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News

Medicare fraud is 7.5 times the profit of ten largest medical insurers

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Story from The Weekly Standard. (H/T ECM)

Excerpt:

As 60 Minutes reported last week, Medicare fraud is rampant and has now replaced the cocaine (ahem) business as the major criminal activity in South Florida. Both 60 Minutes and the Washington Post report that Medicare fraud now costs American taxpayers roughly $60 billion a year. That may sound like a lot of money, but surely it pales next to the extraordinary profits of private insurance companies, right?

Well, let’s see…. Last year, the profits of the ten largest insurance companies in America were just over $8 billion — combined. No single insurance company made even five percent of what Medicare reportedly loses in fraud.

While we’re making comparisons, in its real first ten years (2014-23), the Senate Finance Committee bill would cost $1.7 trillion. At the rate of last year’s profits, the combined ten-year profits of America’s ten largest insurance companies would be $83 billion — five percent of the costs of the Senate Finance Committee bill. Eighty-three billion dollars may not buy you much in comparison with BaucusCare, but — on the bright side — that ten-year tally is somewhat more than what Medicare loses each year in fraud.

Another great find by ECM! What would we do without him?

News

Why is Obama spending trillions when government spending failed in Japan?

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Story here at the UK Telegraph. (H/T Protein Wisdom via ECM)

Excerpt:

Regime-change in Tokyo and the arrival of Yukio Hatoyama’s neophyte Democrats – raising $550bn (£333bn) to help fund their blitz on welfare and the “new social policy” – have concentrated the minds of investors at long last. “Markets are worried that Japan is going to hit a brick wall: the sums are gargantuan,” said Albert Edwards, a Japan-veteran at Société Générale.

The IMF expects Japan’s gross public debt to reach 218pc of gross domestic product (GDP) this year, 227pc next year, and 246pc by 2014

“Can these benign conditions be expected to continue in the face of even-larger increases in public debt? Going forward, the markets capacity to absorb debt is likely to diminish as population ageing reduces saving,” said the IMF.

Japan’s $1.5 trillion state pension fund (the world’s biggest) has become a net seller of government bonds this year, as it must to meet pay-out obligations. The demographic crunch has hit. The workforce has been contracting since 2005.

“The debt situation is irrecoverable,” said Carl Weinberg from High Frequency Economics. “I don’t see any orderly way out of this. They will not be able to fund their deficit. There will be a fiscal shutdown, a pension haircut, and bank failures that will rock the world. It is criminally negligent that rating agencies are not blowing the whistle on this.”

[…]It wasted its immense fiscal firepower, scattering money for 20 years on half-baked spending projects to keep the economy afloat. QE was too little, too late, and this is the lesson for the West. We must cut borrowing drastically over the next decade, and offset this with ultra-easy monetary policy. Does Downing Street understand this? Does the White House? Does the European Central Bank? Clearly not.

And now is the time on the Wintery Knight blog where we teach Economics in One Lesson.

Economics in One Lesson

We are going to have to pay for all this spending on Obama’s favored special interest groups eventually, and that means that taxes will go up, or that the value of the dollar will go down, due to inflation. It has to be one or the other or both. There is no third way.

Perhaps it is time to review Henry Hazlitt’s Economics in One Lesson, chapter 4, entitled “Public Works Mean Taxes”.

Excerpt:

Therefore, for every public job created by the bridge project a private job has been destroyed somewhere else. We can see the men employed on the bridge. We can watch them at work. The employment argument of the government spenders becomes vivid, and probably for most people convincing. But there are other things that we do not see, because, alas, they have never been permitted to come into existence. They are the jobs destroyed by the $10 million taken from the taxpayers. All that has happened, at best, is that there has been a diversion of jobs because of the project. More bridge builders; fewer automobile workers, television technicians, clothing workers, farmers.

And consider Chapter 5 as well, entitled “Taxes Discourage Production”.

In our modern world there is never the same percentage of income tax levied on everybody. The great burden of income taxes is imposed on a minor percentage of the nation’s income; and these income taxes have to be supplemented by taxes of other kinds. These taxes inevitably affect the actions and incentives of those from whom they are taken. When a corporation loses a hundred cents of every dollar it loses, and is permitted to keep only fifty-two cents of every dollar it gains, and when it cannot adequately offset its years of losses against its years of gains, its policies are affected. It does not expand its operations, or it expands only those attended with a minimum of risk. People who recognize this situation are deterred from starting new enterprises. Thus old employers do not give more employment, or not as much more as they might have; and others decide not to become employers at all. Improved machinery and better-equipped factories come into existence much more slowly than they otherwise would. The result in the long run is that consumers are prevented from getting better and cheaper products to the extent that they otherwise would, and that real wages are held down, compared with what they might have been.

There is a similar effect when personal incomes are taxed 50, 60 or 70 percent. People begin to ask themselves why they should work six, eight or nine months of the entire year for the government, and only six, four or three months for themselves and their families. If they lose the whole dollar when they lose, but can keep only a fraction of it when they win, they decide that it is foolish to take risks with their capital. In addition, the capital available for risk-taking itself shrinks enormously. It is being taxed away before it can be accumulated. In brief, capital to provide new private jobs is first prevented from coming into existence, and the part that does come into existence is then discouraged from starting new enterprises. The government spenders create the very problem of unemployment that they profess to solve.

What Obama did, in effect, is to fire all of those millions of private sector people, so that he could reward the people who voted for him. Jobs are created far more efficiently by small businesses than they are by big government. When you take money out of the private sector, which creates jobs easily, and give it to the public sector, which is inefficient and wasteful, you lose jobs.

George W. Bush cut taxes in his first term and created 1 million NEW JOBS. Obama has LOST 3.4 million jobs in a few months with his trillions of dollars of spending that the private sector cannot pay for. Government spending is a job killer. And no amount of charm and teleprompter reading is going to change the laws of economics.

octjobsgap

This is the way the world works. It works that way in Japan, and it works that way here, too.

Polemics

Did the divinity of Jesus emerge slowly after many years of embellishments?

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How early is the doctrine of the divinity of Jesus?

When I answer this question, I only want to use the earliest, most reliable sources – so I can defend them on historical grounds using the standard rules of historiography.

The 4 sources that I would use are as follows:

  • The early creed in 1 Corinthians 15:3-8, and 1 Corinthians 1
  • A passage in Philippians 2
  • Two passages from Mark, the earliest gospel
  • A passage from Q, which is an early source of Matthew and Luke

So let’s see the passages.

1 Corinthians

I’ve written before about the early creed in 1 Corinthians 15:3-8, which skeptical scholars date to 1-3 years after the death of Jesus, for a variety of reasons I covered in the previous post. Here’s the creed which definitely makes Jesus out to be more than an ordinary man. Ordinary men don’t get resurrection bodies after they die.

Here’s the passage: (1 Cor 15:3-8)

3For what I received I passed on to you as of first importance: that Christ died for our sins according to the Scriptures,

4that he was buried, that he was raised on the third day according to the Scriptures,

5and that he appeared to Peter, and then to the Twelve.

6After that, he appeared to more than five hundred of the brothers at the same time, most of whom are still living, though some have fallen asleep.

7Then he appeared to James, then to all the apostles,

8and last of all he appeared to me also, as to one abnormally born.

Additionally, 1 Corinthians 1:21-25 talks about Jesus being “the power of God and the wisdom of God”. Paul is identifying Jesus with the divine.

21For since in the wisdom of God the world through its wisdom did not know him, God was pleased through the foolishness of what was preached to save those who believe.

22Jews demand miraculous signs and Greeks look for wisdom,

23but we preach Christ crucified: a stumbling block to Jews and foolishness to Gentiles,

24but to those whom God has called, both Jews and Greeks, Christ the power of God and the wisdom of God.

25For the foolishness of God is wiser than man’s wisdom, and the weakness of God is stronger than man’s strength.

But it gets even stronger! You all probably already know that the most important passages in the Old Testament for Jews is the famous “Shema“, which is found in Deuteronomy 6:4-9. The Shema is a strong statement of Jewish monotheism.

Here’s the passage:

4 Hear, O Israel: The LORD our God, the LORD is one.

5 Love the LORD your God with all your heart and with all your soul and with all your strength.

6 These commandments that I give you today are to be upon your hearts.

7 Impress them on your children. Talk about them when you sit at home and when you walk along the road, when you lie down and when you get up.

8 Tie them as symbols on your hands and bind them on your foreheads.

9 Write them on the doorframes of your houses and on your gates.

So how does Paul fit Jesus in with this strong statement of Jewish monotheism?

Paul alludes to the Shema in 1 Corinthians 8:4-6.

4So then, about eating food sacrificed to idols: We know that an idol is nothing at all in the world and that there is no God but one.

5For even if there are so-called gods, whether in heaven or on earth (as indeed there are many “gods” and many “lords”),

6yet for us there is but one God, the Father, from whom all things came and for whom we live; and there is but one Lord, Jesus Christ, through whom all things came and through whom we live.

Holy mackerel! How did that get in there? Paul is splitting the roles of God in the the Shema and identifying Jesus in one of the divine roles! Jesus is not an ordinary man. That passage “through whom all things came” foreshadows John identifying Jesus as “the Word of God”, which “became flesh and dwelt among us”. Holy snark – did you guys know that was all in here so early?

The date for 1 Corinthians is 55 AD. It should be noted that skeptical scholars like James Crossley accept these passages, and you can check it out in the debate audio yourself.

Philippians

Check out Philippians 2:5-11.

5Your attitude should be the same as that of Christ Jesus:
6Who, being in very nature God, did not consider equality with God something to be grasped,
7but made himself nothing, taking the very nature of a servant, being made in human likeness.
8And being found in appearance as a man, he humbled himself and became obedient to death— even death on a cross!
9Therefore God exalted him to the highest place and gave him the name that is above every name,
10that at the name of Jesus every knee should bow, in heaven and on earth and under the earth,
11and every tongue confess that Jesus Christ is Lord, to the glory of God the Father.

The date for Philippians is 60-61 AD. Still within the lifetime of the eyewitnesses, and written by an eyewitness who was in contact with the other eyewitnesses, like Peter and James, whom Paul spoke with numerous times on his journeys to Jerusalem.

Mark’s gospel

Mark’s gospel is the earliest and atheists like James Crossley date it to less than 40 AD, which is 10 years after the death of Jesus at most. When you read the gospel of Mark, you are getting the earliest and best information available about the historical Jesus, along with Paul’s epistles. So what does Mark say about Jesus? Is Jesus just a man, or is he something more?

Check out Mark 12:1-9:

1He then began to speak to them in parables: “A man planted a vineyard. He put a wall around it, dug a pit for the winepress and built a watchtower. Then he rented the vineyard to some farmers and went away on a journey.

2At harvest time he sent a servant to the tenants to collect from them some of the fruit of the vineyard.

3But they seized him, beat him and sent him away empty-handed.

4Then he sent another servant to them; they struck this man on the head and treated him shamefully.

5He sent still another, and that one they killed. He sent many others; some of them they beat, others they killed.

6“He had one left to send, a son, whom he loved. He sent him last of all, saying, ‘They will respect my son.’

7“But the tenants said to one another, ‘This is the heir. Come, let’s kill him, and the inheritance will be ours.’

8So they took him and killed him, and threw him out of the vineyard.

9“What then will the owner of the vineyard do? He will come and kill those tenants and give the vineyard to others.

And Mark 13:32, talking about the date of the final judgment.

32“No one knows about that day or hour, not even the angels in heaven, nor the Son, but only the Father.

And again, this passage is establishing a hierarchy such that Jesus is being exalted above all men and the angels, too. And the passage is embarrassing to the early church, because it makes Jesus look ignorant of something, so they would not have made this passage up. Jesus is not an ordinary man, he is above the angels – God’s unique Son.

The “Q” source for Matthew and Luke

Here’s Matthew 11:27, which is echoed in Luke 10:22:

27“All things have been committed to me by my Father. No one knows the Son except the Father, and no one knows the Father except the Son and those to whom the Son chooses to reveal him.

22“All things have been committed to me by my Father. No one knows who the Son is except the Father, and no one knows who the Father is except the Son and those to whom the Son chooses to reveal him.”

Since this passage is in both of Matthew and Luke, but not in Mark, scholars believe that it is in the earlier “Q” source used by both Matthew and Luke. Q predates both Matthew and Luke, and so it is also fairly early (maybe 67-68), although not as early as Mark and Paul. Bill Craig writes that this passage is also embarrassing because it says that no one knows Jesus.

Learn more

You can learn more about the early belief in the divinity of Jesus by listening to a lecture by William Lane Craig and reading the related paper, and by listening to the debate between Richard Bauckham and James Crossley on that topic. The first link contains other scholarly debates on Jesus.