Category Archives: Economy

Republican Agenda Has Never Been More Clear.

Posted on by

Following the vote by House Republicans to cut Medicaid and turn Medicare into a certain-to-fail voucher system, Senate Republicans filibustered a bill that would end oil subsidies to the most profitable companies on Earth.  They followed that by doing the same to a bill that would end subsidies for Ethanol.

In doing so, Republicans have made it abundantly clear that they don’t care about cutting the deficit.  Not really.  If they did, they would gladly trim these subsidies from our budget resulting in savings of billions of dollars.

As evidenced by their assault on Medicare, Medicaid, Social Security, unemployment insurance, education, women’s health providers, the environment, labor unions, first responders and teachers, they certainly don’t care about ordinary citizens.

What Republicans do seem to care about is protecting the profits of their corporate masters. You know, the large corporations that were given all the rights of citizens by the conservative-dominated Supreme Court so they could anonymously spend millions to elect Republican candidates.

The connection couldn’t be more obvious.

One man’s solution for Medicare and the health care crisis.

Posted on by

Now that House Republicans have voted to end Medicare and Medicaid as we know them, I believe it’s time to look at the real problems with the system. In addition to Medicare fraud, many of the problems are structural. Not with Medicare. But with the health care industry itself.

Unless the skyrocketing costs of health care are controlled, we will not be able to fix our social insurance programs such as Medicare. Moreover, we will not be able to control our deficits. That is precisely why President Obama and the Democratic Congress chose to focus on health care reform in 2009. Unfortunately, the resulting bill was a compromise with Republicans hell-bent on protecting the insane profits of the health insurance industry and PhRMA (Pharmaceutical Research and Manufacturers of America).

Therefore, I humbly offer the following suggestions for consideration:

1 – Create a medical triage system with the entry point being Board Certified Family Nurse Practitioners, rather than MDs. These people are Registered Nurses with additional education and training. They are more than capable of identifying and treating the majority of illnesses and symptoms, as well as writing prescriptions, and they can refer patients to a physician or specialist as needed. However, they are billed at a lower rate than physicians. Implemented nationally, this system could save millions, if not billions, of dollars.

2 – Encourage patients to call medical professionals more often. Ignoring symptoms usually doesn’t make them go away. Patients of all ages tend to avoid talking to medical professionals until they absolutely have to. This often results in illnesses being allowed to advance which, in turn, makes them more difficult (and expensive) to treat. All patients should be encouraged to call or visit with Nurse Practitioners whenever they notice a change in their bodies or a symptom of concern.

3 – Eliminate unnecessary tests and treatments. Currently, (some) doctors order a battery of lab tests and treatments in order to maximize their profits. They also claim to do this as a defensive measure against potential malpractice suits. I believe it’s time to recognize that everyone makes mistakes (including health care professionals). We should try to limit the number of malpractice suits and the size of the awards. At the same time, the medical profession needs to more aggressively weed out those who are responsible for the most egregious errors.

4 – Regulate the cost of pharmaceuticals. Currently, Big PhRMA is able to charge whatever it wants for its products. In some cases, the mark-up on pharmaceuticals is astronomical. An inhaler used by millions of Americans costs $38-$40 in the US. But in other countries, its price is as little as 5 cents!

5 – Create incentives for family practice physicians. Too many of our medical students focus on specialties that offer the greatest return on the investment of their medical education. They reason that, since they will be faced with the daunting task of paying off tens of thousands of dollars in loans, they should choose the specialty that pays the most and faces the least probability of legal issues. As a result, the percentage of family practice physicians and OB/GYN physicians is dwindling. This could be fixed by offering more government scholarship awards and tax benefits to those who choose the traditionally lower paying specialties.

6 – Eliminate the need for the poor and uninsured to use Emergency Rooms for primary care. We’ve all heard stories of people who call an ambulance in order to be transported to the ER to be treated for a common cold. Of course, since many of these people can’t afford to pay for their care, the costs are absorbed by the hospital and passed on to other patients.

Recognizing that many of the stories are likely exaggerated, it is true that people go to the ER when a simple visit to a doctor’s office would suffice at a fraction of the cost. But rather than complain about the phenomenon, we should look at the cause. Often it’s simply because these people don’t have ready access to any other form of care. By creating more and better access such as clinics staffed into the night by Nurse Practitioners, people would be encouraged to seek care through more appropriate means.

7 – Demand that health care providers publish outcomes for the most serious ailments and treatments, and encourage patients to seek out the most successful providers. It is a well-accepted fact that it is less expensive to seek treatment from the most successful providers, even if that means traveling out of state. There are fewer complications and patients tend to recover faster.

8 – Last, and most important, take the profit out of the health care industry for those who aren’t directly involved in providing care. In other words, contrary to Republican beliefs, eliminate the middle men (insurance companies) and allow the government to finance care through taxes and/or withholding. I’d much rather have the government determine the accessibility of medical care than large corporations whose primary goal is to limit care in order to maximize profits.

The growing hole in our economy.

Posted on by

For the past two years, the Obama administration has been trying to reduce unemployment. And, given the challenges, it has been remarkably successful.

Following the Bush/Cheney administration, President Obama faced an economy that had jettisoned nearly 8 million jobs. Despite Republican opposition, the Obama administration has managed to turn things around. Certainly it has not happened as fast as most people would like, and the unemployment numbers are not as good as we would like to see, but the stock markets have recovered and the economy has added 854,000 private sector jobs in 2011 alone.

At the same time, state and local governments have cut 86,000 jobs this year alone.

As a result of the reduced revenue created by the Great Recession, the Bush tax cuts, and the out-of-control costs of health care for government workers, the loss of government jobs threatens to throw our economy back into the abyss. And the Teapublicans, who were elected in 2010 with the stated purpose of creating jobs, are doing everything in their power to push the economy over the cliff.

You see, instead of focusing on job creation, Teapublicans have focused, instead, on social issues such as gay marriage, abortion and collective bargaining. They are determined to eliminate funding for NPR, Public TV, the National Endowment for the Arts, the Dept. of Education, the EPA and Planned Parenthood. They want to end or dramatically change “entitlements” such as Medicaid, Medicare, and Social Security. And they want to cut government spending by the trillions.

If successful, they will push tens, perhaps hundreds, of thousands more people into unemployment, eliminating government jobs at a rate faster than the private sector can create them. And who will receive the blame for their actions? Certainly not Teapublicans themselves. No, the conservative media will focus the blame on President Obama. You know, the foreign-born black Muslim who was only able to gain office thanks to voter fraud and “lame stream” media.

Does that mean I’m accusing Teapublicans of sabotaging our economy for political purposes? In a word, yes. Republicans have done it before, why should we expect a different approach this time?

Social Security Is Not An Entitlement. It’s A Safety Net.

Posted on by

Shamed by scenes of the elderly living in abject poverty following the Great Depression, Congress passed the Social Security Act which was signed into law by President Franklin Roosevelt on August 14, 1935.  At the time, poverty rates among senior citizens exceeded 50 percent.

Since that time, millions of Americans confronted by old age, poverty, disability and unemployment have benefited from the act. 

Although Republicans, and more recently, the media have labeled Social Security with the perjorative term “entitlement” it is simply a form of insurance defined by actuaries as a government-sponsored insurance program funded by premiums paid by or on behalf of participants.  Indeed, the FICA withholding you see on your paycheck stands for “Federal Insurance Contributions Act”.  These contributions represent less than six percent of an individual’s annual income up to $106,000 per year.  Any income above $106,000 is exempt from withdrawals. 

Fact is, Republicans have been opposed to Social Security from the beginning, claiming that it would cause a loss of jobs.  Obviously it didn’t.  And the new deficit “crisis” has provided Republicans with arguments to dramatically change or end the program now.  Many want to replace it with individual investment accounts, feeling that they could better ensure their retirement by investing their FICA withdrawals themselves.  First, the benefit payments from an insurance program like Social Security should never be compared to the returns on investment accounts.  Moreover, replacing Social Security with individual investment accounts could be disastrous for many seniors in the event of another economic depression or a repeat of the Great Recession of 2008.  If the stock markets plummeted, the retirement incomes of most seniors would crash with them. 

So how about the solvency of Social Security?  Currently, the program has a $2.5 trillion surplus.  Remarkably, administrative costs of the program account for less than one percent of its total.  However, due to the impending retirement of Baby Boomers, it is estimated that the program will not be able to make full benefit payments in 25 or 30 years.   But the program is not “broke.”  Indeed, it can be fixed with relatively minor tweaking.  One option is to raise the cap on income as the Reagan Administration did in the 1980s.  Removing the cap altogether would definitely solve the problem as would limiting benefits to only those who actually need them – those retirees with annual household incomes of less than $50,000, for example.

Contrary to those who want to “end the entitlements”, the facts show that dramatically changing Social Security or ending the program entirely could be devastating for our nation.  The majority of beneficiaries have little significant income from other sources since options such as employer-provided pension plans are virtually non-existant today.  Additionally, the benefits from our Social Security program already lag behind most other advanced countries.  The Organisation for Economic Cooperation and Development (OECD) ranks the U.S. 26th out of 30 OECD nations.  On average, OECD nations replace 61 percent of a retiree’s earnings with pension plans.  In the U.S., the number is roughly 40 percent.

Now it’s the First Responders’ fault.

Posted on by

First it was teachers who the Teapublicans blamed for our deficit woes. Now it’s firefighters and police.

In Republican budgets from the House of Representatives to the state houses, budgets for first responders are being slashed. Worse yet, thanks to an amendment by a Florida Republican, the 9/11 first responders are now being subjected to a test of patriotism before the government will accept claims for medical conditions acquired while digging through piles of rubble in search of bodies!

Apparently, some Republicans are concerned that some of these people are terrorists!!! So before voting for a bill that would pay for the medical claims of the 9/11 first responders, they attached an amendment that requires a search into the first responders’ past to make sure they weren’t complicit in the terrorist attacks.

Seriously! You can’t make this stuff up!

Congress is actually questioning the patriotism of the people they once hailed as heroes for rushing into the Twin Towers to help others escape. The very same people who were awarded for bravery by the Bush administration and the Republican-controlled Congress.

Who will they go after next? Grandma and Grandpa? Oh, no…they wouldn’t…would they? Well, who needs Medicare and Social Security anyway? Right?

Maybe the best way to fix the deficit is to do nothing.

Posted on by

While the government and the media debate the pros and cons of President Obama’s and Congressman Ryan’s competing deficit reduction plans, Ezra Klein of the Washington Post suggests another possibility.  Do nothing.

That’s right.  Do nothing to address the deficit and growing national debt!

Using a graph based on the Congressional Budget Office’s September numbers, Klein shows what will happen if Congress fails to act.  Our national budget would begin to balance itself in two years.  And despite the so-called “crises” of Social Security, Medicaid and Medicare, the budget would remain balanced into the forseeable future.

Given the doom and gloom scenarios of the teabaggers and their Republican allies, how is this possible?

It’s the result of allowing the Bush tax cuts to expire at the end of their 2-year extension, implementing the program that changes the way doctor payments are handled in Medicare, and allowing the Affordable Care Act (so-called Obamacare) to be fully implemented.

That’s it!  No privatizing Social Security, no ending Medicaid and no changing Medicare to a voucher system that will likely drive up the cost of health care while dramatically adding to the insurance industry’s bottom line.  All we have to do is keep the politicians from further messing things up!  (Of course, it wouldn’t hurt if we could stop bleeding money and lives in Iraq and Afghanistan.  It’s estimated that those wars have already cost us as much as $3 trillion.  A number that’s increasing by the day.)

Remember this as the debate over the deficit escalates between now and the 2012 election.  The choice is likely to be between a Republican plan of pulling the safety nets out from under our most vulnerable citizens while lining the pockets of the wealthy.  Or enacting President Obama’s plan which will reduce the deficit while continuing to care for the poor, the sick and the elderly.  Or doing nothing and returning to Clinton-era tax rates.Personally, I vote for one of the last two options.  After all, unless my memory fails me, the decade of the 90s was prosperous for most everyone.  Not just the super-wealthy.

What will be the Boomers’ legacy?

Posted on by

The generation that began with so much promise – helping to improve civil rights, volunteering for the Peace Corps, and forcing an end to the Vietnam war – is now at a crossroads.  As we reach retirement age, the Baby Boomer generation has to consider what our legacy will be.  Will we be remembered for the aforementioned accomplishments?  Or will we be remembered for unparalleled greed, selfishness and hate?

The answer depends on what we do next.

You see, I believe that Boomers have enjoyed advantages few other generations have.  Unlike our parents, Boomers have enjoyed relative peace and prosperity.  Most of our parents worked hard and scrimped to send us to college in record numbers.  Many of our parents passed along modest estates.  And, unlike our parents, we didn’t face great economic hardships until late in our careers when our retirement funds should have been nearly complete.

Our generation has enjoyed rising salaries, inexpensive food, and inexpensive energy.  Our taxes have been lower than previous generations, so we have had the opportunity to keep more of our earnings.  We have had more machines to help with our labor.  We have had more leisure time.  We have traveled more.  And we have had more options for entertainment.

The real question is, what have we accomplished as a result of all these advantages?

We have consumed a disproportionate amount of the world’s resources.  We have polluted the planet, resulting in dramatic climate change.  We have failed to address poverty and hunger in our own country, let alone around the world.  And though we contributed to the end of the Vietnam War and the Cold War, we have opened new battlefronts in the Middle East to protect our oil interests.

So now what?  As we reach retirement, will we display the greed and contempt for the poor as the Tea Party has done?  Or will we devote at least some of our retirement to charity?  Will we help end poverty in the U.S. and the world?  Will we make health care affordable for all – not just the wealthy and the connected?  Will we find ways to curb pollution?  Will we force our corporations to pay their fair share of taxes and create jobs in our own country?  Will we finally level the playing field for minorities and women?  Will we find ways to end homelessness in our own nation – find shelter for the approximately 2 million homeless children?  Will we contribute to the rebuilding of our crumbling infrastructure built at such sacrifice by our parents and grandparents?  And will we properly fund education, so our grandchildren and great-grandchildren will have many of the same advantages we enjoyed?

Our generation has the education, knowledge, experience and resources to accomplish great things and to achieve a legacy comparable to “The Greatest Generation.”

But, although I’m hopeful about our generation’s legacy.  I’m not optimistic.

A Culture of Blame.

Posted on by

The recent standoff in Wisconsin raises some unpleasant questions about American society.  Why do we now blame union workers and their pensions for our economic troubles?  Certainly, public employees who make around $50,000/year aren’t getting rich off of taxpayer money.  And why blame foreclosed homeowners for the housing crisis?  Surely they didn’t benefit from purchasing a home for more than its current value and being forced to move.  And how can anyone logically blame the Obama Administration for an economic meltdown that occured before the President took office?

My point is that there is plenty of blame for our problems to go around starting with deregulation, two unfunded wars, unnecessary tax cuts for the wealthy and the greed of Wall Street bankers.  But why focus on blame?  Wouldn’t we all be better served by spending our time trying to find solutions to our current problems instead?

Of course, those who committed illegal acts, if any, should pay for them.  But we should let our legal system address those people.

As for our economy, our deficit can easily be reduced by rescinding tax cuts for the nation’s wealthiest Americans.  We could create high-paying jobs in the U.S. by ending tax incentives for the corporations that send jobs overseas, and by adding tariffs on goods made outside the U.S.  We could generate more revenue by lowering the tax rate on corporations while, at the same time, removing corporate tax loopholes.  We could generate revenue for our state and local governments by ending corporate welfare such as Tax Increment Financing.  We could cut costs by refusing to help the billionaire owners of professional sports franchises pay for palatial new arenas.  We could increase innovation by improving public education and providing small businesses with the same tax advantages as large corporations.

We could save businesses and individuals billions of dollars by creating Medicare for all and hiring enough regulators to eliminate fraudulent claims.  We could save billions by de-criminalizing drugs and ending the so-called “War on Drugs” which has put thousands of non-violent people in prison to learn new skills from hardened criminals.  We could save billions by using our prison system to educate and reform those who would benefit instead of merely warehousing inmates until we’re forced to release them.

We could finally end our dependence on oil by eliminating taxpayer subsidies to big oil companies and spending the same amount of money on alternative sources of energy.  Most important, we could reform our political campaigns by holding political ads to the same truth-in-advertising standards as ads for products and services.  If they don’t tell the truth, the politicians must be removed from office and new elections held as they are in Great Britain.

Of course, you could continue to assume that significant changes like these are impossible.  But if our nation continues to fall behind others in education, health care and innovation, don’t blame me.

The Deficit Scam.

Posted on by

In a Tea Party-based stupor, Republicans are locked in a battle with President Obama and Senate Democrats over cuts to the sizeable deficit.  Of course, rather than look at the real causes of the deficit, they continue to attack Democratic-supported institutions such as labor unions, Public Broadcasting, the Department of Education, Planned Parenthood, the health care reform bill and the so-called “entitlements” of Social Security, Medicare and Medicaid.  And, of course, they place most of the blame for the deficit on President Obama.Once again, the Republicans are dead wrong.

According to a report by the non-partisan Center on Budget and Policy Priorities, “…the economic downturn, the Bush tax cuts and the wars in Afghanistan and Iraq explain virtually the entire deficit over the next ten years.”

Even the costs of the stimulus bill and financial rescues have had relatively little impact on the deficit.  Again, according to the CBPP, “those costs pale next to other policies enacted since 2001 that have swollen the defict.”  The CBPP report continues, “Just two policies dating from the Bush Administration – tax cuts and the wars in Iraq and Afghanistan – accounted for over $500 billion of the deficit in 2009 and will account for almost $7 trillion in deficits … through 2019, including the associated debt-service costs.”

The truth is that the current Republican initiatives to cut the deficit are a ruse.  They are merely driven by ideology in an attempt to strengthen their hold on public office.  There are only three ways to cut the deficit without harming the middle class and the most vulnerable people in our society:  Cut our bloated defense budget designed, not just to protect us, but to force our will on the rest of the world.  End corporate welfare such as the obscene subsidies for Big Oil.  And raise taxes on those who can most afford it, such as the 400 Americans who control 50 percent of the nation’s wealth.

If you’d like to read the entire CBPP report for yourself, follow this link: http://www.cbpp.org/files/12-16-09bud.pdf

The beginning of the end of Democracy in the U.S.

Posted on by

Yes, I know that probably sounds alarmist.  But consider the following:

1- The Citizens United ruling by the Supreme Court gave corporations the free speech rights of individuals.  The effect is to make them super-citizens allowing them to inject tens of millions of dollars into our political campaigns with virtually no oversight.  This, of course, greatly benefits the Republican Party which represents the interests of large corporations.

2- Ohio, Wisconsin and other states which are now controlled by Republican governors and Republican-led legislatures have attacked labor unions in order to limit their bargaining rights.  Of course, it’s only coincidence that labor unions are the last remaining large contributors to Democratic Party election campaigns.

3- Republicans at all levels of government are pushing legislation that would de-fund Planned Parenthood, another traditional contributor to Democratic campaigns.

4- Republicans are pushing to de-fund Public Broadcasting which they see as liberal-leaning media that ask too many difficult questions.

5- Finally, many of the states controlled by Republican governors and Republican legislatures are now pushing legislation that would require state-issued IDs in order to vote.  While seemingly innocuous, these IDs would prevent many college students and minorities from voting in their states.  Again, it’s merely coincidence that college students and minorities most often vote for Democratic candidates.The impact of all of this is to greatly increase campaign funds for Republican candidates and to decrease available funding for Democratic candidates.  These tactics would also serve to disenfranchise Democratic-leaning voters and to quiet independent media that refuse to adhere to Republican talking points.

This is a serious threat, folks!  We can’t allow Republicans and their corporate masters to continue to stack the deck against working citizens.  Speak up!  Ask your Republican friends why, if their political ideas are so great, do they have to resort to trickery and bullying tactics in order to push them on ordinary people?