Category Archives: politics

The Problem with Obamacare Subsidies

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Tony LoSasso, DePaul University Professor of Economics, and Kosali Simon, Indiana University Distinguished Professor of Economics, think the problem with Obamacare subsidies is their structure and not their size, and they want a shift to a Centrally Planned scheme akin to the government-approved form of competition that is the Federal Employees Health Benefits Program, wherein Government decides (still) what is a suitable subsidy and peg[s it] to a lower-cost, benchmark plan. Under this, the coverage who selects a higher-cost plan must pay the cost increment himself. That this is all too similar to Obamacare and its Bronze plan subsidization, with consumers choosing pricier options paying the difference isn’t particularly relevant here.

LoSasso and Simon are missing the beam in one eye for the mote in the other. The problem with Obamacare subsidies isn’t their size, nor is it to whom they should be sent, as some on the right are starting to propose.

The problem with Obamacare subsidies is their existence. This broad government coverage scheme of Obamacare, advertised—still!—as the Affordable Care Act, is not, never has been, and never was intended to be affordable. The Act was intended from the outset to nationalize our nation’s health care coverage industry.

The only real solution, the only one with long-term durability, is to move our health care coverage industry back to its actual health insurance roots, and then to go a few steps further. Make insurance plans entirely salable across State boundaries. What began that century or more ago in a nascent health provision and health insurance process as wholly local and completely intrastate has long since grown to nation-wide production and market facilities, and that’s readily regulable under our Constitution’s Commerce Clause. Make health insurance policies available in one State available to prospective insurees in all States. That alone will let policy costs to the insuree (premiums, co-pays/out-of-pocket caps, deductibles) go down since the insurer will have only one set of rules with which to comply rather than 51 (the States plus the Feds).

In addition, it’s necessary to take the shackles off what insurers (not government coverage purveyors) are allowed to sell and what customers, insurees, are allowed to buy. These salable policies would range, under true, unfettered by Government, competition, from the full-up policies of pre-Obamacare that covered a broad range of ails and potential ails to policies that would cover only specific or closely related ails and potential ails to everything in between, including the sale and purchase of customer-selected bundles of policies covering specific closely related ails and potential ails.

A freely competitive market with far more limited government involvement is what will drive health insurance costs down and policy quality up. And that will have an important sequela: doctor availability, even for those on the bottom economic rungs, will go up.

All of that will take taxpayers out of the business of paying for coverages that don’t apply to them, especially including those taxpayers who otherwise would eschew health insurance altogether.

Regarding Illegal Aliens Applying for Asylum

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The Supreme Court has agreed to hear a case involving the Trump administration’s limitation on illegal aliens’ ability to apply for asylum. The case, Noem v Al Otro Lado, centers on the meaning of “arrival in the United States” within the meaning of federal immigration law: does an alien “arrive” on meeting with immigration officers when the meeting occurs on the Mexican side with no actual entry into the US.

This should be an open-and-shut case. Here’s what 8 US Code § 1158 – Asylum, paragraph (a)(1) says on the matter:

Any alien who is physically present in the United States or who arrives in the United States (whether or not at a designated port of arrival and including an alien who is brought to the United States after having been interdicted in international or United States waters), irrespective of such alien’s status, may apply for asylum in accordance with this section or, where applicable, section 1225(b) of this title.

That’s clear. Present in the United States and brought to the United States means inside—being within the borders of—the United States. Nothing more, nothing less. In particular, this statute makes clear that “on the Mexican side” plainly is not inside the United States (to say nothing of the affront to Mexican sovereignty if “on the Mexican side” were taken to mean inside the US.

Section 1225(b) only specifies the process for granting or denying asylum, but this is what its paragraph (a)(1) says that’s relevant to Otro Lado:

An alien present in the United States who has not been admitted or who arrives in the United States (whether or not at a designated port of arrival and including an alien who is brought to the United States after having been interdicted in international or United States waters) shall be deemed for purposes of this chapter an applicant for admission.

This is, in its essence, a repeat of the Asylum paragraph above. In the United States explicitly excludes being still on the Mexican side of the border. An alien, illegal or otherwise, must be on the US side of the border—within the US—before he can apply for asylum

Full stop.

The obvious alternative, though, should the Court rule wrongly on this, is to withdraw all US immigration officers from the Mexican side of the border.

It’s Really Pretty Straightforward

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The House Select Committee on China has laid out the breadth and complexity of the People’s Republic of China’s cornering of the rare earth production, refining, and manufacturing markets. The report allegedly

provides a roadmap on how the US can stop—or at least slow—the effort by its biggest global economic competitor to prevent the US from breaking into the market.

A road map? It’s really quite straightforward, if politically difficult.

The US has vast supplies of rare earths within our own borders. Canada, who would be better for us (and themselves) as a trading partner than as a State, has similarly vast supplies. We’ve just concluded a trade deal with Australia to export rare earth to us from its vast supplies. African nations have similarly vast supplies, although doing deals there would have more value in denying those earths to the PRC than in getting exports to us, vast as that value would be.

What’s needed, and this is the straightforward but politically difficult part—though the difficulty lies in timid politicians not those determined to do what’s best for our nation—is getting regulations, environmentistas, and climatistas out of the way of each of the mining, processing, and manufacturing phases of getting to the products of rare earths: primarily, but not exclusively, magnets and chips.

The report recommends a variety of market-manipulating measures, and those might be near-term effective, but the problems with government market interventions center on two things: the “government” part, and government interventions are open-ended; they don’t die. The best way for our government to manipulate our economy, our market, is to get out and stay out of the way.

And there’s be nothing at all that the PRC could do to stop us from doing any of that.

An Iron Curtain Descends on Seattle

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Seattle’s newly elected mayor, Socialist Katie Wilson, has announced that she

will not allow private grocery stores to close….

She also wants city government-run grocery stores to operate. Shades of the Soviet Union’s Iron Curtain that was erected—physically on the boundary between then-East and West Berlin and functionally in its travel document issuance and withholding—to keep people from leaving that communist paradise. Not being allowed to close a store is the same as saying to the store’s operator that “you’re not allowed to leave.”

Those government stores also are reminiscent of the USSR’s government establishments and its nominally independent icon of Soviet socialism, GUM, best known for its ubiquitous presence around the nation and its equally ubiquitous empty shelves, except for those with access exclusively for the Soviet elite.

It’s likely that Federal courts (and it will likely end up in front of the Supreme Court) will not allow any bar to a private entity deciding to close an outlet or to cease operation altogether. However, the uncertainty that will occur and build over the years until that final judgment will wreak havoc on Seattle’s economy and its unemployment rate.

Seattle voters have done this to themselves. They’re the ones who elected the woman. They’re welcome to their enforced stay in the meantime.

Maybe Take the Hint

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Regarding the Georgia case against President Donald Trump (R) from when he’d lost his reelection campaign in 2020 and a slate of alternate Electors was created and offered to the US Senate: Fani Willis brought a criminal case against Trump and others over that alternate slate, never minding that doing so is entirely illegal, if only rarely done. As a result of Willis’ own nefarious behaviors, she was thrown off the case by Georgia courts. Now we have the State’s Prosecuting Attorneys’ Council (the body charged with finding a successor to Willis) Executive Director Peter Skandalakis assigning himself to the case.

His selfie appointment is because of ACE’s

The filing of this appointment reflects my inability to secure another conflict prosecutor to assume responsibility for this case. Several prosecutors were contacted and, while all were respectful and professional, each declined the appointment[.].

Maybe Skandalakis should take the hint. It’s a bogus beef, and he would do well to drop it with prejudice.