Saturday, March 20, 2010

a note to kongress

senator,
I am beside my self with anger and fear. It seems our kriminal congress and illegal alien president are dead set on illegally and unconstitutionally passing a completely unconstitutional and criminal healthcare bill. A bill that will FORCE me to buy something I don't want, from someone I don't wish to buy from, at a price I am not wiling to pay. This dog will not hunt. I am instructing my state representatives to immediately craft legislation that opts Texas out of the program.
You people do not own me. The federal government does not own me. I OWN ME. I decide what I wish to buy, from whom and for how much.
By the way, that pesky old document that kongress loves to hate, that old Constitution, it says that ALL bills must pass the house and sentate by a vote. WITH THE SAME EXACT WORDING before going to the president;s desk for signature. There is no "deemed" passed.
And, even if it were to pass, it is patently unconstitutional and IMPOSSIBLE TO PAY FOR.
Get this stopped and now. Then, start cutting spending and taxes. Get US out of the UN. Close the FED. Reduce the size and power of the federal government. FOLLOW THE CONSTITUTION TO THE LETTER. Or, move to north korea, the whole kit and akboodle of you.
Sincerely,

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Friday, March 12, 2010

The real effects of government healthcare

Rational thoughts on
Government healthcare
 
For some time I have been promising to write about the problems and realities of turning over the authority and responsibility for our medical decisions to the Federal Government and its designees. I have tossed this whole thing around and around in my head trying to figure out where to start. Now, this is likely to be a rambling piece, but here it goes.

First, we cannot break the laws of economics with impunity. The laws of supply and demand are paramount and will out always. So….lets us look at the situation from that paradigm:
If government is able to force insurance companies to cover everyone with no exceptions and with no rate increases, the insurance companies will go out of business. The employees of said insurance companies will be out of their jobs. They will not be paying taxes. Government income drops. The insurance companies pay income and corporate taxes and fees as well. No more. Government income drops again.

Now, one of the important functions of insurance companies is to gather and invest capital. This capital pool will dry up. That will cut the money going into new ventures, commercial bonds and will also cut large deposits in banks. Less money available for mortgages, less money to invest in plant equipment etc. So, all of the folks that had jobs that stemmed from these investments won’t be working. Won’t be paying taxes and will likely be on unemployment. Less money going into government and more coming out.
Let us look at the situation so far: Much less money coming in. And, as the folks migrate to government support, the liabilities of government increase. Deficits? Yes, higher, much higher. Debt? Higher, much higher.

Well, the insurance companies are finished and the government is the single payer that some seem to think they want. So now, we have more folks seeking healthcare and where are they going to get it? Doctors, clinics and hospitals. They will also need stuff like medicine, syringes, scalpels, braces, sheets, gowns……, you get the idea, The government will have very limited resources with which to purchase these goods and services. What will it do? If history is any indicator, it will impose price controls on the suppliers. Since the market will no longer dictate price, there will be what economists call “negative externalities”. What does that mean? It means that many companies will be expected to produce goods and services at a price less than the cost of production. Then, what do you think will happen? Yes, you are right. The companies and doctors will go out of business. What then? Less supply against a still high demand? If you guess higher costs, go the front of the class!! Now is should be noted that higher costs are not always denominated in dollars. Some costs are non-monetary. An example of higher non-monetary costs, is a patient dying because there is no care available. Quite a high cost if you are the dead person or one who loves and/or depends on the corpse.
 
 
Oh, I forgot: all of those companies will lay off the folks no longer needed since there is no company. Those folks will go on the dole as well. Higher costs. Those companies and doctors will also stop paying taxes as they are out of business. Result: More folks in line for benefits and less of a supply of benefits. What happens? Yep, higher costs yet.

The United States tax rates are already above the point where raising them will cause a higher government income. In other words, raising taxes will curtail business to the point where the net tax revenue will drop rather than increase. There is no one left to tax that has the money to support any more government.

Now, this scenario assumes that the government healthcare program will be somewhat efficient. Since this has never been the case in any other government program in history, it is prudent to assume that our healthcare will plummet in quality and in quality. And the cost will be huge, just in monetary terms. The negative externalities, the non-monetary costs, will be death, pain and maimed people. Which will cut productivity and will raise monetary costs yet again.

This is a disaster waiting to happen. Once put in motion, this will cause a collapse in our healthcare industry that we seem to be trying to turn into a “system”. Since our country is already broke, this could completely destroy our entire way of life. The straw that breaks the camel’s back, so to speak.