Category Archives: Business

The Insurance Death Spiral

I’m pretty sure this was the plan all along:

So there are penalties for not purchasing insurance. But there’s no serious enforcement mechanism allowing the IRS to make sure those penalties get paid?

Given the importance of the mandate to the health reform project, this doesn’t make much sense. The law was designed to expand the number of individuals with health insurance. But without the ability to enforce the individual mandate, any expansion will likely be significantly smaller than projected.

But remember, if you like your plan, you can keep it! Untilless your insurance company goes out of business…

[Update a few minutes later]

You mean they don’t have to cover pre-existing conditions? More thoughts here and here.

Gee, do you mean that when a multi-kilopage bill is rushed though without anyone actually reading it, there could be screwups? Who would have guessed? Certainly not some of the morons in my comments section, who think that passing bills without reading them is just dandy.

Every day, November is a day closer.

[Update a couple minutes later]

And speaking of November approaching, this isn’t good new for the Dems, though it’s great news for the Republic:

Nearly two-thirds of Americans say the health care overhaul signed into law last week costs too much and expands the government’s role in health care too far, a USA TODAY/Gallup Poll finds, underscoring an uphill selling job ahead for President Obama and congressional Democrats.

…Supporters “are not only going to have to focus on implementing this kind of major reform,” says Robert Blendon, a professor of health policy and political analysis at Harvard. “They’re going to have to spend substantial time convincing people of the concrete benefits of this legislation.”

This is hilarious. The president and the Democrats have spent the last fourteen months telling us how wonderful this plan is, to no avail. Now that it’s going to start to actually bite, they think that they’re going to be able to explain it better, and be more convincing? Especially when they don’t know what’s in it any more than they did before it passed?

And note, this is a Gallup poll, which means it’s “adults.” I haven’t checked Rasmussen yet, but I’m sure that the news for them from “likely voters” is even more grim. For them, that is, not for us.

The Green Pharaoh

See, he was just trying to save the Nile delta. I’m even more amused at the leftist outrage in the comments. But then, leftists, and particularly watermelons, don’t have much of a sense of humor.

[Update a couple minutes later]

I love this comment from Bernstein:

Jon Stewart is funny because of the ways he bugs his eyes out, and otherwise makes funny faces. Can’t get that effect on a blog, I’m afraid.

It’s funny ‘cuz it’s true.

Premiums Will Go Up

…and you may not be able to keep your plan. But what would the head of Aetna know?

And I’m sure that this is completely unrelated:

Americans have a pragmatic sort of optimism in adversity, and after ObamaCare’s passage, I figured that would take the form of a “wait and see” attitude. Democrats made a lot of promises about this legislation, and there would be some impulse to wait to see how this bill fulfills or fails them.

Certainly, Democrats in office had hoped for that kind of response, but thus far, they’re not getting it. That may be due to some of the unpleasant details that the media have finally reported. Businesses are having to take big charges on lost tax credits, and promises over pre-existing condition treatment raised expectations to unrealistic heights. Instead of making lives easier, the bill has already made lives more complicated.

The real test will come in Rasmussen and other polling around September. If 54% of people still want it repealed — and that opposition has remained relatively unchanged for the last several months — then Democrats won’t have anywhere to hide.

Wind sowing now. Whirlwind reaping in November.

[Update a while later]

Congressional (dis)approval ratings have approached the levels last seen in late October, 1994. Remember what happened a few days later? And it’s only March…

A Thugocracy

Fascists like Henry Waxman are upset that companies are following SEC regulations:

People’s Commissar Henry Waxman is now planning to haul the companies before his committee because their disclosures fail to play along with the our Leftist rulers’ script that Obamacare “will expand coverage and bring down costs.”

As Andy notes:

If we are now under a system where disclosure gets you a public whipping and other threats by the Powers That Be while nondisclosure promises the ruinous expenses of defending against criminal investigations and civil enforcement, this is no longer anything but a thugocracy.

It’s the Chicago (and West LA) way.

And The Hits Just Keep Coming

Here’s the latest, from AT&T. Bet this will encourage them to hire a lot more people:

AT&T Inc. said it plans to take a non-cash charge of about $1 billion in the first quarter following the passage of the health-care reform bill earlier this week, according to a filing submitted by the company Friday. The telecommunication giant will also evaluate changes to its health care benefits for employees and retirees.

But don’t forget — if you like your plan, you can keep it! As long as the ObamaCare hasn’t wiped it out, of course…

And of course, we can at least count on new jobs for IRS agents.

If You Liked The “Stimulus…”

…you’ll love ObamaCare. Further thoughts here:

In both cases, despite broad public skepticism, the Democrats pushed forward on their bill while the White House intensified its messaging efforts, turning President Obama loose on crowd after friendly crowd in an effort to sell Middle America on a near-trillion-dollar fix whose murky specifics were in flux even as it approached a final vote. Sure enough, in both cases polling found support for the measure slowly creeping up as Congress passed the measure (with virtually no Republican support.) And in the days immediately after each became law, public support even reached scant majorities or pluralities in some places, with many saying that though the bill was imperfect, it sure beat doing nothing at all.

Liberals, covered in the stink of success, are now enjoying that bump. But, as I outline in the piece, if Obamacare’s post-passage public opinion trajectory is anything like that of the stimulus, they shouldn’t get too comfortable. A year out, the popularity of the stimulus falls somewhere between Tiger Woods and John Edwards. — and for similar reasons. The stimulus is widely-perceived to have been a failure because it didn’t keep its promise to stop and reverse job losses. Instead, 49 of 50 states have lost jobs since the stimulus passed.

We’re only a few days out from Obamacare’s passage and already reports are piling in from businesses bracing for tax increases and coverage changes. Wait until it’s been a year.

Maybe they should have read the bill…

Good News On ITAR

I’ve long said (to paraphrase Mark Twain) that ITAR is like the weather — everybody talks about it, but no one ever does anything about it. Well, that may be about to change:

The legislation gives the president the authority to remove satellites and related components from the US Munitions List (USML), hence removing them from the jurisdiction of ITAR. (It would not, though, allow the export of such items to China.) Other provisions of the legislation would direct an ongoing review of the USML “to determine those technologies and goods that warrant different or additional controls”, which could benefit the space industry even if the White House didn’t exercise the provision to remove satellites and related components from the list wholesale.

The legislation passed the House last year, but for several months has been sitting in the Senate, raising fears they may never consider it. But speaking on an ITAR panel at the Satellite 2010 conference last week, David Fite, a staffer on the House Foreign Affairs Committee but speaking only for himself, said things were going “somewhat on schedule” compared to authorization bills in previous Congresses. That schedule would have the Senate passing its version of the authorization bill by the summer and a conference report reconciling the differences between the two in September or October.

It’s unclear from the reporting whether or not this will fix the problem for launch providers, or just satellite manufacturers. For instance, will it make life easier for the suborbital folks? Of course, the biggest problem is this:

“We are in an election year,” cautioned Fite. In his 11 years on Capitol Hill, he said, “I have never seen an environment that has been this partisan.” Bill Reinsch, president of the National Foreign Trade Council, concurred. “The danger is that this will become a political issue in an election year, which means it’s not going to be addressed on its merits, it will be addressed by slogans.” That will make it harder for reform to make its way through Congress and could also hurt the administration’s other reform efforts.

I’ve also long said that, as it took Nixon to go to China, only the Republicans can fix ITAR (though Duncan Hunter made sure it would never happen all through the Bush administration) because the Dems can’t afford to look weaker on national defense than they already do. I do fear very much that this will become a casualty of the very ugly campaign we’re heading into.