Cash For Clunkers, Government Invasion of Privacy, Health Reform, Economic Recovery

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Friday July 31, 2009
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Today’s Zinger:

The laws of economics, like the laws of nature, cannot be changed by human intervention.

The Morning Briefing:

Cash for Clunkers is the ultimate invasion of privacy by the federal government.  Sign up for the program and give up your privacy.

President Obama and the Democrats were outraged at President Bush for monitoring phone calls of those suspected of terror activity after the attack on the World Trade Center.  The outrage fueled the “hate” of Bush and cast a specter of lying and deceit of the administration.  Yet President Obama has adopted the same policies and has taken it ten steps further.  Not only has the administration continued the policies of the Bush administration, listening to the calls of Americans, anyone that looks online at the Cars for Clunkers program will end up giving the government full access, now and forever more, to all your personal information, files, calls, websites visited and whatever else you have on your computer.  The information can be used domestically and internationally for any purpose the government wishes. 

Has the government created the ultimate Trojan Horse in to your personal life?  Zinger explains. 


Health Care reform needs a transfusion.

President Obama is trying to transform health care based on providing health care to all American’s and reducing the overall cost of health care to our society.  In so doing, he is attempting to overall one of the largest segments of the American economy.  He is attempting to radically redesign a function of the economy that has a dramatic impact on every American’s life. 

It appears that the President is more concerned about declaring success by passing a health care bill, rather than improving health care or lowering cost, despite what his administration is saying.  The proposed health care bill is moving forward.  After the Democratic head fake known as the “blue dog”opposition, a deal has been reached which will permit this bill to move to the full House for a vote.  With sixty Democrats sure to vote yes,we can be assured that this bill will become law and with it America can count on this change to dramatically affect the future of health care delivery, innovation in medical technology, cost of health care and America continuing down a road to social justice.

Zinger looks at the consequences of the health care reform that is being pushed through Congress and offers an alternative that will reduce costs and increase coverage without government intrusion.   

The economy is recovering, the economy is recovering.

The economy is recovering.  Despite continued high unemployment, there are indications that the worst may be over.  However, is the economic improvement due to a fundamental improvement in the economy, or is it an illusion, the result of government spending and transfer payments that provide no long lasting benefit?  Only 6% of the $787 billion stimulus bill having been spent, and the majority of this money used to support unemployment benefits and health insurance coverage.  If this economy recovers it will be due to the strength of free markets, not government spending.  I think I hear the administration tuning up for the "mission accomplished" serenade.


The Discussion:

Cash for Cars is a Trojan Horse to your privacy.

The government is thrilled with the success of the Cash For Clunkers program.  In just four days they exhausted the allocated $1 billion budget that was suppose to last 3 months.  On Friday, Congress authorized an additional $2 trillion in funding to sustain the program.

The program offers qualified buyers coupons worth up to $4,500 to trade in their old car for a more fuel-efficient car (restrictions apply).  The government implemented a special website to assist with the evaluation and sign up for the program.  The website is www. cars . gov  BUT ,don’t go there. (I have disabled the link so if you click on the link it will not work).

In the process of registering for the program, the user must agree to certain conditions.  Deep in the “I Agree” section, which most people never read, is a statement that says you agree that your computer becomes the property of the U.S.government and all files, activity and use may be monitored and information used for both domestic and international purposes.  For all that can't help themselves but to look, here is a link just for you. www.cars.gov.  Follow the process and read everything before you finalize the transaction.  By the way, I hope you don’t mind the government invading your privacy.  I am sure you are not one of those that objected to the Bush administration listening to potential terror talk after the World Trade Center attack.

This reminds me of law enforcements use of the lottery to entice fugitives to collect cash on a lottery ticket, only to find the police waiting to arrest them.

President Obama has mastered the case for change in health care.

American spends too much on health care compared to other industrialized countries.   America spends 16% of its Gross National Product on health care.  This percentage is increasing rapidly and within the next 30years it could reach 33% of GNP based on its current trajectory.  There are a lot of inefficiencies, corruption and opportunities for improvement in the current system.  Additionally, there are 45 million “Americans” not covered by health care insurance and in a society as wealthy as the United States, we should cover all people.

Based on this ever-increasing cost structure and the desire to provide health insurance coverage to all Americans, the President has taken up the cause to transform America’s health care system.  As the bill gets closer to approval, what does this mean to Americans?

  1. This bill is not a plan but a framework for change.  The “plan” lacks specifics but rather offers objectives.  It will take years for this framework to be translated into a plan and then additional years to fix what doesn’t work.
  2. The proposed system does not include the added cost of Medicare and Medicaid that will be handled separately.  In order to bring a bill forward that has a price tag below a trillion dollars, lawmakers excluded certain costs that will be handled in separate legislation. The total cost of health care reform will remain in the $1.5 to $2 trillion when all components are included.
  3. When the government says the plan will cost a trillion dollars over ten years, keep in mind that the system will only be up and operational six years, so the true cost on an annual basis is much higher than the government talks about.
  4. The health care bill includes coverage for illegal immigrants.  Persons that have broken the law by entering our country illegally.  In the past eight months members of Congress have been pushing to include illegal immigrants in our health care, provide illegal immigrants social security benefits and many states provide illegal immigrants welfare and free education, some including college.  It won’t be long before there will be a bill to make illegal immigrants citizens.  A recent report by a Latino agency said that these immigrants provide over $6 billion per year in taxes to the U.S. government.  The cost of health care alone for 10-12 million will be $40-45 billion.   Why is America providing benefits to people that broke the law and the government is reducing the benefits to American Citizens (taxes, social security, health care) to allow financial support for these people?
  5. Much has already been written about concerns regarding government intervention in end of life decisions, rationing health care for the aged.  The system will only impact an added 10-15 million people when implemented and will fail to cover the 45 million that is used as the case for making this change based on the Congressional Budget Office analysis.  Over 60% of the American citizens are satisfied with their health care.  We are transforming a system to add 10-12 million more people.  We impact the vast majority to allow for the few.  Somehow I thought democracy was about the majority and not about the few.
  6. Without an increase in supply of doctors and medical technology, the cost of health care will increase in the near term (10 years) due to an increase in the number of people in the system and no increase in available resources.  The law of supply and demand will overcome the planning and legislation that Congress will mandate.  Prices will go up and we can count on economic shell games by Congress to try and hide the true effects of this legislation.
  7. The U.S. government could provide new parameters that would force free markets to expand coverage, eliminate restrictions and reduce waste without health care transformation.  Maybe we need smart government.

With limited time remaining before the final vote, the only thing between Congress and approval of this ill-conceived bill is the American voter. 

Once this bill becomes law there will be no going back.  Future changes to this system will be used as a political weapon to garner votes. Just as changes to social security or Medicare, both in desperate need of overhaul but caught in political stagnation, are used as weapons of fear to influence voters.  


Zinger

Zinger will return on Wednesday August 5, 2009.


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Recent ZingerKing Articles:

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