Category Archives: Economics

The Health-Care Poll Bounce

…for Republicans:

Following the passage of the health care bill, 53% now say they trust Republicans on the issue of health care. Thirty-seven percent (37%) place their trust in Democrats. A month earlier, the two parties were essentially even on the health care issue.

These results are consistent with the finding that 54% of voters want the health care bill repealed. Rasmussen Reports is tracking support for repeal on a weekly basis. Still, health care ranks just number five among voters on the list of 10 important issues. The economy remains the top issue of voter concern as it has been for over years.

On the economy, Republicans are trusted more by 49% while Democrats are preferred by 37%. That’s a big improvement for the GOP following a five-point advantage last month. More voters who make under $20,000 annually trust Democrats on this issue, but voters who earn more than that favor Republicans.

Remember the old definition of insanity? The president has been talking (and lying) about his health care nonstop for over a year now, and it doesn’t make it any more popular. Now that we’ve actually seen the bill, why does he imagine that continued bloviation and lies about it are going to work any better? “Go for it,” indeed.

[Sunday morning update]

The great elaborator:

His wandering approach might not matter if Obama weren’t being billed as the chief salesman of the health-care overhaul. Public opinion on the bill remains divided, and Democratic officials are planning to send Obama into the country to convince wary citizens that it will work for them in the long run.

It was not evident that he changed any minds at Friday’s event. The audience sat politely, but people in the back of the room began to wander off.

Yes, this will turn opinion around. Maybe he should have let TOTUS answer.

[Update a few minutes later]

Roger Simon is concerned about the president’s mental health:

Now I admit I am not a professional psychiatrist or psychologist, nor do I see myself even remotely as a paragon of mental health, but I have made a decent living for over thirty years as a fiction writer whose stock in trade is perforce studying people and this is one strange dude. He makes Richard Nixon seem almost normal.

I first began worrying about this during the Reverend Wright affair. Obama insisted, as we all recall, that he did not know the reverend’s views even though the then candidate had spent twenty years in his church, been married by him, had his children baptized by him and taken the inspiration for his book from Wright. Now most educated people would have a pretty good idea about Wright after five minutes, let alone twenty years. The reverend is not a subtle man. Yet Obama told us he didn’t know.

Was the candidate lying or was he just so dissociated from reality that he didn’t see what was in front of his eyes? Or perhaps a little of both? Whatever the conclusion, it is not a happy one. The same man is before us now — only we’re not in the midst of a campaign. We have no way out. He is leading our nation during a time of economic crisis with a world changing so rapidly that our heads spin.

That’s the danger of voting based on charisma and “hope,” rather than a hardheaded view of the reality.

A Superstorm

…in climate “science.” An extensive and even-handed report at Der Spiegel.

McIntyre’s findings did not make him very popular. In the hacked Climategate emails, he is referred to as a “bozo,” a “moron” and a “playground bully.” But with their self-aggrandizement, the climatologists made him into a legend on the Internet. A million people a month visit his blog, climateaudit.org. They include climate skeptics and the usual conspiracy theorists, but also, more recently, many academics who are able to do the math themselves.

McIntyre asserts that he does believe in climate change. “I don’t want to throw the baby out with the bath water,” he says, “but when I find mistakes, I want them to be corrected.”

He repeatedly bombarded Jones with emails in which he drew his attention to freedom of information laws. This tenacity would prove to be disastrous for Jones.

McIntyre doggedly asked for access to the raw data. Jones was just as dogged in denying his requests, constantly coming up with new, specious reasons for his rejections. Unfortunately for Jones, however, McIntyre’s supporters eventually included people who know how to secretly hack into computers and steal data.

Their target was well selected. Jones was like a spider in its web. Almost every internal debate among the climate popes passed through his computer, leaving behind a digital trail.

But the US media continues to ignore the fraud and loss of credibility.

Federal Mandates

meet the real world:

The pressure of this law will eventually force restaurants like Davanni’s to reduce consumer choice as a way of managing the overwhelming burden of maintaining their disclosures. Smaller chains that succeed in satisfying their customers and managing their business used to be rewarded with growth, but this law will put an artificial cap on expansion at 19 locations. That means that fewer people will find jobs, and even in existing stores, money that may have funded more jobs will instead go to reprinting the same menu boards over and over again. And all of this comes because political elites think that people are too stupid to know that a pizza is fattening or how to access information that already exists in much more efficient formats than menu boards.

When will we wake up from this Atlas Shrugged nightmare?

[Early afternoon update]

One nation, under arrest. With liberty and justice for none.

I think we should just throw out the entire federal code and start over.

Hope

…and change:

The U.S. standard of living, says superstar Northwestern University economist Robert Gordon in a new paper, is about to experience its slowest growth “over any two-decade interval recorded since the inauguration of George Washington.” That’s right, get ready for twenty years of major-league economic suckage. It is an event that would change America’s material expectations, self-identity and political landscape. Change in the worst way.

…America faced a similar turning point a generation ago. During the Jimmy Carter years, the Malthusian, Limits to Growth crowd argued that natural-resource constraints meant Americans would have to lower their economic expectations and accept economic stagnation — or worse. Carter more or less accepted an end to American Exceptionalism, but the 1980 presidential election showed few of his countrymen did. They chose growth economics and the economy grew.

Now they face another choice. Preserve wealth, redistribute wealth or create wealth. Hopefully, President Barack Obama will choose door #3. Investing more in basic research (not just healthcare) would be a start, as would slashing the corporate tax rate. A new consumption tax would be better for growth, but only if it replaced the current wage and investment income taxes. Real entitlement reform would help avoid the Reinhart-Rogoff scenario. The choices made during the next few years could the difference between America in Decline or the American (21st) Century.

Unfortunately, we have to wait at least two and a half more years to get rid of Jimmy Carter II.

Liberty Over Big Government

Michael Barone writes about the Tea Parties and the great ongoing debate about the purpose of America:

The Progressives had their way for much of the 20th century. But it became apparent that centralized experts weren’t disinterested, but always sought to expand their power. And it became clear that central planners can never have the kind of information that is transmitted instantly, as Friedrich von Hayek observed, by price signals in free markets.

It turned out that centralized experts are not as wise and ordinary Americans are not as helpless as the Progressives thought. By passing the stimulus package and the health care bills the Democrats produced expansion of government. But voters seem to prefer expansion of liberty.

The Progressives’ scorn for the Founders has not been shared by the people. First-rate books about the Founders have been best-sellers. And efforts to dismiss the Founders as slaveholders, misogynists or homophobes have been outweighed by the resonance of their words and deeds.

The Declaration of Independence’s proclamation that “all men are created equal” with “unalienable rights” to “life, liberty and the pursuit of happiness” has proved to be happily elastic. It still sings to us today, thanks to the struggles and sacrifices of many Americans who gave blacks and women the equality denied to them in 1776.

In contrast, the early Progressives’ talk of an “industrial age” and an outmoded Constitution sounds like the language of an age now long past. Their faith in centralized planning seems naive in a time when one unpredicted innovation after another has changed lives for the better.

The “progressives” are retrogressive. A set of “elites” (who are elite only in terms of their power, not their intellect or competence) running the lives of the rest of society is the oldest idea in human history. It was opposition to such a notion on which the Constitution was based.

And central planning works no better with space policy than with any other.

Inflating The Education Bubble

The government student-loan takeover looks like it has a high potential for disaster:

…the bill’s student loan provisions will not save the $68 billion promised, and will move the country closer to a European-style socialism that has brought that continent stagnation. Going to a Soviet/U.S. Postal Service model of student-loan services goes against the sound maxim that competition is always better than monopoly. Moreover, the bill’s repayment terms will lead to increasing student-loan defaults, adding to the crushing fiscal burden on a government whose IOUs are now trusted less than those of some private corporations.

Third, the bill proceeds from a false premise. President Obama asserted Saturday that “by the end of this decade, we will once again have the highest proportion of college graduates in the world.” Putting aside the nasty reality of a 45 percent six year college drop-out rate, the Labor Department forecasts that, over the next decade, there will be fewer new jobs requiring college degrees than there will be new college graduates.

But it continues to prop up Big Academia, which is supportive of all this continuing collectivism, so it has that going for it.

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.