Wednesday, March 24, 2010

The New Welfare State (Banana Republic)

The totally partisan healthcare legislation that just became law was fashioned by a Congress and a president ignoring three key proposals advanced by republicans, namely, tort reform, caps on the humongous payments awarded by judges for “pain and suffering,” as if these could be quantified, and allowing interstate competition among insurance providers that would naturally drive down premiums. These are cost-cutting reforms, but the democrats went for tax increases instead…the welfare-state mentality, more commonly called “redistribution of the wealth.”

It is noteworthy in this regard that Obama made the matter of redistribution an integral part of his campaign, thus explaining in large part why he is interested in immigration reform that instead of beneficial reform will take the form of automatic amnesty and citizenship, the ultimate goal being the filling of democrat registrations with Latinos, especially, and others interested in partaking of the newest welfare state, financed by those who work and provide the resources for redistribution.

Whereas FDR and the heavily democrat Congress of the 1930s could not convince a public remarked by “breadlines” and unemployment rates averaging 19.2% between 1932 and 1940 and therefore the natural adherents to socialism to embrace that governance, Obama and the current demos have started the process in earnest. This is the sociological difference between that generation, sometimes called the “greatest,” and the current one, marked by a the “wimp” attitude that government exists mainly for what it confiscates and distributes, not for providing the opportunity to earn and keep.

Also noteworthy is the fact that as of 2008 and still largely the same configuration, 58 senators and 178 representatives – or 44% of total membership – was made up of Congresspople with law degrees. In other words, Congress is and has always been in modern times an arm of the American Bar Association. Lawyers thrive on civil tort cases; therefore, there will never be legislation touching that area.

Lawyers earn on the basis of payments accruing to tort cases; therefore, exorbitant pain-and-suffering awards made by judges, themselves lawyers, will continue to wreck the insurance system. Lawyering expertise also entered into the actual meat of the healthcare reform in that the solons made sure that the most onerous (expensive) parts of it are far into the out-years and consequently susceptible to many changes, allowing them time to slither out of accepting blame. For instance, complete coverage of 32,000 people, as claimed now, is scheduled for 2019, when nobody knows what the actual number and/or cost will be, if the law stands until then.

The near-term effects such as denying coverage for one reason or another having to do with the insurance providers – under existing policies – may cause insurance premiums to skyrocket, thus impacting everyone. Businesses will pass this added expense along to the consumer, thus increasing U.S. prices and further opting this country out of competition in the global market. Requiring coverage of “children” up to age 26 will increase costs and encourage the “children” not to bother covering themselves, even after they go to work.

The costliest aspects of reform will not kick in until well after the election of 2012, the obvious perk being that Obama will not have to explain the conditions that will accrue to the out-years in the new law. For instance, the insurance-premium subsidies to families realizing less than $88,000 a year (could be much higher by then according to the qualifier) will not kick in until 2014 and the 40% excise tax on the best insurance policies until 2018. This will mean the end of private insurance, another way of recognizing the forced entry of everyone into the government “option,” which, of course, will not actually be an option but a mandate.

Congressman John Dingell probably said it best when he said it takes time administratively to get ObamaCare in place to Control the People. Healthcare is important and the republicans dropped the ball by not paying more attention to it, even though Bush and gang did get the prescription-drug program in effect for the old codgers. The Obama administration is not about healthcare; rather, it’s about total government control of every citizen’s existence…the Olde Europe model that’s in such unholy disarray.

The Social Security act of the 1930s and the Medicare act of the 1960s were designed to help the most vulnerable – old people unable to care for themselves adequately. The average life-span for men in those years was 58 and 67 years, respectively, meaning that benefits would not accrue, on average, over a long period, if at all. The current law puts every citizen, regardless of age, health or ability to pay for treatment/insurance for self and family on Medicare, thus producing a welfare state, otherwise known as a socialist (banana republic) state. It’s all about control, stupid! This is the TRANSFORMATION Obama and his cohorts have begun…the new direction. Contemplate and weep!

And so it goes.
Jim Clark

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