• Healthcare: Warren Has No Plan

    November 16, 2019 // 16 Comments »

    Under pressure to fill the blank space about how she would pay for Medicare for All, Elizabeth Warren released a plan built on empty assumptions and fulfilled by unrealistic revenue expectations. It’s bad to the point where it raises questions about whether she is a serious candidate, and that begs the question of what the heck the Democrats are doing less than a year from the election.

    Warren’s revenue plan is 19 pages, describing how she expects to redo the entire healthcare system in America if not the basis for our entire society. Actually the first five and a half pages are introductory, mostly scary stuff about how expensive health care is, and the last page is some cheerleading, which means the actual prescription for acquiring and spending trillions of dollars fits into about a dozen pages. That’s some damn efficient writing, or some pretty thin thinking.

     

    It’s pretty thin thinking.

    Even how much the whole thing might cost, the core underneath everything else, is a fuzzy number. Outside estimates range from $14 to $34 trillion in new Federal spending over a decade; Warren says $20.5 trillion. And yes it is a problem when a program of this size can’t get its actual cost estimate closer than plus/minus multiple trillions.

    Underlying those goofy cost estimates are Mickey Mouse assumptions on savings. Warren’s plan envisions cutting the cost of healthcare dramatically so when the government takes over from private insurance companies it will need less money. While eliminating insurance companies’ profits will have an obvious effect, Warren simply imagines other economies of scale and efficiencies in health care payments ($2.9 trillion) somehow the private sector has failed to realize to its own benefit but a massively expanded Medicare government bureaucracy somehow will.

    Warren also assumes Big Pharma will accept lower profits of some $1.7 trillion based on negotiated drug prices and simply continue to produce the same range of drugs and invest in long term research for new ones. And if they don’t play ball her plan will take away patents on their existing drugs and manufacture them publicly.

    Things will go so well under these assumptions Warren will apparently (the plan is unclear, an example of the kind of detail needed but lacking) do away with payments Medicare users are responsible for today so everything will be free. Currently all but the most basic Medicare coverage requires premiums (for most beneficiaries, previous contributions over a lifetime of work pay about 75 percent of Part B, and the beneficiary pays the remaining 25 percent out of pocket) and many end up buying supplemental private insurance which Warren would outlaw. “High income beneficiaries,” defined as having incomes over $85k, a far cry from Warren’s billionaires, already pay much higher costs. There’s a penalty when an elderly person receives certain capital gains, such as when they sell their home to downsize. Hospitalization coverage under current Medicare has a $1,364 deductible and no cap on co-pay for longer stays. Outpatient coverage leaves one responsible for 20 percent of the actual cost in cash. Medicare prescription coverage has enough gaps in it they are referred to as the “donut hole.” What is already “free” isn’t, and Warren’s plan says little about the shortfalls of existing Medicare even as it promises everything will be OK just over the next hill.

    But Warren’s biggest assumption is the unstated one, that the billionaires she will tax to pay for all this will passively accept their new role in society, buying stuff for the rest of us, and not off shore their money and not order the Congress they own to create loopholes for them. If there is any truth to the idea the wealthy control government via their influence and money (and oh boy is it true) how can anyone assume the rich will allow any of this to come to pass? Amazon paid $0 in taxes last year. Warren’s plan assumes that will jump to 35 percent. She does not explain how she will move them from paying nothing to paying 35 percent. It’s like saying the plan to pay off my mortgage is “earn more of the monies” without anything more complex in mind than that.

    Same for the power of American Medical Association, the cartel which controls healthcare in the United States from med school intake to every detail of practice until a doctor retires. Warren’s plan assumes medical professionals and organizations, all the doctors, nurses, and hospitals, will accept a lower standard of living as their fees will be set by government and payments tied to below-market Medicare rates. Medicine has evolved in a for-profit ecosystem. Remove the profit incentive and it will adapt, adjust, or die off. Many hospitals in rural and underserved areas are already facing insolvency. Other hospitals today lose or make very little money on Medicare patients, and charge insured payers more to make up for it to stay solvent. It’s called cost shifting and Warren’s plan will do away with it. Cost shifting smells bad, but it for better or worse helps fund underfunded Medicare payments. The shortfall may be in the trillions and Warren expects healthcare providers to just, um, deal with it for the greater good.

     

    On the revenue side, after all that cost cutting, Warren still needs $20 trillion in new money, and she says she’ll get it from the rich. That’s a nice argument to throw out to the rube voters she is targeting, people to whom a paid off Visa card is a dream. But a trillion is a really big thing. It is 1000 billions. Warren’s $20 trillion is about the same as the current National Debt, which will still be around as she works this out. The total of all mortgages in America right now is $11 trillion. Warren could pay those off twice for everyone for what her healthcare plan will cost. The Federal government currently spends about $4.4 trillion per year on everything. The current defense budget is $686 billion. Warren’s plan will cost about 30 times the defense budget.

    Meanwhile, Jeff Bezos’ net worth is only $109 billion (see how that works when we’re talking in trillions?) That’s everything he has, not just the 6 percent tax Warren wants him to pay on it yearly. The net worth of the entire Forbes 400 is under $3 trillion. That’s everything they all own, like if we killed them and took it. If we reach down into the top ten percent of Americans, people whose net worth is a couple of million and who Warren claims she won’t need to bother, we get to $35 trillion in total worth. Taxing them won’t help. We’ll have to kill them too and steal their stuff and even then under some estimates it won’t be enough to cover Warren’s healthcare costs. It is not possible to tax even the wealthy enough to pay for free healthcare for everyone, but it sounds good.

     

    Warren thinks we won’t notice her Medicare for All plan is in fact an attempt to redistribute money on a scale never before seen in America. Under the guise of healthcare, she will systematically reduce the wealth of Americans, effectively nationalize the private healthcare industry (America’s largest employer, surpassing manufacturing and retail, the new steel industry), then parcel out what’s not eaten up by the bureaucracy in a mediocre standard of basic health care. She’ll also do something similar, though the plan is not even as detailed, to provide free child care, free college, and disappear some $2.6 trillion in student loans and too bad about the fat cats who expected their money back.

    If you think people who already have some sort of healthcare (69 percent rate their current coverage as excellent or good), or purple voters who saved for college the hard way, will vote for that once they figure out the grift — the Trade Joe suburbanites know they’ll end up paying while Amazon somehow skates free again — you’re a fool. Even one of the economists Warren cited in her plan has since done interviews reminding everyone he was talking only theoretically and acknowledges the practical problems.

    The hollowness of this plan is a body blow to a candidate who presents herself as a policy wonk. How could she have gotten something so central to her message so wrong? Warren is flirting with the Beto phase of her candidacy, where she says yes to everything (tax churches! impound guns! no borders amigo!) to bully up some support. As Joe Biden fades in front of an electorate that sees him as so negligible a choice, all hair plugs and botox, Warren will likely be pushed aside by someone, maybe Michael Bloomberg, and end up an “issues” candidate like Sanders ver. 2015 or Jill Stein or Andrew Yang, running to influence the discussion, not to win (Warren’s wealth tax may not even be Constitutional.) She’ll join the others in barking like hyenas that the moon is too damn bright and somebody needs to fix it.

    For the rest of us this means after putting up with three years of hashtags, pussy hats, trans-mania, and having every form of culture soaked through with mob-enforced diversity, when it comes down to winning an election in 2020 no one has a real plan to address healthcare. Most have chained themselves to prettied up versions of the weak tea of Obamacare. Sanders is Warren except he admits he’ll raise taxes across a deeper swath of society. They all had years to come up with something and this is what we get. To say the system for producing a viable candidate is broken is to still believe there is a system.

     

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    Copyright © 2019. All rights reserved. The views expressed here are solely those of the author(s) in their private capacity.

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    2020: 100 Points for Slytherin!

    July 23, 2019 // 5 Comments »


     

    Under Plan A Democrats imagined their way into believing they would never have to run against Trump in 2020, or that he would limp to the finish line so battered, with the country in such shambles, that it would be no contest.
     

    We saw the near-final act of Plan A when Robert Mueller’s testimony, scheduled for July 17, was postponed for some unknown reason. That it’ll be close to four months since the report came out when Mueller testifies (he’s already said he will say nothing not already in his report anyway) tells the story of how massive a failure the Dems’ attempt to oust, derail, or impeach Trump has been.

    Yeah, there’s still time on the clock, but even the loyal fans are leaving their seats early. They remember similar collapses of the story line for Stormy Daniels (the case is now “dormant”), the emoluments clause (Trump just won a major case), but-his-taxes, Puerto Rico, the National Enquirer, Kavanaugh, security clearances, Putin’s secret agent stuff, all the president’s flipping men, the end of NATO, etc. Democratic strategists are left hoping a convicted pedophile saves them with dirt on Trump, or maybe Mueller breaks out in Tourette’s Syndrome at his someday hearing and demands impeachment. You can only announce the world is ending 7 or 8 or 27 times before people start to have doubts.

    The incessant hyperbole has left the electorate numb. It reached its anti-peak (for now) on July 4, when a garbled speech by the president was whipped into “Tanks on the Mall” and a rehearsal for “Triumph of the Will II: More Triumphant.” Detainee facilities became concentration camps, with America pitched as the new Wiemar to Millennials still searching for Wiemar, misspelled, in Wikipedia.

    Instead, the economy is strong. Wages are up. Job reports are robust. Stocks are at all-time highs. Trump is polling the best in his tenure, and matches Obama at this same point in his presidency. And here are 12 economic models showing incumbents under similar economies won. The Dems in response are stuttering to claim Obama fixed the economy via time travel, or hoping America falls into recession putting millions out on the streets to own Trump.

    Of the many other disasters the Democrats hoped for — race war, civil war, war with China/Iran/North Korea/Venezuela, all the end-of-democracy stuff – Trump didn’t start the fire. There has been no Washington-led regime change in Libya triggering massive refugee flows and resetting EU political balances. Trump is likely to be the first president since WWII not to start a new conflict while in office.
     

    The Democrats need a Plan B. That appears to be Joe Biden, essentially a test crash dummy with “Not Trump” written on its face in Sharpie, a candidate with all the energy of one of those animatronic presidents from Disneyland. No voter will fall in love with Joe, be impassioned by him or whatever message he gets around to. Biden is someone to settle for. That makes turnout a problem. Remember the Gore, and then Kerry, juggernauts which failed to defeat an empty George W. Bush?

    All in a way a shame, because the current primary is the one the Dems should have had in 2015. Had the DNC not put in the fix for Hillary, it is more than possible Biden (or Bernie) would have beaten Trump. In 2016 neither carried the progressive baggage and purple state fears to the degree they do now. Plus they would have run against the theoretical Trump, the really scary one who was going to start all those wars, implement Handmaiden’s Tale, and wreck the economy, instead of the noisy but in the end mediocre Trump of record.

    So on to Plan C, “Operation Fresh Faces.” That gets off to a slow start with Bernie. In 2015 he was full of transformational ideas, now diluted into the mainstream so you can support the gist of Bernie and not have to explain to your friends why you’re voting for a Seinfeld outtake.

    The rest seem to be devoted to alienating as many mainstream voters as possible. Kamala Harris (along with Warren, Sanders, and others) wants to eliminate employer-based health insurance, something over 70% of Americans who have such insurance are satisfied with. Only 13% of Americans prefer a system with no private plans. Are the Dems going forward with a 13% policy idea? Or will they try (again) to sell a flawed Obama-era insurance program as the gold standard?

    All the Dem candidates are also sure the economy is a mess. Yet a poll shows 71% of Americans say the economy is very or somewhat good. At the debates, several candidates advocated for gun confiscation. All promoted restriction-free abortions when the majority of Americans see the issue as more nuanced. Harris made 1970s discussions of school busing a centerpiece while the other candidates happily promoted open borders and free healthcare for illegal immigrants, apparently in the misguided notion illegal immigrants are the largest Democratic voting block left. And that was on the smart night: the earlier debate featured talk about publicly-funded abortions for pregnant trans men. The answers on most other topics sounded like they’d been run past HR first.

    Cory Booker is now campaigning to be your best black friend if you’ll choose him as VP. His latest move as Mayor of Crazytown was a stunt where he led deported migrants, Moses-like, back into the U.S.

    Kamala Harris imagines herself a contender, unaware she will likely lose the chance even at VP when the party asserts itself for Biden or maybe Warren. She seems to be sticking in the race too long with low numbers and saying too many naughty things to have a shot at VP herself. Warren is a woman of free-dom – free college, free medical care, a magic wand to do away with $1.5 trillion in student loans, maybe a pony for the kids. And everyone loves reparations. Who’ll pay for all this? Um, “the wealthy.”

    Mayor Pete? He hoped to run as a warrior, smiting LGBT hate at every step when most non-media people just tuned him out. He confessed to failing to fix the police force in South Bend, a wane admission when you’re asking to run the whole country. Buttigieg has his own give away, the (Frederick) Douglass Plan, which includes $10 billion for black entrepreneurs, $25 billion for black colleges, and a goal to reduce the prison population by half. He stresses this is in addition to the reparations he also supports.

    Beto, Robin to Pete’s Batman, is murmured to now be an intern on the Hickenlooper campaign; you gotta get some experience somewhere. The Pelosi-AOC sideshow (AOC daily sounds like a whiny undergraduate sure she knows more than the professor) alongside all this inspires little confidence in how a Democratic government would get anything done post-2020.
     
    Who is going to vote for these people? Harris in particular made an aggressive move to alienate purple voters, putting Americans on trial for views they held in the past on things like busing. Joe Biden stood in for everyone who may have felt one way then, and another way now, but realizes in 2019 they are being teed up as the enemy. There’s no answer possible in 2019 when you’re called a racist; it ends every discussion. A purple voter may legitimately wonder how they might be treated under a Harris administration. Is it payback time? It seems a very short-sighted strategy for a candidate, an even worse one for a leader.
     
    A lot can change in the 15 months until the election, but will it? Trump is Trump is Trump. Anyone studying his first years in office unemotionally knows outside the daily faux-atrocities the media credits him with via “sources” and “reports” he is mostly tweets. He is very good at sounding like a Red State warrior while actually doing little. Expect more of the same; after all, it has worked so far.

    That leaves Plan D. No matter what the media will say, Texas and Georgia are not in play for a national election. Neither are California and New York. The election rests with purple voters in a handful of states. Yet the Democratic party seems to think it can win without any of the 35% of Americans who call themselves moderates. It drifts in a belief Twitter is real life, “likes” are votes, and Dems should all be running for president of social media. That’ll just end up with as many surprised by the results in 2020 as were in 2016.

    The party’s last hope is to hope there are enough Trump Haters who will vote for whomever the Dems shovel up, to overcome the purple voters who either stay home, or are so frightened of what progressives have in store they will treat Trump as the devil they know.

    Trump as the safe candidate, think about how that came to be. For those keeping score, it is 100 points for Slytherin at this point.
     
    BONUS:

    In case all that does not terrify purple voters enough, the media meanwhile is presenting AOC, elected with an 11% turnout against an opponent who did not campaign, as the new, new face of the party. Elect a Democrat in 2020 and see who is waiting in the wings!

    Ocasio-Cortez daily sounds more like an undergraduate so sure she knows more than the professor, shouting Nancy Pelosi and Joe Biden are racists (did Barack know?) even as Congressional Black Caucus members are accusing a progressive group aligned with Ocasio-Cortez of trying to oust African American lawmakers.

    Nancy Pelosi seems to be the first in her party to understand AOC and her ilk are not leaders, though too many pretend they are. They mirror their contemporaries whining on social media. Government isn’t a job or a duty, it’s just a platform from which to “raise awareness,” a Millenial phrase meaning to be deeply offended about the most recent shiny object online, and then doing nothing about it.

    These progressive voices dominate because in 2019, who in the Democratic body politic is allowed to disagree with bleating about oppression? Progressives have become rhetorical bullies, demanding other ideas be shouted down. It sounds good on Twitter, but imagine how poorly it echoes across kitchen tables in Michigan and Pennsylvania.
      

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    It’s You, Isn’t It Hillary?

    June 3, 2016 // 23 Comments »

    hillary1


    After losing the race for president in 2008, Hillary made plans to never have that happen again.


    She believed — no, she was certain — that history had chosen her to be the first woman president of the United States. All the years of acting the role of First Lady, all the public humiliation with Bill’s sex life strewn across TV, it would all finally pay off.

    And she wrote a damn good script. Once again swallowing her pride, Hillary came to publicly support Barack Obama, taking as her prize the job of Secretary of State. As Secretary, she amassed hours of B-roll footage of herself traveling around the world empowering women, talking tough to dictators, showing concern, lots of safe smoke with no dangerous fire.


    About a year ago everything looked good.

    She had a summer autobiography out with a not-running-for-president book tour to get her into the news ahead of a fall announcement to run. Bill was again at her side, the Old Dog returning some big favors by sharing his popular image. The Democratic National Party made sure the fix was in, assuring that she’d only have as “competition” loyal punching bag Martin O’Malley, who’d fight the good fight for awhile before graciously disappearing forever. And just in case, the superdelegate system was tweaked up to ensure Hillary didn’t even really need to win too many primaries. That would also bank campaign funds for the general election. She’d be on the offensive the whole time, controlling the message, basically running an 18 month general election campaign.

    On the Republican side, Hillary faced no real challenge. A limp Jeb, a frustrating Mario, an unsteady Cruz and some has-beens and never will be’s. It’d be a turkey shoot.


    But… but… Hillary just couldn’t stop being herself.

    She is now struggling to just stay above water, hoping to limp to the nomination based on some funny delegate math and a few earlier victories in the South. If she is the nominee, she’ll be the least popular and least trusted nominee from her party in its history, with a negative campaign based nearly 100% on hoping people dislike Trump just a bit more than they dislike her.


    And she did it all by herself.

    Her endless paranoia led her to create that private email server as Secretary of State, despite advice to the contrary (as well as common sense.) She tried to hide it, until she got caught. Her reaction then was to sound like a desperate lawyer without much of case, parsing words and claiming she was the victim of a “vast right wing conspiracy.” Under pressure, she later issued a without-consequences faux apology and pleaded with people to forget the whole thing. Served by a compliant media, she was pretty successful.

    But her lies and parsing and prevarications ended her up as the only candidate in U.S. history running for office while under investigation by the FBI.

    She and her aides are being subpoenaed in multiple Freedom of Information Act cases. The State Department — her State Department — issued a scathing Inspector General report blowing holes in her multiple explanations for the server. State still has an open and ongoing conflict of interest investigation into Clinton’s decision to have senior aide Huma Abedin employed simultaneously by Clinton, the State Department, a Clinton-connected private firm and the Clinton Foundation. Accusations and investigations into the shady finances of and overseas donations to the Clinton Foundation swirl.


    If any of this would have caught the public’s eye a few months sooner, Bernie Sanders would already have the Democratic nomination. If somehow the primary season had a few more months to go, Bernie Sanders would have the nomination.

    The game is not over, and Clinton must survive the final primaries, an FBI report on her mishandling of classified materials on her email server, the convention, and of course the general election itself. Trump will be a rough opponent, and Clinton will be on the defensive much of the time. It is unclear how many of Sanders’ supporters will come over to her after such a bitter primary season.


    Clinton may yet sneak through all this to claim her prize, floating on the apparent new standard for the presidency, “at least she’s not under indictment.” But is that really the way we want to now choose our leaders?



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    Won’t Paying for Bernie’s Healthcare Make Us Pay Higher Taxes Like in Europe?

    April 22, 2016 // 8 Comments »



    Won’t paying for Bernie’s healthcare make us pay higher taxes like in Europe?

    Not likely. Here’s what Hillary doesn’t want to tell you.


    Free or very low-cost universal health care is available to citizens of all the countries marked in green, below, as well as China, North Korea, Thailand and Vietnam, left off for some reason:


    You’ll see the U.S. stands alone. Somehow our nation, alone among industrialized nations and some not so industrialized, has yet to figure out how to find a why to provide affordable healthcare for all of its citizens.

    One of the arguments posited is that the U.S. is too big for some poncy European system to work, but of course China and Russia are bigger. Another is that quality of care suffers, but people in Japan have some of the longest life spans in the world, and things are pretty good across Europe.

    But the argument that seems to stick best in America is that such “utopian” healthcare schemes are simply too expensive, that taxes over there are so much higher than in America.

    So keeping in mind that most of the places that offer free or very low-cost universal health care also offer free or very low-cost college (how’s it feel that a degree at Podunk State U costs more than Oxford University — about $12,000 a year for UK and EU students?),

    And, most of those other countries have dollar-adjusted higher minimum wages. And they save extraordinary amounts of money that in the U.S. end up being spent on social welfare and public health for people who are unhealthy because they can’t afford to see a doctor.



    But let’s look at some tax figures:

    Oops. The average U.S. income tax rate is actually higher than some of those places.


    And of course in the U.S., in addition to federal income tax, we also pay state and sometimes city tax. And Social Security/Medicare tax of 7.65% And property tax, sales tax and taxes/surcharges on cell phones, airports, hotels, restaurant meals and on and on. And of course other countries also have other taxes; the point is Americans are already paying a lot of taxes and getting damn little in return.

    And on top of that, we also pay (those who can afford it…) for health insurance. For 2012, the annual premiums for employer-sponsored family health coverage averaged $15,745, up 4% from 2010, with workers on average paying $4,316 toward the cost of their coverage. And of course those premiums paid do not include deductibles and co-pays.

    And prescription medicine costs. Americans pay more for drugs than anyone in the world. Drug prices in the United States are often up to 10 times more expensive than in almost all other developed countries.


    And that is how Bernie Sanders comes to the conclusion that even if taxes rise, the single-payer health care system he proposes would save an average American family of four almost $6,000 per year.

    Think about it. Doctor’s orders!




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    North Korea Election Monitors Leave New York in Disgust (Satire?)

    April 20, 2016 // 6 Comments »




    A team of North Korean election monitors left New York City in disgust, claiming that democracy was “dead to them.”


    Following a long series of primary election issues across the United States, where local scams, manipulated caucuses and voter disenfranchisement ran wild, the United Nations requested the North Koreans provide a team of election monitors (above) to oversee the highly-contested New York primary. In choosing North Korea for the job, UN officials cited the “great similarities between the North Korean and American systems.”

    “You people make me sick,” said team leader Kim Young Hee, spitting onto a homeless man living inside LaGuardia Airport who was clawing at his socks for nourishment. “All we hear on your stupid Voice of America shortwave broadcasts and smuggled laser discs of old American Idol shows is democracy this, democracy that from you capitalist pigs. Then we arrive and what do we find? A paper ballot-based voting system right out of the 1950s, run by ignorant old people who have no experience, little training and too much free time. In Pyongyang, they’d be working in the uranium mines, not hassling first-time voters and African-Americans!”


    Comrade Kim went on to cite the unequal application of voter ID laws, the way polling sites were shifted around without notice, and the fact that some 150,000 registered voters in New York were left off the polling lists and were thus unable to vote. He also could not score Hamilton tickets after being promised by a guy in the men’s room “he’d be right back with change”, but said he would leave that out of his report to the UN.

    “And all this when less than half of your eligible voters even bother to show up? In North Korea, we have 100% voter turnout every election, and stuff runs like clockwork. The Party would be locking up whole families of the officials involved in this kind of clusterfutz. Now, I’ll admit, we have only one candidate running like your Republicans do, but seriously, you’re America, the people who found a way through your ‘fast food’ to feed the masses even cheaper than we do in North Korea. Jeez people, you don’t have this computerized yet? Hell, we do, using a 286 Gateway PC running a pirated copy of DOS 4.0. Losers.”


    Wiping a healthy dollop of dog crap off his shoe after having set foot on a New York sidewalk (“I’d eat the bastard for that if we were back home”) Comrade Kim reminded his American handlers that if for some reason Dear Leader Trump lost in November, he’d always be welcome in Pyongyang.



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