Posts tagged ‘Obama Administration’

Wow -- Two Obama Administration Economists Write Paper Saying Obama Administration Policy Was Great

I followed a link the other day to this academic paper purporting to show that the bailout of GM and Chrysler was a success.  I was flabbergasted to see that the authors are Austan D. Goolsbee and Alan B. Krueger.  WTF?  These folks were part of the Obama Administration.  This is their own policy they are passing historical judgement on.  This is roughly equivalent to a economics journal seeking a paper on the success or failure of Obamacare and having Valerie Jarrett write it.  How does this kind of conflict of interest pass any kind of muster?

I only skimmed the paper.  I know these are two smart guys but it seems to include exactly the sort of facile analysis you would expect from a political hack, not two smart economists.  I can't believe these guys would have accepted many of the assumptions they make here had they not been directly involved.  Just to pick two things at random:

  • They seem to stick with the assumption that millions of jobs would have simply gone *poof* had the government not intervened.  Yes, this happened at Solyndra, but in most cases industries operate almost seamlessly in bankruptcy.  The odds are, for example, that you have flown on an airline in Chapter 11 and didn't even know it.  They make a specific argument that somehow it would be bad to have both in bankruptcy at the same time, but I can remember several times when there were multiple major airlines in bankruptcy.  In fact, if both went bankrupt at the same time, one could argue it would lessen their market share loss since a major competitor was in the same boat.  To the extent that the companies would have continued to operate under Chapter 11, which is 99.9% likely, then all the government did was insert itself into the bankruptcy process to overrule laws about who gets what in a bankruptcy to redirect spoils to their favored constituencies
  • Yes, GM and Chrysler are doing OK now, but they usually do OK at the top of a business cycle.  To my eye though, nothing fundamentally changed about how they are managed and operate.  The same structural and cultural problems that existed before exist today.  The same under-utilization of talented workers and valuable assets that existed before exists today.  No real reckoning occurred -- in fact the bailout looked to me at the time as an exercise to use taxpayer money to avoid a true housecleaning.  These companies have done OK, but what would they have done with a more thorough housecleaning?

The Government's One Cost Advantage: It Can Exempt Itself from Regulation

Greg Patterson brings us this example from the AZ legislature, but this sort of thing is ubiquitous:

Just before I got to the Legislature, there was a big move to regulate day care facilities.  Naturally, the government has a role in establishing basic health and safety standards for facilities that take care of young children, so I thought it was a good move.

Then a funny thing happened.  The Legislature established one set of standards for private day care facilities and a different (lower) set of standards for public or non-profit day care facilities.  Some Legislators dared to ask why the health and safety rules would be different depending on what type of entity owned the facility.  After all, if a rule is really in place to keep a child healthy and safe, why should a publicly owned facility be exempt or have a lower standard?

The answer, of course, is that there's no reason for publicly owned facilities to have a different regulatory regime than private facilities and that these bills were really just disguised attempts to ensure that private day cares couldn't compete with public ones

We are facing something similar in my world.  As you may know, my company operates government parks and campgrounds on a concession basis (which means we get no government money, we are paid by the user fees of visitors).  This makes sense because we can do it less expensively and usually better than the government agency.

Recently, the Obama Administration has imposed an executive order that we concessionaires on Federal lands have to pay a $10.10 minimum wage.  Since most of our costs are labor, this is causing us to have a to raise fees to customers substantially to offset the higher costs.

In response to these fee increases, the US Forest Service in California is in the process of taking back traditionally concession-run campgrounds to run themselves, in-house.  Their justification is that they can do it cheaper.   Part of this is just poor government accounting -- because many costs (risk management/insurance, capital assets, interest on investments) don't hit their budgets but show up on other parts of the government's books, what appears to be lower costs is actually just costs that are hidden.  But their main cost savings is that since the Federal government is exempt from labor law and this new executive order, the Forest Service can staff the park with volunteers.  They are allowed to pay a minimum wage of ... zero!

This is just incredibly hypocritical, to say with one statement that private companies need to pay campground workers more and with the very next action take over the campground and staff it with people making nothing.

Gender Pay Gap a Myth

At first, the link I followed told me this story was from CBS.  I found it astonishing that a major news network would challenge a previously agreed on Obama Administration narrative, and sure enough I found that this was not actually from the people at CBS who are paid to write the news (they are too busy reprinting White House talking points) and is actually from one of their financial bloggers.

Never-the-less, it is a great post that gets at why every serious academic study tends to debunk the 77% gender pay gap myth.   All of it is good but the consistently most powerful point that I tend to use if I am only given time in an argument to make one point is this one:

Despite all of the above, unmarried women who've never had a child actually earn more than unmarried men, according to Nemko and data compiled from the Census Bureau.

Women business owners make less than half of what male business owners make, which, since they have no boss, means it's independent of discrimination. The reason for the disparity, according to a Rochester Institute of Technology study, is that money is the primary motivator for 76% of men versus only 29% of women. Women place a higher premium on shorter work weeks, proximity to home, fulfillment, autonomy, and safety, according to Nemko.

It's hard to argue with Nemko's position which, simply put, is this: When women make the same career choices as men, they earn the same amount as men.

One would think that this quote from Obama's own Department of Labor would be enough to kill this meme:

"This study leads to the unambiguous conclusion that the differences in the compensation of men and women are the result of a multitude of factors and that the raw wage gap should not be used as the basis to justify corrective action. Indeed, there may be nothing to correct. The differences in raw wages may be almost entirely the result of the individual choices being made by both male and female workers."

Morally Lost

Much of the Conservative pushback on the torture report today has been to argue that the torture was actually much more useful in terms of information gathering than the Senate report concludes.  Who gives a cr*p?  Are these really the same folks who lecture me about morality for wanting to allow gay men to marry, but are A-OK with torture?

In the rape discussion, those who show skepticism about false stories of rape are considered, unfairly, rape apologists.  But these folks I am hearing today are truly torture apologists.  It is sickening.  If Conservatives were truly just in a Bismarkian blood and iron mode, I guess at least they would be internally consistent.  But many of these guys are neo-Conservatives, who are essentially advocating torture as a means to spreading our positive values around the world.

Conservatives, correctly I think, criticized the Obama Administration for blaming the Libyan embassy attack on YouTube video.  They argued that he should have been standing up in front of the world and explaining free speech and educating the world on why we don't punish folks for its exercise, even when we disagree with them.  All fine, except how does advocating for torture play into this bully pulpit theme?

Why Reform of Police Accountability is Unlikely

It's as simple as this:  Republicans fetishize the police (like they do the military) and will always give them the benefit of the doubt.  They have this gauzy teary-eyed love of the police.  Just watch Megyn Kelly on Fox to get the idea.  Democrats are allied with public unions and will not under any circumstances take on the powerful police unions who fight any attempt at accountability tooth and nail, a behavior Democrats have become habituated to enabling for other unions like the teachers unions.

The issue is mostly about giving police accountability that matches the special powers over the use of force we give them.  But it is also about racism.  It just burns me up to have folks in power point to the business world constantly for supposed institutional racism, when in fact I witness very little if any day to day.  The one institution I see that clearly has elements of institutional racism are many police forces, but no one will touch them.

Every year there are hundreds of police shootings and the number that are determined not to be justifiable rounds to zero.  What are the odds there is a process involving humans with this small of a Type I error rate?  We are learning form cell phone cameras that the stories we used to believe from police officers about events are often total bullsh*t.  And yet still police are not held accountable even when there is horrific video evidence showing them out of control.

At the drop of a hat, at the smallest hint of a single example of a bad outcome, the government will not hesitate to impose enormous new restrictions on private individuals.  But even with the most overwhelming evidence the government will not put even the lightest restrictions in itself or its employees.

I have always shied away from my fellow libertarians on the anarcho-capitalist end of things who wanted to privatize the police force.  I always thought use of force to be a unique privilege and one dangerous to hand out to private groups.  But I am starting to see that I was thinking about it wrong.  It is a dangerous power to give to anyone, but at least if you give it to a private party someone might possibly exercise a little accountability over them.

Walter Olson has a good roundup of police and lethal force here.

Postscript:  Here is an example of what I mean:  The Obama Administration has imposed significant rules on universities to bring greater accountability to sexual assailants when it was perceived that the universities did not impose enough accountability on such predators.  I think the Administration has gone overboard in stripping away the accused due process protections and handing justice to people who will not manage the process well, but its the seriousness of this effort I want to point out.  While I don't think the Administration's actions were appropriate to colleges, they would represent an entirely appropriate response to police violence.  Someone needs to step in and enforce some accountability.

 

Drone War Legacy

In campaigning for the Presidency, Obama made it clear that he thought that much of the violence and hatred directed at Americans was self-inflicted -- ie our often ham-fisted, aggressive interventionism in the affairs of other countries, frequently backed by military force, was aggravating the world against us.  If we stopped, the violence against us would stop.

I rate this as partially correct and partially naive.  As the richest state in the world, one whose culture pours into other countries to the dismay of many of the local elites, we will always earn the ire of many.  But we certainly have made it worse with our actions.

But this just makes it all the more frustrating to me to see Obama's continued support, even acceleration, of the drone war.  I am not sure there is any other practice that emphasizes our arrogant authoritarian militarism than the drone war.  Americans are not used to a feeling of helplessness, so it is perhaps hard to fully empathize.  But imagine the sense of helplessness to watch American drones circling above your city, drones you can't get rid of or shoot down, drones that lazily circle and then bring death from above almost at random.   I can't think of any similar experience in recent western experience, except perhaps the V2 rocket attacks on London in WWII.

The Obama Administration claims that these are clean, surgical tools without any collateral damage.  They do this by a rhetorical slight of hand, essentially defining anyone who is killed in the attacks ex post facto as being guilty.

As is often the case with government activities, it is worse than we thought:

Via the British group Reprieve comes a report asserting that U.S. drones in Yemen and Pakistan kill 28 "unknowns" for every intended target. What's more, "41 names of men who seemed to have achieved the impossible: to have ‘died,’ in public reporting, not just once, not just twice, but again and again. Reports indicate that each assassination target ‘died’ on average more than three times before their actual death."

So much for the precision of drone strikes, which promise a future of war in which civilians and other forms of collateral damage are spared ruin and destruction. As President Obama said in 2013, by "narrowly targeting our action against those who want to kill us, and not the people they hide among, we are choosing the course of action least likely to result in the loss of innocent life.”

Well, sort of. From the Reprieve report:

As many as 1,147 people may have been killed during attempts to kill 41 men, accounting for a quarter of all possible drone strike casualties in Pakistan and Yemen. In Yemen, strikes against just 17 targets accounted for almost half of all confirmed civilian casualties. Yet evidence suggests that at least four of these 17 men are still alive. Similarly, in Pakistan, 221 people, including 103 children, have been killed in attempt sto kill four men, three of whom are still alive and a fourth of whom died from natural causes. One individual, Fahd al Quso, was reported killed in both Yemen and Pakistan. In four attempts to kill al Quso, 48 people potentially lost their lives.

Kevin Drum's Sensible Thoughts on Ray Rice: Why Doesn't The Same Logic Apply to Universities?

Kevin Drum has some sensible thoughts on Ray Rice, discipline and the NFL -- "Sensible" defined in this case as largely mirroring my own:

Ray Rice committed a crime. We have a system for dealing with crimes: the criminal justice system. Employers are not good candidates to be extrajudicial arms for punishing criminal offenders, and I would be very, very careful about thinking that they should be.

Now, I'll grant up front that the NFL is a special case. It operates on a far, far more public level than most employers. It's a testosterone-filled institution, and stricter rules are often appropriate in environments like that. Kids take cues from what they see their favorite players doing. TV networks and sponsors understandably demand a higher level of good behavior than they do from most employers.

Nevertheless, do we really want employers—even the NFL—reacting in a panic to transient public outrage by essentially barring someone for life from ever practicing their craft? Should FedEx do that? Should IBM do that? Google? Mother Jones? Perhaps for the most serious offenses they should, and it's certainly common to refuse to hire job candidates with felony records of any kind. (Though I'll note that a good many liberals think this is a misguided and unfair policy.) But for what Ray Rice did?

I just don't know about that. Generally speaking, I think we're better off handling crimes through the criminal justice system, not through the capricious judgments of employers—most of whom don't have unions to worry about and can fire employees at a whim. I might be overreacting, but that seems like it could become a dangerous precedent that hurts a lot more people than it helps.

I agree 100%.  The NFL  was simply insane to venture into the role as a shadow legal system to apply punishments based on their investigation and judgement in parallel with those of the legal system.  They would have been much better off simply establishing a schedule of internal penalties that were based on the outcomes of the legal system.

That being said, I wish other writers on the Left would read Drum's column and ask themselves why this same logic wouldn't apply to colleges as well. It is unbelievable to me that Liberals of all people -- who have largely defended due process rights in the legal system for years against Conservative attempts to trim them -- would suddenly wage a campaign to substitute kangaroo courts run by university administrators in the place of normal police and judicial procedures for crimes as serious as rape.  I am historically skeptical of the legal system and the people in it, but all of these problems would only be worse trying to have a bunch of amateurs at universities setting up a parallel system.

There is certainly a problem to be solved -- though the 1 in 5 statistic is completely bogus and exaggerated -- but the diagnosis of the problem has been all wrong.  The problem is that Universities have historically created internal police forces and disciplinary processes for the express purpose of protecting their students from the normal legal system.  This is a practice and tradition that goes all the way back to the Middle Ages.  And it worked fine, at least as far as I am concerned, when the University was protecting students from marijuana or underage drinking busts by town police.

But institutions develop a culture, and the culture of university disciplinary processes has been to 1.  keep the student out of the legal system and 2.  get the student to graduation.  I have friends who have been kicked out of top universities a few times, but the University in the end bent over backwards to take them back and get them over the finish line.

So it is disappointing, but not surprising, that universities approached more heinous crimes with this same culture and mindset.  And some egregious sexual assaults got swept under the rug.  Again, I think some folks are exaggerating these numbers by assuming there are tens or hundreds of these cases for every one we hear about.  But we can agree on the core fact, I think, that the typical college disciplinary culture of protecting students from the legal system has failed some victims of sexual assault.

But this is where everyone seems to be going off track.  The Obama Administration solution for this problem is to demand that universities develop more robust fact-finding and disciplinary processes for such felonies, and remove procedural protections for the accused as a way to offset the historic university culture to go to far in protecting wrongdoers.

This is nuts.  Seriously.  Given the set of facts, a far simpler solution, fairer to both accused and victims, would have been for the Obama Administration simply to demand that Universities hand over evidence of crimes to police and prosecutors trained to know what to do with it.  If the University wants to take special steps to get victims help coping with their recovery using University resources, or help victims and the accused who are University students cope with the rough edges of the legal process, great.

Postscript:  Another problem is that punishments meted out by universities are going to always be wrong, by definition.  Let's say a student is accused of rape and kicked out.  Two possibilities.  If he is innocent of the charge, then he was punished way too much.  If he was guilty, if he really raped someone, he was punished way too little -- and by the University screwing around with it and messing up the chain of evidence and taking statements without following the correct process, they may have killed any chance of a conviction in the legal system.    The current process the Obama Administration is forcing punishes the innocent and protects the truly guilty.

Not Sure That Word Means What You Think It Means

While I share this individual's frustration with the Obama Administration's lack of transparency, I am not sure this phrasing quite works

“There is no precedent for President Obama’s Nixonian assertion of executive privilege over these ordinary government agency records,” said Judicial Watch President Tom Fitton in a written statement.

If the assertion is "Nixonian", doesn't that imply that there is indeed a precedent?  Otherwise how would the practice be named after someone else?

PS- since we were on the subject of grammar and editing yesterday, I will say that yes, I know the comma after "Nixonian" above is supposed to be inside the quotes.  But as an engineer and former programmer, this rule is entirely illogical.   It's like writing 3+(x+y*)7 instead of 3+(x+y)*7.   I do it the way that makes logical sense.

I am Pretty Sure Bastiat Figured This Out 150 Years Ago: Cash For Clunkers Even Worse Than First Thought

From the WSJ

In a National Bureau of Economic Research working paper this month, economists at Texas A&M return to Cash for Clunkers, the 2009 stimulus fillip that dispensed vouchers worth as much as $4,500 if people turned in their old cars for destruction and bought a new set of wheels. Mark Hoekstra, Steven Puller and Jeremy West report their "striking" finding that the $3 billion program's two-month run subtracted between $2.6 billion and $4 billion from the auto industry.

The irony is that the goals were to help Detroit through the recession by subsidizing sales and to please the green lobby by putting more fuel-efficient cars on the road. By pulling forward purchases that consumers would make later anyway, the Obama Administration also hoped to add to GDP. Christina Romer, then chair of the Council of Economic Advisers, called Cash for Clunkers "very nearly the best possible countercyclical fiscal policy in an economy suffering from temporarily low aggregate demand."

The A&M economists had the elegant idea of comparing the buying behavior of Texas drivers who owned cars that barely qualified for cash (those that got 18 miles per gallon of gas or less) and those that barely did not (19 mph). Using state DMV sales records, this counterfactual allowed them to isolate the effects of the Cash for Clunkers incentives and show what would have happened without the program.

The two groups were equally likely to purchase a new vehicle over the nine month period that started with Cash for Clunkers, so the subsidy did not create any extra auto business. But in order to meet the fuel efficiency mandate, consumers who got the subsidy were induced to purchase smaller vehicle models with less horsepower that cost on average $2,500 to $3,000 less than those bought by their ineligible peers. The clunkers bought more Corollas, and everybody else more Chevys.

Extrapolated nationally, auto revenues may have plunged by more than what the government spent. And any environmental benefits cannot be justified under the federal social cost of carbon estimate of $33 a ton. Prior research from 2009 and 2013 has shown that the program cost between $237 and $288 a carbon ton.

Forget Halbig. Obama May Have Lost the Senate By Giving Subsidies to the Federal Exchange

In Halbig, the DC Circuit argued that the plain language of the PPACA should rule, and that subsidies should only apply to customers in state-run exchanges.  I am going to leave the legal stuff out of this post, and say that I think from a political point of view, Obamacare proponents made a mistake not sticking with the actual language in the bill.  The IRS was initially ready to deny subsidies to the Federal exchanges until Administration officials had them reverse themselves.  When the Obama Administration via the IRS changed the incipient IRS rule to allow subsidies to customers in Federal exchanges, I believe it panicked.  It saw states opting out and worried about the subsidies not applying to a large number of Americans on day 1, and that lowered participation rates would be used to mark the program as a failure.

But I think this was playing the short game.  In the long game, the Obama Administration would have gone along with just allowing subsidies to state-run exchanges.  Arizona, you don't want to build an exchange?  Fine, tell your people why they are not getting the fat subsidies others in California and New York are getting.  Living in Arizona, I have watched this redder than red state initially put its foot down and refuse to participate in the Medicaid expansion, and then slowly see that resolve weaken under political pressure. "Governor Brewer, why exactly did you turn down Federal Medicaid payments for AZ citizens?  Why are Arizonans paying taxes for Medicaid patients in New Jersey but not getting the benefit here?"

Don't get me wrong, I would like to see Obamacare go away, but I think Obama would be standing in much better shape right now had he limited subsidies to state exchanges because

  1. The disastrous Federal exchange roll-out would not have been nearly so disastrous without the pressure of subsidies and the data integration subsidy checks require.  Also, less people would have likely enrolled, reducing loads on the system
  2. Instead of the main story being about general dissatisfaction with Obamacare, there would at least be a competing story of rising political pressure in certain states that initially opted out to join the program and build an exchange.  It would certainly give Democrats in red and purple states a positive message to run on in 2014.

Perfect Example of Government Doublespeak

An Obama Administration executive order / regulation (hard to tell the difference any more)

Department of Labor
29 CFR Part 10
Establishing a Minimum Wage for Contractors; Proposed Rule

34568 Federal Register / Vol. 79, No. 116 / Tuesday, June 17, 2014 / Proposed Rules

This document proposes regulations to implement Executive Order13658, Establishing a Minimum Wage for Contractors, which was signed by President Barack Obama on February 12, 2014.

The Executive Order therefore seeks to increase efficiency and cost savings in the work performed by parties that contract with the Federal Government by raising the hourly minimum wage paid by those contractors to workers performing on covered Federal contracts to: $10.10 per hour, beginning January 1, 2015; and beginning January 1, 2016, and annually thereafter, an amount determined by the Secretary of Labor.

Liberal and leftish economists in the audience, please explain the line in bold.

The administration wants to apply this to concessionaires as well.  This will force us to raise a $20 camping rate by $4 a night.

A Small Bit of Good News -- DC Circuits Slaps Down the IRS

The creeping regulatory / corporate state gets a setback

Faulting the IRS for attempting to “unilaterally expand its authority,” the D.C. Circuit today affirmed a district court decision tossing out the agency’s tax-preparer licensing program. Under the program, all paid tax-return preparers, hitherto unregulated, were required to pass a certification exam, pay annual fees to the agency, and complete 15 hours of continuing education each year.

The program, of course, had been backed by the major national tax-return preparers, chiefly as a way of driving up compliance costs for smaller rivals and pushing home-based “kitchen table” preparers out of business. Dan Alban of the Institute for Justice, lead counsel to the tax preparers challenging the program,called the decision “a major victory for tax preparers—and taxpayers—nationwide.”

The licensing program was not only a classic example of corporate cronyism, but also of agency overreach. IRS relied on an 1884 statute empowering it to “regulate the practice of representatives or persons before [it].” Prior to 2011, IRS had never claimed that the statute gave it authority to regulate preparers. Indeed, in 2005, an IRS official testified that preparers fell outside of the law’s reach.

Perhaps a first indication that the Obama Administration strategy to pack the DC Circuit with Obama appointees may not necessarily protect his executive overreach.

PS - you gotta love the IJ.

PPS - The IRS justified its actions under "an obscure 1884 statute governing the representatives of Civil War soldiers seeking compensation for dead horses"

2014 Obamacare Headlines

Here are a few shoes that are left to drop for Obamacare:

  1. Millions complain about their doctor no longer being in-network
  2. Thousands of companies are finding it cheaper to drop coverage and pay Obamacare penalties than continuing to provide health care coverage under new rules
  3. Despite fewer exchange enrollments than expected, total Federal subsidy payments higher than expected
  4. Emergency rooms overflow with new Medicaid patients that no private doctor will take on
  5. Exchange-sold health policies, particularly the unsubsidized ones, were mainly bought by the old and sick
  6. Obama Administration works to bail out health insurers via a number of different avenues
  7. Small to mid-size companies are shocked as Obama Administration finally reveals new record-keeping requirements
  8. After 5 years of 3-4% growth, health care spending skyrockets in 2014
  9. ________ health insurance company dropping coverage in  ____(state)_______
  10. Hackers steal tens of thousands of names and social security numbers from health care exchange computers.

I will score myself as the year progresses to see how many of these we actually see.  I would not be surprised to see every one of these.

Global Warming Folly

I have not written much about climate of late because my interest, err, runs hot and cold.  As most readers know, I am in the lukewarmer camp, meaning that I accept that Co2 is a greenhouse gas but believe that catastrophic warming forecasts are greatly exaggerated (in large part by scientifically unsupportable assumptions of strong net positive feedback in the climate system).  If what I just said is in any way news to you, read this and this for background.

Anyway, one thing I have been saying for about 8 years is that when the history of the environmental movement is written, the global warming obsession will be considered a great folly.  This is because global warming has sucked all the air out of almost anything else in the environmental movement.  For God sakes, the other day the Obama Administration OK'd the wind industry killing more protected birds in a month than the oil industry has killed in its entire history.  Every day the rain forest in the Amazon is cleared away a bit further to make room for ethanol-making crops.

This picture demonstrates a great example of what I mean.   Here is a recent photo from China:

20131211_china1

 

You might reasonably say, well that pollution is from the burning of fossil fuels, and the global warming folks want to reduce fossil fuel use, so aren't they trying to fight this?  And the answer is yes, tangentially.   But here is the problem:  It is an order of magnitude or more cheaper to eliminate polluting byproducts of fossil fuel combustion than it is to eliminate fossil fuel combustion altogether.

What do I mean?  China gets a lot of pressure to reduce its carbon emissions, since it is the largest emitter in the world.  So it might build a wind project, or some solar, or some expensive high speed rail to reduce fossil fuel use.  Let's say any one of these actions reduces smog and sulfur dioxide and particulate pollution (as seen in this photo) by X through reduction in fossil fuel use.  Now, let's take whatever money we spent in, say, a wind project to get X improvement and instead invest it in emissions control technologies that the US has used for decades (coal plant scrubbers, gasoline blending changes, etc) -- invest in making fossil fuel use cleaner, not in eliminating it altogether.  This same money invested in this way would get 10X, maybe even up to 100X improvement in these emissions.

By pressuring China on carbon, we have unwittingly helped enable their pollution problem.  We are trying to get them to do 21st century things that the US can't even figure out how to do economically when in actuality what they really need to be doing is 1970's things that would be relatively easy to do and would have a much bigger impact on their citizen's well-being.

One Thing I Got Wrong About Obamacare

For several years I have feared that my high-deductible health insurance would be illegal.  I am a big believer in high deductible insurance.  First, it is real insurance, requiring that I pay day-to-day expenses but protecting me from catastrophic bill.  Second, it improves the health care system by providing incentives for consumers to actually price-shop services.

Well, I was wrong.  In fact, most people see to be getting higher deductibles than they want.

My only excuse is that the Obama Administration has acted for three years as if they hated high-deductible health coverage and were planning to make it go away.  Kathleen Sebelius has said on a number of occasions that it is not "real insurance" (she believes that insurance should actually be pre-paid medical care).  Seriously, here is an example of what she was saying:

At a White House briefing Tuesday, Health and Human Services Secretary Kathleen Sebelius said some of what passes for health insurance today is so skimpy it can't be compared to the comprehensive coverage available under the law. "Some of these folks have very high catastrophic plans that don't pay for anything unless you get hit by a bus," she said. "They're really mortgage protection, not health insurance."

She is saying this all while the policies being prepared for the exchange were exactly the kind of coverage she was speaking out against.  And she had to know -- I cannot believe a former state insurance commissioner was not looking at what policies were being prepared for the exchange.  After all, her organization made the last minute decision to hide policy pricing from the public (e.g. deleted the window shopping functionality) and this almost certainly was in response to seeing the policies being prepared for the exchange and realizing the pricing and features were not going to make people happy.

By the way, there is a certain schizophrenia here that is entirely political:  These new policies have a $10,000 deductible, but they pay 100% for condoms?    They may well be creating a combination of catastrophic insurance and pre-paid medical care that has the worst of both approaches.

Politicians lie.  But what is it about this administration that lies in ways that are inevitably going to be discovered, in just a few months?  Can they really be so focused on getting through each individual news cycle that this kind of behavior makes sense?

Connecting Government Actions to the Jobs Report

This is an update of a chart I have published a couple of times.  The Obama Administration in the past couple of years has threatened at various times that a) the sequester and b) the government shutdown would have a devastating impact on employment.  Here is the most recent job addition data (I would prefer just private job changes but this is public and private, via here).

I have helpfully annotated it with two government actions the Left claimed would negatively affect employment growth, and one item I claimed would do so.  You be the judge:

job-report-annotated2

 

The media published 6 zillion articles worrying or outright predicting in advance that the government shutdown would hurt the economy and destroy private employment.  No such thing appears to have happened.  But of course the media never, ever, ever goes back and retrospectively revisits predictions of doom gone wrong.

When Did the Senate Hit Peak Dysfunctionalality?

Kevin Drum argues that the Senate currently could not get any more dysfunctional, so unprecedented changes in the cloture rules by simply majority vote were justified.

But to my mind the peak of recent Senate dysfunctionality was when it passed the PPACA.  It passed a rushed piece of legislation 2000 pages long full of holes and errors that no one had even read.   When bribes (e.g. in Louisiana, Nebraska) were openly being offered to holdout Democratic Senators to gain their vote.

To this day, even Democratic supporters are expressing surprise at what they voted for.  Most of its key provisions (employer mandates, restrictions on individual policies) have turned out to be unenforceable.  While the Obama Administration has done plenty to screw up the exchanges, the problems began in the legislation itself that did not actually fund or specify a home for the web site development.  And because of implementation delays, we have not even gotten to the point where we can see the real problems with the law that many of us expected.

The Dems said that the filibuster made the Senate dysfunctional.  If the PPACA is what results from a "functional" Senate, I will take dysfunctional.

WOW! Incredible Contradiction in October Exchange "Enrollment" Report

I have not seen anyone notice this yet, but perhaps it is just because I have obsessed over the pathetically bad Commonwealth Fund survey whose findings were demolished by the numbers in the October report (here and here).  Well, it turns out, the October report actually proudly highlights the Commonwealth Funds report,  and quotes this line from the Commonwealth Fund in Appendix D:

Of those who have visited the Marketplace, 21 percent enrolled in a plan.

WTF are you doing including this survey finding in a report that essentially makes a laughing stock of this very finding?  Let's review what numbers we have in the October report:

  • From our chart here, the people covered by a "clicked" plan (sorry, but that is their circumlocution, not mine) were 106,185  (note this is generous because it is not actual enrollments, which will be less)
  • From the same chart, the people who were found eligible for Medicaid were 396, 261 (note this is generous as this is not actual enrollments, which will be less).
  • Finally, from the same source are total web visitors times 1.78  family members per visitor (to make our ratio apples to apples) of 47,840,217.  See here for further explanation of why this calculation is necessary

This gives us a percentage of web visitors of 1% that managed to do something kindof sortof close to enrollment.

This demonstrates just how insane the 21% figure is from the deeply flawed Commonwealth study.  So why in the hell is the Obama Administration quoting it as authoritative in their report?  Do they think anyone is dumb enough to use the 21% figure instead of the 1% figure?  Is this just providing ammunition to political hacks who want to spin the story in Obama's favor?  Did the Administration or possibly OFA actually pay for that study?

The only effect including that 21% number has on me is to say that Obama likely has a bigger problem -- If 21% of visitors THINK they enrolled and less than 1% actually did so, aren't a lot of people in for a rude shock?

Verbal Gymnastics and the Enrollment Report

I did not want this to get lost -- in an Enrollment report that used the word "enroll" or some variant 229 times, the one thing the report was missing was the actual number of people who had enrolled.  On the Medicaid side, the report said how many had been found eligible but not how many had enrolled.  On the private side, the best we get is this, which is just a classic of the political art:

106,185 (10 percent) of the 1,081,592 total Marketplace plan eligible persons have already selected a plan by clicking a button on the website page.

The obvious language would have been "106,185 enrolled in a plan" or "bought a plan."  But it does not say this, despite the fact that the Obama Administration certainly has the relevant number.  What this means is that 106,185 people ... OK, a quick aside.  It is not actually 106,185 people being successful on the web.  This is the number of people who would be covered in plans "clicked on" by visitors.  The total number of clicks is well under this -- likely something like 60,000, if the ration of 1.78 persons per application holds from the other numbers in the report.  So this is the number of people covered in something like 60,000 plans that visitors did the equivalent of putting in the online shopping cart but may not yet have paid for.

Well, maybe the number paid is really close to 106,185.  Hah!  I can disprove that quite simply:  We were not told the number.  QED it sucks.

Why You Should Be Very Skeptical of Low-Sample-Size Advocacy Group Polling

A while back, I pointed out this poll from some group called the Commonwealth Fund.  In mid-October, on average about 15-18 days into the exchange process, they polled a group of non-corporate-insured adults (e.g. individual market or uninsured) about whether they had visited an exchange and what had been their experience.

The finding that stood out to me was that 21% of the people they interviewed that said they had visited an exchange reported that they had signed up for a policy (from the wording of the question, this probably includes both private policies and Medicaid signups).

I thought this seemed crazy-high.  And now new data from the Administration is confirming it.   The Administration is reporting about 106,000 "selected a plan" in October -- a very generous definition since it includes people who put a plan in their shopping cart but did not purchase it.  Not a definition of a sale that Amazon.com would ever use.    Further, another 400,000 or so were "found eligible" for Medicaid, whatever that means though it sounds well short of "enrolled."  So call it generously 500,000 people by the end of October.  The other key bit we need is that the Administration is reporting about 27 million unique visitors to these sites.  So at best we are looking at 1.9% of exchange visitors kind-of-sort-of-maybe having done something that approaches being enrolled.

This puts the Commonwealth Fund polling an entire order of magnitude off, at 21% vs. 1.9%.  And remember their survey occurred in the middle of the month, when the web site was not even working, and one can assume that successful enrollments were back-end loaded in the month.  The CF was nice enough to respond to my emails but were unable to explain the discrepancy, other than the sample size was low making the results unreliable.  So why the hell do it, and then put out a press release?

One explanation for part of the discrepancy may be in those who have created user accounts (normally a trivial task on a private site but a Herculean accomplishment on Healthcare.gov) but have not actually purchased a plan.  The Obama Administration says that there are about a million of these, so in addition to the 1.9% that put a plan in their shopping cart, there are another 3.7% that created a user account and gave the Feds enough info to assess subsidy eligibility, but who have not selected a plan.  Remember, that this was the minimum hurdle the Obama Administration originally set even to see insurance plan prices, and is still the minimum hurdle to get a subsidy quote.  It will be interesting to see the conversion rate of people once they find they are not getting free stuff from Uncle Sugar.

Even so, this only adds up to 5.6% of people who visited the exchange and had any sort of success (in most cases far short of enrollment) at all.  Way short of 21%.  Remember that we you see "studies" like this in the future.

It Turns Out That Democrats Were Responsible for the Watergate Coverup

The Washington Post has a very good article on failures of Obamacare exchange implementation.  The Left is finding the article to be convincing evidence that the failures were all ... wait for it .. the Republican's fault.

Every single failure, save one, in the article (we'll come back to that one in a minute) was due to the Administration's fear of Republican criticism.  So results were hidden, bad decisions were made, and key steps were delayed until after the last election.  All because the Obama Administration appears to incredibly thin-skinned about criticism.

But blaming these decisions on Republicans and other Obamacare opponents is absurd.  One could easily say that the bad decisions made by the Nixon administration to cover up Watergate and other campaign shenanigans were driven by a fear of political reprisals by Democrats, but no one would be crazy enough to blame the Democrats for them.  It reminds me of the folks who wanted to blame failures in the Vietnam war on the anti-war movement.  But that is exactly what is going on here, and the amazing thing is just how many people seem willing to enable and support this incredible evasion.

The one other example that Republicans are supposedly to blame is latched onto by Kevin Drum, among others, quite eagerly.  Apparently, the PPACA legislation, which was written entirely by Democrats and passed without a single Republican vote, failed to actually provide financing for an enormous new organization to build and run the exchanges.  And, amazingly enough, Republicans refused to fix the Democrat's problem with the Democrat-written legislation in a law they hated and wanted repealed.  So the Obama Administration had to build the exchanges within the existing CMS organization, which botched the implementation.  And for THAT, apparently Republicans are to blame for it all.

Of course, beyond the just bizarre "buck stops anywhere but here" mentality, there are other problems with this logic.  First, it is hard to believe that a brand new greenfield organization run entirely by Obama's policy folks and completely without any systems experience would have done better than an organization that at least has some health care systems experience.  Further, would the schedule really have been aided by having to start an entirely new organization from scratch?  Finally, it is clear from the article that a large part of the reason for moving the work to CMS was not just money but a desire to avoid transparency, to bury and hide the work.  Even had the financing mistake** not been made, one gets the sense that Obama might have buried the effort inside CMS anyway.

In fact, this is the overriding theme from the entire article.  Every decision made for the Obamacare implementation seemed to be driven by political expediency first, avoiding transparency and accountability second, and actual results last.  It is well worth reading yourself to see what conclusions you draw.

 

** I am not entirely convinced it was a mistake.  Remember, the Democrats were scrambling to make the PPACA seem budget neutral.  They might easily have left out key bits of financing they know they needed, thinking they could hide the appropriation later.   A plan that died when Scott Brown was unexpectedly elected.

 

Obama Administration Proposes to Increase the Amount of Land that Can Be Used As A Pawn in the Next Budget Fight

Via the ARRA:

On October 31, Interior Secretary Sally Jewell said in a speech at the National Press Club, "If Congress doesn't step up to act to protect some of these important places that have been identified by communities and people throughout the country, then the President will take action. There's no question that if Congress doesn't act, we will."  Jewell was referring to designating huge swaths of public lands as National Monuments.  When she calls on Congress to “step up,” she may be ignoring that local citizens, including some recreationists and businesses near public lands where Wilderness or other special designations are being considered, may not support such action.

Just what we need - even more land that the Department of Interior can block with gates and guards next time they are unhappy with their budget.

The Two Lame Answers Obama Supporters Are Giving Those of Us Who Have Had Our Health Insurance Cancelled

1.  The first Obama Administration response to people (like myself) who have had their health insurance cancelled because of Obamacare and who are facing much higher future premiums is that many of can expect a subsidy.  Do you realize how awful this is?  Basically they are acknowledging that millions of people who paid for their own health care in the past will now be getting taxpayer money.  Essentially, a huge and unnecessary increase in government dependency.

2.  The other equally awful Obama Administration answer is that our new health coverage will be more expensive because it will be "better".  First, there is no evidence of this -- early returns are that people are paying more for less.  Second, though, this is horribly arrogant.  A $200,000 Maserati sedan is likely "better" than my car I am driving, but given its price I would consider myself worse off if forced to buy a Maserati.  In the same sense, forcing me to by expensive insurance options I don't want is not "better", even if I am making choices Obama's advisers would not make for themselves.  I spent a lot of time shopping for health insurance and running numbers on various cases and picking the best plan for me, and am insulted that Obama does not respect my decision.

By the way, I will remind you of what I said way back in 2007 about government health care proposals

Americans are unbelievably charitable people, to the extent that they will put up with a lot of taxation and even losses of freedoms through government coercion to help people out.

However, in nearly every other case of government-coerced charity, the main effect is "just" an increase in taxes.  Lyndon Johnson wants to embark on a futile attempt to try to provide public housing to the poor?  Our taxes go up, a lot of really bad housing is built, but at least my housing did not get any worse.  Ditto food programs -- the poor might get some moldy cheese from a warehouse, but my food did not get worse.  Ditto welfare.  Ditto social security, unemployment insurance,and work programs.

But health care is different.... what is different about many of the health care proposals on the table is that everyone, not just the poor will get this same crappy level of treatment.  It would be like a public housing program where everyone's house is torn down and every single person must move into public housing.  That is universal state-run health care.  Ten percent of America gets pulled up, 90% of America gets pulled down, possibly way down.

IRS Argues Your Tax Return is Just Like a Dead Horse

Normally this would be a good Friday story, but you can't always control when Washington is going to bring the crazy.

The Obama administration on Tuesday defended its effort to regulate the tax return preparation business for the first time in U.S. history, basing its case largely on a 19th century law dealing with horses lost or killed in the Civil War....

[the Obama Administration attorney] explained that the administration sees the "Horse Act of 1884" as providing ample authority for the U.S. Internal Revenue Service to regulate the tens of thousands of preparers who fill out millions of Americans' federal tax returns.

Here is the logic, such that it is

A post-war industry emerged of agents who would press war loss claims for a fee, usually a percentage of the claim collected. Soon, claim values were being fraudulently inflated.

In response, the government started regulating these intermediaries, barring unscrupulous ones and certifying honest ones as "enrolled agents," a title that is still used today by people who represent clients in matters before the IRS.

The IRS is arguing that tax return preparers represent their customers in much the same way that enrolled agents do, so the agency should be able to expand regulation to include preparers.

Note that tax preparers are not actually IRS enrolled agents, they just argue they are kind of sort of like them (in that they both deal with tax returns, I suppose).  But enrolled agents explicitly act as an intermediary between citizens and the government in disputes and claims.  This is not the role of tax preparers.  They merely charge a fee to fill out time-consuming and confusion paperwork.  My tax accountant has never once had any conversations with the IRS on my behalf, nor should he.  I would engage an attorney for that.

Corleone-Style Government

This is pretty amazing -- a FOIA and a subsequent string of emails between a USA Today reporter and the Department of Justice.  Like any email string, you need to go to the end and then read up.  Essentially, the DOJ tells the reporter that they have information that undermines the reporter's story but won't tell him what it is.  Instead, they threaten to hold it until after the reporter has published, and then give the information to another media outlet in order to embarrass the reporter, all because the reporter is "biased" which in Obama Administration speak means that he is an outlier that does not dutifully fall in line with the Administration's talking points.

My guess is that this is a cheap bluff to prevent a story from being published that the DOJ does not want to see in the public domain.  Even if it is not a bluff, this is a horrendous approach to releasing information to the public.