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Entrepreneurial & Regulatory Freedom

Pelosi’s 95% Retroactive Tax on Medicines will Harm Americans in Need of Cures

Frontiers of Freedom President, George Landrith, made the following statement on Speaker Nancy Pelosi’s so-called Lower Drug Costs Now Act:

“Speaker Nancy Pelosi’s drug pricing plan to impose up to a 95 percent excise tax on hundreds of prescription medicines is the definition of insanity!  Even more strange is the counter-intuitive title she’s given it — the Lower Drug Costs Now Act.  It is difficult to imagine a more dishonestly named bill. The idea that such actions will reduce prices defies logic.  Government obstacles and taxes only raises prices and slow innovation and the development of new medicines and drugs. Imposing confiscatory taxes is no way to encourage innovation or lower prices and it is a huge stride towards socialized healthcare which leaves consumers and patients at the mercy of government bureaucrats. Imagine when you are sick having an experience like at the Department of Motor Vehicles – long lines, lots of waiting, and poor service. 

“Pelosi’s plan isn’t even constitutional because it imposes a confiscatory retroactive tax on the total sales of a drug, not the profits, but the gross receipts. To escape this ruinous and confiscatory tax, Pelosi’s plan allows first to agree to government set prices. This is so abusive that it makes the mob’s protection money schemes look legitimate. 

“In the long run, the biggest losers will be the Americans who will suffer and die because the medicines that could have been developed to cure their condition will not exist or be developed. So as American age and need cures for cancer, Alhiemers, diabetes, etc, they won’t exist and it will be Nancy Pelosi’s fault. These policies have long term consequences. If she were serious about improving things, she would unleash the power of the market and competition. Instead, she empowers government at the expense of Americans. 


Competition, Not a Cartel, Can Cure What Ails Health Care

The best way to ensure better medical care for all is to reject Medicare for All.

By HUNT LAWRENCE AND DANIEL J. FLYNNThe American Spectator

Health care ranked as most important issue, save for “the ability to beat Donald Trump,” for Democratic voters in a FiveThirtyEight/Ipsos poll taken before and after last week’s presidential debate.

The debate revealed fissures among the party’s presidential aspirants on health care.

Bernie Sanders pronounced his desire that “every American has health care as a human right and not a privilege.” But under the senator’s “Medicare for All” scheme, private health insurance becomes illegal.

Would any American regard it as in keeping with the First Amendment if the government limited all 330 million of us to one church or one newspaper? The senator’s conception of rights, several opponents seemed to say, is wrong.

“While Bernie wrote the bill, I read the bill,” Amy Klobuchar quipped. She objected to Medicare for All forcing about half of Americans off their existing private insurance. “I don’t think that’s a bold idea,” the Minnesotan noted. “I think that’s a bad idea.”

Mayor Pete Buttigieg said he supported “Medicare for all who want it.” He objected to the one-size-fits-all quality of Sanders’ plan. “I trust the American people to make the right choice for them,” he told Sanders. “Why don’t you?”

Joe Biden balked at the price, estimated to eclipse what the federal government currently takes in in revenues. The former vice president pointed out, “Nobody’s yet said how much it’s going to cost the taxpayer.”

Sanders and Sen. Elizabeth Warren, who supports his plan, pushed back. Vermont’s junior senator railed against “the drug companies and the insurance companies.” Warren explained, “I’ve never met a person who likes their insurance company.”

Given that insurance companies issue bills to consumers, this necessarily makes them unpopular. But the majority of costs come from hospitals (33 percent) and physician and clinical services (20 percent), according to the Center for Medicare and Medicaid Services (CMS). We want to kill the messenger. Those primarily responsible for the message — $25 for two aspirin pills, $120 for a cloth sling, $57,000 for a knee replacement — somehow not only escape our wrath but also win our admiration.

Hospitals gouging patients occurs most glaringly in places where hospitals operate as a monopoly and in emergency situations. The common denominator in both circumstances involves the inability to compare and shop.

In a paper published earlier this year in the Quarterly Journal of Economics, academics at Yale, Penn, MIT, and Carnegie Mellon note hospital price increases for the privately insured when competition decreases. “Prices at monopoly hospitals are 12% higher than those in markets with four or more rivals,” their abstract reads.

Monopoly hospitals also have contracts that load more risk on insurers (e.g., they have more cases with prices set as a share of their charges). In concentrated insurer markets the opposite occurs — hospitals have lower prices and bear more financial risk. Examining the 366 mergers and acquisitions that occurred between 2007 and 2011, we find that prices increased by over 6% when the merging hospitals were geographically close (e.g., 5 miles or less apart), but not when the hospitals were geographically distant (e.g., over 25 miles apart).

In the emergency room, when circumstances necessarily kill the ability to shop, spending per patient more than doubled from 2008 to 2017, according to research compiled by Kevin Kennedy and John Hargraves for the Health Care Cost Institute.

Reducing health-care costs requires more competition, not a monopoly. Change soon comes, and not necessarily legislative change of the Medicare for All variety. Data stored in the cloud and available via an app may make medical costs and outcomes transparent, which should reduce cost. Medicare for All will retard this process since the whole health-care industry will lobby against the smartphone apps, and the consolidation of the entire industry necessarily leads to less competition.

Beyond transparency enabling health-care consumers to shop, the industry appears ripe for new players. Amazon, JPMorgan Chase, and Berkshire Hathaway, for example, entered the field last year. If they do not ultimately seek to dethrone the status quo, why did UnitedHealth’s Optum sue to stop a former employee from working at the trio’s health-care startup? A $3.6 trillion industry remains too big a cash cow for the giants of tech and finance to resist a milking.

Competition is coming. Price transparency is coming. If Medicare for All is coming, then neither is coming.


Third Dem Debate Leaves Major Health-Care Questions Unanswered

Even the ‘moderate’ proposals would sabotage private coverage, driving everyone into a government-run system. That’s probably why Democrats don’t really answer questions about their health proposals.

By Christopher JacobsThe Federalist

For more than two hours Thursday night in Houston, 10 presidential candidates responded to questions in the latest Democratic debate. On health care, however, most of those responses didn’t include actual answers.

As in the past several contests, health care led off the debate discussion, and took a familiar theme: former vice president Joe Biden attacked his more liberal opponents for proposing costly policies, and they took turns bashing insurance companies to avoid explaining the details behind their proposals. Among the topics discussed during the health care portion of the debate are the following.

How Much—and Who Pays?

Most notably, Massachusetts Sen. Elizabeth Warren again declined to admit whether individuals will lose their current insurance, or whether the middle class will pay more in taxes, under a single-payer health care system. By contrast, Vermont Sen. Bernie Sanders claimed that while all (or most) Americans will pay higher taxes to fund his single-payer system, middle class families will come out ahead due to his plan’s elimination of deductibles and co-payments.

The problems, as Biden and other Democratic critics pointed out: First, it’s virtually impossible to pay for a single-payer health care system costing $30-plus trillion without raising taxes on the middle class. Second, even though Sanders has proposed some tax increases on middle class Americans, he hasn’t proposed nearly enough to pay for the full cost of his plan.

Third, a 2016 analysis by a former Clinton administration official found that, if Sanders did use tax increases to pay for his entire plan, 71 percent of households would become worse off under his plan compared to the status quo. All of this might explain why Sanders has yet to ask the Congressional Budget Office for a score of his single-payer legislation: He knows the truth about the cost of his bill—but doesn’t want the public to find out.

Keep Your Insurance, or Your Doctor?

Believe it or not, Biden once again repeated the mantra that got his former boss Barack Obama in trouble, claiming that if people liked their current insurance, they could keep it under his plan. In reality, however, Biden’s plan would likely lead millions to lose their current coverage; one 2009 estimate concluded that a proposal similar to Biden’s would see a reduction in private coverage of 119.1 million Americans.

Minnesota Sen. Amy Klobuchar echoed Biden’s attack, saying that while Sanders wrote his single-payer bill, she had read it—and pointing out that page 8 of the legislation would ban private health coverage. (I also read Sanders’ bill—and the opening pages of my new book contain a handy reading guide to the legislation.)

For his part, Sanders and Warren claimed that while private insurance would go away under a single-payer plan, people would still have the right to retain their current doctors and medical providers. Unfortunately, however, they can no more promise that than Biden can promise people can keep their insurance. Doctors would have many reasons to drop out of a government-run health plan, or leave medicine altogether, including more work, less pay, and more burdensome government regulations.

Supporting Obamacare (Sometimes)

While attacking Sanders’ plan as costly and unrealistic, Biden also threw shade in Warren’s direction. Alluding to the fact that the Massachusetts senator has yet to come up with a health plan of her own, Biden noted that “I know that the senator says she’s for Bernie. Well, I’m for Barack.”

Biden’s big problem: He wasn’t for Obamacare—at least not for paying for it. As I have previously noted, Biden and his wife Jill specifically structured their business dealings to avoid paying nearly $500,000 in self-employment taxes—taxes that fund both Obamacare and Medicare.

Tax experts have called Biden’s avoidance scheme “pretty aggressive” and legally questionable, yet neither Democrats nor Thursday’s debate moderators seem interested in pursuing the former vice president’s clear double hypocrisy about his support for Obama’s health care law.

A March to Government-Run Care

I’ll give the last word to my former boss, who summed up the “contrasts” among Democrats on health care:

Gov. Bobby Jindal@BobbyJindal

Dem debate on health care:@berniesanders: If you like your health plan, too bad, we are going to take it away now.

“Moderate” Dem: If you like your health plan, don’t worry, we will gradually take it away.#DemDebate #DemocraticDebate2078:47 PM – Sep 12, 2019Twitter Ads info and privacy104 people are talking about this

As I have previously noted, even the “moderate” proposals would ultimately sabotage private coverage, driving everyone into a government-run system. And the many unanswered questions that Democratic candidates refuse to answer about that government-run health system provide reason enough for the American people to reject all the proposals on offer.


Health Care Systems in Other Countries: Would They Work in the United States?

Only if we developed a fondness for long waiting lines and ever more insurance mandates.

By ROGER STARKThe American Spectator

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.


The Lower Health Care Costs Act Will Make A Big Problem Even Bigger

By George LandrithRedState

When the federal government sets out to solve a problem, it often begins by making the problem larger.

For example, lawmakers may want to reduce pollution. Or cut down on the use of fossil fuels. So they pass a “Clean Air Act,” or mandate the use of renewable fuels. But now they need inspectors. And lawyers to file (and respond to) lawsuits. The big problem gets bigger as it gets bogged down in bureaucracy, and a solution may seem ever further away.

As a Microsoft blogger once joked, “if the solution begins with ‘First, install…’ you’ve pretty much lost out of the gate. Solving a five-minute problem by taking a half-hour to download and install a program is a net loss.” The same can be said about Washington. If the answer is “First, pass legislation…” then your problem probably isn’t going to get solved, especially in today’s environment of divided government.

But bad things keep happening to good people. For example, anyone with insurance can be sent to a care center that’s not covered by their network and end up with a big bill. That isn’t fair. So how can policymakers bring down their health care costs?

As always, Washington’s response begins with a big bill, the “Lower Health Care Costs Act of 2019,” penned by Tennessee Republican Lamar Alexander. One goal of the bill is to set prices in cases of surprise billing, so insured patients that are taken to out-of-network facilities without their knowledge aren’t hit with huge bills. The bill plans do to so by capping provider costs at the median in-network rate.

If the LHCC gets the prices wrong -and if the history of price controls provides any indication, it will – it could lead to yet another Obamacare-esque death spiral, where premiums rise, hospitals lose money, and doctors stop seeing patients.

The legislation’s big-government, top-down solutions won’t amount to a very effective way to push back against high prices. The faster and more effective way is to encourage competition. One way to do that is by allowing market negotiations to proceed.

The STOP Surprise Medical Bills Act, introduced by Sen. Bill Cassidy, M.D. (R-La.) and Sen. Tom Carper (D-Del.), would do just that. When cases of surprise medical bills pop up, The STOP Surprise Medical Bills Act would allow all players in the healthcare industry to submit proposals to an arbiter, who would ensure that the best offer for consumers wins the day. This process will create far more informed, data-driven decisions than the LHCC’s blanket price controls ever could.

We also need more doctors, which would increase competition among physicians and help force prices down. Instead, we’re chasing doctors out of the profession. “The United States could see a shortage of up to 120,000 physicians by 2030,” warns the Association of American Medical Colleges.

Well, federal policies can make it more difficult than ever to practice medicine. For example, it can cost more to treat Medicaid patients than the federal government is willing to pay. That squeeze is an example of the wrong way to approach price cuts, yet it’s the one that Washington usually turns to. It’s at least partially responsible for the decline in the number of doctors.

Big medical bills are a big problem. Together we can solve that problem. But first, let’s prevent Washington from making it even bigger by imposing the LHCC Act.


The U.S. Patent System Is Under Siege

By George LandrithRedState

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.


It Is Time for America to Reassert Leadership in Space

By George LandrithNewsmax

Celebrating the 50th anniversary of the Apollo 11 moon landing has opened a wide-ranging conversation about America’s space exploration program. I remember being a young boy and watching with fascination as rockets in the Apollo program lifted off from Cape Canaveral and as Neil Armstrong and Buzz Aldrin made that giant leap for mankind on the surface of the moon. President John F. Kennedy never got to see the lunar landing, but he set the nation’s sights on the moon and helped establish America’s preeminence in space.

Sadly, by the end of the George W. Bush Administration and during the entirety of Barack Obama’s Administration, America’s space exploration program was all but shut down. Something like that can escape notice for a while, but eventually, the impact will become obvious. Imagine if the Soviets had won the space race! A great deal more than national pride is at risk.

It is high time America reassert its leadership in space. Leaving the cosmos to China would be a catastrophic mistake. The technological, economic, and national security implications are important and very real. To simply cede these matters to China would harm not only the United States, but the rest of the world. The communist Chinese intend to dominate militarily and would love for us to cede this arena to them.

Fortunately, President Donald Trump sees space as an important frontier. Early in our nation’s history, President Thomas Jefferson launched a major exploration of the western half of the North American continent. President Kennedy set in motion America’s successful Apollo 11 lunar landing. Now, President Trump is pushing America towards Mars.

On July 4, earlier this year, President Trump said, “I want you to know that we are going to be back on the moon very soon, and someday soon we will plant the American flag on Mars.” That is a worthy objective and a worthwhile goal!

Landing on Mars and returning safely home again will happen as we reestablish the capability to safely return to the moon. A round trip to Mars is about 18 months. The safety issues are exponentially more complicated than a lunar landing. There is no returning half way once headed to the Red Planet. But once we conquer these challenges, we will again be the clear and undisputed leader in technology and space exploration. That will include valuable economic benefits, obvious technological advancements, and significant national security advantages.

This is a mission worthy of a new generation of American children who dream of becoming astronauts, scientists, and engineers. But there are those who hope to demote NASA into a space agency with small dreams and mundane goals.

For example, Lori Garver, Obama’s NASA Deputy Administrator from 2009 to 2013, has recently wrote an article in the Washington Post arguing that NASA should nix plans to go to Mars and instead make its budget available for more climate science research — something that nearly every other federal agency puts plenty of money towards. According to OMB, the federal government has 19 agencies that funded climate change research to the tune of $13.2 billion in 2017 alone. But Garver sees NASA’s budget and she covets its less than 1/2 of one percent of federal spending. She wants to raid NASA’s budget to fund her own priorities — even more climate change research.

We should all be glad that Garver and her ilk were not around in the 1960’s when President Kennedy was inspiring America to aim for the moon. America needs, and will benefit from, a serious space exploration program.

But people like Ms. Garver are not the only impediment to America’s resurgence into deep space exploration. Newt Gingrich, while supportive of President Trump’s plans to go to Mars, has been advocating for policies that run counter to that goal.

Over the last few years the former Speaker of the House has repeatedly boosted Elon Musk and SpaceX as the future of space travel. From a flurry of tweets lauding the company and its founder, to a series of op-eds, including one where he encourages the government to take on “the role of an investor” in SpaceX, the policies he advocates for in the opinion pages and on social media appear to align with the company’s agenda.

Unfortunately the SpaceX agenda is mostly about getting special concessions and huge subsidies even when it fails to meet contractual benchmarks. While Musk’s prowess in space is questionable, he is a master at public relations campaigns designed to portray him as a forward thinking innovator. But the truth is, Musk is a creature of the D.C. swamp who has succeeded — far less by innovating — than by getting billions in government handouts and subsidies.

Musk’s and SpaceX’s track record on accomplishment and safety are spotty at best. Their delays and failures are commonplace. Yet, they managed to play the Washington swamp game adeptly. As a result, Musk got huge taxpayer provided subsidies for each Tesla he sold and got even larger government provided benefits and subsidies for SpaceX. Musk even managed to get the Obama Administration to pay for contract work that SpaceX failed to deliver on.

I admire Gingrich — I’ve got a photo with him hanging in my office and I signed the Contract with America. But I disagree on his proposed path to Mars that favors Musk’s legacy of failure, delay, and rent seeking. By pinning our deep space exploration hopes on Musk, Gingrich — who has a reputation as being an innovative policy mind — risks miring our space program in the swamp slime and muck that has allowed Musk to make his fortune on the backs of the U.S. taxpayer.

Going to Mars is exponentially more difficult than landing on the moon. It presents a great deal more safety challenges. Musk has proven over the past decade that safety is not his concern. In fact, he seems to view safety as a bother. Our policy makers should take this into consideration when deciding how we will take our astronauts back to the moon and beyond.

The truth is, America already has a capable new rocket that dwarfs the capabilities of the Saturn V rockets that took our astronauts to the moon. The Space Launch System will be online and ready later this year. As with any attempt to design and build something that has never been done before, the Space Launch System had some challenges. Guess what? The Apollo program had many challenges too. Even Lewis and Clark’s mission had challenges and cost overruns. When something has never been done before, developing it isn’t like buying a Betty Crocker cake mix and baking it in the oven.

Real and robust competition pushes all participants to perform their best. But SpaceX has so far been able to avoid real competition. Without any real requirement that it ultimately succeed, SpaceX has been a technological failure, even while Musk has managed a public relations success and gotten paid based on his public relations campaign, more than actual accomplishment. To make it to Mars we must encourage real competition, not Elon Musk’s fake version of competition where he gets paid regardless of what he produces.

Returning to the moon and then going on to Mars is a worthy goal and the right objective! But it won’t happen if NASA becomes just another federal agency studying climate change. And it won’t happen if Elon Musk is able to co-opt the process as he did during the Obama years. Musk’s life goal appears to be famous and rich. But America needs to make it our goal to go to Mars and bring our astronauts safely home again.


Supplement to the Letter to Secretaries of State & Treasury about the Global Magnitsky Human Rights Accountability Act and Hungarian Violators of March 1, 2018

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.

Sincerely,


Dr. Miklos K. Radvanyi, Senior Executive Vice President


The fraud of single-payer health care

The consistent failures of single-payer health care worldwide are well-documented

By Scott W. AtlasThe Washington Times

The Affordable Care Act (ACA) directly harmed America’s health care, far more than just breaking promises about keeping your doctor and your insurance. Its extensive regulations made private insurance unaffordable, as premiums for individuals doubled and for families increased by 140 percent in four years, even though deductibles also increased substantially. 

It funneled massive taxpayer dollars to add millions to substandard Medicaid insurance, widely known to have worse outcomes than private insurance and far less acceptance by doctors, even by doctors with contractual agreements to accept it. It dramatically reduced choice of hospitals and specialists for patients with private insurance, so that almost 75 percent of private ACA plans became highly restrictive. And it generated a record pace of consolidation across the sector, including anti-consumer mergers of doctor practices and hospitals that are associated with higher prices of care. The ACA was significantly damaging to patients and cost taxpayers enormously. 

The antidote most Democratic presidential candidates now propose to the regulatory nightmare of Obamacare is the ultimate hyper-regulation of health care — socialized medicine, clothed in more pleasing terms like “public option” and “Medicare for all.” And their simplistic messaging is enticing; who wouldn’t want “guaranteed, free health care?” 

The answer to “who wouldn’t want it?” is found in existing single-payer systems all over the world, in countries with decades of experience, which offer those same “guarantees.” People with the financial means increasingly choose to circumvent single-payer systems for private health care. Even though they already pay £125 billion per year, equivalent to $160 billion, for their single-payer health care, half of all Brits who earn more than £50,000 buy or plan to buy private health insurance, according to Statista 2017. 

In Sweden, about 650,000 who can afford it buy private insurance despite already paying $20,000 per family per year through taxes for their nationalized system, according to Insurance in Sweden 2015. And more than 250,000 Brits spend out-of-pocket cash for private care. According to the European insurance and reinsurance federation (CEA), private insurance in the EU bought by those who can afford it grew by more than 50 percent over a decade to 2010, specifically to fill the “ever growing gaps in coverage” in public health systems. Only the poor and the middle class are stuck with nationalized, single-payer health care, because only they cannot afford to circumvent that system.

Americans should wonder why those with financial means would need to spend even more money than their already high taxes for something that is “guaranteed and free.” Unbeknownst to Americans and hidden by single-payer advocates, consistent failures of single-payer health care are well documented, proven to be inferior to the U.S. system in important objective measures of access to care and quality. As a direct consequence of explicit restrictions on specialists, surgeries, drugs and technology, single-payer systems have factually worse outcomes than the U.S. system from almost all serious diseases, including 


Warren: Everybody Will Transition to Government-Run Health Care Plan

Polling shows Medicare for All unpopular when it means eliminating private insurance

By David RutzWashington Free Beacon

Sen. Elizabeth Warren (D., Mass.) discussed her health care plan Friday, outlining a vision where everyone eventually “transitions” to a government health care plan.

“Your Medicare for All proposal would eliminate private insurance, correct? Is that right?” Des Moines Register opinion editor Kathie Obradovich asked Warren at a presidential candidate forum.

Warren, who raised her hand at last month’s Democratic debate to indicate she would abolish Americans’ private health insurance plans, briefly hesitated before answering.

“What it does is it transitions people to more complete insurance coverage, more complete health care coverage, at a lower cost, which I think is what we all want,” she said. “Everyone gets covered, but we do it at the lowest possible cost.”

“Would that also include Medicare Advantage and Medicare Part D, which have private providers within the Medicare umbrella?” Obradovich asked.

“So, the basic structure of the plan is to get everyone covered,” Warren said.

She said a “significant feature” of Medicare for All is that it would pay for “long-term care.”

“The problem we’ve got right now in the United States is that the insurance companies are sucking value out of our health care system,” she said. “Look at the basic business model. It’s charge the maximum amount you can in premiums, and pay out the least that you can in health care coverage.”

Warren supports Sen. Bernie Sanders’s (I., Vt.) single-payer Medicare for All, which Sanders said last week would cost up to $40 trillion over the next decade. Other Democrats running for president have said there should be a role for private insurance, supplemental care, or a public option to buy into a government-run program.

Polling has shown support dwindles for Medicare for All when respondents are told it would eliminate their private health plans. A poll in February found only 13 percent of Americans wanted a true single-payer system that abolished private insurance.


Trump and the GOP can protect the American taxpayer and win working class votes all at the same time

By George LandrithThe Economic Standard

The US House of Representatives is getting closer to voting on the Butch Lewis Act, which failed to pass last year. While a number of provisions in the current version of the legislation make it an unworthy solution, the truth is the problem it attempts to address is real and the legislation even with its flaws does create the opportunity to amend and improve it so that a serious financial crisis can be avoided. Conservatives should consider this an opportunity. 

Many multi-employer pension and defined pension plans are now on the brink of failure. They carry over $600 billion of unfunded liabilities and are dangerously close to failing. Millions of retired Americans in states like Pennsylvania, Wisconsin, Michigan, Minnesota, Ohio, Nevada, Florida, Colorado, Maine and New Hampshire could lose their retirement. If that happens, they will be thrust onto the welfare rolls and the fruits of their life’s work will be lost. 

Even those who don’t have such pensions, are at risk. The 2008 housing bubble that triggered a huge economic slowdown, impacted everyone — not merely those whose mortgage was foreclosed upon. And we spent the next five plus years in economic turmoil and that was used as an excuse to grow the government. So we paid twice — first with the economic downturn and lost jobs and second, when government spending and debt grew dramatically and government’s penchant to over regulate drastically expanded. 

President Trump could ensure his reelection in 2020 and conservatives in the House could insure a return to the majority as well — if they can fashion a sustainable, conservative fix to the pending multiemployer pension plan crisis.

In 2016, Trump won a number of states narrowly — states like Pennsylvania, Wisconsin, and Michigan. In those states and many others — Ohio, Colorado, Nevada, Minnesota, Maine, New Hampshire and Florida — there are millions of citizens who are participants in multi-employer pension plans. Each of these potential voters has family and friends which only multiplies their electoral influence. By stepping in and averting this potential economic pitfall, Trump would win millions of blue collar voters in key states. Likewise, GOP congressmen who had a difficult year in 2018, could find themselves swimming with the current and regain the majority if they can take the opportunity to use the Butch Lewis Act as a starting point to address the multiemployer pension plan crisis in a conservative and sustainable way. Even Senate Republicans could see their majority grow if they move helpful legislation. 

In Pennsylvania, there are more than 493,000 participants in multi-employer pension plans. In Michigan, there are more than 440,000 multi-employer pension participants.  In Wisconsin, there are almost 150,000. Ohio has almost half a million. Florida has more than 340,000. Colorado has almost 200,000.  In Maine, more than 50,000. In Nevada almost 135,000.  In Minnesota, more than 278,000. 

In each case, those numbers could either expand upon Trump’s 2016 victory, or flip a state that he narrowly lost in 2016, to make it part of his expanded victory in 2020. And once you account for family friends and relatives, those numbers only increase the potential for an impressive reelection victory.

For GOP members of Congress, this provides a powerful way to win the support of working class voters and pave the way to reclaiming the majority in the House and help the Senate preserve and grow its majority. 

It may be tempting to leave this problem to fester and then let some future President and Congress deal with it when this pending crisis becomes a full blown, current crisis. But that’s dangerous and risky. The far Left has repeatedly signaled that they won’t let a “crisis go to waste.” They will use any crisis as an excuse to grow government, bust the budget and further smother economic opportunity with burdensome regulations. So solving this now is actually the conservative thing to do. It protects taxpayers and it can keep government growth in check. 

A workable and permanent solution will include a number of important principles.  First, the affected pension plans must be reformed by requiring them to meet more rigorous and realistic actuarial standards. Second, the reform must engage all the stakeholders to share in the costs, including at least temporarily, the retirees — rather than passing off the costs to taxpayers. Third, modest loan guarantees must be authorized to help pension plans that make the required reforms. This will allow them to get through their short term cash crunch and get back on a firm actuarial footing when the loans would be fully repaid. Fourth, the Pension Benefit Guarantee Corporation (PBGC) must be reformed to make it function as a real insurer where risks and cost balance out. If nothing is done, the PBGC will be bankrupt within 6 years — leaving taxpayers to make good on its promises which will cost hundreds of billions.

If President Trump and GOP conservatives become the champion of a wise pension plan solution like this, they can easily win re-election in 2020, regain the House majority, and expand their Senate majority. That is why the Butch Lewis Act with all its problems, presents conservatives with a real opportunity to fashion a solid conservative solution that benefits all Americans. 


SHOCK: Bernie Sanders Pays LESS Than $15 And NO OVERTIME!

Perhaps it’s time for Bernie Sanders to put his money where his mouth is and pay his staffers a “living wage”—and the overtime they should be entitled to.

By LaborUnionReportRedState

For all is rhetoric, it may turn out that socialist Sen. Bernie Sanders is just another hypocritical politician who takes money from big corporations, invests in Wall Street and, reportedly, pays his workers “poverty wages” (and NO overtime)—despite the fact that they’re unionized.

Back in March, to show his “pro-union” bonafides, Bernie Sanders made headlines when he encouraged his staffers to unionize with the United Food & Commercial Workers, turning his campaign into the first-ever unionized presidential campaign.

However, as often happens when activists who campaign to dictate standards upon others actually have to live under those standards, things do not always go as planned.

On Thursday, the same day that the House of Representatives passed a bill to raise the federal minimum wage to $15 an hour—which Sanders has long advocated for—the Washington Post ran an article that shed some light on a wage dispute that is currently going on within his campaign.

Apparently, Sanders’ campaign workers are lashing out at campaign management regarding the low wages that they are receiving.

“I am struggling financially to do my job, and in my state, we’ve already had 4 people quit in the past 4 weeks because of financial struggles,” one field organizer reportedly wrote on a message board to Sanders’ campaign manager Faiz Shakir.

Another employee wrote his co-workers “shouldn’t have to get payday loans to sustain themselves.”

Then, there was this interesting statement:

The draft letter estimated that field organizers were working 60 hours per week at minimum, dropping their average hourly pay to less than $13. [Emphasis added.]

Screenshot of an excerpt from the Washington Post’s article “Labor fight roils Bernie Sanders campaign, as workers demand the $15 hourly pay the candidate has proposed for employees nationwide,” posted July 17, 2019

As field organizers are paid an annual salary of $36,000 under their new union contract, things would be fine—if they are only working 40 hours per week.

However, it appears they are not.

If they are truly working 60 hours per week (or 3,000 hours per year), on a salary of $36,000, they are only making $12 per hour, instead of the $17.30 they should be making on a standard 40-hour week, 2,080-hours per work year.

Obviously, $12 per hour is far less than the $15 Bernie Sanders claims to support.

However, it’s worse than that.

Based on the article, it also appears that Sanders is not paying overtime.

Under the Fair Labor Standards Act (FLSA) of 1938, employees who are not exempted from the law are entitled to time and one half pay for every hour worked after 40 hours in a given workweek.

[Some states (and, more importantly, some union contracts) actually mandate time and one half after eight hours.]

If the Sanders campaign workers are not exempt from the FLSA and are entitled to overtime, they should be making nearly $26 per hour for every hour worked over 40.

Following the 2016 election, the DNC was sued by former field organizers who alleged that the “the state party defendants conspired with one another and with Defendant DNC to unlawfully designate Plaintiffs, and those similarly situated, as exempt employees under the FLSA and applicable state wage statutes, thereby denying Plaintiffs full and appropriate compensation.”

Unfortunately for the DNC’s field organizers, the suit was dismissed in 2018.

In dismissing the overtime suit, according to this summary, “the Court relied on an often-overlooked defense to the Fair Labor Standard Act (“FLSA”) – namely, that the FLSA only covers employees engaged in interstate commerce as opposed to employees engaged in purely local activities. [Emphasis added.]”

That case involved multiple state parties (as well as the DNC)–and not a singular candidate.

In the case of Bernie Sanders, however, a court could determine his campaign to be a singular employer…and, if so, it is definitelyoperating across state lines (interstate commerce).

It is also possible that the new union contract may aid a court in establishing that employees are not exempted from the FLSA. However, neither the campaign, nor the UFCW has released the contract to the public.

Perhaps it’s time for Bernie Sanders to, quite literally, put his money where his mouth is.


Bad news: The moon landing, one of humanity’s greatest achievements, was apparently not inclusive enough

By Becket AdamsWashington Examiner

Sorry, guys. It looks like the Apollo 11 moon landing is canceled.

Sure, it is neat that humanity in 1969 left Earth to set foot on an astronomical body not its own, marking man’s greatest achievement to date, but did you know the Apollo 11 space program was also overwhelmingly white and male?

This is a real complaint being raised on the 50th anniversary of the moon landing by real people in real newsrooms.

The first of such arguments come from the Washington Postwhich published a tweet on July 16, that read: “The culture that put men on the moon was intense, fun, family-unfriendly, and mostly white and male.”

The report itself, authored by style writer Karen Heller, reads, “As NASA worked relentlessly to fulfill John F. Kennedy’s goal of landing a man on the moon by decade’s end, it turned to the nation’s engineers. Many of them were fresh out of school, running the gamut from mechanical to electrical engineers, because that’s mostly what was taught in universities, and almost exclusively to white men.”

“In archival Apollo 11 photos and footage, it’s a ‘Where’s Waldo?’ exercise to spot a woman or person of color,” the report adds.

The article is a fairly interesting long-read about life for the men and women who worked at Cape Canaveral in the late 1960s. The problem is: The most fascinating details are buried almost immediately under the identify politics hyped in the story’s opening as well as in its accompanying tweet. 

Then there is the New York Times, which on July 17 published an op-ed written by author Mary Robinette Kowal, headlined “To Make It to the Moon, Women Have to Escape Earth’s Gender Bias.”

“The Apollo program was designed by men, for men. But NASA can learn from its failures as it aims to send women to the moon and beyond,” the subhead reads.

“If we do not acknowledge the gender bias of the early space program, it becomes difficult to move past it,” the article reads, concluding with these lines, “As we look back at the Apollo mission … it is important to examine the gender biases of the early space program for lessons learned. If we want to land the first woman on the moon, let’s make sure she has tools designed with her in mind. Eliminating the legacy of gender bias is just one small step.”

None of this compares to what the New York Times published next.

“America may have put the first man on the moon, but the Soviet Union sent the first woman, the first Asian man, and the first black man into orbit — all years before the U.S. would follow suit,” read a July 18 tweet published by the New York Times (reminder: The United States won the space race).

The accompanying article, titled “How the Soviets Won the Space Race for Equality,” is every bit as ridiculous as it sounds, especially the kicker, which reads, “Cosmonaut diversity was key for the Soviet message to the rest of the globe: Under socialism, a person of even the humblest origins could make it all the way up.”

This is pro-Soviet Union agitprop.

The real question here is this: For whom are these article being written? It is worth noting that both the Washington Post and the New York Times have also published several articles celebrating the 50th anniversary of the moon landing. But what is the purpose of these “actually, the moon landing was bad” counterpoints?

What audience does this serve? Does such an audience even exist or are these articles merely a cynical manipulation of the hate-click economy?


Sanders compares climate change push to Pearl Harbor response as he unveils emergency resolution

By Adam Shaw, Lukas MikelionisFox News

Sen. Bernie Sanders, I-Vt., on Tuesday compared the push to combat climate change to the response to the attack on Pearl Harbor as he unveiled legislation that would declare a “climate emergency” and demand a massive-scale mobilization to tackle it.

“In some ways…I’m reminded today in terms of the crisis that we face in climate change about where the United States was in 1941 when it was attacked at Pearl Harbor, and what happened at that point, having to fight a war on two fronts in the East and in Europe, the United States came together and within three years it had created the type of armaments program that was necessary to, in fact, win the war,” he said in a conference call with reporters.

He went on to argue that fighting climate change was do-able, but it needed greater political will in Washington D.C. — particularly from President Trump, whom he called ignorant on the issue.

“So I don’t think the issue here isn’t that we can’t address this problem, i think we can, I think we know exactly what has to be done, and that is massive investment in sustainable energy, massive investments in energy efficiency, transform our transportation system, we know what has to be done, but the problem is the lack of political will,” he said.

He made his remarks as he, along with Reps. Alexandria Ocasio-Cortez, D-N.Y., and Earl Blumenauer, D-Ore., was set to introduce a non-binding resolution in Congress to declare a “climate emergency” that calls for a “massive-scale mobilization to halt, reverse, and address its consequences and causes.”

Ocasio-Cortez said that the U.S. has fewer than 12 years to act to combat the crisis, and echoed Sanders’ sentiment that it was a question of political will, rather than how to act.

“We know that the scientific consensus is here, the solutions are right in front of us but…this is not just a scientific crisis, not just an environmental crisis, a climate crisis but this is a political crisis of inaction, and it’s going to take political will, political courage in order for us to treat us this issue with the urgency that the next generation needs in order for us to preserve our way of life and preserve our planet as much as we possibly can,” she said.

The resolution calls for a wide-scale mobilization to combat the emergency and restore the climate “for future generations.”

“The global warming caused by human activities,” claims the draft resolution, according to the Mother Jones magazine, “has resulted in a climate emergency that … demands a national, social, industrial, and economic mobilization of the resources and labor of the United States at a massive-scale.”

Ocasio-Cortez and Blumenauer, meanwhile, also wrote to fellow members of Congress urging them to declare climate change an emergency in a bid to “swiftly mobilize federal resources in response.”

The resolution, according to the outlet, details how climate change impacts public health and the national security of the U.S., though it doesn’t make any exact recommendations for how to address the so-called emergency.

The latest declaration comes after Ocasio-Cortez’s signature Green New Deal, a sweeping Democratic proposal for dealing with climate change, failed a test vote in the U.S. Senate in March, with 42 Democrats and Sanders voting “present.”

Both the New York Democrat and her colleagues decried Senate Majority Leader Mitch McConnell’s move to bring the Green New Deal up for a vote, saying the Republicans purposely rushed the vote while McConnell said he only wanted Democrats to go on record to support the sweeping proposal that he himself called “a radical, top-down, socialist makeover of the entire U.S. economy.”

The Green New Deal calls for the U.S. to shift away from fossil fuels such as oil and coal and replace them with renewable sources such as wind and solar power. It calls for virtual elimination by 2030 of greenhouse gas emissions responsible for global warming. Republicans have railed against the proposal, saying it would devastate the economy and trigger massive tax increases.


Why China Trade Talks May Hinge On North Korea’s Kim Jong-Un

By JED GRAHAMInvestors Business Dailly

Last week Wall Street focused on what the Trump-Xi summit would mean for the China trade war, the global economy and the Dow Jones. But the high-stakes meeting turned out to be a warm-up act. President Donald Trump’s real diplomatic flourish came as he crossed into the DMZ to shake hands with North Korea’s Kim Jong-un.

Investors are still trying to discern whether China trade talks will bear fruit after Trump’s big concession to Chinese President Xi Jinping. In addition to holding off on further tariffs, Trump said he would ease a ban on American technology sales to Chinese telecom equipment giant Huawei. Beijing appeared to give up little or nothing, and shows no sign of caving to Trump’s demands.

Watch North Korea To Gauge Trade Risk To U.S. Economy, Dow Jones

That raises the risk of another sudden collapse of China trade talks and a further escalation of tariffs. If that happens, both the U.S. economy and Dow Jones look vulnerable, even as the Dow hit record highs Wednesday.

But it may make sense to look at the China trade war through the prism of Trump’s push for a North Korea breakthrough. It’s a good bet that Trump-Kim DMZ meeting wouldn’t have happened if he hadn’t gotten China trade talks back on track.

Now Trump is pushing for a White House visit and reportedly wants North Korea to agree to substantially freeze nuclear weapons capabilities. As long as Trump sees Beijing as a “strategic partner” reining in North Korea’s nuclear ambitions, further escalation of the China trade war seems unlikely.

The relationship between North Korea and China is complex. But China has significant economic ties with North Korea, has often taken Pyongyang’s side against harsh international sanctions and has been seen as able to influence its behavior. International relations experts also say that Beijing has long used its role in mediating North Korea’s threat as a buffer against criticism by the West.

North Korea, China Trade Talks Follow Parallel Path

Trump has previously discussed China’s North Korea ties as a consideration in the U.S.-China trade dispute. While that hasn’t averted a major trade conflict, this past weekend isn’t the only time North Korea nuclear issue and China trade war have seemed to follow a parallel path.

Last December, Trump and Xi agreed to their first trade cease-fire. Then came Trump’s February summit with the North Korean leader in Hanoi. Trump walked away from that meeting, putting talks on ice. In May, China trade talks also broke down as Trump lost patience with Beijing for backtracking on commitments. On May 5, Trump threatened to escalate tariffs. Four days later, North Korea fired off short-range missiles in an implicit challenge to the U.S.

Why North Korea Deal Could Precede China Trade Deal

The odds of a China trade deal look pretty low, given the depth of the differences separating the two sides. The U.S. insists that China write new laws resolving complaints over theft of intellectual property, forced technology transfers, currency manipulation, access to Chinese markets and state subsidies. Even then, the U.S. wants Trump tariffs to remain in force, with some falling away as Beijing clears these benchmarks. China has refused all of these demands as humiliating and a violation of its sovereignty.

Trump may be losing hope for a huge China trade deal, but he seems to think a North Korean nuclear deal could be in reach. Trump may even see a certain logic in letting a North Korea deal come first. If Beijing really is a “strategic partner,” as Trump said in a Saturday press conference, Chinese leaders will encourage North Korea to complete a nuclear deal with him. If that happened, Trump might be more trusting of China to abide by any trade agreement, rather than keeping tariffs in place until Beijing proves it will keep its word.


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