Tag Archives: Marxism

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What happened to the economy after Democrats won the House and Senate in 2007?

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Labor Force Participation Rate from 2007 (Pelosi/Reid) to 2013
Labor Force Participation Rate from 2007 (Pelosi/Reid) to 2013

Three data points explain what happens when government gets bigger, and job creators get smaller.

First from Investors Business Daily, Obama’s failure to reduce health insurance premiums with his big government takeover of health care.

Excerpt:

The average employer-provided family health insurance premiums have climbed $2,976 since 2009, according to an annual Kaiser Family Foundation survey released this week. They’re up $3,671 compared with the year before President Obama took office. That’s despite Obama’s repeated promises that the health care reform law he championed would cut premiums by $2,500 in his first term.

And while annual premium increases have moderated over the past two years, that’s due to trends in the insurance market largely unrelated to ObamaCare, and trends the law could actually reverse.

The Kaiser survey found that the average family premium this year is $16,351, up 4% over last year, and up 22% since 2009. After adjusting for inflation, premiums climbed an average 3.2% a year in Obama’s first term, higher than the 2.7% average during President Bush’s last four years in office.

During his first campaign for president, Obama repeatedly claimed that his health reform plan would, as he said at a Virginia rally in 2008 “lower premiums by up to $2,500 for a typical family per year.”

Now, let’s take a look the second failure, as reported by the Weekly Standard.

Excerpt:

President Obama likes to talk about income inequality, but what matters far more is the actual income of the typical American.  And how has the typical American household income fared on Obama’s watch?  Well, the economic “recovery” has now spanned an Olympiad, and during that time the typical American household income has not only dropped—it has dropped more than twice as much as it did during the recession.

New estimates derived from the Census Bureau’s Current Population Survey by Sentier Research indicate that the real (inflation-adjusted) median annual household income in America has fallen by 4.4 percent during the “recovery,” after having fallen by 1.8 during the recession.  During the recession, the median American household income fell by $1,002 (from $55,480 to $54,478). During the recovery—that is, from the officially defined end of the recession (in June 2009) to the most recent month for which figures are available (June 2013)—the median American household income has fallen by $2,380 (from $54,478 to $52,098).  So the typical American household is making almost $2,400 less per year (in constant 2013 dollars) than it was four years ago, when the Obama “recovery” began.

Importantly, these income tallies include government payouts such as unemployment compensation and cash welfare. So Obama’s method of funneling ever-more money and power to Washington, and then selectively divvying some of it back out, clearly isn’t working for the typical American family.

And finally, the third example, from the Daily Caller.

Excerpt:

 In 35 states, welfare benefits pay more than a minimum wage job, according to a new study by the libertarian Cato Institute, and in 13 states welfare pays more than $15 per hour.

“One of the single best ways to climb out of poverty is taking a job, but as long as welfare provides a better standard of living than an entry-level job, recipients will continue to choose it over work,” said Michael Tanner, senior policy analyst and co-author of the study.

The study is an updated version of one Tanner put out in 1995 that estimated the full value of welfare benefits packages across the states. The 1995 study found that such tax-free welfare benefits greatly exceeded the poverty level and “their dollar value was greater than the amount of take-home income a worker would receive from an entry-level job.”

Despite efforts to curb welfare spending, many welfare programs and benefits have continued to outpace the income that many workers can receive for working an entry-level job, which disincentivizes work, according to the study.

“The current welfare system provides such a high level of benefits that it acts as a disincentive for work,” reads the study. “Welfare currently pays more than a minimum-wage job in 35 states, even after accounting for the Earned Income Tax Credit, and in 13 states it pays more than $15 per hour.”

According to the study, the federal government funds 126 separate programs designed to support low-income earners. Seventy-two of these programs provide cash or in-kind benefits to recipients. This is on top of additional welfare programs operated by state and local governments.

Welfare recipients in Hawaii get the most benefits, according to Tanner, at $29.13 per hour — or $60,590 pre-tax income annually. However, the state’s minimum wage is only $7.25 per hour, according to the Labor Department. Hawaiians on welfare also earn 167 percent of the median salary in the state, which is only $36,275.

What if a fireman showed up in front of your house on your birthday and claimed that he wanted to put out the candles on your birthday cake because they were a fire hazard? What if he read out a long, passionate, prepared speech about how much he wanted to put out fires? What if he then dumped a bucket of gasoline on your cake? What if your house caught fire and he claimed that you should let him keep throwing gas on the fire to put it out? What if you found out that this person was a lawyer and a community organizer, and knew nothing at all about putting fires out? Obama was not prepared to run the economy, and, as expected, he spent a ton of money without getting the results he said he was going to get. He gave speeches about jobs and poverty and everything he’s done has been to increase unemployment and increase poverty – and now we are $17 trillion dollars in debt. Speeches about achieving objective X during a campaign don’t necessarily translate into achieving objective X. You actually have to know what you are doing in order to achieve objectives, preferably because you’ve done it before in real life.

News

Thirteen cases where the Obama administration has acted outside the law

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This is the most popular article on Investors Business Daily.

Excerpt:

  1. Aug. 14, 2013: The Obama administration delayed the provision in ObamaCare to cap out-of-pocket health care costs, picking and choosing parts of the law to enforce, which is to exceed its authority.
  2. July 17, 2013: The 4th Circuit Court of Appeals joined the federal appeals courts in D.C. and Philadelphia in ruling President Obama’s National Labor Relations Board recess appointments — who by law must be approved by Congress — were unconstitutional. Thus far, the president has ignored the ruling.
  3. July 1, 2013: The Obama administration unilaterally decided to delay the employer mandate provision of ObamaCare for a year, which is to provide information to the feds about the extent of an applicant’s insurance. Never mind that the law states the mandate must go into effect on Jan. 1, 2014 — they are now relying on the “honor system” from applicants to determine if they are qualified for subsidies.
  4. June 25, 2013: The Supreme Court ruled in Shelby County v. Eric Holder that Section 4 of the Voting Rights Act is “unconstitutional” and that “the formula can no longer be used as a basis for subjecting jurisdiction to preclearance.” Instead of complying with the ruling, Holder filed suit to order Texas to submit to preclearance, in defiance of Congress’ authority to legislate and the Supreme Court’s authority to rule on the constitutionality of the law.
  5. June 15, 2012: The Obama administration announced it will stop deporting illegal immigrants under the age of 30 in a “deferred action” policy to circumvent immigration laws. This comes after Congress rejected a similar measure about a year ago. Since then, more than 500,000 illegals have received the deferment and only 20,000 have been rejected. As for the law-abiding applicants who have been waiting in line, well, that’s Obama’s idea of “lawfulness.”
  6. May 20, 2013: A Washington Post article revealed that Fox News reporter James Rosen was investigated by the DOJ, which subpoenaed his phone records and emails in direct contravention of the First Amendment under the pretense of a leak investigation.
  7. May 13, 2013: AP reported the DOJ secretly collected phone records of AP reporters and editors, a move completely outside the realm of law. Even the AP — which up until then had been pretty submissive to the Obama agenda — was appalled by the breach.
  8. May 10, 2013: The IRS revealed it targeted conservative groups applying for tax-exempt status beginning in March 2010, a direct targeting of political opponents through the tax laws. It’s one of the crimes that led Congress to impeach President Nixon.
  9. May 3, 2011: When asked when he first heard of Operation Fast and Furious, Attorney General Eric Holder falsely testified, “I’m not sure of the exact date, but I probably heard about Fast and Furious for the first time over the last few weeks.” Head of the National Drug Intelligence Center Michael Walther told Holder about Fast and Furious in a July 2010 memo. Subsequent revelations showed he knew all along.
  10. March 27, 2012: EPA issued final rules regulating greenhouse gas emissions on electric utilities that require power plants to use nonexisting carbon capture-and-control technology to meet new emission standards, in defiance of the Congress’ rejection of cap-and-trade legislation.
  11. April 23, 2012: The administration postponed Medicare Advantage cuts by calling them a “demonstration project” and used funds not approved by Congress to delay effects of those cuts before the election.
  12. March 1, 2011: Attorney General Holder lied to Congress, saying “decisions made in the New Black Panther Party case were made by career attorneys in the department.” Associate A.G. Thomas Perrelli, an Obama political appointee, overruled a unanimous recommendation for prosecution by DOJ attorneys.
  13. Feb. 3, 2010: Judge Martin Feldman held the Obama administration in contempt for re-imposing an offshore drilling moratorium that was struck down by the courts.

Thomas Sowell talks about the political left in his books “The Vision of the Anointed” and “A Conflict of Visions”. He presents the view that the left believes that they are the “anointed”. They are morally superior, and therefore they do not have to care about the rule of law or consequences or the criticisms of the opposition, when they are implementing their policies. When the policies fail, they never blame themselves, they just go outside the law even more. You can see this in socialist regimes in other times and places. It can never be the case that the schemes of the anointed are wrong-headed. The solution is always to act more and more lawlessly, and to silence, coerce and purge all opposition until the policies work.

News

Harry Reid: Obamacare is “absolutely” a step towards single payer health care system

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Here’s a Forbes magazine article by health care policy expert Avik Roy.

Excerpt: (links removed)

When I speak to conservatives about health care policy, I’m often asked the question: “Do you think that Obamacare is secretly a step toward single-payer health care?” I always explain that, while progressives may want single-payer, I don’t think that Obamacare is deliberately designed to bring about that outcome. Well, yesterday on PBS’ Nevada Week In Review, Senate Majority Leader Harry Reid (D., Nev.) was asked whether his goal was to move Obamacare to a single-payer system. His answer? “Yes, yes. Absolutely, yes.”

In one sense, this isn’t shocking. Reid and many other Democrats, including President Obama, have often stated that their ideal health-care system is one in which the government abolishes the private insurance market. Video of the PBS discussion isn’t yet online, but here’s how Karoun Demirjian of the Las Vegas Sun described it:

Reid said he thinks the country has to “work our way past” insurance-based health care during a Friday night appearance on Vegas PBS’ program “Nevada Week in Review.”

“What we’ve done with Obamacare is have a step in the right direction, but we’re far from having something that’s going to work forever,” Reid said.

When then asked by panelist Steve Sebelius whether he meant ultimately the country would have to have a health care system that abandoned insurance as the means of accessing it, Reid said: “Yes, yes. Absolutely, yes.”

Reid noted that he and other progressives fought hard for a “public option” in the exchanges as a Trojan horse for single-payer, but Democrats didn’t have 60 votes in the Senate to achieve it:

The idea of introducing a single-payer national health care system to the United States, or even just a public option, sent lawmakers into a tizzy back in 2009, when Reid was negotiating the health care bill.

“We had a real good run at the public option … don’t think we didn’t have a tremendous number of people who wanted a single-payer system,” Reid said on the PBS program, recalling how then-Sen. Joe Lieberman’s opposition to the idea of a public option made them abandon the notion and start from scratch.

Eventually, Reid decided the public option was unworkable.

“We had to get a majority of votes,” Reid said. “In fact, we had to get a little extra in the Senate, we have to get 60.”

Do you like the service you get at the Department of Motor Vehicles or the Post Office? How would you like to get your health care the same way? That’s what the Democrats are trying to do. We could have gone in another direction and legislated consumer-focused health care, providing an experience similar to Amazon.com – but we didn’t. We can’t keep electing communists and then acting surprised when they push us towards communism.