Tag Archives: economics

Medicaid Transfers

Posted on by
Reply

It’s well understood that Medicaid badly wants reform.  My own view is to give it back to the States by reducing Federal fund transfers to them until the transfers are zero, which also would eliminate Federal strings jerking the States to do everything the same way, the Federal way.

There are lots of paths to that end, and there are a number of other reforms that would help the situation at least a little.  The House plan for repeal and replace of Obamacare, the first step of which was the American Health Care Act, has one such step, the repeal of Obamacare’s Medicaid expansion.

Expanding State participation in Federally provided—with those strings attached—funds—expanding Medicaid—as a number State governors have done, is not one of those reforms.  Not even for Republican governors.

Sixteen GOP governors represent states that expanded Medicaid under the Affordable Care Act, and they are generally loath to see the program cut back.

Nobody forced these persons to mainline the Federal funds drug. They stuck that needle in their veins and addicted themselves, with no outside pressure at all.

These guys are badly mistaken, and they’ve only made things worse for the constituents for whom they claim to work.

Michigan Governor Rick Snyder, one of those 16, thinks the expansion is just peachy keen; he’s still riding the high from his needle.  He says that “600,000 Michiganders have gained coverage and the state’s hospitals have saved about $300 million.”

What he’s carefully ignoring, though, is how much money Michiganders and those hospitals sent to the Federal government in various taxes and fees to contribute to 49 other States’ Medicaid program participation.  How many of those Michiganders could have been helped and how much money could Michigan’s hospitals have saved had the State kept those monies, instead?  How much would those Michigan citizens and those Michigan hospitals have benefited, had they been able to keep their money—their money, not the State or Federal government’s money—instead of paying all those taxes and fees to the Federal government?

Disingenuosity

Posted on by
Reply

At the State level, more and more legislatures are succeeding in ceasing to send taxpayer money to Planned Parenthood.

Planned Parenthood recently announced the shuttering of four of its 12 Iowa’s clinics in Iowa [sic] after the Hawkeye state’s Republican-led legislature voted earlier this year to cut funding to clinics that performed abortions. Also last week, the health care nonprofit announced it was closing its only clinic in Wyoming and three of its clinics in New Mexico in what it called a “realignment of resources.”

Texas and other States have similarly acted, and Congress is moving to stop transfers of taxpayer money to Planned Parenthood, also.  Of course pro-abortion folks are up in arms about this.  Raegan McDonald-Mosley, Chief Medical Officer at Planned Parenthood Federation of America:

This is hardest on people who already face barriers to accessing health care—especially people of color, young people, people with low to moderate incomes, and people who live in rural areas.

And hold-overs from the Obama administration:

Estimates by the Congressional Budget Office indicate that defunding Planned Parenthood would save roughly $200 million in federal spending while reducing health care for as many as 390,000 people.

These claims are disingenuous at best.  If the reductions or removals of taxpayer money to abortion providers like Planned Parenthood are “hardest on people who already face barriers to accessing health care,” if pending cuts really would “reduc[e] health care for as many as 390,000 people,” it’s only because abortion providers insist on allocating the monies they have away from providing health care to needful women toward providing abortions instead—thereby denying health care to those needful babies as well as to the needful women, pregnant and otherwise.

Organizations like Planned Parenthood really do provide valuable health care services to needful women, and to their families.  They could continue to do so largely unabated if only they’d use the funds they bring in for that instead of for abortions.

Department of YGTBSM

Posted on by
Reply

Amtrak has decided to refurbish New York City’s Penn Station, which will involve unavoidable disruption through the summer.  New York Governor Andrew Cuomo (D) doesn’t think Amtrak is up to the task, so he’s bringing New York to the rescue.

The state will step up and do it.  We don’t own Penn Station but we will step up and we’ll take over construction and we’ll do it with a private construction company or let the Port Authority do it.

So generous.  Here’s how the Democrat will execute his generosity.

As long as New York City steps up to the plate with funding, I will step up to the plate with leadership and management responsibility,

Let’s you and him get to work.  Bring your wallet and safety boots; I’ll bring my clipboard.

Hindsight

Posted on by
Reply

…and learning from it for better anticipations.

Federal Reserve officials grappling with the legacy of expansive stimulus would find it difficult to return to the central bank’s precrisis role on the sidelines of financial markets, analysts and central-bank watchers say.

Well, NSS.  Frankly, these worthies should have known the outcomes likely from their intervention before they intervened.

Aside from the magnitude of the necessary rollback and its attendant difficulty—the Fed’s balance sheet has expanded four and a half times, from $1 trillion to $4.5 trillion since right before the Panic of 2008—there’s the human engineering aspect of personal political power:

The Fed has become “like an octopus,” said Jeffrey Cleveland, chief economist at Payden & Rygel, a Los Angeles money manager.  “Once you get the power and you are influencing all these markets, do you really want to retreat from all that?”

Well,…

New York Fed President William Dudley told an audience this month the portfolio isn’t likely to return to its precrisis size. Federal Reserve Bank of San Francisco President John Williams said this month the portfolio would be “significantly smaller” than it is today, but likely above $2 trillion in assets.

Still twice the original size of the Fed’s balance sheet.  Oops.

Now the rationalization, summarized in the subheadline of the article at the link:

Pulling out of newest central-bank innovations risks market disruptions

A definite possibility, but there’s not much concern for the underlying economy in that remark.  And the economy is what’s important.

We’ll see whether these guys are worth their taxpayer-funded paychecks by how well they learn from hindsight and their mistake.  It doesn’t look promising.

The Trans-Pacific Partnership Isn’t Dead

Posted on by
Reply

The remaining 11 nations of the erstwhile TPP have made it clear that they intend to press on with the agreement, US participation or not, but that the US would be welcome back in, and other nations who could “meet the high standards in the TPP agreement” would be welcome, as well.

Todd McClay, New Zealand Trade Minister:

It’s clear that each country is having to consider both economic values and strategic importance of this agreement, but in the end, there is a lot of unity among all of the countries and a great desire to work together to come up with an agreement among 11 that…delivers for all of our economies and the people of our countries….

This is entirely appropriate.  The same principles the led to our initial attempts to form the 12-nation TPP—enhanced mutual economic and political security—apply to the remaining 11 nations.