Saturday, September 28, 2013

BreakDown in Republican Thought

Many in the GOP think that rather than focus on gun control, we need to increase the focus on treatment of the mentally ill.  Yet, when they are discussing the budget one of the things the GOP focuses on is less spending for all entitlements including spending for the mentally ill.  So there is no consistency in the GOP policy.

And why must the Federal Government spend money on mental health?  Well as in so many other ways, the private insurance system is not charging enough to do so, so they will not pay.  See this news story for an example of that:  Link to story

And that is why the Heritage Foundation, Governor Romney and President Obama all decided the only way to make the private health insurance system work for America was to have everyone pay into the system, as they would if we had Medicare for All.  The GOP will never support that thanks to the many $ of contributions they get from the Health Insurance Industry.

Let's Be Blunt About This

The Republican's threatening to shut down the government and not pay bills is trying to undo from a minority position what the majority passed and the majority still supports.

That is not democracy at work.  That is tyranny by a minority and there is no reason for the Democrats to accamodate this process by acquiescing.  The time for compromise comes when you are working on bills to change things, not when you are discussing the government's need to meet its obligations.

You want to make changes, win an election.

This is also what the Democrats need to do in the House.  Democratic candidates in the 2012 elections received 1.5 mm more votes than Republican candidates.  The distribution of the votes resulted in the GOP having more House members and being a majority.  The only answer to this gerrymandering is for the state Democrats to win back state legislative races and undo this gerrymandering after the 2020 census.  That is the way the system works.

Sunday, September 22, 2013

The GOP Does Have Good Ideas, Hating Obama Gets in the Way

Ross Douthat today highlighted this issue.  Buried within the Tea Party are some commonalities with very liberal points of view.  Rand Paul favors sentencing and drug law reform.  Mike Lee has a tax reform policy that would actually help the middle class rather than cut taxes on the investor class.

I made a comment on the NYT website for the Labor Economics article I posted a couple of days ago.  I stated the only real positive step government can do for the realities of globalization and the effect on labor income is to make sure the education system works and to keep taxes as low as possible.

Well, that comment on taxes as low as possible drew a few comments which can be summed as "Why?"  There is no doubt that the will to earn more money ceases at a marginal rate of 100% and no doubt lower, so the question of why shows a serious need for education of the voters.

The Affordable Health Care Act (aka ObamaCare) was a Republican (Heritage Foundation and Romney) answer to the Democrat's quest for a single payer plan to provide Universal Health Care.  While I would prefer a Single Payer Plan, there is the question of how you manage the economics of a transition that would eliminate the Health Insurance Companies that employ thousands of people. ObamaRomenyHeritageFoundationCare doesn't create the need for that.

While the GOP works as hard as it can to kill ObamaCare by convincing young people to go without health insurance, it is amazing to me that there isn't more rebellion by parents in the GOP.  What parent does not understand that a 20 something male can get testicular cancer?  What parent does not understand their child might be in an accident, or have an infection, or any other thing where ready access to a medical professional is needed?  Who wants their child to have to pay the list price on a medical service that provides the hospital funds to pay for care for the uninsured?  Does the GOP want to repeal the Hippocratic Oath?  They didn't when Ronald Reagan signed a bill making it mandatory for hospitals to provide care to anyone.  They didn't when the Heritage Foundation designed ObamaRomneyCare.

There are 3 critical issues to controlling health care costs:  (1) get the insured into the system, (2) convert fee for service to fee for care, and (3, which is partially in 2) design a system that balances life extension possibilities with pain management.  20% of the elderly die in intensive care where 10 days of futile services costs as much as $323,000.  The ACA starts to address all of these and the GOP should be focused on battles that address where government expenses go and controlling those while designing a tax policy that provides revenues with a fair level of taxes.

The definition of fair will vary by every person effected and that design is what negotiation within a democracy is all about.


Friday, September 20, 2013

GOP Idiocy Commentary: with Addendum

These comments are all in quotes because someone else wrote them in various commentary on the current actions of the House GOP.

"If Agencies are bloated and overfunded, Congress should trim them appropriately.  Sequestration is the brain-dead way to reduce government spending.  It is a sign of my persistent delusional optimism and mental deterioration that I cling to the belief that brain-dead is a standard of governance that our leaders can potentially surpass."

"If not all Americans are entitled access to health insurance, shouldn't elected officials be on record as to whether they believe that health care is a fundamental human right."

"The GOP House have a lot in common with Al Qaeda.  If they don't get their way, they try to use weapons of mass destruction to harm their enemies.  They are anarchists who do not believe in formal government.  Is there any process for impeaching such Congressman of treason for failing to run the government properly?"

And all of this is distorting the financial markets.  It is very hard to figure this out and trade it profitably.

Addendum:  Now that the House has passed their continuing funding bill without any funding for ObamaCare, the GOP House members are behaving like 5 years olds saying "if the Senate doesn't pass our bill, we won't pass their bill."  and "if they won't negotiate with us, we won't negotiate with them".

Government is about negotiation and acknowledging that when someone wins an election, their policies direct the government with negotiation on certain points from the minority.  ObamaCare was passed by the Congress, signed by the President and upheld by the Supreme Court.  Before the GOP can do anything about that, they need to win elections that give them control.  That is the way Democracy works.  Anything else is tyranny by the minority.

I am either Really Angry or Really Depressed

by what I see going on in the House of Representatives.

Bill after bill is passed by the House GOP to cut back government support of people without means while enhancing the flow of funds to people of means.  Cutting Food Stamps, cutting off ObamaCare (governors not educating people about ObamaCare), don't raise the minimum wage, don't address corporate welfare, increase defense spending, leave sequestration in place for everyone but the Defense Department.

There were some great articles in the NYT today.  Links to them are below.

Red State GOP vote to cut benefits to large % of their constituents

GOP is not participating in governing or Anarchy is not governance


The complexity of the employment problem: Globalization Affects


There is hope as some jobs come back to the USA


Thursday, September 19, 2013

Monetary Policy Brought to you by the Tea Party

Never mind that the "Paul's" want to dismantle the Federal Reserve (we would then be the only country in the world without a Central Bank) and allow monetary policy to be a function of ..... (I am not sure because when I wrote my honors thesis on monetary economics 40 years ago they forgot to teach me the mechanics of no monetary policy... because the need for monetary policy was so obvious).

I digress.

Yesterday, the Fed basically said "We cannot conduct the monetary policy we told you we would because the economic data is a little softer (that has been true for 2 months and it didn't alter the message) and we anticipate that Fiscal Policy will be a drag on the economy."  Basically, they think the Tea Party wants to create a default, slash government spending immediately and they don't want to pile on with tighter monetary policy.

So despite (i) the market thinking QE3 has done all it can do and anymore is dangerous, (ii) the Fed thinking along the same lines, the Fed cannot do what they want to do because the Congress will not do what it is suppose to do.

Many pundits are doing a better job of me at explaining how a hells bells effort to end ObamaCare is both mean (trying to take away reduced costs of health care from people both who need subsidies and  people with means who are gouged by the current system) and pointless because the Senate and the President are not going to let the Tea Party win on this.  After all, the President won the election and he is in office.

Anyway, the b*lls**t going on in the House is unbelievable and needs to end.  We cannot get to the 2014 election fast enough.  And I can only hope that independents in swing districts are as sick of this as I am.

Wednesday, September 18, 2013

Science Denial

After inconsistency, nothing bothers me more than a denial of facts.

The glacier melt is a coherent sign of global warming.  CO2 levels are higher in the atmosphere.  Higher CO2 levels cause an atmosphere to warm. Burning hydrocarbons releasees CO2 into the atmosphere.  So do cow farts and other natural activities.  And we cannot ruin the global economy by asking for too rapid a change.

Those who focus on the latter facts can accept the former facts and still say we should not implement cap & trade policies.
However, now there is evidence that that the oceans, which absorb CO2, are becoming more acidic as a result.  These higher levels of acid are causing baby shell fish to not create their natural shells and die. I already knew we were overfishing scaled fish, and focusing my dining on shell fish.  Now there may be no hope for either type of seafood in the quantities needed to feed the population.

I guess there might be hope for shellfish if we started to focus on CO2 emission ASAP, but I know the GOP will not support that and there are more basic economic issues to be dealt with.

So enjoy your shellfish now, because to your grandchildren they may be the equivalent of the Dodo Bird.

Friday, September 13, 2013

If it were not so serious, it would be funny

The inconsistency (and consistency is something I highly value) of some politicians is unbelievable.

If there is one thing the GOP has stood for over the last 30 plus years, it is the promotion of democracy in autocratic states.  Yet, recently Michelle Bachman, Steve King and Louie Gohmert - 3 Tea Party House members of the GOP - went to Cairo and praised the military coup that overthrew an elected leader and compared the General who authorized the shooting and arrest of demonstrators promoting Democracy to George Washington.  Whatever you may think about events in Egypt, I would not think this worthy of comparison to George Washington who in 200+ years has never been accused of anything corrupt, while the 1st thing you generally think of in Egypt with the military is corruption.

Rand Paul, who competes with Ted Cruz for the most bizarre comments made by US Senators has been in a really crazy mood lately on Syria.  I quote my source Timothy Egan

Senator Rand Paul, the Tea Party Republican who wants to be president, initially expressed indirect support for his fellow ophthalmologist, Bashar al-Assad. The Syrian dictator, he noted, was on the side of Christians, so maybe we should think twice about attacking him. A week later he said Assad deserved to die if he gassed those kids. Now, he says, the president “is asking us to be allies with Al Qaeda.”

So while, Charles Krauthammer, the neo-con commentator, beats on Obama for an inconsistent message and not just firing Tomahawk missals at Syria, no matter the consequences for the U.S; Rand Paul says doing that would make us allies with Al Qaeda and anti-Christian.  Wait, a minute, doesn't Iran support Assad and they are certainly not friends of Jews or Christians.

While I personally wish we would fire the Tomahawk's, I recognize that is a controversial decision and if this gets Russia to the table and trying to influence events in the Middle East in the direction of fewer WMD's, it is a positive.  The world is a complicated place, and we are all in this together, so diplomacy has a role and that is why we must rely upon our elected leaders who have the benefit of expertise in the Department's of State and Defense and the CIA.

The grandstanding by the Tea Party just illustrates they either know nothing, don't care about being serious or are really really dangerous if they ever got to higher office.

Wednesday, September 11, 2013

Income Inequality and Politicians

This topic has once again entered the current news with the Democratic nominee for NYC Mayor will do something about income inequality.  I think that is above his pay grade and he will accomplish nothing unless he controls the cost of government and keeps NYC taxes the same or moving lower.

There is also this article on the topic in today's NY Times op-ed.

Link to Academic Analysis of Income Inequality

I posted the following comment on NYT in response to this article.

As I have preached to my son who recently entered the work force, you want to be part of the global economy. That is where employment will be most secure and there will be the most opportunity. For those who are not competitive in the global economy, there will be a loss of income.

If you are in the purely domestic economy, your income prospects depend upon how far your skills rise above the rest of the workers seeking their place in the economy. 

I don't know what the government can do beyond promoting comprehensive education, a health insurance structure that makes our business competitive with the rest of the world (separating employment and access to health insurance), and prudent fiscal policy with a fair level of taxes for each income level.

Monday, September 9, 2013

Real Life Tea Party Story

We spent this past weekend visiting VA where a relative (by marriage) is a regional director of public health.  One of the Dentists in their area called them after the state cut spending on public health and directed that Dentistry services be eliminated.  This Dentist had been providing such services through the Public Health Department.  This Dentist is also a vocal Tea Party supporter.

In the course of the conversation with my relative, this Dentist voiced support for cutting taxes and spending, but insisted that spending on Public Health including Dentistry services be increased.

Thus, in a small conversation, the idiocy of the Tea Party is presented to us.  The Dentist is obviously an intelligent human being a Dentist, but his political identity does not allow him to think rationally about policies.  You cannot support cutting revenues and cutting spending and then complaining about reduced services being a sign that government is going to hell.

It must be hell to be a thoughtful GOP legislator dealing with this in your base support.

Wednesday, September 4, 2013

GOP continues to just be Anti-Obama, no matter what the policy is

I have to say not supporting your President 100% of the time is borderline treasonous.  It almost makes our politics in the style of the British Parliamentarian, but we don't have that system.  Thus, we have gridlock.

On Syria, the speaking out of both sides of the mouth by many GOP contenders illustrates that they really do hate Obama and don't care about governing the country in a responsible manner.  To their credit, some traditional GOP legislators like McCain, Graham and Boehner sometimes try to govern responsibly as they are with Syria.

However, the words of many GOP show the want their cake and to eat it too, no matter the result for government.  They also do not take responsibility for anything.

Jim InHofe, Oklahoma Senator, demanded 4 weeks ago that the Obama administration do something about the barbaric Assad regime.  Now he says there is no money for the military to conduct anything in Syria and he cannot support anything.  If there is no money for the military to conduct operations, I think it is time to raise some revenues.  There is no greater need for the government funding than sufficient defense spending.

Paul Ryan, the last GOP Vice President candidate, who said let's do something about Syria in 2011, now says he cannot support the President because it is too late to do anything.  Well, the use of poisonous gas is different and it is unacceptable and clearly the Assad regime fears the US military because they are dispersing the troops.

And Marco Rubio, proving he has no grasp of the complexities of Syria (as I outlined in my last post),  stated the either the US should have "a comprehensive plan to remove Assad and establish a stable secular government" or "do nothing" except support our allies who border Syria.  Well, that would take money for humanitarian refugee support and potentially dealing with an Al Qaeda governed portion of Syria and I don't see Rubio supporting any revenue increases for that.

I truly worry when I know more about a foreign country than our legislators.  I think they spend too much time raising money for campaigns and voting to repeal ObamaCare.