Posts Tagged ‘debt’

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10 Points Marginally Related to Universal Healthcare

2010.November.10

[Contributor Post by johncleonard]

#1) TARP isn’t going to cost the taxpayers a lot of money in the end. Almost all the money given out is getting paid back and all we’re going to end up being on the hook for as taxpayers is the administrative cost of the program. This is not the huge source of debt/spending that we’ve been led to believe.

#2) The stimulus spending isn’t a good idea. However, again, it’s not going to cost as much in the long-haul as we’ve been led to believe. Every job it saves is taxable income that the government doesn’t lose. No, it’s not going to be cost-effective in any measurable way, but a lot of the infrastructure projects that are able to go forward because of it are sorely needed. Who wants to have to wonder every time they cross a bridge whether it’s going to collapse before they can get to the other side? Things like that are savings that can’t be measured, and that’s exactly why some of these projects have never gotten off the ground — if you can’t show how it pays for itself, the people don’t want to pay for it.

#3) America can’t afford to NOT have some form of Universal Healthcare. The healthcare and insurance industries are slowly choking off the rest of the economy. Who cares if you make $200K a year if you pay $190K a year to your insurance/docs, and believe me, that’s where things are headed if these companies aren’t reigned in, and I mean tightly. Taxes are already a drop in the bucket compared to what a lot of people pay for insurance alone, let alone their out-of-pocket medical expenses. Even if we go with socialized medicine and everyone’s taxes double because of it, most of the middle-class will be far better off than they are today in their cost/benefit ratio (and the poor will be protected, as well).

#4) A lot of people like to say that healthcare reform is about the government being able to control the people. Personally, I don’t see a single industrialized country that uses it that way. I also don’t see where socialized medicine has negatively affected the economy in the U.K., France, Netherlands, any of the Scandinavian countries, or anywhere else, for that matter. Where socialism gets dangerous to the economy is when the government tries to control all means of production and to plan an economy without the flexibility to change when the times change. Even the most ambitious socialists in the U.S. don’t think we should take things in that direction — at least not if they’re smart; it’s a direction that’s been proven NOT to work.

#5) If we eliminated every bit of government spending outside of the military and defense budgets, we’d save a whopping 15% of the total expenditures of our government. Not a single one of these Tea Party or even the oldschool conservatives is going to suggest we cut defense or military spending, even if we weren’t involved in two “wars”.

#6) Eliminating the “War on Drugs” could pay for healthcare for every individual in the U.S.. The way the insurance companies drive up premiums is by using a divide and conquer strategy. Premiums are based off risk amortization on what’s called a “pool”. The smaller the pool, the fewer people there are to foot the bulk of the risk, and thus higher premiums. One option that’s far short of socialization is to force insurance companies to consider the entire population as the “risk pool” when they calculate premiums for ANYONE. Another option would be to outlaw for-profit healthcare providers (the logic for this is simple: people’s health is too valuable a resource for this country to trust it to people who aren’t concerned with care before profits).

#7) There is a whole lot of “fuck you, I’ve got mine” going around in the U.S. right now. People forget that there were people there when they were struggling to lend a helping hand, or that they received benefits or, with even more irony, forget that their Social Security and Medicare benefits come from the government already. People are not just uninformed, they are being willfully misinformed. It’s my opinion that someone (Rupert Murdoch for starters, and we can go on and on from there) should be held responsible for that. Journalism is an art where objectivity is sacrosanct, and the companies that try and turn a profit on “news” are all guilty of letting their “sales” get in the way of their integrity. MSNBC, FOX News, CNN, all of them. There are still good journalists out there, and when you find one, they’re usually hanging onto their jobs by the skin of their teeth. It’s very difficult in the current market for people with the sort of integrity that the title of “journalist” implies to keep both their integrity and their jobs. This is why we have things like the “March to Restore Sanity/Fear” — it was as much about drawing attention to the media twisting things, slanting things, and dividing the people so it’s easier for the corporations to remain in power (make no mistake, the corporations “own” the majority of senators and representatives on both sides of the aisle) as it was about any sort of partisan statement.

#8) Debt. Debt. Debt. Borrow your way to prosperity has been the American anthem for a long time now. It’s finally starting to bite us in the ass, and it’s going to be painful to work our way out of it. Does that mean we should sacrifice the future and security of the republic to do so? I think that would be a terrible mistake.

#9) The Free Market tautology. I hear a lot of people talking out there who think that the Market is some god-like force that can fix anything. God, however, is also a tautology. You’re free to believe in either, of course, but expecting the Market to solve something that it has already failed miserably to solve is (in my opinion) one of the truest marks of idiocy. In the U.S., the government has a track-record of stepping in and providing essential services that the market fails to provide — this is true of roads, police, fire, water, sewer, flood planning, food for the hungry, retirement, medical care for the elderly, medical care for small children, and many other areas as well. In the modern world, the health of the populace is as much a matter of infrastructure as roads, bridges, the power grid, fire and police protection, water, sewers, and so on and so forth. Like I’ve said elsewhere, Universal Healthcare should be looked at in the same way a sanitation law would be viewed. Sure, we wouldn’t need such things if everyone was honest, considerate, and rational, but that’s not the world we live in. Those aren’t the people that share it with us. We share this world with a lot of fuckwads that care a lot more about when they’re going to buy their next new Bugatti than whether or not they’re not trampling on someone else’s rights to do it.

#10) I want to see the U.S. spend as much on education as it does the military. Education is where all these problems started, and where they could all end if we as a people are committed to providing each other with an actual education, instead of providing a glorified babysitter that’s primarily designed to churn out complacent workers. We’ve seen where that leads, and now it’s time that we realize that our collective complacency is what’s put us in this position. It’s also what makes it difficult to face the actual work that would have to happen in order to accomplish this. But if we don’t, this country is going the way of the Romans, and we will have failed every Patriot that has ever given their life, their liberty, or their sanity for this nation.

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What’s with Corporate Capitalism?

2008.November.20

Back in grade school, even high school, capitalism seemed like a pretty straightforward concept: If you made a decent product that people needed and sold it at a decent price, you’d make a good living for yourself.

The simplicity seemed to encourage long-term strategy and thoughtful improvements. Specialization was important. You wouldn’t cut back on quality unless you had to, because the name on that product was probably your name or the name of someone whom you respected and you didn’t want to see it tarnished. Customers would know their role in this system.

But that isn’t really how American capitalism works, now, is it?

The rule of the day is corporate capitalism, since those small businesses politicians love to court account for less than half of private payroll in the U.S. (and keep in mind that payroll does not even include investment income).

Corporate capitalism makes money for investors by doing whatever makes the most profit. It doesn’t have to be a product, sometimes it’s not even much of a service. Profit cannot be allowed to level out, it must increase each year, by leaps and bounds, to remain competitive. That means unrestrained, unyielding growth. Specialization means you’re not thinking big. Brand names are frequently exploited to promote something unimpressive, and if you’re not growing fast enough, you use advertising to create the demand. Urgency encourages short-term strategy and artificial innovation to fix what ain’t broke. Good products are lost because the business model is not sound, or they get corrupted by overreach and their quality declines. Market share is more important than customer satisfaction, and if you can’t beat your competitor, you should buy them.

And in case you haven’t picked up on this little nuance yet, for most publicly-traded companies, you are not the customer. Many corporations actually have it in their mission statements that making money for their stockholders is a higher priority than most, if not all, other goals. These guys believe strongly in spending money to make money, so it’s the investors’ money they’re after, not yours. The investor is the customer. You are the product.

Well, what’s wrong with all that? Unhinged growth can’t be all that bad, can it? Well, let’s just ignore the moral ambiguities about how much (money, debt, conspicuous consumption) is too much and ask ourselves, logically, where does it end? How big is too big? If the goal of every company is continuous growth, eventually that company could (in logical extreme) eventually reach every human being on this planet and sell them more than they possibly have time and energy to use. Unless we find extraterrestrial life by that point (and they’re big on bling), where does the market go? Sure, the market will correct itself; businesses will fail, people will lose their jobs, and good products with bad business plans will get lost.

In more realistic terms, every market has a limit (it’s the law of supply and demand), and you can only push it so far artificially before it stalls. The larger any institution becomes, the slower it is to respond to change, even though that’s how growth happens. Business models that depend on new funding get into trouble when the new funding isn’t coming fast enough. An economy based on continuous growth can’t just slow down. Deceleration is negative growth; it’s shrinking your profit margin and maybe even losing money, so your stockholders sell. Deceleration is death.

The reason so many people get angry at corporations is that the people most vulnerable in a situation like bankruptcy will be those who were furthest from the planning. Enron was the exception, not the rule, for sending a couple of executives to jail for clear violations of the law. Our country is usually forgiving to money-masters who can afford a good accountant and twelve good lawyers. They just get a bonus and an offer for another corporate leadership position – it doesn’t even have to be in the same industry! – and the rest are told to pull themselves up by their bootstraps, not ask for unemployment or non-corporate welfare, and get out of the way of those who are still living the American Dream.

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