  3. Survival Rates for Heart Attacks

Again, the depth, or lack thereof, in reporting is surprising.  It has been documented that the infant mortality rate in the US is much higher than other countries because of the methods used in reporting.  According to WHO the definition of birth is:

Live birth refers to the complete expulsion or extraction from its mother of a product of conception, irrespective of the duration of the pregnancy, which, after such separation, breathes or shows any other evidence of life – e.g. beating of the heart, pulsation of the umbilical cord or definite movement of voluntary muscles – whether or not the umbilical cord has been cut or the placenta is attached. Each product of such a birth is considered live born.

However, in many cases, countries fail to report all births due to their own definitions; for example:

  • In Switzerland and other parts of Europe, a baby born who is less than 30 centimeters long is not counted as a live birth. Therefore, unlike in the U.S., such high-risk infants cannot affect Swiss infant mortality rates.
  • In Belgium and France — in fact, in most European Union countries — any baby born before 26 weeks gestation is not considered alive and therefore does not “count” against reported infant mortality rates.
  • Some of the countries reporting infant mortality rates lower than the U.S. classify babies as “stillborn” if they survive less than 24 hours whether or not such babies breathe, move, or have a beating heart at birth.
  • In Canada, Germany, and Austria, a premature baby weighing <500g is not considered a living child.

When these and other reporting anomalies are factored in, Norway, which has the lowest infant mortality rate in the world, ranks no better than the United States.  Further, since 2000, 42 of the world’s 52 surviving babies weighing less than 400g (0.9 lbs.) were born in the United States.  Hardly an indicator that the United States if failing in the area of infant health.

The CIA has the United States ranked 50th in life expectancy.  And, as noted above, the article uses this metric in it’s assessment of the United State’s system.  However, it has been reported that Life Expectancy is not a valid measure of a country’s health care system:

…robust statistical analysis confirms that health care spending is not related to life expectancy.  Studies of multiple countries using regression analysis found no significant relationship between life expectancy and the number of physicians and hospital beds per 100,000 population or health care expenditures as a percentage of GDP.  Rather, life expectancy was associated with factors such as sanitation, clean water, income, and literacy rate.8 A recent study examined cross-national data from 1980 to 1998.  Although the regression model used initially found an association between health care expenditure and life expectancy, that association was no longer significant when gross domestic product (GDP) per capita was added to the model. Indeed, GDP per capita is one of the more consistent predictors of life expectancy.

Yet the United States has the highest GDP per capita in the world, so why does it have a life expectancy lower than most of the industrialized world?  The primary reason is that the U.S. is ethnically a far more diverse nation than most other industrialized nations.  Factors associated with different ethnic backgrounds – culture, diet, etc. – can have a substantial impact on life expectancy.  Comparisons of distinct ethnic populations in the U.S. with their country of origin find similar rates of life expectancy.  For example, Japanese-Americans have an average life expectancy similar to that of Japanese.

And this is just the first paragraph.  Keeping up with the Liberal press is simply exhausting.


Fantastic Quote

From TJIC:

It’s a well known fact that lottery winners are idiots with the money (although this may be, in part, because they’re pre-selected to be people who “play” the lottery in the first place)

LOL.  I have always said that a lottery is a tax on stupid people.  In fact, this is another example of Liberals in general and Democrats in specific actually implementing legislation that keeps their base down.

Liberal Press: An Example

So, we have all heard about the Dr. in Kansas that was gunned down while serving as an usher at his local church.  The play in the media, the blogs and the talk shows has been understandably heavy.  In addition to the story itself, there has even been an increase in the whole abortion debate.  I would suspect, given our divide on the issue of abortion, that this could not be avoided.  However, the aspect that has really gotten me sideways is the whole guilt by association running parallel to this.

There are opinions on both sides of the abortion debate.  Additionally, each side runs heavy on emotion.  As with all charged debates that are fed with significant amounts of emotion, extremists emerge.  To hold one group of people who have an opinion on an issue responsible for the extremists is poor form in the highest degree.  The stories that are circulating that claim so and so contributed to the murder.  Or that this group and their HATE speech motivated this act, are stories of the worst kind.  I don’t any one single person that thinks cold blooded murder is the way to handle a debate, any debate.  Everyone I know thinks that this guy in custody is guilty of 1st degree murder and should be given the book.

But does that stop the stories?  The press and the whole “machine”?  No.

But the worst of this is in the coverage of the soldiers gunned down in Arkansas.  Literally the day after this Dr. was murdered, a Muslim extremist shot and killed a soldier; another was injured as well.  Not only is play of the news story far less than the Dr.’s, but the outrage is starkly missing.  I don’s see one single story screaming that it’s radical Islam, and groups that support it, being held responsible for this shooting.  I don’t see Anti-War groups being excoriated for fanning the flames of hate causing this to occur.  Nothing.  No where.

So it was that I was trying to find such a story last night.  I couldn’t.  But, near the end of my search, I just refreshed CNN.  And this is what I find:

NEW YORK (CNN) — A potential victim became a compassionate counselor during a recent robbery attempt, changing the would-be criminal’s mind — and apparently his religion.

This is the story, even compelling, of a shop keeper showing compassion to a would be burglar.  And during this moment of compassion, perhaps converted the man to Islam.  Now, don’t get me wrong, this story is the feel good news that I think we should see more often.  However, I can’t get over the double standard being displayed here.

On one hand we have Pro-Life organizations and individuals being held accountable for one man’s extreme views.  Ont he other, we have a feel good piece on Islam giving that particular group’s extremists a free pass.

Unbelievable.

Health Care and the Capital “O” Ought

So, it seems as if this country is going to get ready for some big time politics surrounding the health care industry in the next several months.  And it is going to be Democrat vs. Republican.  Liberal vs. Conservative.  It’s going to be “What we wish it could be like” vs. “This is how it is”.

Wait.  Did I say that?

The problem that I have with liberals is that they see inequity and just simply say “That’s not fair!” and then stomp their feet.  Then, they look around and say, well, sheesh, if the rich have this, than I want that too!  And then they legislate that.  All the while never understanding that what they are doing is putting those poor folks deeper and deeper in the hole than when they started.  I’ll never forget reading that when the minimum wage was enacted, hundreds of thousands of African Americana’s became unemployed.

Anyway, so here it is, the challenge:  Regarding health care; what is it that you want?  What is broken now that you wanna see fixed?  What metrics will you use?

Is it basic care that you want given to all people?  is it emergent care that you want?  Life threatening illness care?  What, exactly, do you want?