The Final Minority Report

Because Even Minorities Oppose Liberalism & Statism

Why Obamacare may be Flatlining

Hooray!

So what just happened? How is it possible that Democrats cruised to a huge victory on Election Day in November 2008 and are yet again unable to make good on their top legislative priority? Why are the ghosts of Bill Clinton’s 1994 healthcare reform debacle suddenly flitting about Capitol Hill? What happened was the Great Recession, the political impact of which the Obamacrats completely misunderstood. Oh, they knew the financial and economic crisis helped sweep them to office. That part they got just fine.

But they also assumed that the downturn would create such a sense of economic insecurity that time would be ripe for the sort of expansive, government-led healthcare changes that the party has been dreaming of for two generations. Instead, the Great Recession made healthcare less of a priority for voters than economic recovery — as fast as possible, please — and job creation. A recent spate of polls shows concern about healthcare (and climate change and pretty much everything else) lagging concern about unemployment. Healthcare lags concern about the shocking enlargement of the federal budget deficit, which has grown partly due to government actions — such as the $800 billion Obama stimulus package — to deal with the recession, as well as by the decline in tax revenue caused by the downturn itself.

Advertisements

06/23/2009 Posted by | Free Market Economics, Government Debt, Liberal Business, socialized medicine, The Left, Useful Idiots | Leave a comment

Pension costs can ruin cities and states

Indeed.

California has exerted a weird, hypnotic pull lately, as Americans have watched the Golden State roll toward what might just be financial Armageddon. The state government is facing a $24 billion deficit, but Democrats and Republicans in Sacramento, Calif., are showing very little ability to get the problem solved.

As a result, California is “less than 50 days away from a meltdown of state government,” the state controller said last week.

It’s hard to know whether to stare in horror or avert your eyes.

Our advice: Stare. Because in California’s example, there are lessons for Minnesotans and North Dakotans to learn.

One such lesson has to do with public-employee pensions and a state’s fiscal health. California faces unfunded public employee retirement benefits of somewhere between $300 billion and $1 trillion, a panel discussion at the Milken Institute’s State of the State Conference concluded in May.

06/23/2009 Posted by | Economy, Government Debt, Liberal Business, Redistribution of Wealth, Strange but True, Useful Idiots | Leave a comment

Terrorism Reinsurance Scaled Back by Obama

For a political animal such as myself, I’ve never heard of this:

Kudos to the President for his proposal to scale back the subsidy for terrorism reinsurance. I wish he had gone all the way to eliminate this program during this term, but I’ll take the partial win.

After the 9/11 attacks, parts of the market for insurance against terrorist attacks evaporated. Insurers rely on statistical data to determine the chance of a future terrorist attack, and therefore the chance that they will have to pay a claim. Insurers were no longer able to estimate the chance that the Empire State Building, or a new stadium, would be attacked, and so they were unwilling to sell terrorism insurance for these kinds of high-value terrorist targets.

This caused further problems, because some real estate developers could not get bank loans without insurance against a terrorist attack.

06/23/2009 Posted by | Government Debt, Obama - Domestic Policy | | Leave a comment