Tag Archives: Profit

Fiscal and social conservatives unite in new free e-book “Indivisible”

There’s a new book that just came out from the Heritage Foundation, my favorite think tank.

Here’s an excerpt from the introduction by Jay Richards:

To listen to media and political strategists is to get the impression that American public life is a checklist of issues. Some are known as “social” issues (marriage, family) and some are known as “economic” (international trade, wages). There may be some good reasons for this distinction, but when we itemize and divide these topics into two separate categories, we fail to convey the underlying unity of the principles behind the American Experiment in ordered liberty. In reality, the two groups of issues are interdependent. For instance, a free economy cannot long exist in a culture that is hostile to it. The success of free market economic policies depends on important cultural and moral factors such as thrift, delayed gratification, hard work, and respect for the property of others. A virtuous and responsible populace derives, in turn, from strong families, churches, and other civil institutions.

Conversely, economic issues have a strong influence on culture and the institutions of civil society. High taxes, for example, put pressure on families and force parents to spend more time in the workforce, leaving less time to devote to their spouses and children. When government expands spending and control in education, it crowds out parental responsibility; when it expands its role in providing social welfare services, it tends to erode a sense of responsibility among churches and other groups doing good work to help neighbors in need.

The connections are such that the individual issues rarely fit neatly and exclusively into one set or the other. An “economic” issue is rarely exclusively about economics. For instance, poverty in America is often as much a moral and cultural problem as an economic problem. Reducing such poverty depends on civil institutions that inculcate virtue and responsibility as well as policies that promote economic freedom and discourage dependency. Most poverty among children in America is not caused by a lack of jobs but rather by factors such as family breakdown, negligent or absentee parents, substance abuse, or other social pathologies. To consider American poverty in strictly economic terms is to fail to see the full scale of issues involved in this problem.

[…]The following essays are intended as a concise exploration of the link between liberty and human dignity and of the policy issues that tend to cluster around these two themes in American life. This collection brings together a number of well-known social and economic conservatives. To encourage cross-fertilization of their ideas, those known as social conservatives have written on themes normally identified with economic conservatives, and vice versa. The authors highlight economic arguments for issues typically categorized as “social” and social/moral arguments for “economic” issues. Each author focuses on a single topic, briefly summarized below, that is associated with either social or economic conservatives or, in some cases, both.

That’s also one of the main purposes of my blog, to show how fiscal conservatives and social conservatives depend on each other.

Here are the essays and authors:

  • Civil Society: Moral Arguments for Limiting Government – Joseph G. Lehman
  • Rule of Law: Economic Prosperity Requires the Rule of Law – J. Kenneth Blackwell
  • Life: The Cause of Life Can’t be Severed from the Cause of Freedom – Representative Paul Ryan
  • Free Exchange: Morality and Economic Freedom – Jim Daly with Glenn T. Stanton
  • Marriage: The Limited-Government Case for Marriage – Jennifer Roback Morse, Ph.D.
  • Profit: Prophets and Profit – Marvin Olasky, Ph.D.
  • Family: Washington’s War on the Family and Free Enterprise – Stephen Moore
  • Wages: The Value of Wages – Bishop Harry R. Jackson, Jr.
  • Religion:  Why Faith Is a Good Investment – Arthur Brooks, Ph.D., and Robin Currie
  • International Trade: Why Trade Works for Family, Community, and Sovereignty – Ramesh Ponnuru
  • Culture: A Culture of Responsibility – Edwin J. Feulner, Ph.D.
  • Property: Property and the Pursuit of Happiness – Representative Michele Bachmann
  • Environment: Conserving Creation – Tony Perkins
  • Education: A Unified Vision for Education Choice – Randy Hicks

Seeing the names of people paired with these topics just blows my mind. It would be as though William Lane Craig were suddenly to write a book defending free market capitalism or the war on Islamic terrorism. It’s just WEIRD. And you’ll notice that many of the Wintery Knight’s favorite people are in there; Paul Ryan, Michele Bachmann, Jennifer Roback Morse.  I also like Stephen Moore’s writing a lot.

The entire book is available for free as a PDF download, or you can order it from the Heritage Foundation. I ordered 10 copies of everything at the store, because I wanted a bunch to give away to all my friends. I think this is the perfect gift to give someone who doesn’t see the relevance of public policy to Christianity, marriage and parenting. There is no such thing as an informed Christian who is fiscally liberally or socially liberal.

Oh, and by the way: Ryan/Bachmann 2012 for the win!

Understanding the real effects of the Democrat health care reform bill

Story from the Wall Street Journal. (H/T ECM)

Excerpt:

The Congressional Budget Office figures the House program will cost $1.055 trillion over a decade, which while far above the $829 billion net cost that

[…]All this is particularly reckless given the unfunded liabilities of Medicare—now north of $37 trillion over 75 years.

[…]As for Medicaid, the House will expand eligibility to everyone below 150% of the poverty level, meaning that some 15 million new people will be added to the rolls as private insurance gets crowded out at a cost of $425 billion. A decade from now more than a quarter of the population will be on a program originally intended for poor women, children and the disabled.

[…]All told, the House favors $572 billion in new taxes, mostly by imposing a 5.4-percentage-point “surcharge” on joint filers earning over $1 million, $500,000 for singles. This tax will raise the top marginal rate to 45% in 2011 from 39.6% when the Bush tax cuts expire—not counting state income taxes and the phase-out of certain deductions and exemptions. The burden will mostly fall on the small businesses that have organized as Subchapter S or limited liability corporations, since the truly wealthy won’t have any difficulty sheltering their incomes.

This surtax could hit ever more earners because, like the alternative minimum tax, it isn’t indexed for inflation. Yet it still won’t be nearly enough. Even if Congress had confiscated 100% of the taxable income of people earning over $500,000 in the boom year of 2006, it would have only raised $1.3 trillion. When Democrats end up soaking the middle class, perhaps via the European-style value-added tax that Mrs. Pelosi has endorsed, they’ll claim the deficits that they created made them do it.

Under another new tax, businesses would have to surrender 8% of their payroll to government if they don’t offer insurance or pay at least 72.5% of their workers’ premiums, which eat into wages. Such “play or pay” taxes always become “pay or pay” and will rise over time, with severe consequences for hiring, job creation and ultimately growth. While the U.S. already has one of the highest corporate income tax rates in the world, Democrats are on the way to creating a high structural unemployment rate, much as Europe has done by expanding its welfare states.

Meanwhile, a tax equal to 2.5% of adjusted gross income will also be imposed on some 18 million people who CBO expects still won’t buy insurance in 2019. Democrats could make this penalty even higher, but that is politically unacceptable, or they could make the subsidies even higher, but that would expose the (already ludicrous) illusion that ObamaCare will reduce the deficit.

Click here to read the rest of the article. It’s quite comprehensive and yet concise.

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

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?