This past year was one of the most tumultuous in memory. Widespread economic collapse, social and societal upheaval, violent riots, an acrimonious election cycle, and a worldwide pandemic are just a few of the major sources of upheaval.
These sorts of massive disruptions to the norm create opportunities for change and improvement. Some use those opportunities productively to work for solutions that fix real problems and improve lives. But sadly, many use these disruptions to cynically advance their own agenda while feigning concern for the plight of others. Unfortunately, organized labor falls into this latter group.
In a time when so many Americans desperately want a job and a way to fund the hopes, dreams and aspirations of their family, too many union leaders are slamming the door shut on the very people they claim to serve. To make matters worse, too many union leaders are also padding their own pockets and working to advance their own power and influence at the expense of their members.
Here are a few recent examples. Dennis Williams, the former president of United Auto Workers (UAW), pled guilty to embezzling hundreds of thousands of dollars from the union. And this scandal was preceded by his successor at the UAW, Gary Jones, admitting that he helped steal more than a million dollars from union workers. That’s a bad trend line!
James W. Cahill, a powerful and politically well-connected union leader, was indicted on racketeering and fraud charges. Federal prosecutors allege that he and others accepted bribes to aid companies that had hired nonunion labor. So the charges include accepting under the table money to work against your own members. But we are supposed to believe that the union is working to help union workers.
Chuck Stiles, the Director of the Teamsters Solid Waste and Recycling Division, has allegedly been taking large annual payouts of $65,000 for a “phantom job” on top of his $150,000 annual salary. These allegationsdon’t come from some union-hating critic, they come from an active member of the Teamsters Union. On top of that, there are allegations that Stiles’s son has also received a difficult-to-explain $10,000 payout from union funds.
This sort of double self-dealing, if true, is very troubling and it raises the question — are these unions really representing their members or are they simply pretending to, and then enriching themselves while carrying on the charade.
The cynicism doesn’t end with corrupt payments or self-dealing. For example, Stiles has decided to try to leverage the Black Lives Matter (BLM) movement to increase support for the struggling labor movement. Yet the labor movement has not historically been the friend of racial minorities. And Stiles has no history of supporting minority candidates or causes. Interestingly, a public photo of Stiles in blackface has also recently emerged. So the idea that Stiles has some deep commitment to helping blacks or other minorities is a little hard to swallow. It is a fair question to ask — how serious and how sincere is this newfound interest in minorities and their economic welfare?
More than five million manufacturing jobs disappeared from the American economy between 1999 and 2011. The exodus of good paying jobs continued through 2016. China was the single biggest factor. This massive jobs exodus harmed working-class blacks, yet BLM has been silent on China and refused to support policies that would reverse our economic losses to the Communist Country. Instead, they’ve focused on odd conspiracy theories about obesity and diabetes in the black community — as if that has been more consequential to black employment and poverty than jobs being exported abroad.
Given all that has transpired, when BLM and unions claim to be teaming up to protect and promote the interests of working-class blacks, a huge dose of realism is needed. Who actually benefits when unions “team up” with BLM but they both refuse to actually do what is needed to promote good paying manufacturing and other skilled labor jobs? It won’t be minority workers.
Someone who claims they support workers, must point to how they’ve helped make real improvements in the lives of workers — more jobs, higher wages, etc. This is not the track record of unions or BLM in the past two decades. They have done a good job of enriching themselves and raising money and obtaining political power for themselves. But where is the evidence that they have done anything for the average American worker — black or white? And why haven’t they supported policies that have actually worked and benefited American workers — and particularly minority workers?
These questions answer themselves. Both unions and BLM do more posturing than actual good, and they are teaming up hoping to hide this inescapable truth so that they can continue to prosper while feigning concern for those they claim to represent.
Author: Dr. Miklos K. Radvanyi
On January 15, 2020, a man of Chinese descent and a U.S. resident in his 30’s, arrived in Seattle from Wuhan. When asked about his contacts in China, he clearly lied to the authorities, as the Chinese Communist Party did to the rest of the world about COVID-19 cases throughout the People’s Republic of China. This deliberate act of President Xi and his despotic party unleashed global suffering and devastation across the globe. Explore the historical constructs and political climate affecting recovery from the Novel Coronavirus, both worldwide and in the United States of America.
How much is enough? It’s a question America is going to have to answer, and soon, lest the need for additional COVID relief packages overwhelm the nation’s ability to pay for them. The national debt, which was close to a single year’s gross domestic product when Donald J. Trump came into office four years ago, has more than doubled, thanks in no small part to efforts to alleviate the impact of the economic lockdown used to prevent the disease from spreading.
As the numbers show, it didn’t work. The states with some of the most severe restrictions on commercial activity, like California and New York, continue to lead the rest of the states in deaths per capita and new infections. It’s almost as if the wearing of masks, the requirements that people stay six feet apart from one another and not venture out into public and the closures of small businesses like restaurants and churches have done almost nothing to keep COVID-19 from spreading.
There are more than a few commentators who’ve been bold enough to suggest that outright. It’s going to take a lot more study of the data to determine if they’re right but what we now know is sufficient to suggest there’s more truth to these presumptions than many of the so-called experts driving the national dialogue are willing to entertain may be the case.
All that is for later. What matters now is whether the latest COVID-19 package is enough or, as President Donald J. Trump, House Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer believe, if the American people need another round of so-called stimulus checks from Washington to make it though.
They don’t—and Senate Majority Leader Mitch McConnell was right when he stopped the bill to do just that from moving forward. If he erred, and it is not clear he did, it was in offering his own version of the bill that, along with the $2000 checks would eliminate a provision of federal telecommunications law that conservatives say allows major platforms like Twitter and Facebook to censor posts with impunity and establish a federal commission to make recommendations to combat voter fraud.
The Democrats could never vote for such a measure—big tech has invested too much in the party’s electoral success for them to sign on—so offering it as an alternative is a crafty way for McConnell to kill the so-called stimulus while making it look like the fault of Schumer and company, not the GOP. Some of his partisan colleagues up for reelection in 2022 may need the political cover his effort provides but, in all honesty, he should have stood his ground and just said “no.”
It’s not that the money would go to families that don’t need it. The economics of the distribution algorithm would allow families making several hundreds of thousands a year declared eligible to receive a check, perhaps for more than $2000 depending on marital status and number of dependents. They don’t need it but—as both Sen. Schumer and Speaker Pelosi have many constituents among the caviar-consuming, designer-ice-cream-eating, Louis Vuitton-carrying crowd who would qualify, it’s little surprise they’re on board. They probably also appreciate the optics associated with seeming like Santa Claus while McConnell comes across as Scrooge.
Except McConnell isn’t, at least not as far as the economics are concerned. A one-time payment of $2000 may help some families clear some debts but it won’t do anything to get the economy going. What we know from the available data is that the open states, most of them red states, are doing better than the mostly blue states where the lockdowns continue.
If the lockdowns aren’t doing much to mitigate the impact of COVID, if the disease is still mostly passed from person to person in home and family settings, and if most all the people who die from it would have shortly died from something else—all things much of the available data show are true—then the best stimulus the economy could have would be for the shuttered states to reopen so everyone could go back to work.
If stopping the checks means more people clamoring for a return to normalcy, then McConnell has done the nation a great service. Larry Summers, the liberal economist who served as Bill Clinton‘s treasury secretary and director of Barack Obama‘s National Economic Council has said: “There is no good economic argument” for universal checks. The economy is roaring back, in fits and starts, with third-quarter 2020 growth at a never-before-seen 33 percent, adjusted on an annualized basis. The checks Trump, Pelosi and Schumer want can’t improve on that. They can put our children and grandchildren deeper into debt than they already are.
McConnell should maintain his hard “no.” As Ronald Reagan said, “The best welfare program is a job” which, expanded out, means the best form of stimulus—and what we need right now—is to let the American people get back to work, not subsidize their continuing to stay home.
California businesses are leaving the state in droves. In just 2018 and 2019—economic boom years—765 commercial facilities left California. This exodus doesn’t count Charles Schwab’s announcement to leave San Francisco next year. Nor does it include the 13,000 estimated businesses to have left between 2009 and 2016.
The reason? Economics, plain and simple. California is too expensive, and its taxes and regulations are too high. The Tax Foundation ranks California 48th in terms of business climate. California is also ranked 48th in terms of regulatory burdens. And California’s cost of living is 50 percent higher than the national average.
These statistics show why California’s business and living climate have become so challenging. But the frustrations that California entrepreneurs face every day present a different way of understanding their relocation decisions.
Erica Douglas, a young tech entrepreneur, moved her company, Whoosh Traffic, from San Diego to Austin, Texas, a few years ago. Here is what she had to say:
“I’m leaving you. I’ve struggled with a government that is notoriously business-unfriendly—with everything from high taxes on earning to badgering businesses to work more to comply with bureaucracy. I paid enough in California income tax in one year alone to hire another worker for my business. And you charge me $800 annually as a corporation fee, when most states charge just a few dollars.”
Not surprisingly, California businesses tend to relocate from the counties with the highest taxes, highest regulatory burdens, and most expensive real estate, such as San Francisco, and they tend to relocate to states where it is easier to prosper. Texas imposes just a 0.75% franchise tax on business margins, compared to California’s 8.85% corporate tax. As if this large difference weren’t enough of an incentive to leave, the city of San Francisco imposes a 0.38% payroll tax, and a 0.6% gross-receipts tax on financial service companies. Yes, if your business is in San Francisco, not only are your profits taxed by the state, but your payroll and your output are taxed as well. Not to mention that Texas has no individual income tax, compared to California’s current top rate of 13.3%, which may rise to 16.3% soon, and which would apply retroactively.
Speaking of California entrepreneurs leaving the state, there is Paul Petrovich. If you live near Sacramento, chances are your life has been made easier by Paul. He is a major commercial real estate developer whose projects include facilities involving Costco, Target, Walmart, McDonalds, Wells Fargo, and Verizon, among other major firms. But Petrovich has announced he will soon be leaving. For . . . drumroll please . . . Texas.
You see, California is discussing a wealth tax that may hit Petrovich. Known as AB 2088, lawmakers are so proud of this 0.4% tax on wealth that they proudly market it as “establishing a first-in-nation net-worth tax” that “will generate $7.5 billion in revenue.” Complicated as all get-out, it involves not just financial assets but real estate, farmland, offshore holdings, pensions, art, antiques, and other collectibles. Europe tried taxing wealth, and it has failed, leading almost all countries to abandon it. And the idea that it will generate $7.5 billion in revenue is laughable, though it will create additional income for tax attorneys and CPAs. The state also intends to make this law follow you for up to a decade should you leave. Clever politicians? Maybe, but just how will they convince other states to cooperate once you relocate? Not to mention whether this future provision is constitutional.
I am surprised that Petrovich stayed in California so long. As a developer specializing in developing infill projects, meaning developing unutilized or underutilized land, he has been involved in many lawsuits challenging his right to develop.
One has involved a mixed-use development project that includes a Safeway supermarket, senior living, shopping, and a gas station on a site of a former railway station, polluted and abandoned. What is not to like? For the city council, it is the gas station.
Petrovich has been involved in a legal battle over this project since 2003. All over a gas station. Twenty lawsuits and over $2 million in legal fees later, Petrovich appears to be winning, and winning against a city council that broke the law.
A state appeals court recently ruled that the Sacramento City Council denied Petrovich a fair hearing several years ago by acting in a biased manner. Sacramento Superior Court judge Michael Kenny wrote that one councilman demonstrated “an unacceptable probability of actual bias” and failed to have an open mind. The court found that the councilman was trying to round up votes against the gas station before it came before a hearing. Rather than accepting this ruling, the city council will appeal. They appear to be doubling down not only on bad behavior but on wasting resources as well .
Readers often ask me how California politicians have changed over time. An important and often overlooked factor is that politicians now have personal agendas that they aim to impose on other Californians, often without transparency or accountability. This is what is going on now with Petrovich, and is what is going on with AB 5, the new law that prevents many Californians from working as independent contractors that began on January 1. Voters must begin to hold politicians accountable for this if California is ever able to reform.
Mr. Petrovich, if you leave, I will be sorry to see you go. Your developments made life much easier and more prosperous for thousands. Thanks for your service. Your potential departure will be a loss for all of us.
Some people, even some very prominent economists like Nobel Prize winner Paul Krugman simply cannot get their heads around the idea that letting people keep more of what they earn is the best kind of economic stimulus there is. Instead, despite years of hard data proving otherwise, they still maintain more spending by the government is what greases the wheels and keeps the economy running.
This is nonsense. The tax cuts of the 1920s, the 1960s, and the 1980s were all followed by periods of remarkable growth in the U.S. economy. The spending binges pushed by FDR, by Richard Nixon, and among others, Barack Obama did little to fuel the engine of productivity or raise living standards.
The latest experiment, if it need be called that, was the Tax Cuts and Jobs Act proposed by a Republican-led Congress and signed into law three years ago by President Donald Trump. Progressives derided the legislation as “welfare for the rich” that would see the “poor get poorer.”
The progressives were wrong. After the TCJA became law, optimism among Main Street business leaders reached an all-time high in the third quarter of 2018 while the unemployment rate reached a generational low. Before the implementation of lockdowns as a mostly Blue Strategy for combating the novel coronavirus, the economy added 5 million jobs while unemployment among women, people of color, and workers without high school degrees reached record lows.
Thanks to the reworking of the tax code by the TCJA, American business started to put money into itself again. Core investments in equipment and other business necessities reversed its five-year downward Obama-era trend, shooting back up, adding to productivity, and raising workers’ wages. And, most distasteful of all to liberals whose economic policies are all about spending your money like it was theirs, federal revenues reached an all-time high because more Americans were working for bigger paychecks in businesses that were expanding.
This is what Joe Biden has promised America he’s going to undo. That’s the practical effect of his promise to “repeal the Trump tax cuts” which, in his mind only benefited the ultra-rich like him. He and his party win votes by exploiting the resentments that exist in America between those who are well off and who work hard and those who don’t. House Speaker Nancy Pelosi, D-Calif., may think the $600 per person being doled out in the latest COVID-19 relief bill will stimulate the economy – but that will be hard to do while other benefits provide a disincentive for people to go back to work in the places they can. Believe it or not, there was a hiring crisis in the Red States once their economies got moving again during the pandemic because some folks decided, rationally enough, they’d rather stay home and collect unemployment plus rather than go back to work.
They – and Biden and his incoming team of economic advisers – don’t know what they missed. Figures released by the Federal Reserve show low- and middle-class families saw large gains in wealth growth in 2018 and 2019. Low-income families saw their net worth increase 37 percent while middle-class families saw their net worth increase 40 percent.
Figures supplied by the House Ways and Means Committee show household income reached new highs as real median U.S. household income in 2019 rose nearly 50 percent more than during the eight years Barack Obama was president. Median household incomes increased 7.1 percent for Hispanics, 7.9 percent for Blacks, 10.6 percent for Asian Americans, and 8.5 percent for foreign-born workers while wages for minorities and women and young people grew at a faster pace than they did over Obama’s second term.
The Tax Cuts and Jobs Act worked, so well in fact it established the foundation for what should be – and looked like it was going to be a rapid recovery from the pandemic lockdowns. Instead, we have Joe Biden hinting that higher taxes, new taxes, carbon taxes, and other taxes are coming even if – as he unbelievably promises – families making less than $400,000 a year won’t pay a single dime more.
It’s sad really. With all the evidence showing Jack Kemp and Ronald Reagan were right, that a rising tide does lift all boats, Biden would rather pursue policies that play to the rhetoric of classically socialist class envy while ignoring the need to create an environment in which opportunities exist for those who most need them
Will China’s negligence unleashing the coronavirus and mendacity exploiting it catalyze a reckoning with the PRC, comparable in significance to the Czech Coup of 1948? And will it crystallize long-term American determination to contest China’s scheme to supplant the United States as the world’s preeminent power? Or will China ultimately emerge as the winner from the devastation it has wrought because of a deficit of strategic and moral clarity within the United States and among our allies?
The answer to these questions depends considerably on the policies adopted by the next president. Start with the good news. Negative views of China have soared to a record high of 73 percent of Americans, according to a Pew Foundation Poll released in late July 20201. Chinese behavior during and since the coronavirus also has elicited strong negative reactions across the Indo-Pacific, especially in Japan, India, and Australia, where views of China’s ambitions and behavior already trended strongly in a negative direction. Even in Western Europe, long committed to engaging and conciliating rather than confronting China, COVID-19 has generated an anti-China backlash, more muted on the continent but stronger in Britain where British Prime Minister Boris Johnson joined President Trump in imposing a complete ban on Chinese 5G vendor Huawei.
Even so, this contingent good news might prove ephemeral rather than enduring if the United States and our allies should waver in the reckoning with China that President Trump deserves credit for initiating. The reelection of President Trump would have offered the best practicable option for building and intensifying the Administration’s first term strategy of contesting China comprehensively and vigorously—a vital condition for bolstering deterrence, or defeating China at the lowest possible cost and risk should deterrence fail. Unlike his predecessor––who “welcomed China’s rise,” who significantly shrank American defense spending while China armed prodigiously, and whose national security statements of 2010 and 2015 omitted naming China or any other great power as an adversary––the Trump Administration designated China from the outset as our number one adversary. The President has not only increased the American defense budget substantially, but invested in threshold technologies such as strategic defense and created an independent Space Force. The President has pushed back hard against China’s implacable economic warfare against us on trade and intellectual property that his predecessors rationalized away. The President’s economic policies before COVID-19 intervened had generated prodigious economic growth on which American military preeminence depends. Trump began, too, the long overdue decoupling of the U.S. economy from China’s, the imperative of which our inordinate dependence on China for essentials such as antibiotics exposed in high relief during this pandemic. President Trump strengthened relationships with a decent democratic India and Japan, vital, value-based allies who share our strategic priorities and alarm about the trajectory of China’s policies at home and abroad—relationships his predecessor, with the support of Vice President Biden, allowed to languish while courting China and other adversaries.
Trump’s recalibration of our China policy that COVID-19 has broadened, deepened, and accelerated is a good start, but only the end of the beginning of what is necessary for the United States and our allies to prevail. For all the considerable merits of President Trump’s approach towards China, the President would enhance the effectiveness of his policies by doing some recalibrating as well. The President’s rhetoric has undervalued the importance of American ideals as well as self-interest in identifying friends, foes, threats, and opportunities. Many Americans who are increasingly alarmed by China rightly advocate calling out China with no pale pastels on human rights, stressing the tyrannical nature of the Chinese regime, while championing the importance of a value-based alliance system of fellow democracies in the Indo-Pacific, grounded firmly in geopolitics. The President’s spokesmen—particularly Secretary of State Pompeo and Vice President Pence—have done much better articulating this dimension of the contest with China than the President, whose actual policies on this and many other issues are often better than he makes them sound. A greater emphasis on human right also may elicit greater support for sterner policies towards China from our Western European allies, where resolve—especially in Germany—is fragile at best even now with disillusionment with China running much higher than usual.
A second term Trump presidency also would run the risk of undermining the significant progress the Administration achieved in the first term if the President decided to settle for a deal rather than staying the course. This temptation is not only organic to President Trump’s nature, but would loom large for whoever became president because of the huge budgetary deficits that COVID-19 has compounded. President Trump’s salutary hectoring our allies to do more—yielding impressive results in Europe his predecessor failed to match—also ran the risk of reaching a culminating point counterproductive to forging a muscular strategic consensus that actively counters China’s ambitions.
With President Trump’s defeat, the odds diminish that China loses more than it gains by unleashing and exploiting COVID-19. Granted, the most recent Pew Foundation Poll found that many Democrats as well as even more Republicans advocate tougher policies on toward China on human rights and trade. An increasing number of prominent Democrats have become rhetorically more willing to criticize rather than conciliate China. Even so, President-elect Biden has a long record of advocating engagement with China while downplaying the idea that the PRC has become a serious strategic rival. The leftward lurch of the current Democratic Party also does inspire confident that a Biden Administration will follow through on President Trump’s policy of robust resistance towards China’s predatory behavior. On the contrary, Senator Biden had moved steadily in a more dovish direction on national security even before becoming President Obama’s Vice President and cheerleading for Obama’s Dangerous Doctrine President Trump has repudiated in its entirety. Neither Biden nor his surrogates said much of anything about China at the Democratic convention despite the urgency of addressing the paramount national security threat of our time.
Will a Democratic Party reluctant to condemn the breakdown of law and order in a growing number of municipalities its leaders have governed for decades—a party seriously considering deep cuts in law enforcement amidst the mayhem—pursue the types of muscular national security strategies essential for credibly reassuring our terrified real and prospective allies in the Indo-Pacific that it is safer to stand up to China rather than to capitulate? Will a party committed to a vast expansion of government domestically—with deficits cascading, taxes poised steeply to increase if President Biden has his way—have the resources much less the inclination to spend enough on defense to counter China’s relentless military buildup aimed at driving the United States out of the Western Pacific? Will a Biden Administration also designate China’s grandiose ambitions and predatory behavior as danger number one? Or will the President-elect and his party revert instead to the default position of President Trump’s predecessor, who considered climate change the paramount gathering danger, envisaging China as a partner in fighting it?
Concluding with an optimistic plausible caveat about the consequences of a Biden victory for our struggle with China, history furnishes ample examples of policies confounding expectations. Recall the Truman Administration’s decision to resist North Korea’s June 1950 attack on South Korea just six months after Secretary of State Dean Acheson seemed to exclude South Korea as a vital interest in his speech to the Washington Press Club in January 1950. Recall, the strategic metamorphosis of heretofore isolationist Senator Arthur Vandenberg of Michigan into a stalwart supporter of President Truman’s policy of vigilant containment. In the immortal words of the Beach Boys, “Wouldn’t It Be Nice” if a Biden Presidency underwent a similar metamorphosis in this direction. It would be a triumph of hope over experience, however, to count on it. This version of the Democratic party has purged itself of all vestiges of the Truman/Scoop Jackson tradition of muscular Cold War liberalism congenial to the President’s hawkishness on China. The party’s political banishment of Former Senator Joseph Lieberman—the last of the Cold War Democrats—sadly attests to that.
May a Biden Presidency, too, be better than it sounds. Otherwise, the COVID-19 pandemic may turn out to be a strange and stinging defeat for the United States instead of a defeat for its perpetrator.
Despite the grim economic news, the V-shaped economic recovery President Donald Trump has talked about may soon be a reality.
The news that several novel coronavirus vaccines will soon be available may allow the lockdowns to end. If all goes as planned, Operation Warp Speed could lead to the nation recovering lost economic ground in months rather than years, even if the number of cases continues to rise.
Retailers across the country are contributing to Operation Warp Speed by ordering freezers, thermometers, and the additional medical gear needed to administer vaccines once they’re available. It makes sense. Since grocers and pharmacies offer flu shots, their support in delivering the vaccine is crucial given their thousands of locations in every city and county in the nation.
These public-private partnerships in Operation Warp Speed not only show we can beat this pandemic, but also highlight the benefits when America’s private sector steps up.
Over the last 10 months, retailers have taken the lead, offering “hero pay,” additional bonuses, and greater safety measures to keep their employees and customers safe. Their story is just one of many waiting to be told once all of this is behind us. But that’s not the only way this one segment of American business is stepping up to address the nation’s critical problems.
Employees from Albertsons, Kroger, and Ahold recently ratified agreements with 27 local unions to withdraw from a union multi-employer pension fund circling the drain and join the newly formed UFCW and Employer’s Variable Annuity Pension Plan. This change includes investments of nearly $2 billion from these companies that will improve the security and stability of future benefits for employees and modernize retirement benefits.
The issue of pension reform has been before Congress for some time, but it’s been stuck. If the nation’s pension plans fail in any significant way, with far too many of them currently underfunded, the required bailout that would follow would imperil any recovery, as well as long-term future prosperity.
What has just been accomplished is great news for all involved. Millions of workers in other pension plans may not be so lucky. Rather than bicker over the best way back to a pre-COVID economy, policymakers ought to be focusing on the pitfalls ahead. Many of them, like the need to reform the pension system, are not hard to spot.
Pension reform has long been an issue that elected officials on both sides of the aisle have recognized and have attempted to address but that never went far enough. For example, there are about 1,400 pension funds that are, according to the federal Pension Benefits Guaranty Corporation “collectively bargained plan(s) maintained by more than one employer, usually within the same or related industries, and a labor union” that are potentially in trouble.
Policymakers must take a balanced approached to the issue of troubled multi-employer pension funds that provide participants with the retirement income they depend on while not placing undue burdens on the employers who participate in them. A solution must be found soon to protect the 10 million or so workers millions enrolled in employed by manufacturers and retailers and mining and shipping concerns to prevent them from having their benefits reduced significantly or cut entirely.
The PBGC’s safety net for pension funds that default is shrinking. Insolvency may come as soon as 2025 as more and more multi-employer plans face financial challenges and member companies fail or enter bankruptcy. Many of these companies have been hit hard by the coronavirus lockdowns and been unable to keep up their contributions.
Companies like Albertsons, Kroger, and Ahold did not wait for government incentives to make the switch. They moved ahead because it’s the right thing for workers and that’s good for the corporate bottom line. Other companies and industries will hopefully follow suit because it’s good for workers, good for taxpayers, and great for America.
If Operation Warp Speed is to be deemed a success in the months ahead, it will be thanks not only to the pharmaceutical companies who created the vaccines but to the retailers who distributed and vaccinated Americans at record rates. Should our recovering economy continue its current trend, we will prevail because private companies invested their profits and resources to make it happen.
As of Sunday, most Californians are under strict stay-at-home orders. Gov. Gavin Newsom’s (D) lockdown shutters businesses, bars and cultural centers; makes restaurants takeout-only; and sends religious services outdoors. Gatherings with people in other households are banned — through Christmas.
That’s a lot for authorities to ask — especially when they appear so out of touch with the people they’re trying to govern.
Many residents are furious over being asked to make sacrifices that state and local officials themselves won’t. Newsom is by now notorious for his minimum $350-a-plate meal at the ultra-elite French Laundry in violation of his own guidance to Californians, exacerbated by his lieclaiming the meal followed outdoor distancing policies.
The mayor of San Francisco, London Breed, had her own coronavirus-noncompliant dinner at the same tony venue. Los Angeles County Supervisor Sheila Kuehl was spotted dining alfresco at an Italian restaurant in Santa Monica not long after voting to ban outdoor dining for her 12 million fellow Angelenos. San Jose’s mayor had to apologize after traveling to his parents’ house for a Thanksgiving dinner in violation of state requirements. When five state lawmakers were busteddining out in Sacramento this week by a reporter, one asked, “Can we not have dinner?” before pulling his mask out of his pocket.
Why are these officials so flagrantly violating rules they expect their own voters to follow? Is it arrogance? Delusion? Indifference? All of the above?
Perhaps. But I have another theory: The tone-deafness is what comes from living in a bubble where political competition is scant. In California, Democratic voters outnumber Republicans nearly 2-1. Only two Republicans have won statewide office since 2000. Newsom, Breed and Kuehl received 62 percent, 71 percent and 76 percent of the vote, respectively, in their last races.
In other words, it is precisely because California is so heavily Democratic that Democratic officials don’t feel the need to be responsive to their constituents. But there is mounting evidence that even in this one-party state, voters are no longer unquestioningly swallowing what their leadership is feeding them.
In the case of the pandemic crackdown, residents are mounting resistance to lawmakers’ hypocrisy. One county plans to challenge Newsom’s covid-19 policies in court. Cities are exploring forming their own public health departments to avoid county-level restrictions. Sheriffs are refusing to enforce state curfews. Business owners are planning open rebellion.
This year’s ballot initiatives, too, should raise alarms, as measures that Democratic tail winds should ordinarily have swept to victory instead went down to surprising defeat. One was Proposition 15, which sought to hike commercial property taxes, ostensibly to fund public schools (the state’s teachers’ union spent $20 million trying to push the measure through). Proposition 16, meanwhile, would have reinstated the use of affirmative action in California public university admissions and public sector hiring.
Both measures enjoyed overwhelming support from progressive activists, state Democratic elected officials and Newsom. And both should have benefited from anti-Trump turnout. But Prop. 15 received nearly 2.9 million fewer votes statewide than President-elect Joe Biden did. Prop. 16 trailed Biden by almost 3.9 million votes.
Newsom and state Democratic leaders were also embarrassed by Proposition 22. In September 2019, Assembly Bill 5 — a law mandating that companies treat “gig workers,” such as Uber and Lyft drivers, like full-time employees — passed easily in the overwhelmingly Democratic state legislature, with a 29-11 vote in the state Senate and a 61-16 vote in the Assembly. The measure was eagerly signed into law by Newsom. Then Prop. 22 took the matter to voters, who decisively rejected their Democratic overlords — 59 percent to 41 percent.
These measures failed, in part, because their Democratic champions were clueless about where voters actually were on the issues. Prop. 15, for example, rested its hopes on an ambitious media blitz featuring teachers railing against corporate loopholes that allegedly deny schools deserved money. But at a time when shuttered schools and substandard virtual learning are shortchanging millions of California kids, was a plea for sympathy for teachers’ unions a wise tactic?
These rebukes point to an unsettling phenomenon. Because relatively little is demanded of them, California’s elected leaders have an easy time getting elected, but haven’t yet mastered the part that comes after — leading.
Newsom, for example, was nurtured, educated and sent up the political ladder in a deep-blue range from Marin County to the southern end of Silicon Valley — coasting from one Democratic-friendly post to another, never having to develop shrewd professional and personal judgment. He and his fellow state and local lawmakers apparently still need to master the arts of convincing and persuading, of finding the right policies that appeal to broad coalitions, of being the role models they expect voters to follow.
In a few months, the embarrassments of failed ballot propositions will probably have faded. But in the case of the covid-19 resistance, Democratic officials’ alienation from their voters could prove deadly. If there’s a silver lining to the crisis, maybe it will be that it finally prompts complacent politicians such as Newsom to look beyond their own whims to what their voters actually want and need.
According to recent news reports, Senator Lisa Murkowski (R-AK) and Senator Joe Manchin (D-WV) are pushing for a far reaching energy bill that is shockingly similar to the New Green Deal to be shoe-horned into the “must-pass” government funding bill that is being negotiated during the remaining days of the lame duck legislative session.
Frontiers of Freedom President George Landrith said:
The Manchin-Murkowski energy bill is a horrible piece of energy legislation that would endanger America’s energy independence, increase costs to consumers, kill jobs, and is effectively the Green New Deal light. If the bill were a piece of stand alone legislation, it would be entirely worthy of outright defeat which is precisely why the Senators are trying to attach it to “must-pass government funding” legislation where there would be no real opportunity to review and debate the far reaching consequences of the bill.
This energy bill includes language lifted from the Green New Deal that would commit our nation to very costly and even highly impractical regulations that would restrict energy choices to either 100 percent renewable sources or zero emission sources. This 100% provision as a “Sense of Congress” is dangerous because it would give future Energy Department bureaucrats a blank check from Congress to impose virtually any energy regulations that suit their fancy. This is not government accountability — it is the precise opposite.
While innovation and the marketplace will continue to find cleaner and cleaner ways to provide consumers and our economy with needed energy, government regulations that attempt to force the issue will compel us into high cost solutions and do far more harm than good.
Even if one thinks that some of the ideas contained in this energy bill deserve consideration, this “slight of hand” procedural move should be universally opposed because it will rush us into radically different direction with virtually no debate or discussion. The economic costs and the job creation costs are obvious. But even national security and foreign policy could be impacted.
Making America less energy independent or forcing energy shortages on America does not make us more secure or help us keep aggressive adversaries like China or Russia at bay. To be blunt, China and Russia have to be cheering this effort. They would be its biggest beneficiary. It is the equivalent of the United States voluntarily shooting holes in our Olympic runners’ feet just before the start of their race.
Major shifts in important public policy that will have significant economic and even national security implications deserve full consideration and should not employ procedural chicanery to help them pass in the dark of night with no significant discussion, review or debate.
Senators Murkowski (R-AK) and Manchin (D-WV) both have a reputation for being moderate — politically speaking — but there is nothing moderate about their energy proposal. Its impact will harm America economically, reduce job growth at a time we desperately need more jobs, and increase consumer costs to Americans already struggling to make ends meet. On the international front, our adversaries in China and Russia and around the globe have to be cheering this effort.
The fact that the bill may contain some worthwhile reforms or provisions is largely irrelevant and cannot be a reason for supporting it. Let’s be honest, if you were offered a piece of cake that was made with only 5% poison, you would wisely decline and toss it in the trash. This bill is more than 5% poison and should be discarded with enthusiasm.
We urge Senators to opposed this move to radically change American energy policy in the dark of night and without serious debate and review. This is a bad energy bill. But the idea of passing it in a procedural move that hides it from the American public is truly sinister. Any Senator supporting this effort is unworthy of their office.
Ever since being declared president-elect, Joe Biden has been playing it cool. He’s refused to engage with President Donald J. Trump’s allegation that the outcome of the election turned on voter fraud. He’s left that job to surrogates while he focuses on building his White House staff, making key appointments and projecting the image that his approach to the office will be a calm and moderate one.
Now we know why. Thanks to leaks coming out of an online meeting held Tuesday with leaders of left-wing African-American groups, he’s afraid that a premature announcement of his progressive intentions would cost the Democrats any chance they have of winning the January 5 Georgia runoff elections that will determine which party controls the United States Senate for the next two years.
Biden warned, according to The Intercept, that “civil rights leaders that [put] pressure on the incoming administration around police reform could hurt the party’s chances in the Georgia Senate runoffs, claiming that the Republicans’ ability to define that party as in favor of defunding the police is ‘how they beat the living hell out of us across the country.'”
The former vice president told those on the call he’d prefer to wait, urging that no one be inclined to “get too far ahead of ourselves,” an observation he later tempered by reminding those he was addressing that, wrote The Intercept, “his commitment to police reform was unwavering.
So he’s got a plan, he just doesn’t want anyone outside his immediate circle to know just yet what it is—least of all voters in Georgia who, one presumes, might be inclined to vote against candidates who favor federal interference in local policing that leaves them less safe.
If that’s how things are inside Camp Biden, then the Democrats should be grateful the media and the public are still focused on Trump’s campaign to win in the courts and in the state legislatures what he was apparently denied by the voters. It’s a distraction that’s keeping anyone from asking what Biden might have up his sleeve that he can’t get through Congress unless Mitch McConnell is no longer the Senate majority leader.
Does Biden plan to offer a tax on carbon emissions that would drive up the price of gas at the pump and double or perhaps triple what Americans pay to heat and cool their homes? His national security team is committed to getting the U.S. back into the Paris climate accord—even though the United States has met, even exceeded the targets it set—while Janet Yellen, whom Biden wants as treasury secretary, is on record as favoring such levies.
What does Biden have planned that will satisfy the pro-abortion-rights activists and anti-gun people in his party’s coalition? He hasn’t said much, even about the things he’ll do on day one of his presidency. Is that because residents of Georgia, which is generally a conservative state, might react badly to his promised program, or because he doesn’t yet know—after almost 40 years in the Senate and eight years as vice president—what he’d like to do?
And more importantly, why is no one asking?
The stakes are clear. As Saul Anuzis, the former Michigan Republican Party chairman who now runs the conservative 60 Plus Association, told me, “Without Georgia, conservatives are at risk of losing everything they gained under Trump.” The list of things Biden has his eye on, as the former vice president said in Tuesday’s meeting, is long. He also faces the policies put in place over the last four years by executive orders which, he says, he’ll repeal.
That means a lot. “Conservatives shouldn’t underestimate the damage a politically motivated progressive left wing could do when the country is this polarized,” Anuzis said. “The outcome of the Georgia Senate races could determine the direction of this country for a generation to come.”
Team Biden knows this. It’s why it’s keeping quiet about so many things. But that strategy is dishonest. Biden has an agenda in mind, and he should be telling the American people what it is. Except he doesn’t want to be on the ballot on January 5 any more than he wanted to be on the ballot on November 3. He wanted the voters thinking only about whether they wanted four more years of Donald Trump.
One can argue he got his wish, that the presidential election was a referendum on the past four years rather than the next four. Biden wants voters thinking the same thing as they go to the polls in Georgia next month. But he can’t hide in his basement forever.
By Red State•
While the rest of the country enjoyed their Thanksgiving dinners and began their Christmas shopping, the big brass at Google had a lot to think and worry about over the long weekend.
You may recall that earlier this year, Google was the recipient of a bipartisan grilling in Congress over its predatory business practices. The big tech goliath was unable to offer up even a semblance of a convincing defense, leading some to speculate that an antitrust bust-up was awaiting on the horizon.
Over the past few months, those rumblings have turned into reality.
First, in October, the Department of Justice announced a formal antitrust lawsuit, putting the full weight of the federal government on Google’s neck. Then, last week — just two days before Thanksgiving — a bipartisan coalition of state attorneys general announced plans for a second lawsuit, which may come this month (a third antitrust suit spearheaded by Texas is also in the works). It is very likely that by next summer, every state and federal division of the judicial branch will be pursuing the breakup of the search engine giant.
But it may be the Supreme Court, traditionally the final stop on legal journeys, that strikes the first blow.
Observers may recall that back in October, the Supreme Court heard oral arguments in a copyright infringement case regarding the shady origins of Google’s Android software. The lawsuit’s gist is that Oracle claims Google sticky-fingered Java source code developed by its subsidiary, Sun Microsystems, to build up Android OS — a multi-billion-dollar revenue generator that runs on millions of smartphones.
Consider some of the most damning details.
According to the lawsuit, Google stole what it refused to buy after Sun offered Google a three-year license to use its code. The deal would have cost Google $100 million. Google decided that, as Woody Woodpecker used to say, free was a much better price.
This is an interesting argument. If Google initially sought permission to use Sun’s code, it implies that Google knew perfectly well the code wasn’t just theirs to take. One doesn’t ask permission to use the public sidewalk. One does ask permission to borrow the neighbor’s car — and if the borrower takes it for a drive without permission, everyone understands what that is.
The Supreme Court appears to understand this point very well, which doesn’t look good for Google.
As Justice Brett Kavanaugh put it: “You’re not allowed to copy a song just because it’s the only way to express that (particular) song.” In other words, the fact that Stairway to Heaven by Led Zeppelin is the only song that sounds like Stairway to Heaven doesn’t mean that people who didn’t write it have a right to record it and sell it just because they like the way it sounds.
If they did so, everyone would understand a theft had occurred, and the thief would be held accountable.
Justice Neil Gorsuch made the point that the existence of one avenue, however popular it may be, doesn’t prevent creators from finding new ones. The fact the Led Zeppelin wrote Stairway to Heaven and made a lot of money selling albums in no way prevented Stone Temple Pilots from writing Plush and selling lots of albums of their own.
Gorsuch’s reasoning explains why other mobile operators managed to create their products without using Java at all. Java wasn’t the only way into town, so to speak, as Google claims; the tech giant just refused to find a new path.
While we likely won’t know the official decision until the summer, Google is likely sweating bullets.
It’s one of the wealthiest companies in history, but it’s facing an unprecedented level of legal pressure due to two decades of bad behavior. From the outside looking in, it appears the courts are circling the wagons.
Consumers need not worry. None of the services Google provides are irreplaceable innovations or at threat of disappearing in the case of a breakup. It’s even possible that, with the market’s largest digital predator subdued, a breakup would lead to a flurry of new digital services.
The only people who have to worry are Google shareholders and employees. They’re looking at legal cases and potentially billions in losses. Those prospects would dampen anyone’s holiday season.
After seven months, California’s one-hundred-plus-member economic recovery task force has finished its recovery recommendation report. What could have been a game-changing opportunity to reduce the state’s high cost of living, increase efficiency in bureaucracies, and reform tax and regulatory policies never got off the ground.
Just 23 pages long, you will be hard-pressed to find substantive economic recommendations, much less any major new ideas, in a report that somehow took seven months to write. The COVID recovery task force was ingenious political theater to show that the state’s major business leaders, including Apple CEO Tim Cook and Disney CEO Bob Iger, were professing buy-in to Governor Gavin Newsom’s economic shutdown. This was never about reforming state economic policies that are among the worst in the country. It was about providing broad-based political cover.
With more than one hundred members appointed by Newsom, you knew that nothing important would ever be accomplished. Granted, the unique problems of COVID meant the task force would include representation from several economic sectors, but creating a committee of over one hundred could have been straight out of the CIA’s 1944 “Simple Sabotage Field Manual,”which recommends creating as large of a committee as possible to ensure that nothing happens.
Labor unions garnered the most task force representation, with 14 members, including two from the politically important Service Employees International Union. And even though the pandemic is a public health problem, the task force included only a handful of members from the health care industry, broadly defined.
The report opens with a discussion of the importance of viral testing and the state’s new, expensive purchases of protective equipment and medical supplies. I wonder how task force member Arnold Schwarzenegger felt, as the substantial investments he made in these important supplies several years ago when he was governor—for just such a pandemic—were given away by the state because they were considered to be too expensive to maintain. Oh well.
After reading the report, you get the uneasy feeling that you were indeed snookered. It reads like a “what I did this summer” back-to-school report. There was much listening to others. Hand-wringing about the impact of COVID, but not too much, lest there be any hint that the report is at all critical of state policies. There are roughly 30 references to diversity, equity, and racism in the report, but only one reference to efficiency. There is much admiration for the governor’s leadership, and considerable self-congratulation, including advocating for the use of electronic signatures on government documents and refurbishing used school computers. Tim Cook and Bob Iger were needed for this?
Not surprisingly, you get the feeling that the task force members ultimately hit their breaking points as they tried to navigate what amounted to a ship without a sail. With California COVID cases rising rapidly, it is strange the task force would disband now, when presumably their input is more important than ever. But after seven months of accomplishing little, task force members probably were done in. Iger resigned even earlier, when the state would not come up with a plan for theme park reopenings.
If something important were to have been accomplished, then problems would first have to be identified and prioritized. But this was never going to happen, because Newsom appointed his chief of staff, Ann O’Leary, as one co-chair, who could be the de facto gatekeeper. The other co-chair was Tom Steyer, the former Democratic presidential candidate who spent $250 million to run for president earlier this year, and who failed to receive any delegates.
Steyer previously made a fortune investing in coal, one of the dirtiest of energy sources. Now a born-again activist for climate and progressive causes, Steyer is willing to spend his and other people’s money to create a carbon-free California as soon as possible, even if the most optimistic assessments of its benefits do not come close to offsetting the costs.
Newsom got what he wanted in Steyer as a well-heeled partner who would support all climate initiatives, including Newsom’s executive order banning the sale of gasoline-powered cars by 2035. Because California accounts for less than one percent of global carbon emissions, the state could probably move the climate needle more by paying China to stop using soft coal than by mandating that all new California homes require solar panels, extra insulation, and highly energy-efficient windows and appliances, all of which increase new home construction costs by $30,000 or more.
The O’Leary-Steyer task force report is about as different as it possibly could be from a recovery task force report written in 1992 for then governor Pete Wilson. Chaired by Peter Uberroth, a 17-person committee took just four months to write “California’s Jobs and Future.” This was produced when the California economy had lost 500,000 jobs, about four percent of the state’s employment.
The Uberroth report pulled no punches in identifying the state’s key economic policy shortcomings. In 128 densely written pages, the report described a “government that is no longer working” and a state on “its way to fiscal disaster.” The report describes unaffordable housing. An underperforming school system. A shift to low-wage service-sector jobs. Losing businesses to states and countries with lower costs. Inadequate entrepreneurship. Environmental restrictions that do not pass a sensible cost-benefit assessment. All of this written in 1992.
The report provided plenty of sensible solutions, built around the ideas of redesigning government so that it was no longer in an adversarial position with businesses and taxpayers, an overhaul of the workers’ compensation system to root out widespread fraud, incentivizing school performance, and streamlining regulations and implementing tax incentives for business investment.
For schools, recommendations included stricter cost accountability; a statewide open-enrollment plan, meaning school choice; an extra hour per school day and a two-hundred-day school year; English comprehension requirements for third graders; and expanded career training for 11th and 12th graders. This would have made a significant difference in the effectiveness of California schools, but little was implemented, largely for political reasons.
Perhaps the most striking difference between the two reports, written nearly 30 years apart, is the tenor of the conclusions. Steyer stated, “We will come back stronger and better than we have ever been.” In sharp contrast, the Uberroth report warned that the state was risking bankruptcy if their policy recommendations were not implemented. For the most part, the recommendations weren’t adopted, and bankruptcy has been averted only by a series of large tax increases that place California among the highest-taxing states in the country.
Viewed over the last 28 years, the Uberroth report has been chillingly accurate. Sadly, its prescience will continue.
President Trump is making a post-election push of his MAGA agenda.
An executive order of Nov. 12 cuts off American investments in Chinese “military-controlled” companies, banning them from American stock and investment markets, and from being held in pension fund portfolios, effective in January.
Americans have subsequently been told to divest themselves within a year of their holdings in those stocks and securities as well.
In the wake of this executive order and to little surprise, prices quickly plunged in China and Hong Kong’s stock market.
The ban is a follow-up to this summer’s Pentagon report that listed 31 major Chinese companies doing business in the United States while assisting the Chinese military — which controls those corporations. Congress ordered the list — which is heavy with companies involved in electronics, space and aviation, communications, construction and shipbuilding — to be compiled.
The Defense Department additionally determined that each company “supports the modernization goals of the People’s Liberation Army (PLA) by ensuring its access to advanced technologies and expertise acquired and developed by even those PRC companies, universities, and research programs that appear to be civilian entities.”
Trump’s executive order is a blow to two major initiatives of China’s Communist Party:
1. Its “Made in China 2025” strategic plan to expand the manufacturing sector of the PRC (People’s Republic of China), and
2. Its Belt and Road Initiative (BRI) plan to control global trade and transportation infrastructure
The Belt and Road Initiative, with a presence in over 100 countries, involves $1.3-trillion dollars spent by China to build or buy control of the transportation and logistics facilities that are critical to global trade.
That dollar figure comes from Australian conglomerate BHP, which says the BRI is seven times larger than the Marshall Plan funded by America to rebuild Europe after World War 2.
As Forbes puts it, China has been on a “seaport shopping spree” buying control of major port facilities worldwide. Furthermore, another Department of Defense report says the BRI is “leveraging civilian construction for military purposes; and . . . logistics . . . for military purposes.”
A new assessment by the Center for Strategic and International Studies notes that China’s state funding is building over a third of the world’s ocean-going merchant ships, producing 96 percent of the world’s shipping containers, and controlling the largest port and logistics company in the world, all to serve as “the maritime supply arm of the People’s Liberation Army.”
The result is that China builds about 1,200 merchant ships a year, while the United States only builds eight.
With regards to combat ships, an October report from the Congressional Research Service warns Congress that China’s fast-growing navy is now “a major challenge to the U.S. Navy . . . in the Western Pacific — the first such challenge the U.S. Navy has faced since the end of the Cold War.”
Since 90% of global trade travels by ship, China is developing a chokehold that it could apply to threaten the economies of every nation, including the United States, in order to enforce its Communist will.
Sadly, there are some who want to invite China to expand its grip on America by repealing the Jones Act a, law prevents any vessel from conducting internal trade within American waters unless it’s American-built, American-owned and American-crewed.
This applies to cargoes carried on our waterways, along the intercoastal canals, and between American ports.
It would require a major U.S. commitment to reverse the trend of Chinese dominance of global trade. But keeping the Jones Act prevents China from accelerating the trend by taking control over our internal waters. Homeland security would be at risk if any foreign power infiltrated into the American economy in that way.
Keeping the Jones Act by itself will not remedy the problem of China’s militant expansionism. Cutting off U.S. funds from China’s commercial/military complex may help.
However, to develop real solutions, a first step is that the American people must be better-informed about what China is doing.
Large unexpected expenses are never welcome. No one likes a costly surprise. That may explain why Congress is talking about government imposing a “fix” to “protect” patients from surprise medical bills.
That may sound good, but healthy skepticism is warranted. One only needs to remember how the Obama-Biden administration repeatedly promised to save us all thousands of dollars every year and allow us to keep our health insurance and our doctor. None of that turned out to be true.
We need a solution to surprise medical bills that rescues consumers from being caught in between the doctor’s or hospital’s bill and the insurance company’s refusal to pay it. But we also need a solution that empowers consumers, not government bureaucrats, and that promotes innovation and harnesses the power of the marketplace to ensure high quality care at the lowest prices.
We must be 100% sure that we avoid government mandated procedures that effectively impose price controls because they also reduce the likelihood of future healthcare innovations and slow the development of promising medicines and procedures. Government mandates almost invariably shift power to government bureaucrats and health insurance companies, rather than giving consumers more control over their own healthcare.
The most common cause of a surprise medical bill is when a person uses a healthcare provider that is not in their insurance plan’s network of providers. While it doesn’t happen often, it is a real challenge for consumers when it does happen. Insurance companies have contracts with healthcare providers to provide medical services at discounted rates. That makes them “in-network.” The “out-of-network” providers charge a price without any pre-negotiated discounted rates. The problem arises when consumers get stuck between the insurance company that doesn’t want to pay and the doctor who should be paid.
The best way to solve the nation’s surprise medical bill problem is to implement a fair and open independent dispute resolution (IDR) process. A fair IDR process simply means that both sides of the out-of-network bill dispute, the physician and the health insurer, are allowed to submit all relevant information to make their case. Then the arbitrator or decision-maker can weigh the evidence and provide a fact specific resolution to what the insurance company should pay and what the doctor should accept.
This would relieve the patient of worrying about the bill, and it would make sure that difficult or complex medical procedures and treatments don’t become devalued or more difficult to find.
Sens. Lamar Alexander and Bill Cassidy are rumored to be working on a “compromise” that purports to use a form of IDR. But we should be on high alert because all indications are that the “compromise” will include a rigged or sham IDR process that puts the heavy hand of government on one side of the scales of fairness and justice. There is no reason to use a process that from the start tips the scales in favor of either the doctor or the insurance company.
This “compromise” will favor insurance companies over doctors. If the government-imposed process ends up being a price control system, it will simply be a step toward socialized medicine and will make finding doctors to treat you more difficult. What we should all want is a fair and balanced process.
A fair and impartial IDR process that resolves the pricing dispute would prevent the consumer from getting caught in the middle. It would also empower consumers, not government.
Additionally, it would harness the power of the marketplace to keep quality up and prices down. It is important to remember that government regulations don’t have a track record of reducing costs. Moreover, government mandates will do nothing to reward innovation, or to empower consumers.
Regardless of what their true motives were or are, the results we have witnessed in the last 50 years from politicians promising “fixes” has been that things end up costing a lot more than promised, and government gets more and more control. Those who can afford lobbying efforts may escape the costly impact of these government mandates. But rarely do these promised fixes on balance help the average citizen.
Instead of continuing to empower government, insurance companies, and those who can afford lobbyists to protect their interests, let’s try reforms that put economic power back in the hands of healthcare consumers. Let’s trust the marketplace to do what it does so well — boost quality and keep prices comparatively low. We trust the marketplace to provide us with food, housing, technology, and thousands of other very important things. Why not our healthcare, as well?
We can do all of this with a fair and balanced IDR process that allows both sides of the out-of-network bill dispute to submit all relevant information to make their case. If this happens, we protect consumers from surprise medical bills and we keep burdensome government mandates out of our healthcare choices. That’s a win-win!
The Democrats included huge cash handouts for wealthy constituents in predominantly liberal areas in their emergency response package.
At some point, when the election chaos is finally settled, Congress will likely turn to passing another COVID-19 stimulus/relief bill. (Despite the last one being plagued by rampant fraud and dysfunction). One starting point for negotiations will be the “HEROES Act,” a $2.2 trillion bill the House passed in October on a party-line vote by Speaker of the House Nancy Pelosi and her fellow Democrats.
One of the most significant aspects of the HEROES Act is that it allocates nearly $700 billion in federal money for state, local, and tribal governments.
Proponents say this gives localities the funds they need to pay emergency responders and fund programs necessary to protect their communities. Critics point out that much of this money is used to “bail out” blue states that were already mismanaging their budgets and running up large unfunded pension programs before the pandemic.
Indeed, the left-leaning Brookings Institution has projected that “state and local government revenues will decline $155 billion in 2020, $167 billion in 2021, and $145 billion in 2022.” Simple math shows us that the CARES Act gives states and localities hundreds of billions more in federal money than they are actually projected to lose due to pandemic-related decreases in revenue.
This alone should be a red flag. Yet a new analysis also reveals that Pelosi and her fellow “progressives” snuck millions of dollars in cash for some of the nation’s wealthiest zip codes into their emergency COVID-19 package.
Watchdogs from OpenTheBooks.com inspected the fine print of the HEROES Act and found that it allocates $350 million to the 50 richest communities in America. The average annual income in these areas ranged from $262,988 to $525,324.
“It’s unclear why such wealthy neighborhoods need so much money to weather the storm,” Adam Andrzejewski of OpenTheBooks.com wrote.“Should American taxpayers from lower-income areas be subsidizing the lifestyles of the rich and famous?
Some might reasonably look at a figure like $350 million and conclude that, in the context of a $2.2 trillion bill, it is a relatively small amount of money. But we mustn’t forget that this figure is only looking at a tiny sample size. It is not all the money this bill allocates to wealthy zip codes, just a snapshot.
We can extrapolate from this figure that the HEROES Act would dole out many hundreds of millions if not billions more to other wealthy towns and cities.
It’s not even the only provision of the bill that can be fairly characterized as a handout for the rich. The package also includes items such as student debt relief, which further burdens cash-strapped taxpayers yet only helps a relatively well-educated and well-off subset of society.
But wait: Aren’t Democrats supposed to be the progressive party fighting for the working class? That’s certainly what their rhetoric would suggest. Yet the Democrats included cash handouts for wealthy constituents in predominantly liberal areas such as Wellesley, Mass., Malibu, California, and Old Greenwich, Conn. in their emergency response package nonetheless.
This offers another painful reminder that government officials—no matter their professed partisan or ideological principles—will always and inevitably end up wielding their power in a manner prone to favoritism and clientelism.
“There is no such thing as a just and fair method of exercising the tremendous power that interventionism puts into the hands of the legislature and the executive,” Austrian economist Ludwig von Mises wrote. “In many fields of the administration of interventionist measures, favoritism simply cannot be avoided.”
Humans are fallible beings—and power corrupts. This is why, from tax loopholes to crony regulations to spending bills, sweeping government interventions will always end up skewing in favor of powerful constituencies. However, when power is left to the individual level rather than government, that decentralization helps limit abuses.
It’s not a matter of electing the right people. Fundamentally, progressive and conservative government officials alike face the same incentive structures.
The only way to really prevent the abuse of government power and expenditure of taxpayer resources in favor of the well-off and well-connected is to limit the scope of the government itself.