Category Archives: markets

Questions for Susan Collins

Posted on by
Reply

Susan Collins is the Republican Senator from Maine whose refusal to vote for the health care reform bill on offer (and any of the prior efforts) is centered on her insistence that the bill’s cuts to reductions to growth in Medicaid payments to the States—Maine in particular—are too great.  Collins needs to be asked, and required to give straight, substantive answers to, a number of questions.

What is Maine’s government doing to reduce the costs to its citizens of health care and of health coverage?

What is Maine’s government doing to make health care available to its citizens in the absence of health coverage?

On what is Maine’s government spending its citizens’ tax money on instead of Medicaid?  What does the Maine government consider to be more important than the health of its citizens?

On what basis does she insist that the citizens of New York, Illinois, California, Texas—any of the other 49 States—must be required to pay into Maine’s Medicaid program?

The Cruz Amendment

Posted on by
Reply

Senator Ted Cruz (R, TX) has a provision in the latest Senate health bill that’s on offer, one that would allow sellers of actual health insurance to sell non-Obamacare compliant policies on the condition that they also sold Obamacare compliant plans on the ObamaMart.  The idea, and it’s a sound one, is that those plans, better tailored their customers’ needs, would soon have commensurately lower premiums, deductibles, and copays and thereby be more affordable.

Health plan sellers don’t like it, though.

While this setup could offer healthy people less expensive policies, insurers and actuaries say it would likely prove dysfunctional over time, pushing up rates and reducing offerings for people buying the compliant plans.

That’s a market decision, though; nothing in the provision or in the overall bill would require the plan sellers offer fewer compliant plans or at higher premiums.

Aside from that, those non-compliant plans would be better tailored—market forces would require it—have fewer items covered that a plan purchaser doesn’t want or need—market forces would push plan sellers to stop forcing contraceptive coverage on men and geriatrics or prostate cancer coverage onto women—and they would, as advertised, have much lower premiums, smaller deductibles, and lower copays.

They would also attract customers, low income and others, from those ObamaMart plans into the non-compliant market because those better tailored and cheaper plans would better suit their needs, too.

Maybe the health care coverage welfare plan providers—sorry, the health insurance companies—don’t want the noise of competition; maybe they prefer the steady, safe income of government subsidies in the form of customers trapped in their protected monopoly in the health “insurance” industry.  Maybe that’s why so many of these companies are leaving ObamaMarts, leaving folks with few plan choices or no plans to buy at all—because the industry as Obamacare has changed it is so sound.

On the other hand, the Progressive-Democrats in Congress should jump on this provision with both feet.  Obamacare plans are terrific, they insist.  Surely, in their wonderfulness, these plans would win resoundingly in the competition of the market place.  Especially with so many of those plans still subsidized through other provisions in the bill.  Wouldn’t they?

The PRC and Northern Korea

Posted on by
1

The People’s Republic of China trade relations with northern Korea appear to be robust and growing, despite efforts by President Donald Trump to get PRC President Xi Jinping to do more to curb his dog.  Imports from northern Korea have actually fallen 13.2% in the first six months of this year compared to the first six months of last year, but exports have risen 29.1%, for a net increase in trade over 10%.

Huang Songping, representing the PRC’s customs agency, said

As neighbors, China and North Korea maintain normal business and trade exchanges[.]

That’s a pretty clear statement of how interested the PRC is in helping put an end to northern Korea’s nuclear weapons program, contra PRC chit chat and Trump’s efforts to use diplomatic measures involving the PRC to end to it.

Now it’s time to move on without the PRC’s involvement—other than expanded sanctions on PRC companies and persons who do business with the gangland.  Other measures, both diplomatic and military, do not need to include the PRC.

On Whose Side Is He?

Posted on by
Reply

Senator Rand Paul (R, KY) has said he will not vote for the latest Senate effort at beginning the repeal and replace process of Obamacare.  He claims he can’t tell the difference between this offer and the Obamacare that exists because, in part, it leaves some of the Obamacare taxes in place.

Never mind that a critical difference between the offer and Obamacare is that the offer does repeal some of the Obamacare taxes.

The offer isn’t a perfect bill, but it represents progress, and it’s not a final answer—and I know of no one, other than a few Senators, perhaps, who are arguing that it is; that there will be, can be, no possibility of coming back next year to make more progress and coming back in the next Congress to make yet more in each of those two years.

Furthermore, there aren’t enough votes to get all of the Obamacare taxes passed in this bill.  And, at least some Obamacare taxes must be repealed in order to be able to effect significant tax code reform.

Finally, the only politically possible alternative to passing a bill that repeals only some of the Obamacare taxes is to preserve the status quo and all of the Obamacare taxes.

Paul knows all of this, of course; he’s just virtue signaling.

I have to ask, then: on whose side is he?

There’s a Hint

Posted on by
Reply

This is the subhead on a Wall Street Journal article over the weekend:

New registrations of company’s vehicles dropped to zero from 2,939

This happened to Tesla’s electric car sales in Hong Kong, but it’s a lesson that’s universal.

Not a single newly purchased Tesla model was registered in Hong Kong in April, according to official data from the city’s Transportation Department analyzed by The Wall Street Journal.

The March sales figure was that 2,939, albeit the number is artificially high: it occurred after the subsidy’s end had been announced, but before the end was to take effect.  The drop to zero, though, is not at all artificial.

The reason for the collapse?  Hong Kong taxing authorities ended the tax break folks got for buying a “green” car.  It’s not just that side of the world:

Last year in Denmark, an incentive program expired and was replaced with a less generous one. New car-registrations for all-electric vehicles of all brands fell 70% in 2016 in the country to 1,373 vehicles, while across the European Union the number grew by 7% to 63,278 vehicles. In the first quarter of this year, only 48 all-electric vehicles were registered in Denmark.

In the rest of Europe, existing “incentive programs” were unchanged in the period.

Here’s the hint: if a technology can’t sell in a free market without government subsidy, it’s not ready for sale; it’s not economically viable.  Full stop.

In the US, the tax subsidy remains in place in the form of a $7,500 tax credit for each Tesla or other electric car bought.  Who do you suppose is actually paying those $7,500?  Anyone? Bueller?  Bueller?