EXCERPT:
"One of the strongest talking points of those who want a government-run medical care system is that we simply cannot afford the high and rising costs of medical care under the current system.
First of all, what we can afford has absolutely nothing to do with the cost of producing anything. We will either pay those costs or not get the benefits. Moreover, if we cannot afford the quantity and quality of medical care that we want now, the government has no miraculous way of enabling us to afford it in the future.
If you think the government can lower medical costs by eliminating 'waste, fraud and abuse,' as some Washington politicians claim, the logical question is: Why haven't they done that already?"
Tuesday, December 22, 2009
The "Costs" of Medical Care: Part II - Thomas Sowell
EXCERPT
"Letting old people die instead of saving their lives will undoubtedly reduce medical payments considerably. But old people have that option already-- and seldom choose to exercise it, despite clever people who talk about a 'duty to die.'
A government-run system will take that decision out of the hands of the elderly or their families, and thereby 'bring down the cost of medical care.' A stranger's death is much easier to take, especially if you are a bureaucrat making that decision in Washington.
At one time, in desperately poor societies, living on the edge of starvation, old people might be abandoned to their fate or even go off on their own to face death alone. But, in a society where huge flat-screen TVs are common, along with a thousand gadgets for amusement and entertainment, and where even most people living below the official poverty line own a car or truck, to talk about a 'duty to die' so that younger people can live it up is obscene.
You can even save money by cutting down on medications to relieve pain, as is already being done in Britain's government-run medical system. You can save money by not having as many high-tech medical devices like CAT scans or MRIs, and not using the latest medications. Countries with government-run medical systems have less of all these things than the United States has.
But reducing these things is not 'bringing down the cost of medical care.' It is simply refusing to pay those costs-- and taking the consequences."
"Letting old people die instead of saving their lives will undoubtedly reduce medical payments considerably. But old people have that option already-- and seldom choose to exercise it, despite clever people who talk about a 'duty to die.'
A government-run system will take that decision out of the hands of the elderly or their families, and thereby 'bring down the cost of medical care.' A stranger's death is much easier to take, especially if you are a bureaucrat making that decision in Washington.
At one time, in desperately poor societies, living on the edge of starvation, old people might be abandoned to their fate or even go off on their own to face death alone. But, in a society where huge flat-screen TVs are common, along with a thousand gadgets for amusement and entertainment, and where even most people living below the official poverty line own a car or truck, to talk about a 'duty to die' so that younger people can live it up is obscene.
You can even save money by cutting down on medications to relieve pain, as is already being done in Britain's government-run medical system. You can save money by not having as many high-tech medical devices like CAT scans or MRIs, and not using the latest medications. Countries with government-run medical systems have less of all these things than the United States has.
But reducing these things is not 'bringing down the cost of medical care.' It is simply refusing to pay those costs-- and taking the consequences."
Friday, December 18, 2009
Behind the Rejection of Kelly as Bank of America CEO - WSJ.com
"Bank of America Corp. directors decided to hire Brian T. Moynihan as chief executive after the U.S. government raised concerns about the potential political impact of the compensation package proposed by an outside candidate for the job, according to people familiar with the situation.
As the Charlotte, N.C., bank was pursuing Bank of New York Mellon Corp. CEO Robert Kelly last week, a Bank of America board member asked Treasury Secretary Timothy Geithner for his opinion on the $35 million to $40 million compensation proposed by Mr. Kelly, one of these people said.
As part of his discussions with the board's search committee, Mr. Kelly sought about $20 million to buy out unvested Bank of New York Mellon shares and options, plus $15 million to $20 million in annual compensation as chief executive. All but $1 million of that amount was to be paid in stock, people close to the talks said.
In response, Mr. Geithner suggested that Bank of America approach Treasury pay master Kenneth Feinberg for his views on what would be politically palatable. Mr. Feinberg said the total amount might cause alarm and be seen as excessive, according to people familiar with the exchange.
...The government's role in the 11-week CEO search is another sign of how regulators are shaping the new banking landscape after coming to the rescue of ailing financial institutions."
As the Charlotte, N.C., bank was pursuing Bank of New York Mellon Corp. CEO Robert Kelly last week, a Bank of America board member asked Treasury Secretary Timothy Geithner for his opinion on the $35 million to $40 million compensation proposed by Mr. Kelly, one of these people said.
As part of his discussions with the board's search committee, Mr. Kelly sought about $20 million to buy out unvested Bank of New York Mellon shares and options, plus $15 million to $20 million in annual compensation as chief executive. All but $1 million of that amount was to be paid in stock, people close to the talks said.
In response, Mr. Geithner suggested that Bank of America approach Treasury pay master Kenneth Feinberg for his views on what would be politically palatable. Mr. Feinberg said the total amount might cause alarm and be seen as excessive, according to people familiar with the exchange.
...The government's role in the 11-week CEO search is another sign of how regulators are shaping the new banking landscape after coming to the rescue of ailing financial institutions."
Tuesday, December 15, 2009
What Red Tape? Auto Community Czar Gets Results - WSJ.com
By MELANIE TROTTMAN
When worries about environmental cleanup costs stalled plans to redevelop an abandoned auto factory in Flint, Michigan Gov. Jennifer Granholm called Edward Montgomery.
Mr. Montgomery, President Barack Obama's auto-communities recovery czar, cut through the bureaucracy at the Environmental Protection Agency, and brought officials from the EPA's Washington office to meet with Flint officials to get a deal done.
The solution: Carve out the part of the 700-acre site with the worst contamination, and clear the rest for potential sale to investors who have told the city they would create a multipurpose facility that would employ as many as 500 people in hard-hit Michigan. A process that could have taken years wound up taking just a few months.
'He's on my speed dial,' Ms. Granholm says. 'He has really been the hub of the wheel for us.'
At a time when the Obama administration is ratcheting up regulatory scrutiny of environmentally sensitive development, Mr. Montgomery is helping communities in struggling auto states find shortcuts through the administration's own bureaucracy, making it easier for the communities to redevelop sites as part of a recovery.
'What many expected to be a multiyear process with the EPA became a multimonth process,' says Flint Mayor Dayne Walling. Given Flint's economic trouble, with unemployment at 25.5% in October, 'time is our enemy,' Mr. Walling says.
Mr. Montgomery says decisions about policy and allocation of funds rest with government agencies, not him. But local officials who have benefited from his help call him a powerful advocate."
When worries about environmental cleanup costs stalled plans to redevelop an abandoned auto factory in Flint, Michigan Gov. Jennifer Granholm called Edward Montgomery.
Mr. Montgomery, President Barack Obama's auto-communities recovery czar, cut through the bureaucracy at the Environmental Protection Agency, and brought officials from the EPA's Washington office to meet with Flint officials to get a deal done.
The solution: Carve out the part of the 700-acre site with the worst contamination, and clear the rest for potential sale to investors who have told the city they would create a multipurpose facility that would employ as many as 500 people in hard-hit Michigan. A process that could have taken years wound up taking just a few months.
'He's on my speed dial,' Ms. Granholm says. 'He has really been the hub of the wheel for us.'
At a time when the Obama administration is ratcheting up regulatory scrutiny of environmentally sensitive development, Mr. Montgomery is helping communities in struggling auto states find shortcuts through the administration's own bureaucracy, making it easier for the communities to redevelop sites as part of a recovery.
'What many expected to be a multiyear process with the EPA became a multimonth process,' says Flint Mayor Dayne Walling. Given Flint's economic trouble, with unemployment at 25.5% in October, 'time is our enemy,' Mr. Walling says.
Mr. Montgomery says decisions about policy and allocation of funds rest with government agencies, not him. But local officials who have benefited from his help call him a powerful advocate."
Obama Slams 'Fat Cat' Bankers - WSJ.com
WASHINGTON -- President Barack Obama lashed out at Wall Street, calling bankers "fat cats" who don't get it, in an escalation of tensions with the industry.
Mr. Obama, speaking on the eve of Monday's meeting with the heads of major banks at the White House, said he would try to persuade bankers to free up more credit to businesses, with the aim of boosting job growth. But the president also expressed frustration with banks that the government has assisted.
"I did not run for office to be helping out a bunch of fat cat bankers on Wall Street," Mr. Obama said in an interview on CBS's "60 Minutes" program on Sunday.
On CBS's "60 Minutes," President Obama decries "fat cat bankers" ahead of Monday evening's meeting between White House officials and banking representatives.
"They're still puzzled why is it that people are mad at the banks. Well, let's see," he said. "You guys are drawing down $10, $20 million bonuses after America went through the worst economic year that it's gone through in -- in decades, and you guys caused the problem. And we've got 10% unemployment."
Mr. Obama, speaking on the eve of Monday's meeting with the heads of major banks at the White House, said he would try to persuade bankers to free up more credit to businesses, with the aim of boosting job growth. But the president also expressed frustration with banks that the government has assisted.
"I did not run for office to be helping out a bunch of fat cat bankers on Wall Street," Mr. Obama said in an interview on CBS's "60 Minutes" program on Sunday.
On CBS's "60 Minutes," President Obama decries "fat cat bankers" ahead of Monday evening's meeting between White House officials and banking representatives.
"They're still puzzled why is it that people are mad at the banks. Well, let's see," he said. "You guys are drawing down $10, $20 million bonuses after America went through the worst economic year that it's gone through in -- in decades, and you guys caused the problem. And we've got 10% unemployment."
Venture Capitol: New VC Force - WSJ.com
"When tiny Fisker Automotive Inc. hit a financing glitch last year, threatening its plan to build a fancy gasoline-electric hybrid car in Finland, it turned to the U.S. Department of Energy.
The DOE had a bolder idea. Why not also step up the company's plans to develop a less-expensive model, and assemble it in a closed U.S. auto plant?
Within months, Vice President Joe Biden, the former senator from Delaware, was helping lure the embryonic car company to a shuttered General Motors Co. factory four miles from his house in Wilmington, right across the tracks from Biden Park. Soon, Fisker Automotive, a two-year-old business that has yet to sell a car, won loans from the federal government totaling $528 million.
Fisker had joined a flock of other businesses seeking cash from the biggest venture capitalist of all, the U.S. government....
Thus, while much attention has been focused on the federal government's involvement in banking, Washington also is gaining sway in another swath of the economy. By financing clean-tech ventures on a large scale, the government has become a kingmaker in one of technology's hottest sectors.
Some young companies are tailoring their business plans to win DOE cash. Private investors, meanwhile, are often pulling back, waiting to see which projects the government blesses. Success in winning federal funds can attract a flood of private capital, companies say, while conversely, bad luck in Washington can sour their chances with private investors. The result is an intertwining of public and private-sector interests in an arena where politics is never far from the surface....
'The existence of an 800-pound gorilla putting massive capital behind select start-ups is sucking the air away from the rest of the venture-capital ecosystem,' said Darryl Siry, former head of marketing at Tesla Motors Inc., a San Carlos, Calif., company that got a $365 million DOE loan in June to build high-end electric cars. 'Being anointed by DOE has become everything for companies looking to move ahead.'"
The DOE had a bolder idea. Why not also step up the company's plans to develop a less-expensive model, and assemble it in a closed U.S. auto plant?
Within months, Vice President Joe Biden, the former senator from Delaware, was helping lure the embryonic car company to a shuttered General Motors Co. factory four miles from his house in Wilmington, right across the tracks from Biden Park. Soon, Fisker Automotive, a two-year-old business that has yet to sell a car, won loans from the federal government totaling $528 million.
Fisker had joined a flock of other businesses seeking cash from the biggest venture capitalist of all, the U.S. government....
Thus, while much attention has been focused on the federal government's involvement in banking, Washington also is gaining sway in another swath of the economy. By financing clean-tech ventures on a large scale, the government has become a kingmaker in one of technology's hottest sectors.
Some young companies are tailoring their business plans to win DOE cash. Private investors, meanwhile, are often pulling back, waiting to see which projects the government blesses. Success in winning federal funds can attract a flood of private capital, companies say, while conversely, bad luck in Washington can sour their chances with private investors. The result is an intertwining of public and private-sector interests in an arena where politics is never far from the surface....
'The existence of an 800-pound gorilla putting massive capital behind select start-ups is sucking the air away from the rest of the venture-capital ecosystem,' said Darryl Siry, former head of marketing at Tesla Motors Inc., a San Carlos, Calif., company that got a $365 million DOE loan in June to build high-end electric cars. 'Being anointed by DOE has become everything for companies looking to move ahead.'"
Tuesday, December 8, 2009
My Big Fat Government Takeover - William McGurn: WSJ.com
"Of course, the kind of people who are apt to push for government-imposed solutions are those who are also apt to believe they will be the ones imposing decisions, not the ones who have to live with decisions imposed by others. Sometimes that's because they enjoy the wealth that gives them escape hatches unavailable to the less affluent, such as their ability to ensure that their own children never have to set foot in a public school. Mostly, however, their trust in government reflects their confidence that they have all the answers and that it's government's job to enforce them.
What about conservatives? Don't we have confidence in our judgment and abilities? Of course we do. The difference is that we trust free citizens to make decisions about themselves—and are skeptical about government. As someone who worked inside a White House, I say you really believe government should be small when you see your friends running it.
... conservatives believe that even our smartest friend is no match for the collective wisdom of the marketplace. If we were to wake up and find that someone we knew well had been given control over some important part of the economy, the conservative would not likely think, 'Everything will be fine now that Harry's in charge.' Far more likely we'd be saying to ourselves, 'If it weren't for his wife, Harry would be wearing red and purple socks every day—and we're giving him that kind of power?'"
What about conservatives? Don't we have confidence in our judgment and abilities? Of course we do. The difference is that we trust free citizens to make decisions about themselves—and are skeptical about government. As someone who worked inside a White House, I say you really believe government should be small when you see your friends running it.
... conservatives believe that even our smartest friend is no match for the collective wisdom of the marketplace. If we were to wake up and find that someone we knew well had been given control over some important part of the economy, the conservative would not likely think, 'Everything will be fine now that Harry's in charge.' Far more likely we'd be saying to ourselves, 'If it weren't for his wife, Harry would be wearing red and purple socks every day—and we're giving him that kind of power?'"
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