Category Archives: Political Commentary

Business, Economics, Political Commentary, Science And Society, Technology and Society

Dangerous For Your Health?

February 10, 2009 Rand Simberg 27 Comments

Yet another time bomb in the “stimulus” package, that won’t be debated:

One new bureaucracy, the National Coordinator of Health Information Technology, will monitor treatments to make sure your doctor is doing what the federal government deems appropriate and cost effective. The goal is to reduce costs and “guide” your doctor’s decisions (442, 446). These provisions in the stimulus bill are virtually identical to what Daschle prescribed in his 2008 book, “Critical: What We Can Do About the Health-Care Crisis.” According to Daschle, doctors have to give up autonomy and “learn to operate less like solo practitioners.”

The last entity that I want monitoring my health care is the federal government.

This bill is apparently chock-a-block with stuff like this, each and every one of which should be discussed, debated and if passed, passed on its own merits with its own bill, and has nothing to do with stimulus. This is quite possibly the worst piece of legislation in the nation’s history, and it’s being rushed through with almost no debate, discussion, or even knowledge of its contents by those voting for it. The Founders would weep.

If they vote for the conference product, I hope that Collins, Snowe and Specter all lose their next races, even if they’re replaced by Dems. At least they’ll be honest Dems.

[Early evening update]

(Democrat) Mickey Kaus explains how this bill will roll back, if not completely undo, welfare reform.

Political Commentary, War Commentary

A Road To Victory

February 10, 2009 Rand Simberg 14 Comments

…in Afghanistan? Let’s hope that the new administration is reading this. Let’s hope even more that they want to win that war, and not just “end” it.

Business, Economics, Media Criticism, Political Commentary

Avoiding Hoover

February 10, 2009 Rand Simberg 7 Comments

Jim Manzi has a good post on the real implications of this disaster wending its way all too quickly down Pennsylvania Avenue.

What I find most appalling about it are the perverse incentives and moral hazards that it sets up. Buy more house than you can afford? No problem, the taxpayers will prop you up and keep you in it. Spending more than revenue in your state capital? Don’t sweat it, we’ll just steal money from other states so you can keep it up.

It is punishing the prudent and rewarding the irresponsible. And when you set up a system like that, you’ll get a lot less of the former and a lot more of the latter behavior. At some point, Atlas will shrug. I don’t know how far off we are from it, though.

[Update a few minutes later]

Welcome to the Great American Handout.

Political Commentary, Space

What Could Go Wrong?

February 10, 2009 Rand Simberg 14 Comments

The Orion spacecraft will have to be operated with remotes, due to the vibration environment. In addition to the introduction of a new comm failure mode (will it be IR, Bluetooth, what?) there’s the other problem noted in comments over there: “Time to deorbit. What did you do with the remote?” And all (as another commenter notes) because NASA thought it would be a dandy idea to have a huge solid first stage.

I wonder if they would even be considering this if it weren’t for the vibration problem?

Business, Economics, Media Criticism, Political Commentary

“Thugs Ransacking My House”

February 10, 2009 Rand Simberg 24 Comments

Well, Arnold Kling certainly isn’t mincing any words:

“I think about the stimulus as an economist but I feel it as a father. Barack Obama is destroying my daughters future. It is like sitting there watching my house ransacked by a gang of thugs. That’s how I feel, now back to how I think.”

As noted if you read the whole thing, this isn’t a “stimulus” plan. It’s a grow-government-and-make-us-all-increasingly-dependent-on-it plan. The welfare provision alone is proof of that.

Media Criticism, Political Commentary, War Commentary

That Seventies Show

February 10, 2009 Rand Simberg 4 Comments

It’s the return of malaise.

More confidence building, from the “indispensable” tax dodger who is now in charge of collecting our taxes:

Where was Geithner the Technocrat when you needed him? Because that is just what the markets need right now: a detailed, technocratic explanation of the way forward. This might have been the clincher as far as investors are concerned: “We are exploring a range of different structures for this program, and will seek input from market participants and the public as we design it.” In other words, “We have have concrete and high detailed plan to develop a concrete and highly detailed plan. We’ll get back to you.”

Oh, and it would be nice if he could do all that without painting such an unremittingly bleak picture of the economy. But more important is to change the mark-to-market accounting rules that are needlessly driving the financial system into the ground. Former FDIC Chairman William Issac has told the Securities and Exchange Commission that every money center bank in the 1980s would have gone bust had they been forced to sharply write down the value Latin American debt: “If we had followed today’s approach during the 1980s, we would have nationalized nearly all of the largest banks in this country and thousands of additional banks and thrifts would have failed. I have little doubt that the country would have gone from a serious recession into a depression.” Sound familiar?

And along with that change, how about embracing the private sector as the surest path back to prosperity? Cut corporate taxes. Suspend capital gains taxes. Indeed, one reason why Geithner may have been so vague about the bank rescue plan is that ultimately the plan may entail such high government borrowing that announcing it now would have derailed the current $800 billion Obama stimulus plan.

And wouldn’t that be a shame?

Speaking of cutting corporate tax rates, what would really help would be to simply eliminate them. A simple reduction in rate does nothing to reduce the high costs of bookkeeping and accounting that are made necessary by the need to sort out taxable deductions from other expenses. I’m sure that this is a huge drag on the economy (though it would still exist, unfortunately, for individuals). Eliminating the tax completely would free up vast amounts of corporate wealth for more productive activity.

[Mid-afternoon update]

Well, people do laugh at clowns:

The laughter was at its height when Obama officials explained that the White House planned to guarantee a wide swath of toxic assets — which they referred to as “legacy assets” — but wouldn’t be asking Congress for money. Rep. Brad Sherman (D-CA), a bailout opponent in the fall, asked the officials to give Congress the total dollar figure for which they were on the hook. The officials said that they couldn’t provide a number, a response met by chuckling that was bipartisan, but tilted toward the GOP side. By guaranteeing the assets, Geithner hopes he can persuade the private sector to purchase a portion of them.

Financial messes like this are fundamentally a crisis of confidence. The Dow plunged 400 points after the news conference. I think that the Geithner pick is turning out to be a disaster, on multiple levels.

[Another update]

More thoughts from Megan McArdle:

I don’t envy Geithner his position. But he’s known this was coming for months. I expected a little more than telling us that he wanted to spend a lot of money to help banks clean up their balance sheets. We knew that much already.

I’m glad I don’t have his job, but I wish that someone else did. And the buck stops with the man who appointed him.

Business, Economics, Media Criticism, Political Commentary