Showing posts with label unions. Show all posts
Showing posts with label unions. Show all posts

Monday, March 17, 2014

March, 2014 The Unfolding Disaster That Is Obama Care, Part 1: Unions Freaking Out, Low Enrollment, Hawaii Going Bankrupt, And Another Constitution Violation

I put this off as long as possible this month but can no longer delay. The following week or so will be spent reviewing the latest disasters that are coming out of the Obama Care legislation. We have been doing this on a regular monthly basis since last August and on a sporadic basis since the law was passed several years ago. In every case, our findings have been devastatingly negative, destroying the economy and people’s lives.


So much more wrong has happened over the past 30 days or so we will need to go through the new bad news quickly. We have already set out the right way to correct our ever escalating high health care costs in previous posts. Our solution attacks and eliminates the root causes of our high health care costs, something that the Obama Care writers never understood and thus, never got right. 

Thus, this week we will only present the bad news and disasters and let you go back to previous months’ posts to see what our common sense solution is, something we will not cover again this week.

1) Although many unions initially supported Obama Care, recently, as the disasters have unfolded, many unions have realized and spoken out on the negative ramifications of the legislation. The latest to speak out is United Here, a national union that represents 300,000 low-wage hospitality workers.

A recent report that the union issued charges that “Obama Care will slam wages, cut hours, limit access to health insurance and worsen the very “income equality” President Obama says he is campaigning to fix.” Their analysis found that due to Obama Care's much higher costs for health insurance than what union workers currently pay will result in the equivalent of a pay cut of up to $5 an hour: "If employers follow the incentives in the law, they will push families onto the exchanges to buy coverage. This will force low-wage service industry employees to spend $2.00, $3.00 or even $5.00 an hour of their pay to buy similar coverage." 

The report went to say: “Only in Washington could asking the bottom of the middle class to finance health care for the poorest families be seen as reducing inequality. Without smart fixes, the ACA threatens the middle class with higher premiums, loss of hours, and a shift to part-time work and less comprehensive coverage. The Irony of Obama Care: Making Inequality Worse.”

The head of the union, Donald "D." Taylor, expressed his frustration and anger in recent news reports: “Unite Here was the first union to endorse then-Senator Obama. We support the addition of health care to millions of Americans. Yet facts are facts, and Obama Care will cost our members the equivalent of a significant pay cut to keep their hard-won benefits.”

His anger also extended itself to the hypocrisy of the Washington political c lass that has exempted themselves and their staffers from the very legislation that is killing union members’ personal financials: “We cannot sit idly by as the politicians carve up our health plans while they carve out exceptions for themselves and every special interest feeding at the trough in Washington.”

Strong words, but necessary words, to get across the fact that Obama Care is not working for union members, who initially supported the effort that turned into Obama Care.

2) Obama Care was supposed to reduce the nation’s health care costs, families’ health care costs, and make the industry less expensive to operate. However, that may not be the case in Hawaii, according to a recent Associated Press report. 

Hawaiian lawmakers are proposing charging a fee to insurers that are NOT participating in the state's insurance exchange under President Barack Obama's Federal health care overhaul. I guess the legislation is not turning out to be that efficient and cost effective in Hawaii. 

The new fee/tax is required to prop up the financially troubled Hawaii Health Connector Obama Care health insurance exchange, which could run out of money to pay its bills by year's end. So if a business decides not to participate in a government program like Obama Care because it is not good for business, the government and the political class can now penalize it by taxing it to cover up their incompetence in operating the Obama Care exchange program. Crazy.

The Hawaiian exchange was established with $205 million in Federal grants and Hawaii has asked the Federal government to spend the money more slowly than originally planned. As scheduled, it is likely to spend those funds by the end of the year. 

The real irony is that the Hawaiian state government wants to get waivers from the Obama Care’s legislation so that its exchange’s insurance policies does not have provide all of the many health care coverage requirements mandated by the law. Which raises an interesting question: if Obama Care’s specifications and requirements were so great and would reduce costs, why does Hawaii want to get out of providing those specs and requirements in order to get its costs down? Can we hear the foundation and selling points of Obama Care washing away in a wave of reality?

3) Health and Human Services recently announced the latest signups for Obama Care. Details of the results include the following:
  • 4.2 million Americans have signed up for Obama Care insurance policies, up slightly from the 4 million level announced in late February. 
  • The exchanges saw a total of 943,000 sign-ups in the month of February, a sign up level that was down from the 1.1 million who enrolled in January.
  • HHS said 1.6 million of the enrollees signed up through state-based marketplaces, with 2.6 million in the Federal exchange.
  • The overall figure, 4.2 million, is well behind the administration’s target of 7 million enrollees being on board by March 31. 
  • Those Americans that have not signed up for individual health insurance plans by then become criminals in the eyes of the Federal government and will subjected to fines, assuming that the IRS can find them and can assess them the fine.
  • The current numbers also show an ongoing shortfall for the administration to sign up the younger, healthier consumers needed to offset older, sicker patients and keep the health law afloat.
  • The administration originally needed to have 40% of sign-ups to be between the ages of 18 and 34, but the latest figures are well behind that target, reaching only 27% in February.
Besides the bad age mix in the enrollment figures, there are two other major missing pieces of information, as always:

A) How many of those 4.2 million have actually paid for their new insurance policy? It really does not count if they have signed up but not paid. It is like shopping on Amazon and putting items in your virtual shopping cart. It is not really a sales transaction and a benefit to Amazon until those items in the shopping cart are actually run through the virtual cash register. Same thing with Obama Care policies, until the check is mailed, that policy is not in play and not truly a sale. 

The government either does not know how many have actually paid or are ashamed to tell the world how few have paid. In either case, pathetic.

B) How many of those people within the 4.2 million are the unfortunate Americans who had had their existing insurance policy cancelled by Obama Care’s requirements? You really cannot claim you signed somebody up for Obama Care if the reason they signed up for Obama Care is that Obama Care caused them to lose their insurance policy in the first place. Got it? A logic stream that would make Abbott and Costello proud.

4) The legislation is so bad and causing so many Americans to lose their existing policies and access to their favorite doctors and hospitals, that in a purely political move, Obama recently unilaterally decided that these Americans could keep their policies until 2016. Three pieces of insanity with this latest ploy:
  • Like the dozens of other unilateral changes to the law, this one was also done without Congressional approval and thus, it is illegal and un-Constitutional.
  • Many of these policies have already been cancelled, leaving upwards of six million Americans without health insurance coverage and their cancelled policies are not going to get reinstated regardless of what the president says, the damage is already done and it is widespread.
  • This is purely a way to do damage control for Democrats running for office in November, it has nothing to do with the national health care industry or being kind to those Americans who might lose their insurance coverage due to Obama Care, it is a blatant, illegal, and political air cover stunt.

That will do it for now, the first installment in what promises to be a long slog through many Obama Care failures. Unions freaking out as the realize what they signed up to support, Hawaii’s exchange already going bankrupt and looking to cut coverage to cover the ineptness, enrollment numbers that are low with a bad mix and a mystery as to what is really going on under the top line, and more violations of the Constitution for political damage control. How much more comprehensive, negative, and widespread could one piece of legislation be?


Our book, "Love My Country, Loathe My Government - Fifty First Steps To Restoring Our Freedom And Destroying The American Political Class" is now available at:

www.loathemygovernment.com

It is also available online at Amazon and Barnes and Noble. Please pass our message of freedom onward. Let your friends and family know about our websites and blogs, ask your library to carry the book, and respect freedom for both yourselves and others everyday.

Please visit the following sites for freedom:

Term Limits Now:http://www.howmuchworsecoulditget.com
http://www.reason.com
http://www.cato.org
http://www.robertringer.com/
http://www.youtube.com/watch?v=08j0sYUOb5w




Wednesday, October 16, 2013

October, 2013 Obama Care Disaster Update, Part 4: The Anguish Hits American Families

Obama Care will go down as the greatest failure of Barack Obama, a President with many failed policies. The evidence is overwhelming and has been covered often over the past three years in this blog: 


  1. Avid, original supporters of Obama Care, the unions, now realize what a disaster it will be for its members and want out of it altogether.
  2. It’s runaway costs and failure to resolve the root causes of high health care costs in this country will add trillions of dollars to the national debt without taming health care costs.
  3. The original cost estimate of implementing the legislation is now more than three times higher just three years after the law was enacted.
  4. Obama Care’s business model and structure will cause the least wealthy in our society, the younger generation, to subsidize the most wealthy in our society, the Baby Boomer generation.
  5. The law is causing health insurance premiums to skyrocket for just about everyone vs. what is available today in the individual insurance market.
  6. Senator Max Baucus, an avid and original supporter of Obama Care, correctly called the whole legislation a “train wreck” many months ago, even before the latest screw ups occurred.
  7. The Congressional Budget Office officially predicts that up to 7 million Americans will LOSE their current health insurance as a result of Obama Care, the exact opposite of what it was supposed to do.
  8. The legislation is causing the nation to become a nation of part time workers as businesses cannot afford the penalties required in the legislation for full time workers.
  9. Doctors are retiring earlier than expected because of the many hassles of the legislation, putting more cost and access pressure on the health care industry in this country vs. what would have happened in the absence of this legislation.
  10. People are losing access to their current insurance options and are losing access to their current doctors and hospitals as a result of Obama Care.
  11. The rollout of the Obama Care online health insurance exchanges is nothing but an unmitigated disaster.
  12. The data systems support for the legislation has correctly been called an identity thief’s paradise.
  13. Training for people who will support the health insurance exchanges has been inadequate and has involved hiring people without doing criminal background checks on them before allowing them to access Americans’ private information (see identity thief paradise in previous bullet.)
  14. The law is so bad, that poltiicians in Washingotn want to break the law and exempt themselves and their staff members form certain aspects of the law.

And the most depressing part of this whole fiasco is that Obama Care hasn’t even been fully implemented yet. Many parts of it have been delayed into the future.

But these are all general findings. As bad as these bullet point findings are and how they prove beyond a doubt that this was the worst piece of legislation ever passed by Washington, they do not touch on the human aspect and wreckage that this legislation is raining down on Americans. Lost insurance coverage, lost hours as they are forced to become part time workers, and lost jobs are hitting American families hard.

To give you an idea of how hard, consider the following list of businesses, schools, and other organizations that have had to cut their workers’ hours in order to stay financially viable and comply with the idiotic regulations of Obama Care.  Investors Business Daily published a document with over 300 employers who have cut hours because of Obama Care, a list that was published BEFORE the current rollout disaster sprung up over the past few weeks. (Note: the list does not include businesses that have stopped hiring or have put off expansion of their businesses as a result of Obama Care, i.e. the carnage is worse than just what has happened to the following companies).

As you go through this list, think about the hundreds of thousands of Americans that have already been negatively impacted by just these 313 companies’ reactions to the draconian tenets of Obama Care:

Houston County
Biola University
Bealls Inc. (Department Stores)
SeaWorld Entertainment
Palmer Place Restaurant
Salina Family YMCA
Middletown Township Public Schools
Sam Houston State University
Auburn Hills
Friendship Community (group home for adults with disabilities)
Meridian Public Schools
Michael Monti’s La Casa Vieja steakhouse
Hollywood Casino
Arizona State University
Mainesubway (Subway franchisee)
Finger Lakes Community College
Tsunami Surf Shops
Southern Illinois University
Vincennes
Mexican American Opportunity Foundation
Georgia Military College
Vcm Inc. (Subway franchisee)
Ball State University
Tom’s River
Forsyth Technical Community College
Wilkes Community College
Consolidated Restaurant Operations Inc
Dave & Buster’s
Philadelphia University
K-VA-T Food Stores
Three Rivers College
Bergen Community College
University of Alabama
Brevard County
Buca di Beppo restaurant chain
Hillsborough Community College
St. Petersburg College
Cherokee County School Board
Hancock County
Morgan County
Central Michigan University
NEMF trucking company
Henderson
White Castle
Shari’s restaurants
Carnegie Museum
Oneida Special School District
Scott County School System
Stewart County School System
Jim’s Restaurants
Christoper Savvides restaurant & catering co.
Minocqua-Hazelhurst-Lake Tomahawk School District
Trig’s Supermarkets
University of North Alabama
Fatburger
Lee County
Delta County
Bee County
Boundary County
Rutherford County
Lawrence County
Kenowa Hills Public Schools
City of Burlington Public Schools
Lion & Rose British Restaurant and Pub
MTC Inc. restaurant management
Millard School District
Pulaski Technical College
San Diego Community College District
Drury University
Cumberland University
Area Agency on Aging of Western Arkansas, Inc.
Wal-Mart Stores Inc.
CKE Restaurants Inc.
Kern County
Rancho Cucamonga
San Gabriel
Palm Beach State College
Santa Fe College
Tallahassee Community College
Parkland College
Clay County
DeKalb County
Eastbrook Community Schools
Floyd County
Highland
Indiana University
Ivy Tech Community College
Kosciusko County
Lakeview Christian School
Madison Consolidated Schools
Madison-Grant United School Corp.
Marshall County
Mississinewa Community Schools
Perry Central School Corp.
Shelbyville Central School System
Speedway Schools
Starke County
Wolfe’s Auto Auction
Spencer Community School District
Lexington Board of Education
Howard Community College
Russ’ Restaurant
Maritz Research
Blair Community Schools
Plattsmouth Board of Education
Little Falls Board of Education
Lake Township
Lebanon City
Mason
Scrambler Marie’s Restaurants
Westlake
East Penn School District
Southern Lehigh School District
Tredyffrin-Easttown School District
Kelly Professional Cleaning Services
Spartanburg Community College
Matagorda County
Wilson County
Murray School District
Nebo School District
Henrico Country School District
Lynchburg
Clyde’s Restaurant Group
Eminence Community Schools
Faribault
Martin County
Baldwin Public Library
Hayfield Community Schools
Rappahannock Area Community Services Board
Benton Community Schools
Pompton Lakes Board of Education
Sparta Area Schools
Brandywine Heights Area School District
Southern Utah Unversity
Arkansas State University
Texas Christian University
Maricopa Community Colleges
University of Arizona in Tucson
Long Beach
Circle K Southeast
College of DuPage
McHenry County College
Eastern Hancock School Board
Fayette County School Corp.
Fort Wayne Community Schools
Gibson County
Greencastle Community Schools
Hancock Madison Shelby Educational Services
Tipton County
Vigo County School Corp.
White River Valley School District
Zionsville Community Schools
Indianola Community School District
Tama County
Kansas Turnpike Authority
Republic Foods (Burger King franchise operator)
Birmingham
Dearborn
Iosco County
Tuscola County
Douglas County West Community Schools
Papillion-La Vista school district
Westside Community Schools
Carlie C’s
Sinclair Community College
Tipp City
Ephrata Area School District
Dallas County Community College District
Plano
Alpine School District
Deseret Industries (work training for war refugees)
Wise County School Board
Mount Horeb Area School District
Tehama County
Crawford County
Vanderburgh County
Campbell County Social Services Dept.
Dickenson County Public Schools
Grayson County
Strasburg
Wythe County
North Putnam Community Schools
Northwestern School Corp.
Taylor Community Schools
Hanover Township
Middletown Township
Cedar City
Dallas School District
New Mexico State University
General McLane School District
Blue Ridge Community And Technical College
Fountain Fire Dept.
North of the River Recreation and Park District
Charco Broiler
Durango
Mountain Del (Del Taco franchisee)
Daytona State College
Moraine Valley Community College
Bartholomew County
Delaware County
Northwestern Consolidated School District
Richland-Bean Blossom Community School Corp.
Clear Lake School Board
Ocean City
Kalamazoo Valley Community College
St. Clair Community College
Moberly Area Community College
Ralston School District
Springfield Platteview Community Schools
Community College System of New Hampshire
Franklin Township Board of Education
Waldbaum’s Supermarket
Cuyahoga Community College
University of Akron
Upper Arlington City School District
Firstaff Nursing Services Inc.
Lancaster County School District
Penn Manor School District
Susquenita School District
Regal Entertainment Group
Brigham Young University
Chesterfield Public Schools
Chippewa County
Tazewell County
Eastern Greene Schools
Portage
Vassar Public Schools
Richmond Public Schools
Spotsylvania County
Joe Bologna’s Italian Pizzeria & Restaurant
Clinton-Glen Gardner School District
Elmhurst College
Columbus State Community College
AAA Parking
Boone Community School District
Joliet Junior College
Van Buren Township
Mankato
Hudson Valley Community College
Five Guys Burgers and Fries franchise
Akron
Baldwin-Wallace University
Kent State University
Lakeland Community College
Youngstown City Schools
Lori’s Angels home care
Granite School District
Chesterfield County
Louisa County
Bowling Green State University
Medina City Schools
Carnegie Library of Pittsburgh
Fairview Park
Shawnee State University
Miami Dade College
Putnam County
Cutchall Management restaurant company
Mount Ephraim Board of Education
CY Farms
Brunswick
Medina
Wytheville Town Council
Christopher Newport University
College of William & Mary
Norfolk State University
Virginia government (all other departments)
Virginia Commonwealth University
Virginia Community College System
Virginia Dept. of Alcoholic Beverage Control
Virginia Dept. of Conservation and Recreation
Virginia Employment Commission
Washington County
Wytheville
Land’s End
Dept. of Behavioral Health and Developmental Services
Dept. of Motor Vehicles
George Mason University
James Madison University
Longwood University
Old Dominion University
Radford University
University of Mary Washington
Lomira School District
Lancaster County
Utah Valley University
Columbus
Illinois Valley Community College
Milford Township
New Baltimore
Omega Foods Inc. (Wendy’s franchisee)
Tallmadge
Treadwell Enterprises (Taco Bell franchise operator)
Lake County
Boca Raton
Rock Valley College
Royal Farms convenience stores
Fairlawn
Chesapeake College
Sugarcreek Township
RREMC Restaurants (Denny’s franchisee)
Cedar Falls
Kga Group (Subway franchisee)
Kean University
Stark State College
Youngstown State University
Community College of Allegheny County
Pillar Hotels & Resorts
PMTD Restaurants LLC (a franchisee of KFC)
Jimmy John’s Gourmet Sandwiches
Plainfield Park District
Bowlmor Lanes
West Perry School District
Lafayette School Corp.

All of this unnecessary anguish and hardship all because of a piece of legislation that was not well thought out, was rushed through enactment without proper vetting and analysis, and that has no chance of ever being successful because it fails miserably to address the root causes of our ever rising health care costs in this country. 

313 companies, schools, and other organizations already slammed, hundreds of thousands of Americans, if not millions of Americans, already slammed, with more anguish yet to come.

Our book, "Love My Country, Loathe My Government - Fifty First Steps To Restoring Our Freedom And Destroying The American Political Class" is now available at:

www.loathemygovernment.com

It is also available online at Amazon and Barnes and Noble. Please pass our message of freedom onward. Let your friends and family know about our websites and blogs, ask your library to carry the book, and respect freedom for both yourselves and others everyday.

Please visit the following sites for freedom:

Term Limits Now:http://www.howmuchworsecoulditget.com
http://www.reason.com
http://www.cato.org
http://www.robertringer.com/
http://www.youtube.com/watch?v=08j0sYUOb5w



Friday, July 26, 2013

July, 2013 Obama Care Update, Part 2: Unons Jump The Obama Care Ship, Jay Carney Stays On Board, and More

Yesterday, we took a look at the “dirty dozen” major failures of Obama Care. These failures included under enrollment, budget overruns, program cancellations, program failures, program delays, and just plan incompetence. Today, we will look at more failures but at a lower level of detail to see how this horrid piece of legislation is harming Americans and the economy.

1) Union organizations had been one of the strongest advocates for Obama Care when it was being developed. This support quickly changed to hypocrisy soon after the legislation was passed when the union actually found out what the law was going to do to their members’ health insurance plans. Many, many unions immediately asked for waivers to the laws requirements to gain at least a temporary reprieve from its ill effects.

That hypocrisy has now turned into outright hostility against the law. We have previously reported on how some unions have now blatantly come out against the law. The latest to turn against it is the International Brotherhood of Electrical Workers (IBEW). This is what they recently said in their official white paper on the legislaiton:

“The ACA threatens the viability of multi-employer health plans in four ways: 1) the high employee threshold of the employer mandate 2) the re-insurance fee, 3) the definition of qualified health plans, and 4) the lack of multi-employer specific administrative guidance. We believe it may be impossible to reverse the damage done to these plans if these issues are not resolved. The IBEW cannot afford to sit on the sidelines at the ACA threatens to harm our members by dismantling multi-employer plans.”

So much for that initial support of Obama’s health care and insurance reform. At least this union is now actively against it, having finally understood what damage it will do to its members.

2) According to a Washington Examiner article from July 10, 2013, White House spokesperson took an uncalled swipe and insult at all those who view Obama Care as an unfolding disaster, based on the reality of what has happened so far. Jay Carney got nasty at a recent press briefing during his defense of the Obama administration’s decision to delay the implementation of the health care law’s employer mandate. He criticized those who question the legality of putting off parts of the law, calling them “willfully ignorant.”

Let’s look at some facts, Mr. Carney, before we decide who is “ignorant:”

The legislation plainly states that this component of the law is to be implemented on January 1, 2014. It does not say January 1, 2015. 
Although many Republicans are pointing out this LEGAL requirement and Senator Tom Harkin, a Democrat and leading advocate of Obama Care, is also questioning the legality of delaying the implementation of this program.

Not a good way to win friends and influence people, calling them ignorant when in truth they are speaking the truth and you are taking the discussion down into the mud. Given how poorly the entire Obama Care process is going, insulting anyone is not a good strategy for salvaging any part of this ignorant legislation.

3) We have previously reported on many businesses that are cutting hours and terminating health care insurance for employees because they cannot afford to carry either full time employees or continue health insurance as a result of Obama Care requirements. Thus, many Americans are getting hit with a double whammy of Obama Care insults, fewer working hours resulting in less take home pay and less likely to have health care insurance. Talk about a bad piece of legislation and its unintended consequences.

Many of these cutbacks have been in the restaurant and service industries, industries with very low profit margins which would have been wiped out by the Obama Care mandates unless they cutbacks were implemented. But as a July 19, 2013 article from Investors Business Daily points out, local and state government have been even more aggressive in cutting workers; hours and health care insurance coverage as a result of Obama Care. 

According to the article, the result is that part-time government workers, many of them low-income, face pay cuts that can top $3,000 a year, and yet will still be left without employer-provided benefits. The article provides a small sample of local news reports about what local government officials are saying about ObamaCare, and the steps they have to take to avoid or minimize its costs.

- Phillipsburg, Kansas: "School administrators here say they are alarmed and confounded by the looming new costs they face with the implementation of the Affordable Care Act," according to the Kaiser Health Institute News Service. Chris Hipp, director of a Kansas special education cooperative, warned that Obama Care's costs "could put us all out of business or change significantly how we do business," adding that "we are not built to pay full health benefits for non-certified folks who work a little more than 1,000 hours a year."

- Dearborn, Michigan.: "If we had to provide health care and other benefits to all of our employees, the burden on the city would be tremendous," said Mayor John O'Reilly, explaining why the city is cutting its more than 700 part-time and seasonal workers down to 28 hours a week. "The city is like any private or public employer having to adjust to changes in the law."

- Indiana: "What I'm seeing across the state is school districts, unfortunately, having to reduce the hours that they are having some of their folks work, primarily so they don't have to worry about the (ObamaCare) penalties, or they don't have to provide them health insurance, which would be very, very costly," said Dennis Costerison, executive director of the Indiana Association of School Business Officials. Ft. Wayne Community Schools, for example, are cutting yours for nearly three-quarters of its part-time aides.

- Omaha, Nebraska.: "The biggest problem is everyone said that ObamaCare is only going to help cut costs. Nothing could be further from the truth," said Mike Kennedy , who serves on the board of Millard Public Schools, just outside the city, and figures ObamaCare will raise its costs by $400,000. A neighboring school district is reducing hours for up to 281 part-time employees to avoid $2.5 million in new costs, which will result in pay cuts of up to $3,300.

- Long Beach, California: "We are in the same boat as many employers," said Tom Modica, Long Beach's director of government affairs. "We need to maintain the programs and service levels we have now." So the city is going to cut hours for 200 part-time workers so it doesn't have to pay $2 million to provide health benefits.

- Salt Lake City, Utah: "With new provisions in the Affordable Care Act, there was going to be a significant burden upon Granite School District and our taxpayers to offset the cost of benefits," said spokesman Ben Horsley. He says covering the district's part-time workers would cost about $14 million, and so about 1,000 will have their hours cut to 29 a week.

- Cape May County, Jew Jersey: "A number of people in the nation who read it are recognizing how detrimental (Obama Care is) to government and private employers out there," said Gerald Thornton, the county's finance director who is trying to figure out how to budget for the law.

- Virginia: "The Commonwealth of Virginia is grappling with the same issues that many businesses in the private sector are as they struggle to deal with the costs imposed by the Affordable Care Act," Paul Logan, a spokesman for Gov. McDonnell, said. The state is requiring that about 7,000 part-time government workers put in no more than 29 hours a week.

- Texas: "The Affordable Care Act has added so much complexity and administrative burden that there is nothing affordable about it," said Jared Pope, who is consulting with Texas municipal governments on ObamaCare. Dallas expects its health costs to climb $2.1 million next year. Plano is cutting hours to avoid $1 million in new costs.

- Kern County, California: "It will affect multiple departments, a majority of departments," said the county's deputy administrative officer Eric Nisbett, explaining that unless the county cut worker hours for 800 employees, ObamaCare would cost it up to $8 million a year.

- Allegheny County, Pennsylvania: "There's frustration and anger and sadness and resentment, you know, but you don't have a voice," said adjunct English professor Clint Benjamin in the wake of the Community College of Allegheny County's decision to cut hours for about 400 adjunct faculty and other employees so it wouldn't have to pay $6 million in ObamaCare-related fees next year.

- Medina, Ohio: "We feel bad as a city administration and as a council in having to cut hours from 35 to 29," Medina Mayor Dennis Hanwell said. "We have the budget to pay the people, but we do not have the budget to pay for the health care." If they hadn't made that cut, the city faced up to $1 million in new health costs courtesy of ObamaCare.

- Birmingham, Michigan Commissioner Gordon Rinschler may have summed up best the reaction that countless businesses and governments are having to ObamaCare, saying: "We simply can't afford the Affordable Care Act."

I included all of the examples given in the article to provide a sense of how widespread and devastating this piece of legislation is, especially to part time, lower income workers. These workers and the decisions makers that affect them are not, as Mr. Carney would say, “willfully ignorant” of Obama Care. They are living the horror of it every day.

We keep returning to the bottom line of why Obama Care is an unadulterated failure: the legislation and those who wrote it never addressed the underlying root causes of our high health care costs. If you do not understand the root causes, the odds of writing the right prescription to address and terminate those root causes are likely doomed to failure. 

These root causes are relatively easy to identify:

  • Americans smoke too much.
  • The Federal government monetarily subsidizes the growth of tobacco.
  • Americans eat too much.
  • Americans eat too much of the wrong kind of food.
  • The Federal government monetarily subsidizes the low cost of inexpensive corn fructose, a fattening agent that infests much of America’s food chain.
  • Americans do not exercise enough.
  • The Federal government wastes over $100 billion a year in its primary health care programs today, Medicare and Medicaid, $100 billion a year that would allow many other Americans to get health care coverage and support if the waste and fraud could be eliminated.
  • The health care industry in the country today needs major tort and malpractice reforms, reforms that have proven successful at the state level in reducing health care costs.
  • State boundary restrictions regarding cross border health care insurance company competition needs to be eliminated in order for market competition to drive down costs.

None of these root causes are substantially addressed by Obama Care. His legislation is just a reshuffling of taxes and fees without any reduction in the root causes of our high health care costs, a fact the Mr. Carney is willfully ignorant about.

The disaster known as Obama Care will continue unfolding tomorrow.
Our book, "Love My Country, Loathe My Government - Fifty First Steps To Restoring Our Freedom And Destroying The American Political Class" is now available at:

www.loathemygovernment.com

It is also available online at Amazon and Barnes and Noble. Please pass our message of freedom onward. Let your friends and family know about our websites and blogs, ask your library to carry the book, and respect freedom for both yourselves and others everyday.

Please visit the following sites for freedom:

Term Limits Now!: http://www.howmuchworsecoulditget.com
http://www.reason.com
http://www.cato.org
http://www.robertringer.com/
http://www.youtube.com/watch?v=08j0sYUOb5w

Thursday, October 21, 2010

If You Thought The Federal Government's Finances Were In Bad Shape...

Many times in this blog we have talked about how dangerously high the Federal government's debts and spending are and how that debt and spending threaten the very solvency of the country. Just in the last three fiscal years during which the Democrats controlled Congress,  including the first two years of the Obama Presidency, the national debt will have gone up about $4 TRILLION or about $35,000 per U.S. household. It is on a trajectory to go up another $8 TRILLION in the next decade and that is probably a best case scenario. This comes out to over $100,000 per household. All of the standard measures of sound fiscal policy, e.g. annual deficit as a percentage of GDP, total national debt as a percentage of GDP, etc. are raising red flags of how dire our nation's Federal government finances are.


But, wait! There's more. If you thought the Federal government was in bad financial shape, consider some statistics for some local and state governments that appeared in a recent New York Times article by David Brooks:


  • In New Jersey, employment benefit packages for state employees are 41% higher than similar benefit packages for those working for the average Fortune 500 company.
  • New York City schools are in bad shape, possibly because the city has allowed over 10,000 former policemen and police women to retire before the age of 50.
  • In California, a state very, very close to bankruptcy, in-state police officers receive 90% of their salaries when they retire at age 50.
  • An average California corrections officer can earn over $100,000 when overtime is taken into account. The article points out that California spends more money on its prison system than its school systems.
  • Unfunded state government pension obligations total about $2 TRILLION. According to a source quoted in the article, a political scientist at the City College of New York, government employees at all levels of government earn, on average, make $14 more per hour in wages and benefits than their private sector equivalents.
  • Buffalo, New York has 50% fewer citizens than it had in 1950 but the same number of local government employees.
Want some more torture? Consider the following facts from the November, 2010 issue of Reason magazine and the article that provided a blueprint for financially saving the country:
  • During the Great Recession, the private sector of the economy shed almost 8.5 million jobs but all levels of government actually added government employees during the recession to the tune of 100,000. Thus, there were fewer and fewer private sector jobs and their taxes to support more government employees, putting tremendous strains on the government budgets below the Federal level.
  • In a July report, the national conference of State Legislators estimated that the states face a total budget gap of $84 billion for the next fiscal year, with almost half of all states thinking that their deficits will be more than 10% of their total budgets.
  • In a June analysis, the National Governors Association estimated that the cumulative budget shortfalls for state governments over the next three years will be almost $300 billion. Despite their own estimates, the same Governors are recommending budgets that are actual 3.6% HIGHER for fiscal 2011.Talk about insanity. Fewer private sector jobs are available but state and local governments expand. Governors know they will have less money in the coming years but recommend that state government budgets be increased. Population bases shrink substantially but the governments supporting substantially fewer citizens does not. It's crazy.
Why are we in this situation. Two possible causes:

  • Mr. Brooks suggests that it all comes down to the political class looking to spend taxpayer dollars to buy votes for the perpetual re-election. Take care of the public employee unions with high salary raises during economic boom times and promised future pension increases in lean times, essentially kicking the financial time bomb of pensions down the road to future generations, and you will most assuredly get most of the union votes and a good chance of re-election, fiscal sanity and prudence need not apply.
  • The Reason article debunks the claims by state and local politicians that the economic downturn caused their budget problems. The article calculates that between 2000 and 2008, i.e. good economic times before the full impact of the recession took hold, the national population grew 8% and the CPI inflation indicator grew 25%. Thus, a rough estimate of how much state and local government should have grown to take into account more people and inflation ( Buffalo, follow closely) would be about 33%. However, during the good times and before the Great Recession, overall state government spending actually increased about 60%, almost twice as much as it logically should have. Thus, the political class has no one to blame but themselves. They increased their power and statue at the expense of their taxpaying constituents well before they can blame the economic downturn. Thus, ego, not recession, got most of the states into the budget mess they are in today.
The sad part of the whole situation is that the state and local governments are now so hamstrung by these outrageous commitments to unions and pensions, they have very little money left for helping out their citizens. By overpaying police and corrections officers, both active and retired, the state of California neglects its school systems. The New Jersey Governor recently suspended work on a new tunnel into New York City from New Jersey because it was getting too expensive and also because the state has such high commitments to its public sector unions that there is little money left over for such projects, even though the long term financial benefit of the tunnel is high. Buffalo's city government is 50% less efficient than it was 60 years ago simply because it has the same number of public employees serving  half as many people, despite productivity and efficiency enhancements in the way we live and work, e.g. computers, communications, etc.

Mr. Brooks really nails the underlying problem with the following thoughts:

"Many of us would be happy to live with a bigger version of 1950s government: one that ran surpluses and was dexterous enough to tackle long-term problems as they arose. But we don't have that government. We have an immobile government that is desperately overcommittted in all the wrong ways.... Someday there will be a political movement that is willing to make choices, that is willing to say 'this but not that.'"

"Immobile government," what a wonderful vision that also applies to the Federal government and the political class running it. Politicians seem to spend most of their time in office running for their next re-election, never willing to say no to any group or organization in order to scrounge up as many votes as possible, logic and fiscal sanity be damned. We never run surpluses and we never see them tackle long term problems. Problems like the War On  Drugs, the energy crisis, failing public education, illegal immigration, impending fiscal insolvency of Social Security and Medicare/Medicaid, etc. are never solved. Seems like the same paralysis is also happening at the local and state level. Be scared, be very scared.




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