Swindling America’s Youth

Dr. Mark W. Hendrickson, FloydReports.com

We older Americans have saddled our youth with a mind-boggling public debt—over $20 trillion already spent ($14.3 trillion of “official” national debt plus various off-budget expenditures, according to the U.S. Treasury); trillions more of projected deficit-spending over the coming decade; and tens of trillions of dollars of unfunded liabilities.

By the time today’s toddlers can vote, it is likely that both the Medicare and Social Security funds will be exhausted. Many of today’s older Americans vehemently oppose any and all attempts to restructure those entitlement programs to extend their viability. Instead, the graybeard generation expects younger Americans to endure the oppressive tax burden that will be needed to keep the entitlement promises fully funded.

My generation should be ashamed of what we have done to younger Americans. No, we haven’t sold them into child prostitution, but we have placed them in bondage to the most massive debts in world history. We have led these innocent lambs to a financial slaughterhouse.

To add insult to injury, we show our lack of regard for the young by regarding them as second-class citizens in….

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ObamaCare Ruins Medicare Deliberately — But Why?

Dr. Milton Wolf, The Washington Times

“We don’t want to take away people’s health insurance,” Health and Human Services Secretary Kathleen Sebelius so graciously declared earlier this year. But then she quickly qualified that with these ominous words: “before they have some realistic other choices.”

Americans have overwhelmingly, consistently and wisely been opposed to a European-style, single-payer, government-run, socialized health care system. So how might the big- government types who are hell-bent on forcing their will upon us attempt to implement this oppressive system in America? Simple. By creating medical refugees desperate for any port in a storm. That storm is coming and, unlike global warming, it’s actually man-made.

America somehow managed to survive for 189 years without Medicare or Medicaid and, in fact, became the greatest nation in the history of humankind. Established in 1965 – a mere 46 years ago – too many politicians today lack the perspective to understand this health care altar at which they worship. Instead of reforming the system to align it with American values, they abuse it as an eternal source of giveaways to buy votes. As for the politicians of the 1960s, except for the mop tops and go-go boots, they were very much like the politicians of today: They made a lot of empty promises.

President Lyndon B. Johnson promised that Medicare would cost about $500 million a year – yes, million. He even said that if costs went higher, then he was going to look like the “worst kind of damn fool.” Just a year later, in 1966, the House Ways and Means Committee estimated thatMedicare would cost about $12 billion a year by 1990. The actual 1990 cost was $107 billion – off by an order of magnitude but close enough for government work. And that’s when costs really took off. By 2008, annual costs hit $599 billion and the program for the first time went into deficit-spending mode.

For all the Democrats’ dishonesty and reckless spending, Republicans weren’t exactly blameless either. In 2003, President George W. Bush and a Republican Congress doubled down and ushered in the largest expansion in Medicare history with their senior citizen prescription drug entitlement program. They claimed the price tag would be $400 billion for the first decade but quietly adjusted that estimate upward to $534 billion just one month after passage.

Parenthetically, just three years later, in 2006, the free market roared as a private company in Bentonville, Ark. – without a single dime of taxpayer money or the compulsion from know-it-all government bureaucrats – lowered prices of the top 331 prescription medications to just $4 per month (and later to $10 per three months), not just for seniors but for all Americans. And equally importantly, Wal-Mart did not send the bill to our children.

Today we know that LBJ and a lot of other politicians indeed are the worst kind of damn fools.

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Get Ready for ObamaCare Rationing

John Goodman, FloydReports.com

There were two recent announcements that I hope you paid attention to:

  • The American Medical Group Association, representing medical groups that provide care for roughly 1 in 3 Americans, said that 90% of its members would not participate in the new Accountable Care Organization (ACO) model the Obama administration wants to impose on Medicare providers.
  • Secretary of Health and Human Services Kathleen Sebelius, exercising new powers conferred upon her by health reform (ObamaCare), said insurers would have to justify any rate increases greater than 10%.

So what does one announcement have to do with the other? A lot. I’ll connect the dots below.

Here’s the bottom line. The administration uses the rhetoric of choice and competition and some isolated souls within it may actually think competitive pressures can reduce health care costs. But if that doesn’t work out, it’s goodbye to volunteerism and hello to another way of constraining costs: global budgets and rationing.

The core of Obama administration health reform is managed competition, instituted through a health insurance exchange. In embracing this reform, the administration is following the lead of Mitt Romney in Massachusetts and before that Hillary Clinton’s failed attempt in 1993/94. But the idea really harks back to a book written by Stanford professor Alain Enthoven in the early 1980s. Enthoven argued that the entire health care system should be patterned after the Federal Employees Health Benefits system. (See a brief history and analysis.)

Here’s the difference. Enthoven believed (and still does believe) that competition in health insurance can actually work. Mitt Romney believed that as well. Maybe Hillary Clinton did too. But almost no one in the Obama administration believes that. When is the last time you heard any federal official praising the virtues of a competitive market for any good or service?

For Obama, the purpose of the health insurance exchange is not to bring needed competition to an imperfectly competitive market. The purpose is to exert control over the industry. If you believe in competition, then you want lots of competitors. But the administration is imposing rules and regulations that are driving insurers from the market, as we have previously reported here, here and here. In fact, some careful observers believe that by the time the exchanges become operational (in 2014) there will be only one or two insurers left in most markets….

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Obama’s “Animal House” Policy for Medicare

Dr. Mark W. Hendrickson, FloydReports.com

The trustees of the Medicare system recently reported that the program will go broke in the year 2024—five years sooner than was projected just last year.

The millions of Americans who have been counting on Medicare to be a reliable, stable guarantor of affordable health care in their senior years should be asking themselves, “Who is responsible for this predicament?” The short answer is “lots of people,” but let’s start by looking in the mirror.

The shameful status of Medicare brings to mind a sequence in the movie Animal House. A freshman pledge, Flounder, let some upperclassmen in the fraternity use his brother’s brand-new Lincoln for a road trip. Naturally, the brothers trashed the car. As Flounder wept in regret, the suave, smooth-talking senior, Otter, put his arm around Flounder’s shoulder and explained the facts of life to him: “You [goof]ed up; you trusted us.” (“Goof” replaces the original R-rated verb.)

“We the people” have goofed up big time, trusting a government bureaucracy to oversee our health care.

When will we learn that gigantic bureaucracies—undisciplined by the profit-motive and insulated from the normal competitive pressures of the marketplace—are inherently inefficient?

And when will a majority of Americans take a sober look at Uncle Sam’s track record and recognize his chronic incompetence? Consider….

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Ryan’s Roadmap to Prosperity or Obama’s Highway to Hell?

Michael Reagan, FloydReports.com

There is a struggle now being waged in Washington, the outcome of which will determine whether the nation’s economy will grow or continue to falter.

The main combatants are President Barack Obama and a thoughtful member of Congress from the nation’s heartland, Rep. Paul Ryan, R-WI.

One of them, the president, represents the theory that government needs to regulate every facet of the economy. The other, Rep. Ryan, champions the economic freedom that has made the United States the wealthiest and most free nation on the face of the earth.

Ryan, who chairs the powerful House Budget Committee, has outlined a program he calls a “Roadmap for America’s Future.” It leads to economic freedom, warning that “Washington’s leaders have taken an already unsustainable budget outlook and made it far worse” by exploiting “Americans’ genuine economic anxieties to justify an unrelenting and wide-ranging expansion of government.”

Their agenda, he warns, “has included, among other things, a failed, debt-financed economic ‘stimulus’; an attempt to control the nation’s energy sector; increasing domination of housing and financial markets; the use of taxpayer dollars to seize part ownership of two nearly bankrupt auto makers; and, of course, the planned takeover of Americans’ health care, already heavily burdened, manipulated, and distorted by government spending and regulation. This domineering government brings taxes, rules, and mandates; generates excessive levels of spending, deficits, and debt; leads to economic stagnation and declining standards of living; and fosters a culture in which self-reliance is a vice and dependency a virtue — and as a result, the entire country weakens from within.”

For his part, President Obama sees government regulation of almost all facets of the economy as a vital tool, appointing so-called “czars” to oversee large segments of the supposedly free U.S. economy.

This struggle will determine whether our economy, once a beacon of freedom, will continue to be mismanaged by unelected bureaucrats.

As this is written, the economy is in a tailspin. Echoing Ryan, respected fiscal monitor Standard & Poor’s warned….

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