Thursday, January 20, 2011

The Battling Macroeconomists

The macroeconomists have gotten us in enough of a mess on the financial side of the equation and not these fellows are walking into health care. You see, they really have demonstrated a global sense of ignorance in this area in prior attempts. I have repeatedly come to the conclusion that they think top down and not bottom up. To be successful you really must think both ways, kind of like an engineer, which is why China has so many in its government.

Now there are a few of them battling today on the stupidity of the health care bill. Yes it is a stupid bill, no I believe that universal health care is essential, and yes I have a solution which is laid out in detail last year. And yes there is a minor problem with the universal mandate but it can be worked around, and yes the very last entity you want controlling anything is the Federal Government, States are worse but we assume they get no where near this.

The boys are out there throwing stones, on the Left and on the Right, not my right but the political right. I try not to use names since then they just read my writings and remains as clueless as before so why even try.

Here is the start of this argument. A Right faculty member stated that if he were given a billion dollars and if the Government were to tax everyone three billion at the same time because of the billion gift, there would be no deficit. Namely if we tax at a rate of three time our expenses we would not have any deficit, and most likely no economy and then, well you see the argument.

The Left then gets upset because they see this as a gift to some rich academic fellow, especially someone who they see on the Right, whereas they believe that the Government is providing valuable health care to those who have been denied such. In reality they are getting care now, nothing really changes, except the Government has taken control and taxes are considerably more. Remember the new almost 4% tax on the gross sales price of your home when you sell it! That means the realtor get her 6% and the Government gets 4% for a total of 10% and the house price is already down 30% because of this mess so you have lost almost 50% of your equity, and frankly a lot more if you have a mortgage! That is what the Left should be really talking about, and add to that the CER controlling procedures to those over 65 and you get more dead folks as well, but dead ones where we are already pushing down costs.

As the left states:

To equate the good that comes from covering people with health insurance -- insurance that the private market will not provide for them itself -- with giving X a handout of a billion dollars is pretty silly. He knows better. Apparently he doesn't have a plan to accomplish the same good for less or he would have told us about that instead of trying to add fog to the debate. Or, perhaps he does have a plan, but his view is that the benefits from helping people do not cover the costs, so it wouldn't be worth it -- hence the charge of callousness. In any case, the important question has nothing to do with the deficit per se, it's whether correcting for this market failure in health insurance markets produces social benefits that exceed the costs. If he believes the benefits of extending health care coverage to people who cannot get it any other way are small, he should say so directly. If he doesn't believe that, then stop the fog machine, actually use the thinking cap, and give us the alternative plan.

 No it is not pretty silly. The principle is the same. You see we are not taking anything away or really giving them anything. We are using the ploy as a means to tax people throughout a 2000 page document and at the same time create a massive new set of Government agencies. Silly Left! Silly Left!