Category Archives: Economics

Business, Economics, Health, Media Criticism, Political Commentary

Health Insurance

66 Comments

Why doctors are bailing out:

As the open enrollment period for 2014 approaches, premiums on individual plans in the Obamacare exchanges for California will double, and will increase 80 percent or more in Ohio. At the end of its first decade in force, the ACA will leave more than 30 million Americans without insurance – the driving issue behind health-care reform for at least the last twenty years.

The problem with all of the health-care industry reforms has been that precise goal: expanding insurance. The widespread use of comprehensive insurance policies insulates end users in the system from price signals, especially on routine care. That eliminates competition on price as insurers use their economic weight to pre-negotiate pricing on every kind of service and product under their coverage, from blood tests to setting broken bones. Providers locked into a specific schedule of reimbursements have no reason to innovate to either lower costs or increase value, and end up having to spend money and time dealing with insurance companies for delayed payments rather than focusing on the patients seeking treatment in their clinics.

Ironically, the multiplication of mandates and other regulations in the ACA on both private insurers and government-run programs like Medicare and Medicaid have more doctors opting out of the third-party-payer system altogether. Earlier this week, CNN Money reported on the migration to cash-only services among health-care providers, driven by poor reimbursements, increasing regulation, and high overhead.

ObamaCare has taken a terrible system and made it much worse.

Economics, Media Criticism, Political Commentary, Science And Society, Space, Space Science

National Space Policy

17 Comments

A “Values-Based Approach“? The question is — what are the values? I think he’s got it wrong:

Discovery is why a nation should go to space. It is what inspires all of humanity. It has been NASA’s only use of human spaceflight in the post-Apollo era that has returned value that is highly regarded by nearly all people in developed countries with free access to information. The synergy that once existed between human-assisted and robotic space exploration in the Hubble Space Telescope (HST) program is a blueprint for sustained deep space human-assisted exploration that can stoke the nation’s competitiveness in science, technology, and math toward realization of long-term financial and physical security.

That’s an opinion, not a fact. I would expect a scientist to think that science is the reason for human spaceflight, but most people don’t agree with him (or have even given it much thought). If it’s not for the purpose of developing and settling space, the amount of money we’re spending on it is unjustifiable.

Business, Economics, Media Criticism, Political Commentary, Social Commentary

Detroit’s Van Gogh

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…would be better off in LA:

Rather than an offense against art, a properly structured sale would represent a public-spirited update of how the art came to Detroit and other U.S. cities in the first place: as a way of providing liquidity to Europeans in need of cash. “The second world war has opened up an opportunity such as may never come again,” the DIA’s director wrote unabashedly in 1948. “Great private collections which have been held intact for a hundred years or more are being broken up.” Detroit is like an aristocratic estate forced to adjust to changing times. It can’t marry an heiress, but it might find some lucratively appreciative new homes for some of its heirlooms.

This is the just consequence of terrible voters’ decision and awful city management.

Economics, Media Criticism, Philosophy, Political Commentary, Social Commentary, Technology and Society

Leviathan Fail

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Jonah Goldberg reviews Kevin Williamson’s new book:

Williamson offers a wonderfully Nockian tutorial on how all states — and nearly all governments — begin as criminal enterprises, while acknowledging that not all criminal enterprises are evil. Criminals — whether we’re talking So­mali warlords, Mafia dons, or the Tudors of England — often provide vital goods and services, from food to security. Often what makes them criminal is that they are competing with the State monopoly on such things.

Sidestepping the distinction between State and government, Williamson in­stead identifies what causes the Dr. Jekyll of government to transform into the Mr. Hyde of the State. He calls this elixir “politics.”

Williamson’s core argument is that politics has a congenital defect: Politics cannot get “less wrong” (a term coined by artificial-intelligence guru Eliezer Yudkowsky). Productive systems — the scientific method, the market, evolution — all have the built-in ability to learn from failures. Nothing (in this life at least) ever becomes immortally perfect, but some things become less wrong through trial and error. The market, writes Williamson, “is a form of social evolution that is metaphorically parallel to bio­logical evolution. Consider the case of New Coke, or Betamax, or McDonald’s Arch Deluxe, or Clairol’s Touch of Yogurt Shampoo. . . . When hordes of people don’t show up to buy the product, then the product dies.” Just like organisms in the wild, corporations that don’t learn from failures eventually fade away.

Except in politics: “The problem of politics is that it does not know how to get less wrong.” While new iPhones regularly burst forth like gifts from the gods, politics plods along. “Other than Social Security, there are very few 1935 vintage products still in use,” he writes. “Resistance to innovation is a part of the deep structure of politics. In that, it is like any other monopoly. It never goes out of business — despite flooding the market with defective and dangerous products, mistreating its customers, degrading the environment, cooking the books, and engaging in financial shenanigans that would have made Gordon Gekko pale to contemplate.” Hence, it is not U.S. Steel, which was eventually washed away like an imposing sand castle in the surf, but only politics that can claim to be “the eternal corporation.”

Read the whole thing, and buy the book.