Monday, November 30, 2009

Stimulus - Bigger is Better

Those doubting the brilliance of Obama's plan need only familiarize themselves with the basic principals of liberal economics: Money falls from heaven for everyone to use. But, the immoral and sneaky rich gather more than their share. The government's purpose is to redistribute the money the way God intended.

Taxes remove the excess income of the rich and give it to the voting poor, through a fair and organized bureaucracy. The rich oppose this action by selfishly and spitefully decreasing employment. Government responds by increasing spending, to boost employment by finding the jobs that the rich have been hiding.

Looking at the rousing success of the first Stimulus bill, I cannot understand the opposition to round two. Obama's work is not yet done, as there are still those who have yet to realize the New American dream of getting something for nothing.

For an idea of the massive number of jobs created by the Stimulus bill, simply look at the unemployment offices around the country. These establishments have been forced to double their staffs in order to process the millions of new claims filed over the last year.

To understand the need for a second (or third, or tenth) stimulus bill, we must keep in mind the economies of scale. If spending $787B accomplished so much, imagine the economic magic that a much larger amount could accomplish.

Borrowing an amount large enough could eliminate the national debt altogether. Theoretically we should be able to to borrow enough to show a profit, perhaps begin lending to other countries again. All we have to do is borrow enough each time to pay off each successive debtor, with interest, and we can keep the cycle going indefinitely.

Granted, job recovery may seem like its staring slowly. Some folks have been unemployed for 12 months, some longer. This is probably because we haven't spent enough to create the jobs. But once we really kick the spending into high gear, we will all need wheelbarrows to carry our money home in. And not just because it will be practically worthless, either.

Sunday, November 22, 2009

If it says "affordable", its got to be good!

Not having health insurance does NOT constitute a crisis. Any person in this country, for any reason, can receive health care regardless of ability to pay. And simply because this piece of legislative diarrhea contains the term "Affordable", what makes people believe that cost will ever go down?

Insurance is nothing but risk management. It works by having many healthy people pay into the system to cover the few sick people who take out of the system. Should this travesty be allowed to occur, you can be certain this will change. Since nobody can be turned down, a sick person can buy a policy at the same price as a healthy person.

Healthy people will decline coverage, and simply pay the penalty at tax time, a fraction of the cost of a decent policy. If they get sick, they will go buy a policy, then check into the hospital. Employers will drop their group plans, since "qualifying" plans cost much more than the penalty.

Insurance providers, who we all know are greedy trolls who are driven purely by the pursuit of profit, will no longer sell policies. They cannot possibly maintain a margin of profit that their shareholders will accept, and will simply follow some other path to satisfy their greed.

The end result is that only sick people will purchase "insurance", and it will be only sold by our government's "public option". Insurance will no longer be a risk management tool, but simply a revolving finance plan. Simple economic principals dictate that expenditures will rise, revenues will drop, and cost to manage this new entitlement will climb.

Early debates claimed there would be no government interference, there would be no rationing of health care. The rationing has already begun. Our Government recently suggested delaying mammograms until the age of 50. This is nothing but a cheap ploy to reduce costs for their new, whiz-bang health Ponzi insurance scheme. The idea is to get more money out of young people, then reduce benefits to old people, so that the entitlement train can keep chugging along for a few more decades.

Now, explain what it is that everyone thinks they're getting again? Oh, that's right - better coverage for more people for less money. Only an idiot could possibly believe that we can get something for nothing. And you actually believed it? P.T. Barnum would have been proud of you.