Only if we developed a fondness for long waiting lines and ever more insurance mandates.
he United States has a complex health-care delivery system composed of private and government-funded insurance plans. Half of all Americans receive their health insurance from their employer or their spouse’s employer. Over 40 percent of Americans receive their health insurance from the government. The remainder are either uninsured or obtain health insurance through the private individual market. The current political debate concerns how large a role the government should play in our health-care delivery system.
The United States spends far more money per person on health care than other industrialized countries. Last year, overall medical spending in the U.S. totaled $3.5 trillion or 18 percent of the national gross domestic product.
Because other countries spend less on health care, they are often used as models for the U.S. Looking to other countries to solve our health care delivery system problems, however, may not be reasonable. Other countries are smaller than the U.S. and have more homogenous populations. What the people of one country favor may not be applicable or acceptable to people living in a different society.
According to a Forbes survey, the U.S. accounts for 38 percent of life-saving and life-extending medical innovations, compared to an average of 15 percent in other countries. The U.S. also leads the world in the research and development of pharmaceuticals.
In all other industrialized countries, the demand for health care is much greater than the money budgeted for it. The results of this supply/demand mismatch are chronic shortages followed by strict rationing of health care. The rationing can take many forms — from long waits, to denying the elderly access to certain procedures, to allowing individuals with political influence to receive priority attention from providers.
Canada has a truly single-payer, nationalized system that is totally funded by taxpayers. In 2018, wait times for specialty care averaged 20 weeks. In practice, Canada has a two-tiered system in the sense that officials allow their citizens to travel to the U.S. for privately funded health care.
Great Britain established a comprehensive government health-care system in 1948 that gives every citizen cradle-to-grave coverage. About 10 percent of the population has private insurance, and many physicians combine government entitlement work with private practice. Over the past year, 250,000 citizens have waited more than six months for planned treatments within the National Health Service, while 36,000 people have waited nine months or more.
Switzerland has a comparatively large private health-care sector, and patients are responsible for 30 percent of their own health-care costs. Consequently, a certain degree of health-care consumerism exists in Switzerland, and the country has been fairly successful in holding down costs. Unfortunately, as officials increase the number of benefit mandates required in insurance plans, health-care costs are rising.
Singapore has a multi-tiered system with different levels of care depending on the patient’s ability and willingness to pay more. This is similar to the system in the U.S. before the passage of Medicare and Medicaid: private hospitals and doctors treated paying patients and charity hospitals and residents-in-training cared for low-income patients.
Is there some combination of measures from other countries that the U.S. can use in reforming our health-care delivery system? Although the overall systems vary, the common factor for all other countries is government-mandated health insurance. Even those countries that have a component of “private” health care continue to mandate that every citizen have government-approved health insurance.
While universal health insurance coverage is a worthy goal, the critical point is using the best mechanism to allow the greatest number of Americans access to health care. Simply having health insurance in no way guarantees timely access to health care. The American experience with the Veterans Administration hospital system, a comprehensive, government-controlled, single-payer health-care program, reveals unacceptable wait times and huge inefficiencies.
The United States distinguishes itself from other countries by a broader use of free markets. Just like all other economic activities, the free market offers the best solution to provide the greatest access to health care and to control costs.
Instead of looking to other countries, health-care reform in the U.S. should allow Americans to freely make their own health-care decisions and use their own health-care dollars. This would give Americans the best chance to use their right to access health care. Eliminating third-party payers, greater use of health savings accounts, price transparency, and health insurance reform would put patients, rather than the government, in charge of their own health care.
We have been witnessing unprecedented innovations in medical treatments. In the coming years new drug therapies promise to provide solutions for some of the most pressing diseases — diabetes, cancer, heart disease, strokes, Alzheimer’s, retinal diseases — to name only a few. But if People for the “Ethical” Treatment of Animals (PETA) gets their way, most of the research that feeds the amazing future cures that we read about will be shut down or severely curtailed.
For the past few years PETA has undertaken a pressure campaign designed to intimidate airlines from transporting medical research animals. Even though it is illegal for the airlines to refuse to perform service, the campaign is proving successful in certain cases and a widespread adoption of this policy would likely stymie medical innovation.
PETA opposes all forms of animal testing despite the fact that the National Institutes of Health views such research as required by ethics and essential to finding cures. Scientists and researchers do as much research as possible with computer modeling and peer reviewed science, but at some point they must test the most promising medicines on living organisms. For example, pigs were used to develop both the ability to transplant a heart and the drugs that stop the body from rejecting the new heart. It was done ethically, with rigorous standards and oversight, and with anesthetics so as to eliminate pain for the animals involved. But PETA ignores all of this and labels these critical experiments the same as torture.
There are places were there is no animal testing. For example, in China, they test procedures and new products on humans who are prisoners of the state. So effectively, humans become the lab rats. That isn’t an improvement in ethics.
PETA’s real agenda is profoundly anti-human. PETA president and co-founder, Ingrid Newkirk admitted as much stating that: “Even if animal research resulted in a cure for AIDS [or cancer or other horrible diseases], we’d be against it.”
When Hamas terrorists used flaming falcons and exploding donkeys to kill Israeli civilians, PETA under political pressure denounced Hamas — but only for harming and killing the animals — not for endangering or harming the school children in the way of these living weapons. This lack of concern for people is truly disturbing.
PETA’s supporters have filed comments with the Department of Transportation hoping to shut down any medical research with animals. One comment simply said: “Stop experimenting on animals. Experiment on your children and mothers instead.” Then with absolutely no sense of irony, this commenter also accused those who reject the idea of using children and mothers in medical research of being “a bunch of barbarians.” Let that sink in.
But PETA’s track record on animals isn’t so great either. For example, in Virginia, PETA activists were charged for criminal animal abuse. Then there is the PETA animal shelter kill rate from 2007-2017 — a full decade — which averaged 95.3 percent. Simply stated animals that were intended for adoptions were abused and then killed in 95% of the cases by an organization supposedly promoting the ethical treatment of animals. A PETA spokesperson quipped, “there are fates worse than euthanasia.”
The ends to which this organization will go to supposedly defend the interests of animals knows no bounds. PETA led the move to change the packaging of animal crackers that used to show cartoon circus animals in carton railcar cages. Thanks to PETA, the carton animals now roam free on the African Savannah. I’m sure we can all feel better than cartoon lions and elephants now roam a cartoon grassland.
Sadly, as silly as that effort was, far more serious is the mounting public relations campaign PETA is waging to pressure airlines to refuse to transport animals (below deck in climate controlled areas of the plane) that will be used in medical research. To date, United Airlines has caved to PETA’s pressure campaign. What’s so strange is that United’s CEO, Carlos Munoz, is alive today because he had a heart transplant that was made possible because of medical animal research.
Here’s some context — airlines often allow passengers to bring comfort pets to travel by their side — dogs, cats, rabbits, pigs, peacocks, ducks, roosters, turkeys, and even kangaroos and miniature horses. This inconveniences other passengers and in some cases causes severe health problems for other passengers. On the other hand airlines are caving to PETA’s pressure campaign and refusing to transport animals used in ethical, humane & government mandated testing of new cures. These animals will not inconvenience or endanger any passengers. But this is the weird world you get when the lunatics run the asylum.
Airlines win kudos for donating flights to children in need of cancer treatment at specialized medical centers far from their home. At the same time, some airlines refuse to transport research animals and make it more difficult to develop the very cures and medicines needed to cure these sick children.
It is illegal for the airlines to discriminate against transportation of animals for research purposes. Public carriers have long been prohibited from discriminating when it comes to transportation. Non-discrimination laws for airlines do not simply prevent racial discrimination. The law also prevents an airline from transporting animals for zoos, or vacationing passengers, or as comfort animals, and then refusing to transport similar animals to be used in lawful and ethical medical research.
The law is clear — if the airline is willing to ship one woman’s dog or cat, it must also ship other similar animals being transported even if for different purposes — including medical research. Airlines have no real basis for objecting because they are paid to transport them, and these animals actually have no impact on their passengers as they would be shipped below the passenger compartment.
But because they are fearful of the bad press of PETA’s false claims of animal torture, Airlines give in. We all love pets and animals. But who wants to be slimmed by PETA as the equivalent of a war criminal for trying develop heart translate procedures and medicines or for curing cancer?
We need the Department of Transportation to enforce the law. We wouldn’t tolerate an airline discriminating against a racial or ethnic group and we shouldn’t tolerate this form of discrimination either. The lives of countless millions depend on the cures and medicines that are being developed in careful, thoughtful and ethical ways.
How Seattle provides a practical example of minimum wages leading to losses in income and employment
The Seattle Minimum Wage Study, a study supported and funded in part by the Seattle city government, is out with a new NBER paperevaluating Seattle’s minimum wage increase to $13 an hour and it finds significant disemployment effects that on net reduce the incomes of minimum wage workers. I farm this one out to Jonathan Meer on FB.
This is the official study that was commissioned several years ago by the city of Seattle to study the impacts of raising the minimum wage, in a move that I applauded at the time as an honest and transparent attempt towards self-examination of a bold policy. It is the first study of a very high city-level minimum wage, with administrative data that has much more detail than is usually available. The first wave (examining the increase to $11/hr) last year was a mixed bag, with fairly imprecise estimates.
These findings, examining another year of data and including the increase to $13/hr, are unequivocal: the policy is an unmitigated disaster. The main findings:
– The numbers of hours worked by low-wage workers fell by *3.5 million hours per quarter*. This was reflected both in thousands of job losses and reductions in hours worked by those who retained their jobs.
– The losses were so dramatic that this increase “reduced income paid to low-wage employees of single-location Seattle businesses by roughly $120 million on an annual basis.” On average, low-wage workers *lost* $125 per month. The minimum wage has always been a lousy income transfer program, but at this level you’d come out ahead just setting a hundred million dollars a year on fire. And that’s before we get into who kept vs lost their jobs.
– Estimates of the response of labor demand are substantially higher than much of the previous research, which may have been expected given how much higher (and how localized) this minimum wage is relative to previously-studied ones.
– The impacts took some time to be reflected in the level of employment, as predicted by Meer and West (2016).
– The authors are able to replicate the results of other papers that find no impact on the restaurant industry with their own data by imposing the same limitations that other researchers have faced. This shows that those papers’ findings were likely driven by their data limitations. This is an important thing to remember as you see knee-jerk responses coming from the usual corners.
– You may also hear that the construction of the comparison group was flawed somehow, and that’s driving the results. I believe that the research team did as good of a job as possible, trying several approaches and presenting all of their findings extensively. There is no cherry-picking here. But more importantly, without getting too deep into the econometric weeds, my sense is that, given the evolution of the Seattle economy over the past two years, these results – if anything – *understate* the extent of the job losses.
This paper not only makes numerous valuable contributions to the economics literature, but should give serious pause to minimum wage advocates. Of course, that’s not what’s happening, to the extent that the mayor of Seattle commissioned *another* study, by an advocacy group at Berkeley whose previous work on the minimum wage is so consistently one-sided that you can set your watch by it, that unsurprisingly finds no effect. They deliberately timed its release for several days before this paper came out, and I find that whole affair abhorrent. Seattle politicians are so unwilling to accept reality that they’ll undermine their own researchers and waste taxpayer dollars on what is barely a cut above propaganda.
I don’t envy the backlash this team is going to face for daring to present results that will be seen as heresy. I know that so many people just desperately want to believe that the minimum wage is a free lunch. It’s not. These job losses will only get worse as the minimum wage climbs higher, and this team is working on linking to demographic data to examine who the losers from this policy are. I fully expect that these losses are borne most heavily by low-income and minority households.
There’s her backtracking on busing and her waffling on Medicare for All, not to mention her prosecutorial scandals.
A new national CNN poll of the 2020 Democratic primary has some pretty brutal numbers for Kamala Harris. When CNN last polled the presidential race shortly after the first Democratic debate in June, Harris was on Joe Biden’s heels, trailing just 17 percent to 22 percent. But according to the latest survey by CNN, conducted August 15 to 18, Biden has rebounded to 29 percent, while Harris has dropped all the way down to 5 percent, tied for fourth place with South Bend mayor Pete Buttigieg.
What went wrong for Harris?
The second Democratic debate was a clear defeat for the California senator, but it’s now also obvious that her June debate performance was a Pyrrhic victory.
At the first debate, Harris staked everything on attacking Joe Biden’s record on busing. It worked for her that night: Biden’s immediate response was hapless, Harris was widely declared the winner, and she got a significant bump in the polls.
But Harris’s line of attack raised an obvious and problematic question for her: Would she support reinstating the policies that Biden opposed?
Logically, the answer would appear to need to be “yes.”
“I support busing. Listen, the schools of America are as segregated, if not more segregated, today than when I was in elementary school,” Harris said on June 30. “Where states fail to do their duty to ensure equality of all people and in particular where states create or pass legislation that created inequality, there’s no question that the federal government has a role and a responsibility to step up.”
But there was a problem for Harris: Busing policies were abandoned because they were wildly unpopular, and there’s no reason to think they’ve magically become popular. So Harris equivocated and then backtracked.
That attacking Biden on busing would paint the attacker into a corner was predictable. It was in fact predicted. See, for example, the end of this article from March in National Review.
Going on the offensive and then retreating on busing made Harris seem inauthentic. And the candidate had been dogged by questions of inauthenticity since the start of her campaign because of her waffling on the issue of Medicare for All, the policy at the center of the 2020 Democratic primary.
First Harris indicated at a CNN town hall that she supported abolishing private insurance, as Medicare for All proposes. Then Harris said she didn’t support abolishing private insurance: She tried to hide behind the fig leaf that Medicare for All allows “supplemental insurance,” while obscuring the fact that “supplemental coverage” would be legal for only a very small number of treatments not covered by Medicare for All, such as cosmetic surgery. And cosmetic-surgery insurance doesn’t even exist.
Harris thought she’d finally figured a way out of the Medicare for All mess in July: She introduced her own plan shortly before the Democratic debates. It tried to split the difference: She promised to transition to a single-payer plan in 10 years (as opposed to Sanders’s four-year deadline). This was meant to reassure progressives that they’ll get there eventually while also reassuring moderates that there will be at least two more presidential elections before the country goes through with anything crazy.
Harris’s provision of Medicare Advantage–type plans was also supposed to reassure moderates, but the second debate demonstrated that she still wasn’t ready to respond to the fact that her plan would eventually abolish existing private health plans for everyone, and she has no serious plan for how to pay for single-payer.
Then there were Joe Biden’s and Representative Tulsi Gabbard’s devastating attacks on Harris’s record as a prosecutor at the second Democratic debate. “Biden alluded to a crime lab scandal that involved her office and resulted in more than 1,000 drug cases being dismissed. Gabbard claimed Harris ‘blocked evidence that would have freed an innocent man from death row until she was forced to do so.’ Both of these statements are accurate,” the Sacramento Bee reported after the debate.
As Harris’s backtracking on busing made clear, no one is seriously considering resurrecting the deeply unpopular policies of the 1970s. But criminal justice is very much a live issue in Democratic politics, and that’s why the attack on Harris’s record as a prosecutor has had such a greater impact than the attack on Biden’s record on busing. Biden continues to do very well among African-American voters, while Harris continues to struggle.
So Harris’s problems go deeper than the fact that she had one good debate followed by one bad debate on matters of style. Both debates revealed she has serious weaknesses on matters of substance. And the hits keep coming on Medicare for All: On Monday, she was savaged by Bernie Sanders after it was reported that Harris told wealthy donors in the Hamptons that she was not “comfortable” with Bernie Sanders’s Medicare for All bill, which she co-sponsored and supported until a few weeks ago. There are still five months left until the Iowa caucuses, but the past two months have demonstrated that Harris has deep problems that she can’t paper over with some well-rehearsed, well-delivered lines in subsequent debates.
President Donald Trump planned on seeking a second term based largely on the strength of the economy. Unemployment is down to a 50-year low. The Bureau of Labor Statistics reports the creation of nearly 6 million new jobs since he came into office. Wages and profits and revenues to the federal Treasury are up. The stock market is generally surging, and economic growth is once again the order of the day.
It’s an enviable economic record, especially when compared with his two most recent predecessors. Things are going so well, some of the president’s bitterest foes predict it’s strong enough to carry him across the 2020 finish line first.
The naysayers—those who’ve never liked Trump—point to a few statistics to suggest the fundamentals of the economy are softer than they appear. The inverted yield curve that appeared this week, now that the yield on 10-year U.S. government bonds is lower than that for two-year notes, has some people saying a recession sometime in the next two years is possible.
The U.S. economy is the world’s strongest right now but, says the president, would be even stronger had the Federal Reserve not raised interest rates too high too fast. Others say if things head south, it will be because of the ongoing trade war with China.
“I think we’re going to have a very long period of wealth and success,” Trump told reporters on Thursday. “Other countries are doing very poorly, as you know. China is doing very, very poorly. The tariffs have really bitten into China. They haven’t bitten into us at all.”
In response to the U.S. imposition of tariffs on its exports, Beijing weakened the yuan, effectively blunting their effect. Trump countered by delaying until December the next round of tariffs, mostly on consumer goods, scheduled to take effect on September 1 until mid-December.
That’s right in the middle of U.S. retailers’ most profitable period and could cause trouble at home. These and other moves have caused dramatic fluctuations in the stock market. The U.S. Trade Representative says everything’s just “next steps” in the process of getting China to do a deal.
Whether that’s true is a subject for debate. Capital Alpha Partners’ James Lucier counseled investors to view the delay of the tariff imposition as being as advertised and not as “backtracking in policy or a ‘blink’ by the U.S.” and “a case of the White House and President Trump, in particular, getting ahead of his own administrative machinery.”
If the economics are sound, the politics are shaky. A second Trump term depends on Midwestern farmers and industrial workers and others whom the tariffs potentially affect adversely in critical states like Florida, Michigan, and Ohio.
These are places where the economy is always issue No. 1, where the three things voters care about most are jobs, jobs and more jobs. And, as of now, the tariffs are not working to the president’s advantage. As much as the China-bashing rhetoric may excite his base, it’s not helping them make ends meet.
Florida’s exports to China total about $1.6 billion annually. That includes $533 million in gold because Miami is now the leading hub for refiners and processors who then sell to China for use in manufacturing. Civil aircraft parts, the state’s second-biggest export, brings in $126 million now and more in the future as China becomes, over the next 20 years, the world’s largest single market for civilian aircraft sales.
The Miami Customs District alone did $7 billion worth of business with China in 2017. In South Florida, manufacturers are suffering because of the steel and aluminum tariffs.
Michigan has a $3.6 billion export relationship with China, with $1.2 billion comprising car parts. The Wolverine State contains 75 percent of North America’s auto R&D, and China is, by volume, the world’s largest automaker. The Alliance of Automobile Manufacturers says higher-priced cars resulting from the tariffs could potentially lead to the loss of 700,000 American jobs.
It’s not just cars. Over half of all U.S. soybeans are exported, with 60 percent of them going to China and $700 million coming from Michigan. “The noose is getting tighter,” Jim Byrum, president of the Michigan Agri-Business Association, told the Detroit Free Press in May. “We have lost market opportunities. We’re not shipping soybeans around the world like we normally would. We’re not shipping them to China. China was our biggest soybean consumer, and they’re not moving.”
Ohio’s exports to China total $3.9 billion, with more than $691 million worth of soybeans—the state’s top agricultural export—shipped to China in 2017. “This will be tough to take. China takes one out of every three rows [of soybeans],” Bret Davis, a Delaware County farmer and governing board member of the American Soybean Association of China, told The Columbus Dispatch about proposed tariffs in 2018. An Ohio Manufacturing Extension Partnership survey of 457 Ohio manufacturers conducted in January found that 14 companies were hurt by tariffs for each it helped.
The Trump tariffs have already impacted negatively states that were key to him winning the presidency in 2016 and will be just as important in 2020. If the president wants to continue his record of economic success, he should focus on ending the trade war before Florida, Michigan and Ohio swing in the other direction.
The Great Depression of the 1930s was by far the greatest economic calamity in U.S. history. In 1931, the year before Franklin Roosevelt was elected president, unemployment in the United States had soared to an unprecedented 16.3 percent. In human terms that meant that over eight million Americans who wanted jobs could not find them. In 1939, after almost two full terms of Roosevelt and his New Deal, unemployment had not dropped, but had risen to 17.2 percent. Almost nine and one-half million Americans were unemployed.
On May 6, 1939, Henry Morgenthau, Roosevelt’s treasury secretary, confirmed the total failure of the New Deal to stop the Great Depression: “We are spending more than we have ever spent before and it does not work. . . . I say after eight years of this Administration we have just as much unemployment as when we started. . . . And an enormous debt to boot!” (For more information, see “What Caused the Great Depression?“)
In FDR’s Folly, Jim Powell ably and clearly explains why New Deal spending failed to lift the American economy out of its morass. In a nutshell, Powell argues that the spending was doomed from the start to fail. Tax rates were hiked, which scooped capital out of investment and dumped it into dozens of hastily conceived government programs. Those programs quickly became politicized and produced unintended consequences, which plunged the American economy deeper into depression.
More specifically, Powell observes, the National Recovery Administration, which was Roosevelt’s centerpiece, fixed prices, stifled competition, and sometimes made American exports uncompetitive. Also, his banking reforms made many banks more vulnerable to failure by forbidding them to expand and diversify their portfolios. Social Security taxes and minimum-wage laws often triggered unemployment; in fact, they pushed many cash-strapped businesses into bankruptcy or near bankruptcy. The Agricultural Adjustment Act, which paid farmers not to produce, raised food prices and kicked thousands of tenant farmers off the land and into unemployment lines in the cities. In some of those cities, the unemployed received almost no federal aid, but in other cities — those with influential Democratic bosses — tax dollars flowed in like water.
Powell notes that the process of capturing tax dollars from some groups and doling them out to others quickly politicized federal aid. He quotes one analyst who discovered that “WPA employment reached peaks in the fall of election years. In states like Florida and Kentucky — where the New Deal’s big fight was in the primary elections — the rise of WPA employment was hurried along in order to synchronize with the primaries.” The Democratic Party’s ability to win elections became strongly connected with Roosevelt’s talent for turning on the spigot of federal dollars at the right time (before elections) and in the right places (key states and congressional districts).
Powell’s book is well researched and well organized. His chapter titles are a delight. He synthesizes a mass of secondary sources (and some primary sources) in making a strong and persuasive case that the New Deal was a failure and that the Roosevelt presidency, at least in its first two terms — was a disaster. Powell covers all the major New Deal programs; he draws on the research of historians both “liberal” and conservative; and he is nuanced — this is no hatchet job — in that he concedes that some of Roosevelt’s policies, such as tariff revision, were more economically sound than, say, his industrial and agricultural policies.
FDR’s Folly takes its place on the shelf alongside Gary Dean Best’s Pride, Prejudice, and Politics and his more recent Retreat from Liberalism as liberating revisionist works that challenge the long-standing adulation of Roosevelt given by almost all historians. In the most recent Schlesinger Presidential Poll (1997), the historians and “experts” chosen by Arthur Schlesinger, Jr., collectively ranked Roosevelt as the greatest president in American history, even though every other American president had lower unemployment rates than Roosevelt did for his first eight years in the White House. As late as 1999, David Kennedy won the Pulitzer Prize for a book (Freedom from Fear) that largely praised the New Deal as a legislative program and Roosevelt as its author.
With the dawning of the 21st century, we may be witnessing the final departure of Roosevelt’s loyal academic propagandists and those targeted recipients of his federal largess. In such a climate, Jim Powell has given us, with FDR’s Folly, a refreshing, must-read account of the New Deal.
The 2010s have been hard on the U.S. patent system. It has been attacked from multiple directions: by big tech, which waged a lobbying campaign to weaken it; by China, which uses IP theft to siphon up to $600 billion out of America annually; and by Washington, D.C., where court decisions and legislation have thrown patent law into turmoil.
The good news is, some are fighting back. President Trump is battling to keep IP protections at the center of trade discussions with China, and the Senate Judiciary IP Subcommittee, led by Senator Thom Tillis (R-NC), held historic hearings just this month to re-stabilize the foundation that patents provide to the U.S. innovation economy.
These efforts are centered on restoring predictability. Today, inventors are uncertain of whether or not their intellectual property rights will be protected. This erodes their incentive to invest time and treasure into creating property in the first place.
Consider the recent words of retired Judge Paul Michel, who spent 22 years on the Federal Circuit and almost a decade working with patent cases. He said of the modern status quo, “I cannot predict in a given case whether [patent] eligibility will be found or not found. If I can’t do it, how can bankers, venture capitalists, and business executives?”
Predictability took its biggest hit in 2011, when Congress enacted the America Invents Act. Among its most damaging provisions was the creation of the Patent Trial and Appeal Board (PTAB), an unrestrained tribunal through which anyone can petition to have a patent declared invalid.
And petition they have. By 2016, PTAB had heard challenges to nearly 100,000 patents. A review by IPWatchdog.com found that only 4 percent of cases ended with all challenged patents being upheld.
PTAB’s overreach is particularly egregious because it is extrajudicial. Patent infringers use it to rob innovators not just of their inventions, but of their constitutional right to due process.
Just ask Josh Malone, the inventor of popular water balloon toy Bunch O’ Balloons, who had his invention ripped off by a large toy maker. When faced with his allegations of infringement, the toymaker went straight to PTAB to have his patents invalidated. It took Josh several years and millions in legal fees to finally get his patents re-validated and lost profits awarded by a jury.
Inventor Roman Chistyakov, and his now defunct company Zond, weren’t as fortunate when faced with similar abuse by infringers. Zond’s patented plasma etching technology used in razorblades and semiconductors was gang-tackled by corporate giants Intel, Toshiba, Fujitsu, GlobalFoundries, and Gillette who filed 125 individual IPR petitions costing Chistyakov and his company millions of dollars. Before the IPR proceedings, Zond owned 371 unique patent claims and employed over 20 people. By the end of the IPR proceedings, all of Zond’s patents and employees were gone.
Or consider the ongoing saga of a small company called EagleView, founded in 2008 by a roofing salesman and his software engineer brother. Their idea was to produce 3-D models from aerial images of roofs, enabling insurance and construction companies to better estimate the cost of repairs. As the company grew, established players promptly swooped in to copy the idea. EagleView alleges that Verisk Analytics, which has a market cap of over $24 billion, began stealing key technologies after its attempt to acquire EagleView fell through. EagleView filed for patent infringement, but Verisk attempted to use PTAB as a get out of jail free card by filing petitions to invalidate the more than 150 patents in question.
No matter what, patent law should always rest on the presumption of validity for patent holders and protect their right to due process in the courts. It’s the only way to ensure that the system is predictable for inventors and small companies up against corporate goliaths. None of these patent holders should have had to fight so long and hard for the basic right to have its day in court—a right that should be as central to the patent system as to any other corner of American life.
Increasingly, this is a matter of public interest. So much of modern society relies on patented innovations—from the medicines we take to the cars we drive to the computing technologies that permeate our lives.
America birthed many of these technologies by being the world’s number one protector of intellectual property. To preserve that status, we must fend off the modern siege of the U.S. patent system. We should meet the battle in our courts, our Congress, our trade deals, or anywhere else it presents itself. Innovation itself hangs in the balance.
As the Frontiers of Freedom’s Letter of March 1, 2018, proved, Hungarian Prime Minister Viktor Orban, his family, and his closest collaborators have been engaged since he assumed his office in institutionalized, conspiratorial, deliberate, and large scale theft, embezzlement, fraud, and malicious corruption against the Hungarian state, and its citizens.
The Institute that has dedicated itself to the universal promotion of human rights and the fight against corruption, hereby submits a Supplement to its original letter, calling the Secretaries’ attention the newest case of flagrant corruption committed by the same and additional officials against the Hungarian state and its citizens.
The case in point is the corruption perpetrated by the managers and employees of Microsoft Corporation’s Hungarian subsidiary that was investigated by the FBI and the Department of Justice, which resulted in a fine of $25.3 million against the Redmond, California based corporation. Microsoft Corporation admitted guilt under the Foreign Corrupt Practices Act of 1977.
The full documentation is available at the Department of Justice. The Department demonstrated on two specific cases the well-thought out conspiracy to defraud Microsoft and the American taxpayers. In its summary, the final report states that the conspiracy reached all the way up to the Prime Minister Viktor Orban’s office.
For this reason, it is incumbent upon the United States of America, as the leading power of the world to take appropriate action to combat the malignant spread of official Hungarian corruption and to prevent further damage to the security of NATO and the European Union. At stake are the fundamental principles of the rule of law and the basic value systems that the United States of America and its allies all over the world have cherished, have fought for, and have been determined to uphold.
The most important individuals are the same that the Institute’s original letter already listed.
Dr. Miklos K. Radvanyi, Senior Executive Vice President
Frontiers of Freedom released this statement on importation of drugs:
“Safe” importation is an oxymoron. It may sound good, but it’s very risky. The reality is that many drugs labeled as “Canadian” and thus assumed to be safe, are usually counterfeit or tainted medications that come from third world countries.
For years, healthcare policy analysts and health safety experts have produced a cacophony of powerful objections to importation based on worries about safety and pricing. Even many government reports make it clear that drug importation is a risky business and that there are better ways to keep costs in check. The health, legal and economic dangers posed by drug importation makes it dangerous public policy.
Additionally, drug “importation” would actually import Canada’s price-controlled, government- run healthcare system and kill off the incentives to develop new medicines. If we hope to find the next generation of cures and treatments to many of the terrible diseases that have plagued mankind for millennia, then we need to encourage innovation, investment and research — not stifle it.
Simply stated, the new @HHSGov proposal may have a certain rhetorical appeal, but when the shiny stylistic glitter is wiped away, it becomes clear that the proposal is dangerous and potentially deadly for American patients. Plus it will hamstring future innovation and development of new medications. None of that is a good idea, and none of that will help American’s stay healthy or end up reducing healthcare costs.
Solar panels and wind turbines are making electricity significantly more expensive, a major new study by a team of economists from the University of Chicago finds.
Renewable Portfolio Standards (RPS) “significantly increase average retail electricity prices, with prices increasing by 11% (1.3 cents per kWh) seven years after the policy’s passage into law and 17% (2 cents per kWh) twelve years afterward,” the economists write.
The study, which has yet to go through peer-review, was done by Michael Greenstone, Richard McDowell, and Ishan Nath. It compared states with and without an RPS. It did so using what the economists say is “the most comprehensive state-level dataset ever compiled” which covered 1990 to 2015.
The cost to consumers has been staggeringly high: “All in all, seven years after passage, consumers in the 29 states had paid $125.2 billion more for electricity than they would have in the absence of the policy,” they write.
Solar and wind require that natural gas plants, hydro-electric dams, batteries or some other form of reliable power be ready at a moment’s notice to start churning out electricity when the wind stops blowing and the sun stops shining, I noted.
And unreliability requires solar- and/or wind-heavy places like Germany, California, and Denmark to pay neighboring nations or states to take their solar and wind energy when they are producing too much of it.
My reporting was criticized — sort of — by those who claimed I hadn’t separated correlation from causation, but the new study by a top-notch team of economists, including an advisor to Barack Obama, proves I was right.
Previous studies were misleading, the economists note, because they didn’t “incorporate three key costs,” which are the unreliability of renewables, the large amounts of land they require, and the displacement of cheaper “baseload” energy sources like nuclear plants.
The higher cost of electricity reflects “the costs that renewables impose on the generation system,” the economists note, “including those associated with their intermittency, higher transmission costs, and any stranded asset costs assigned to ratepayers.”
But are renewables cost-effective climate policy? They are not. The economists write that “the cost per metric ton of CO2 abated exceeds $130 in all specifications and ranges up to $460, making it at least several times larger than conventional estimates of the social cost of carbon.”
The economists note that the Obama Administration’s core estimate of the social cost of carbon was $50 per ton in 2019 dollars, while the price of carbon is just $5 in the US northeast’s Regional Greenhouse Gas Initiative (RGGI), and $15 in California’s cap-and-trade system.
Make no bones about it, the southwest border is facing a crisis like nothing the region has ever seen before. The human wave pouring over the border continues unabated, and it will only continue to do so. None of the traditional tools used to combat illegal immigration will work. A wall won’t work. Placing more sensors won’t work. Even hiring more agents to patrol the border won’t work.
They come from places as far away as India and Nepal. They speak ancient Mayan languages found only in remote central American villages. They claim to be Christians persecuted by the Chinese government. Their stories are so familiar that the officers and agents interviewing them could write the stories without bothering to interview the individuals telling the stories. They are all well coached, and know exactly what to say.
Asylum. That is the magic word, the golden ticket. The story is simply the means to the end, and the stories are familiar because those telling the story have been told exactly what to say in order to get an interview with an asylum officer.
These would be immigrants don’t bother to attempt to try to get away. All they need is a toe hold on American soil. Once they cross, they simply sit and wait for the Border Patrol to pick them up. If there is a Border Patrol Agent in the area they will save the agent the effort and walk to him or her to give themselves up. Why risk their lives when all they have to say is one little word?
The word is so small, but it has an oversized effect on our border security agencies. Border Patrol stations are bogged down with people who never bothered attempting to escape. Agents spend time working with interpreters attempting to interview individuals even though the agents already know exactly what the individual will claim. The only thing different is the names of people and places, the rest of the story is identical to the last story they heard. While agents are processing the asylum seekers, the real bad guys, the gang bangers, rapists, murderers, and potentially the terrorists are able to slip by either undetected or detected but unacted on because there are not any agents available to do anything about it.
President Trump is doing what he can to combat this flow of humanity, but there really is nothing that he can do. There is only one way to stop this wave of humanity, and only one entity can stop it.
Under current law anyone who has been in the United States for up to a year can apply for asylum regardless of how they entered the country. It is amazing that it has taken as long as it has for people to take advantage of this gaping loophole in our immigration law. The only way to fix it is for Congress to change the law. The fix is very simple.
Anyone who is able to present themselves to a port of entry for inspection and enters the United States by way other than the port of entry shall be ineligible for asylum.
There. Simple. If you are able to enter through a port of entry and you choose not to, you lose your shot at asylum and are shipped home. If you are coming from a Caribbean island country, you get a pass because you end up wherever the boat drops you off. For everyone else, you have to go to a port of entry if you want to petition for asylum.
Such a simple word, such a simple solution. Unfortunately, Congress has proven over and over that they do not work with simple solutions. So our asylum officers are backlogged for years, our Border Patrol Agents are busy processing people who simply give up, and the people who we really want to keep out of our country have a free pass to slip by overwhelmed Border Patrol Agents.
We the People.
That’s right, we the people have the right to demand that Congress act. Unless we do so, this problem will persist. It is up to you, the patriot, the concerned citizen, to contact your member of Congress and your Senators and demand that the laws be changed to reflect the current crises.
It won’t happen unless you take action.
The Wall Street Journal is the latest media outlet to report on what’s driving the border crisis. For most Guatemalans, it’s economic opportunity, not the reported violence and bloodshed.
A report this week in the Wall Street Journal chronicles the border crisis at one of its sources, a city in Guatemala that’s emptying out as families leave for the United States, and leaves little doubt that what’s motivating most of them to leave isn’t violence or persecution, but economic opportunity.
The focus of the story is the mountainous city of Joyabaj, “population 100,000 and falling.” The United States has deported 627 people to Joyabaj in the first six months of this year, more than any other municipality in the country except Guatemala City, population 2.5 million, which saw 643 deportees from the United States over the same period. According to one school official, about 2,000 out of 16,400 first- through ninth-graders in Joyabaj’s public schools have gone north over the past 18 months.
Indeed, Guatemalans now make up the largest nationality of those arrested along the southwest border, with 235,638 Guatemalans apprehended so far this year. Of these, the vast majority are family units or unaccompanied minors. As of June, more than 167,100 family units from Guatemala had been arrested, more than the previous three years combined.
What’s driving the exodus? Grinding poverty at home, the chance to get ahead in America, and a robust smuggling industry. On this last, the Journal report is eye-opening. Radio stations in Joyabaj advertise the services of smugglers with ads that ask, “Tired of so much poverty? Tired of so much humiliation?”
Business is good. One smuggler barrels along roads in a bright yellow Hummer. He doubles as a priest in the Maya religion and is paid handsomely to perform ceremonies to insure a safe journey.
Many Guatemalans use homes and plots of farmland as collateral for high-interest loans to pay smugglers.
A popular YouTube influencer has sophisticated equipment to create videos with such titles as ‘The American Dream,’ and ‘I left for the US looking for a better life.’ Together, they have notched almost three million views. Some of the inspirational videos are, in fact, advertisements for one of the area’s most successful human smugglers.
The Journal isn’t alone in its Guatemala reporting. News organizations that have actually bothered to send people to the country have reported at length on the economic benefits of migration, how Guatemalans who sent a family member to the United States live in large, comfortable houses while those who have not live in shacks with dirt floors.
In April, the New Yorker ran an article titled, “The Dream Homes of Guatemalan Migrants,” about American-style casas de remesa, or remittance houses, “which have become ubiquitous in the country’s western highlands as a way for immigrants to invest their earnings while living abroad.”
All of this reflects what Guatemalans say about why they’re leaving. A 2016 survey by the International Organization for Migration found that more than 90 percent emigrated to the United States for economic reasons. According to the report, “56.8 percent of Guatemalans migrate in search of better employment, 32.9 percent to improve their income, 1.2 percent to buy a home, and 0.1 percent to open businesses.” Only 0.3 percent say they migrate because of violence, and 0.2 percent cite gang problems.
Meanwhile, the entire political class in Washington DC is seemingly content to pretend that none of this is happening. Rather than confront the reality that the vast majority of those crossing the border are economic migrants, media elites tend to repeat, mantra-like, that migrants are fleeing violence and crime.
Few of them ever mentioned that although the Northern Triangle remains a relatively violent place, homicide rates in Guatemala, Honduras, and El Salvador have plummeted in recent years. In Honduras, the murder rate has dropped by more than half since 2012; In El Salvador, the rate has fallen for three years in a row; and in Guatemala it has decreased by half since 2009.
Others emphasize poverty in these countries, which is understandable because poverty is rampant in this part of the world. Less emphasized is the fact that the economies of Guatemala and Honduras have grown about 3.5 percent on average in recent years (El Salvador’s GDP growth has been a bit more sluggish, at about 3 percent).
So if violence is decreasing and the economy is growing, why are so many people leaving Guatemala? The answer varies depending on the region of the country, but the common theme is that people are leaving because they are poor and have far better prospects in the United States. Subsistence farmers in the western highlands are facing crop failures due to climate change, so they pack up and leave.
In cities like Joyabaj, cheap cell phones keep people in touch with relatives in the United States, and success stories spread quickly, inspiring others to follow. As one man told the Journal, “If you work in the U.S., you get paid $12 an hour for eight hours, that’s $96 a day. Here you make 40 quetzales [$5.30] a day when there is work. Not enough to live.”
What we’re witnessing is a mass exodus from Central America driven above all by poverty but made possible by a broken asylum and immigration system in the United States. The scale of this exodus is hard to convey. About 17 million people live in Guatemala. Since October of last year, 235,638 Guatemalans have been apprehended by U.S. Border Patrol. That means over the past nine months nearly 1.4 percent of the entire population of Guatemala has been apprehended and processed by U.S. authorities.
It’s time for policymakers and establishment elites to get serious about what’s happening and quit pretending that the vast majority of those now arriving at the southwest border are anything but economic migrants doing what any of us would do in their shoes: exploit a broken U.S. asylum system to forge a better life for ourselves and our children.