Happy Thanksgiving

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The "People" Own Your Liver

British May Ban Happy Hour

When you don't pay for something, it isn't really yours. The same is true for healthcare. In a socialized healthcare system, the "people" collectively pay. This presents the slippery slope of control - over behavior that is.

Smoking is not healthy. But when the "people" are paying to treat smoking related illness, their desire to ban smoking increases. Same goes for drinking, McDonald's, lack of exercise, etc. There is a direct relationship between directness of purchasing and control over related behavior. Go ahead and have the government pay for healthcare, but be ready for society to then regulate each and every behavior that has an impact on your health.

Healthcare: It is the Cost! It is the Cost! It is the Cost!

Governor Phil Bredesen wrote a piece in the Nov 22 Wall Street Journal titled, "What Tennessee Is Doing About Health Insurance." His basic premise is that the government needs to make sure that everyone has a Chevy of a healthplan, rather than a few people having a Caddy and "letting the rest walk."

Aside from the obvious (that the reason there is more than one kind of car on the market is that one size does not fit all), the Governor does himself a major disservice in citing a particular example to make his case. Dottie Landry was uninsured back in 2000. She got sick from a tick bite to the tune of $9,000. She put it on credit cards and paid it off over the next few years. Fast forward to 2007. Dottie was bitten by a dog, the treatment of which cost $4,000. But thankfully, she was on the Governor's healthcare plan: CoverTN. Thus, most of the 4k tab was picked up by the taxpayer.

The temptation is to end the blog entry right here. After all, just as the sky is blue, the problem with healthcare is NOT that many people are sans insurance- it is the cost! Instead of addressing the REAL problem back in 2000 - which is that the $9 grand bill is absurd, the Governor pinned the problem on the fact that Dottie actually had to pay for it herself. A consumer-driven healthcare system in which most participants are responsible for their own healthcare expenses (including major medical insurance) is the only remedy for ridiculously escalating costs. Spreading the bill amongst taxpayers has only served to exacerbate the problem.

The Government as Investor

No, this entry is not about the bailout - as ridiculous as it might be. Nor is it about the government looking to take over 401(k)s (as criminally ridiculous as that might be). However, the basis comes from a quote regarding the possible 401(k) Argentina-style debacle. It comes courtesy of Representative George Miller (D, CA). During a hearing on 401(k)s, Rep. Miller commented on the indirect subsidy caused by the non-taxation of the retirement accounts: "We have to start to think about it in Congress...whether or not we want to continue to invest that $80 billion for a policy that's not generating what we now say it should."

Invest! It is an Advil-necessecitating concept. The Government invests when it does not tax. It is the same insane thought process that leads to the Road to Serfdom-esque concept that every dollar actually belongs to the Government, and any dollar left in your pocket is a gift.

George Miller went from San Francisco State to law school at UC-Davis. He then was a legislative assistant in the California Senate, and then into the House where he has served for over 30 years. It is truly scary that the investment line of reasoning can pervade our Government and survive there for three decades. It is no wonder that Rep. Miller is a champion of Indian gaming. I suppose it is prefereable for the public to invest their money into the slot machines and at the craps tables than into a 401(k).

The Official Modern Economic Freedom 2008 Election Scorecard

If it is a fill-in-the-blank electoral map you are looking for, you have come to the wrong place. This scorecard is not to be penciled in as states are declared each hour tomorrow night. You can expect nothing less from Modern Economic Freedom than a careful winnowing down to what really matters.

A few weeks ago, a good friend pointed out that a candidate’s position on an issue is what has been most recently stated. Fair enough. And thankfully Obama wrote about his economic plan in today’s Wall Street Journal. This is the essence of the MEF Scorecard: What will Obama actually do once elected, and what will be the effects.

The Official Modern Economic Freedom 2008 Election Scorecard

There are various Obama quotes on different topics (in italics), followed by MEF commentary. After each point, fill in what happened after the election.

Tax Cuts
I’ll give a tax break to 95% of workers and their families. If you work, pay taxes, and make less than $200,000, you’ll get a tax cut.

• Which is it: 95% of workers, or those who work AND pay taxes?
• What is Obama’s Clintonian definition of “cut”?

If you make more than $250,000, you’ll still pay taxes at a lower rate than in the 1990s

• Does that include his plan to raise the cap on payroll taxes?
• For most of the 1990’s the top marginal tax rate was 39.6% - so the Obama rate will presumably be lower than that.
• Presumably, if you make between $200k and $250k you will experience no change in taxes.

-and capital gains and dividend taxes one-third lower than they were under Ronald Reagan

• The rate is currently 15%. It was lowered from 28% to 20% in 1997.
• In 1981, the rate was 23.7%, from 1982-1986 it was 20% (with a 60% exclusion), and in 1987/88 it was 28%.
• Even assuming the 28% rate, one-third lower would mean a rate of 18.5%
• Obama said on April 17, 2008: I would look at raising the capital gains tax for purposes of fairness.

Job Creation
We’ll create two million new jobs by rebuilding our crumbling infrastructure and laying broadband lines that reach every corner of the country

• Is he referring to jobs that come about from the economic growth enabled by an improved infrastructure, or simply the government hiring two million people on a temporary basis?

I’ll invest $15 billion a year over the next decade in renewable energy, creating five million new, green jobs

• Conversely, the cap gains tax could be eliminated, encouraging private enterprise to invest in renewable energy.
• The tally is seven million new jobs from these two policies (none noted from economic growth)

Health Care
My plan will make health care affordable and accessible for every American

• Health care is currently accessible to all, and affordable to few.

If you already have health insurance, the only change you’ll see under my plan is lower premiums.

• LAUGHTER

If you don’t, you’ll be able to get the same kind of plan that members of Congress get for themselves

• For free???
• Again, anyone can “get” the same kind of plan – but very few can afford it. What is Obama going to do to reduce the cost of health care?

Selected Data
Item 2008 2000 1992 1980

Dow 9,325 10,971 3,226 924
CPI 4.9% 3.5% 3.0% 12.6%
10-yr US Treasury 4.0% 5.8% 6.8% 12.5%
Unemployment 6.1% 3.9% 7.6% 7.5%

Barrel of Oil $68 $33 $21