Archive for the ‘Capitalism’ Category
Yestedray, I wrote this post to highlight Gov. Dayton’s juvenile jab at North Dakota. Here’s what he said that caught my attention:
“Every night I dream before I go to sleep of mobilizing the National Guard and annexing North Dakota.” He then quickly followed that statement by saying he’d just been interested in annexing the part of the state will oil, “They can have the rest of it.”
Apparently, North Dakotans don’t care about Gov. Dayton’s juvenile statement. This Gallup poll is telling. This graphic is exceptionally telling:
Gov. Dayton and the DFL should study this graphic before making another childish statement:
North Dakotans are not just satisfied with their economy, however. Across the 50 states, North Dakotans are the most likely to rate their K-12 education as excellent or good, to agree that their schools prepare students to get a good job, and to be satisfied with the education system or schools overall.
I can hear Gov. Dayton, the DFL and the Alliance for a Better Minnesota screaming that this can’t be. In Gov. Dayton’s and the DFL’s minds, Minnesota is the education state in the Upper Midwest.
What’s most telling, though, is that Dakotans think their air quality is great. The percentage of people that said they were satisfied with their air quality was the highest in the nation. The percentage of people who said that they were satisfied with their water quality was above average nationally.
Gov. Dayton and the metrocentric DFL should take a look at this:
“Oil is a very thick frosting on a very nicely baked cake,” Peterson says. Oil had been found in North Dakota before, but Dalrymple, Peterson, and Al Anderson, North Dakota state commerce commissioner, agree that the volume and velocity of the boom was unexpected. Dalrymple says there were 200,000 barrels a day in 2009, compared with 1 million barrels a day now.
“The rapid evolution of the oil industry was not foreseen,” says Anderson. “We had seen oil booms come and go but now the technology has changed,” Peterson says. “We didn’t realize how much oil was in the ground. We found ways to extract oil that we could never expect.”
In addition to oil, success in agriculture, manufacturing, and tourism are contributing factors to North Dakota’s having the lowest unemployment in the U.S. for the past four years. The state has added 116,000 jobs since 2000, a job-growth increase of 35.6%. Net migration in the state is up 12.7% since 2000. This onrush of new jobs and workers has strained the housing market. North Dakota residents are fully aware of this, as 61% say they are satisfied with the availability of affordable housing in their state, one of the lowest in the nation.
Gov. Dayton and the DFL insist that North Dakota’s economic boom is tied to the Bakken boom. There’s no denying that it’s a huge factor in North Dakota’s economic success. Still, there’s no denying the fact that manufacturing and agriculture play a big role in North Dakota’s economic boom time.
At a time when Gov. Dayton and the DFL are trying to make Minnesota’s economy more metrocentric, they should be looking at the success our neighbors to the west are experiencing.
When President Potter insisted that students want to live in upscale apartments, he implied that government was the right instrument to ‘fix’ this ‘problem’. That theory isn’t difficult to debunk.
First, let’s question whether students want expensive upscale apartments. It’s plausible that students don’t want to live in dorms built before they were born. That doesn’t mean, however, that they’re interested in paying the high rent that Wedum is charging.
It’s highly possible that President Potter misinterpreted what students wanted. It’s quite possible they just wanted apartments with a) high-speed internet and b) private bathrooms.
Next, let’s question whether government is the right instrument to fix this perceived problem. Government a) isn’t proficient at determining markets, b) doesn’t spend money wisely and c) isn’t responsive to people’s needs. Ask yourself whether those attributes apply to the private sector, where people are motivated by making profits.
Simply put, that isn’t a fair fight. Government is inert. For-profit capitalism is energetic. They’re always looking for their next money-making opportunity. A healthy argument could be made for privatizing on-campus living quarters. The students would benefit because entrepreneurs would have to provide the things students want. Universities would benefit because they could focus on educating students. Additionally, they could establish a scholarship fund when they sold the property where the dormitories currently exist. The cities where universities are located in would benefit because they’d get a big boost in property tax revenues when that public property is turned into private property.
Which brings us back to the Wedum Foundation. They’re a 501(c)3, which means that St. Cloud isn’t collecting a penny in property taxes on a piece of prime real estate. Thanks to that, one of 3 things must happen to make up for that lost property tax revenue. The first possibility is property owners getting hit with high property taxes. Another possibility is that the city puts off some of the things it’s supposed to do, like filling potholes and repairing roads. The other possibility is that the city might raise the local sales tax.
Those options are terrible compared with a flourishing university surrounded by private property with newly constructed apartments and single family dwellings. The ‘Wedum Option’ is a drain on the city. The ‘Private Property Option’ would be a boost to St. Cloud’s coffers. A SCSU would boost St. Cloud’s economy, too.
The only things missing to make this happen are political pressure from would-be entrepreneurs and civic leaders and the leadership from President Potter.
This won’t happen because President Potter a) isn’t a visionary and b) won’t admit that Wedum is a mistake. That’s the biggest reason why SCSU is worse off now than when he started.
If lobbyists and regulators existed at the turn of the Twentieth Century, it’s fairly likely we’d still ride in horse-drawn carriages. The Horse & Buggy Union likely would’ve lobbied state governments to prevent cars from being driven on state highways and city streets. They might’ve lobbied to prevent them from being manufactured.
Glenn Reynolds’ article illustrates how the regulatory system operates and who is hurt by overregulation:
The regulatory knives are out for Uber and Lyft, two ride-sharing services that make life easier for consumers and provide employment opportunities in a stagnant economy. Why are regulators unhappy? Basically, because these new services offer insufficient opportunity for graft.
Here’s a more detailed explanation for Reynolds’ accusations:
In most cities, traditional taxi services are regulated by some sort of taxi commission. Similarly, limo services, the ones that provide the black Town Cars favored by big shots (and used by many Uber drivers), are regulated by some sort of livery office. The rules strictly forbid the two sectors of the market from competing with one another. And, generally, entry is limited so that neither faces too much competition in general. In holding down competition, these regulators act on behalf of the entities they supposedly regulate for the benefit of consumers.
The goal of these regulators is to stifle competition to the greatest extent possible. This sentence is the most revealing:
In holding down competition, these regulators act on behalf of the entities they supposedly regulate for the benefit of consumers.
This regulatory system operates in much the same way that campaign finance ‘reforms’ operate. Campaign finance laws are written by incumbents with the intent of protecting incumbents. When McCain-Feingold was signed into law, some pundits rightly called it the Incumbents Protection Act because it stifled political speech right before primaries and general elections.
Thankfully, the Supreme Court gutted McCain-Feingold.
Hopefully, Reynolds highlighting the regulators’ chicanery will put an end to the regulators’ attempt to stifle competition. Society needs more, not less, competition. That means society needs a less burdensome regulatory regime. When competition is strong, capitalist economies flourish. When competition is limited, the economy stagnates.
It’s that simple.
The RealClearPolitics average of polls appears to indicate that Gov. John Kasich is well-positioned for re-election:
Kasich 45%, Fitzgerald 38%
Kasich 46%, Fitzgerald 36%
Kasich 47%, Fitzgerald 41%
Each of these polls are large samples of likely voters, which means they’re highly predictive. While it’d be foolish for Gov. Kasich to assume he’ll win re-election with this polling, it isn’t foolish to think he’s well-positioned for re-election.
That isn’t good news for Democrats in 2016.
If Gov. Kasich wins re-election, he’ll immediately become a frontrunner for the GOP presidential nomination. Here’s the bio Gov. Kasich could tout in a White House bid: popular governor in an important swing state, strong job creation record as governor, reformer, former chairman of the House Budget Committee.
That last title is especially important because then-Chairman Kasich authored the budget blueprint that caused 5 straight federal budget surpluses while creating 22,000,000 jobs in 8 years.
Another thing Gov. Kasich has going for him is his blue collar background. He loves telling the story about how his father was a postal carrier in the quintessential blue collar city of Youngstown, OH. FYI- Gov. Kasich was born in McKees Rocks, PA.
One thing that Gov. Kasich will undoubtedly highlight is his Office of Workforce Transformation, which “identifies businesses’ most urgent job needs,” then “aligns the skill needs of employers with the training offerings of the education system.”
In other words, Gov. Kasich has taken a proactive approach to prevent longterm unemployment by helping people acquire the skills they need to transition into a new career. That isn’t just smart resource management. It’s the right policy from a moral standpoint.
This is smart resource management, too:
Ohio’s workforce development efforts are spread out across 91 programs in 13 agencies. We are committed to moving reforms to create more efficient, responsive and effective services for employers and workers. With better alignment, we will reduce redundancy, fragmentation and lack of coordination to improve the state and local programs that fuel our workforce system.
Too often, bureaucracies specialize in fragmentation and poor coordination in their attempt to help people. Apparently, that isn’t a problem with the Kasich administration.
We’re still 5+ months from election day, which is dozens of political lifetimes away. Still, there’s no question that Gov. Kasich is well-positioned for re-election.
First, I’ll stipulate that Newt Gingrich is a flawed man who’s paid a hefty price for his mistakes. Next, I’ll state what I emphatically believe: that Newt Gingrich the visionary isn’t just the right tonic for what’s ailing the GOP. He’s the perfect strategist to lead Republicans to victory. Newt’s speech at CPAC this year is a perfect illustration of what I’m talking about:
The reason why Newt’s got the right strategy is because his speeches aren’t about politics. They’re about improving life with a political twist. Check out this part of Newt’s speech:
NEWT: We must stop being the opposition movement. We must become the alternative government movement that will help make the life of every American better so that they would understand what we would do that we would do right, not just what the left is doing wrong.
The biggest thing that conservatives can do to guarantee the best shot at victories this fall is telling the American people that a) we’re the solutions party and b) we trust families and small businesses to make great decisions.
That necessarily means trusting people with lots of options. If we trust families, we should be the party whose health care reform legislation gives families tons of options to fit their families’ needs. By doing that, Republicans will highlight the difference between Harry Reid’s and Al Franken’s one-size-fits-all plan, aka the Affordable Care Act, aka Obamacare, and Republicans’ legislation that trusts families.
That’s a perfect segue into another major point in Newt’s speech:
The smartphone will be the leading public health device of the 21st Century. It’ll be the leading learing device. It’ll be the leading management tool. Congressman Dr. Michael Burgess has a smartphone that has 8 medical applications on it. He can do an electrocardiogram with his smartphone. Now the Food and Drug Administration, seeing the dramatic rise in applications that improve your health, now wants to take over approving applications for smartphones.
Now if you want to see a fight where we can be on the side of young Americans and the left is hopeless, you just go out to any college campus and you say ‘how would you like Washington bureaucrats slowing down the number of new applications you can get, most of them, by the way, are free’?
The party of excessive government can’t control its appetite for controlling people’s lives. Young people naturally love lots of options. In that fight, Democrats lose bigtime.
If Republicans become the party that trusts small businesses to innovate and make families’ lives better, they’ll win decisively because people of all demographic backgrounds will want what we’re selling.
If conservatives return to Reagan’s and Kemp’s and Thatcher’s belief that great ideas that make families’ lives better also makes for great politics, then conservatives will win decisively.
The point isn’t about sounding more conservative or more moderate. It’s about who has great ideas. I’m not advocating for moderation. I’m advocating that makes families’ lives better through entrepreneurship and innovation. Conservatives will jump all over that because it’s from the private sector. Apolitical people will jump all over it because their lives will be improved by the innovations that’s only possible through entrepreneurship.
Watch Newt’s entire speech if you want to see how to win the future. You’ll want to hear Newt’s connecting the dots between the Bakken and defeating Putin. Newt’s speech isn’t getting the buzz like others’ speeches. It’s just the blueprint that’ll make the GOP the dominant party again.
Technorati: CPAC, Newt Gingrich, Party of Solutions, Ideas Party, Michael Burgess, iPhone Apps, Limited Government, GOP, Al Franken, President Obama, Obamacare, Affordable Care Act, One Size Fits All, Democrats, Election 2014
Harry Reid’s disgraceful diatribe included his accusation that people who told the truth about the Affordable Care Act’s disasters were un-American. Sen. Reid’s accusation is disgusting, one worthy of throwing him out of the Senate. Still, let’s not dwell on Sen. Reid’s comments to the exclusion of learning the definition of patriotism. Without a doubt, this person is a patriot:
There doesn’t seem to be any other large company trying to do this so it might as well be us. Somebody has got to work to save the country and preserve a system of opportunity. I think one of the biggest problems we have in the country is this rampant cronyism where all these large companies are into smash and grab, short-term profits, (saying) how do I get a regulation, we don’t want to export natural gas because of my raw materials.
Well, you say you believe in free markets, but by your actions, you obviously don’t. You believe in cronyism. And that’s true even at the local level. I mean, how does somebody get started if you have to pay $100,000 or $300,000 to get a medallion to drive a taxi cab? You have to go to school for two years to be a hairdresser. You name it, in every industry we have this. The successful companies try to keep the new entrants down.
Now that’s great for a company like ours. We make more money that way because we have less competition and less innovation. But for the country as a whole, it’s horrible. And for disadvantaged people trying to get started, it’s unconscionable in my view. I think it’s in our long-term interest, in every American’s long-term interest, to fight against this cronyism.
As you all have heard me say, the role of business is to create products that make peoples’ lives better while using less resources to do it and making more resources available to satisfy other needs.
When a company is not being guided by the products they make and what the customers need, but by how they can manipulate the system, get regulations on their competitors, or mandates on using their products, or eliminating foreign competition, it just lowers the overall standard of living and hurts the disadvantaged the most. We end up with a two-tier system.
Those that have, have welfare for the rich. The poor, OK, you have welfare, but you’ve condemned them to a lifetime of dependency and hopelessness. Yeah, we want hope and change, but we want people to have the hope that they can advance on their own merits, rather than the hope that somebody gives them something. That’s better than starving to death, but that, I think, is going to wreck the country.
Is it in our business interest? I think it’s in all our long-term interests. It’s not in our short-term interest. And it’s about making money honorably. People should only profit to the extent they make other people’s lives better. You should profit because you created a better restaurant and people enjoyed going to it.
You didn’t force them to go, you don’t have a mandate that you have to go to my restaurant on Tuesdays and Wednesdays or you go to prison. I mean, come on. You feel good about that?
In my estimation, that’s the definition of American patriotism. Capitalism and innovation being used to make the United States the greatest nation on the face of the earth is the definition of patriotism.
When companies makes money because their lobbyists get the government to build roadblocks in front of the competitors, that’s crony capitalism, which hurts the American economy overall. When companies’ profits increase because they’ve built a product that improves people’s lives, that’s competitive capitalism. That type of capitalism is the type of capitalism that strengthens the economy while improving people’s lives.
People that put the long-term health of the nation ahead of short-term profits and personal gain are patriots. That isn’t to say short-term profits are automatically evil. In many instances, they aren’t. It’s that building products that create profits now and long into the future has a stabilizing effect on a nation’s health.
That’s the definition of patriotism. That’s what Sen. Reid apparently doesn’t understand.
I hate disagreeing with George Will and Charles Krauthammer because they’re such intelligent people. Still, that’s what I have to do because, last night, I loved watching Cathy McMorris-Rodgers’ response to President Obama’s depressing SOTU Address. Here’s the first highlight of Rep. McMorris-Rodgers’ speech:
Tonight the President made more promises that sound good, but won’t solve the problems actually facing Americans. We want you to have a better life. The President wants that too. But we part ways when it comes to how to make that happen. So tonight I’d like to share a more hopeful, Republican vision…
One that empowers you, not the government…It’s one that champions free markets — and trusts people to make their own decisions, not a government that decides for you. It helps working families rise above the limits of poverty and protects our most vulnerable.
This is a beautiful explanation of why Republicans believe what they believe. Absent were apologies or tip-toeing so Republicans don’t offend liberals. It was just old-fashioned optimism based on the ability of families to “make their own decisions.” Thankfully, Rep. McMorris-Rodgers’ speech wasn’t a laundry list of conservative proposals. This had the feel of a chat at the dinner table. That said, idealism was an integral part of the speech:
The chance to go from my Washington to this one was unexpected.
I came to Congress to help empower people, not politicians, to grow the working middle class, not the government and to ensure that everyone in this country can find a job. Because a job is so much more than just a paycheck; it gives us purpose, dignity, and the foundation to build a future.
While I watched Rep. McMorris-Rodgers’ rebuttal to President Obama’s SOTU Address, I thought it was sad that President Obama couldn’t sincerely tout these principles. President Obama talks about empowering individuals but only within the context of government first making things possible.
While the speech was idealistic, it also sent the message to Democrats that Republicans won’t put up with Democrats’ policies of decline:
Because our mission, not only as Republicans, but as Americans, is to once again to ensure that we are not bound by where we come from, but empowered by what we can become.
That is the gap Republicans are working to close. It’s the gap we all face: between where you are and where you want to be. The President talks a lot about income inequality. But the real gap we face today is one of opportunity inequality…And with this Administration’s policies, that gap has become far too wide.
We see this gap growing every single day. We see it in our neighbors who are struggling to find jobs…a husband who’s now working just part-time…A child who drops out of college because she can’t afford tuition or parents who are outliving their life’s savings.
Last month, more Americans stopped looking for a job than found one. Too many people are falling further and further behind because, right now, the President’s policies are making people’s lives harder.
The great thing about Rep. McMorris-Rodgers’ speech is that it wasn’t negative. It’s that she offered a vision to get America working again:
Republicans have plans to close the gap, plans that focus on jobs first without more spending, government bailouts, and red tape. Every day, we’re working to expand our economy, one manufacturing job, nursing degree and small business at a time. We have plans to improve our education and training systems so you have the choice to determine where your kids go to school…so college is affordable…and skills training is modernized.
The impressive takeaway was that it connected with people. SR-Bing measured people’s online reactions, splitting it into Republicans, Democrats and independents. While Democrats stayed luke-warm throughout, independents gave Rep. McMorris-Rodgers high marks throughout the speech.
The lesson Republicans should take from Rep. McMorris-Rodgers’ speech is that independents appreciate a political party that empowers families, not politicians and bureaucrats.
While it isn’t likely that many people saw Rep. McMorris-Rodgers’ speech, that isn’t what’s important. What’s important is that she’s given Republicans a path forward to winning elections this fall. That’s why this speech was a success.
Yesterday, I wrote this post highlighting Paul Thissen’s reaction to my post about how unions didn’t build the middle class. The activists in the MOB, aka the Minnesota Organization of Bloggers, aren’t unlike NATO in that, an attack against one is an attack against all of us. When they saw that Speaker Thissen had taken issue with my post, Mitch Berg and the Lady Logician jumped into the discussion. Here’s how the Lady Logician responded to Speaker Thissen’s tweets:
You misrepresent the smaller gov’t policy stance to mean no govt & that is simply NOT what small gov’t ppl want. No one is arguing against roads & education but when govt gets in2 the minutia of telling ppl what lightbulbs 2 buy or what HEALTHCARE to buy or whether or not they can own a specific type of dog, then we are going to argue.
Here’s Mitch’s response to one of Speaker Thissen’s tweets:
The evidence is, in fact, that gov’t research *follows* corp. innovation. Ditto education. Not other way around.
Mitch wasn’t done schooling Speaker Thissen. Here’s the rest of Mitch’s tweets to Speaker Thissen:
So did gov’t build roads out of pure goodwill? Or did biz pay for them? You’re saying government is the only body that can give us clean water? Record shows that’s untrue. Most municipal water systems in the US *started* as private enterprises. Nearly a quarter still are. The “gov’t brings us all riches” argument is the black/white one. Markets, not politics, deal well with nuance. Either is “private enterprise is lost without government”. Or rather it’s a fallacious place to start the conversation. At best, it’s “assisted” by gov’t. But the idea that prosperity follows infrastructure is utterly ahistorical.
That’s a typical Mitch-slap. Spoeaker Thissen probably didn’t realize conservatives were this principled about free markets and limited government. The reality is that Speaker Thissen didn’t address why he thinks government is equipped to run a complex online health insurance business for the entire state. That’s essentially what MNsure is. (That isn’t just my opinion. It’s what Jim Nobles said on Almanac last Friday.)
Was government responding to free markets when they passed legislation that specified what types of lightbulbs could be used? Why did government inject itself into the discussion as to what dogs were legal in Minnesota? Was there an outbreak of dog violence against people? Or were they just inserting themselves into an issue because they were reacting to one of their special interest allies? I’m pretty certain it’s the latter.
Speaker Thissen’s tweet that questioned whether people could get to their jobs or companies could move their goods without public roads dovetails with President Obama’s now-infamous statement that entrepreneurs didn’t build their companies, that government did. That’s BS. Mitch is right in saying that government might assist entrepreneurs but government isn’t what makes businesses thrive.
The Anything But Affordable Care Act is a perfect example of how twisted leftist thinking is. I wrote here about how MNsure made things worse for one Minnesota family:
This Minnesota family is a young married couple with three children. Until ObamaCare and Dayton’s MNsure came along they shared the cost of their Blue Cross-Blue Shield family health insurance policy 50/50 with the father’s employer. Thanks to ObamaCare, the cost of that policy sky rocketed and is no longer affordable to the family. After endless hours of working with MNsure, here is what resulted.
Without the parent’s consent, MNsure jammed their three children onto government insurance. The children are now covered by Medicaid at no cost to the family or employer, but 100 percent cost to the taxpayers. The father had to go with a single insurance plan from his employer and purchase a separate new policy for his wife. Because of the confusion and disarray at MNsure, neither he nor his wife currently has health insurance ID cards for the insurance they have already paid for.
That’s why limited government conservatives complain about government overstepping their constitutional authority. Additionally, this shows government isn’t capable of running a business.
In other words, government should get its claws out of the things it isn’t qualified to do and focus on the things that constitutions limits it to. Limited government conservatives don’t hate government, even though that’s the propaganda that ABM and other leftist propaganda organizations spread. It’s that we understand that the best decisions for families happen at a family’s kitchen table.
It’s time Speaker Thissen figured that out.
Technorati: Paul Thissen, Nanny State, Anything But Affordable Care Act, MNsure, Transportation, Water Treatment Facilities, DFL, Limited Government Conservatism, Free Markets, Entrepreneurship, Capitalism, MNGOP
Only in Washington, DC would people praise Sen. Schumer as being a top strategist. This morning, Schumer will deliver a speech that essentially disparages the TEA Party:
“There is a glaring weakness, one very weak link in the Tea Party’s armor, which is an inherent contradiction within the Tea Party that I believe can be exposed to greatly weaken their hold on the policy debate,” Schumer will say, according to excerpts of his remarks.
“The fundamental weakness in the Tea Party machine is the stark difference between what the leaders of the Tea Party elite, plutocrats like the Koch Brothers want and what the average grassroots Tea Party follower wants,” he will say.
First, it’s interesting that Sen. Schumer doesn’t have the foggiest clue about the TEA Party and why people agree with their principles. TEA Party activists are foreign to him because he’s a wealth redistributionist and they’re capitalists. Let’s have Sen. Schumer debate someone who actually knew what he was doing. Sen. Schumer, the wealth redistributionist, thinks that it’s essential that we tax “the rich.” Here’s the counter to that:
Sen. Schumer thinks that government is the solution to our problems. The Anything But Affordable Care Act is proof of Sen. Schumer’s belief in that philosophy. Our ‘guest philosopher’, like most TEA Party activists, thinks otherwise:
Our ‘guest philosopher’, like the TEA Party activists, thinks tax reform is essential:
Thanks to our guest philosopher’s policies, the US economy experienced the longest economic recovery in our history. Thanks to the policies championed by President Obama and Sen. Schumer, we’ve had the longest economic stagnation since the Great Depression.
We’re at a crossroads. We can tolerate President Obama’s failed redistributionist economic policies and see our economic standing in the world disappear or we can embrace President Reagan’s pro-growth economic policies that led to the greatest economic expansion in US history.
At this point, that isn’t a difficult choice.
Technorati: Chuck Schumer, President Obama, Wealth Redistributionists, Anything But Affordable Care Act, Great Stagnation, Democrats, Ronald Reagan, Tax Reform, Capitalism, Prosperity, TEA Party, Conservatism
Scott Gottlieb’s post about HealthCare.gov’s conversion rates contains some dry reading but it contains an interesting tidbit. First, a little background to the interesting tidbit:
The day the Obamacare data was released, I was coincidentally meeting with Jonathan Bush, the CEO of Athena Health. So I put the question of conversion rate to him, since he sells a specialized service into the healthcare space. He said that the conversion rate for Athena’s web site, for doctors who visit the site to evaluate Athena’s suite of services and then make a purchase, is 22%.
According to HHS’s own statistics, the conversion rate for HealthCare.gov is 5%. Here’s the interesting tidbit:
The problem is that the Obamcare plans aren’t attractive to consumers. They were designed in Washington to suit political prerogatives rather than being designed in the marketplace to meet the demands of consumers. They’re laden down with costly mandates that leave the products too expensive. The plans try and make up for these costs by using narrow networks of cheap doctors and closed drug formularies.
That’s what happens when government demands socialist policies but families require free market capitalism solutions. While that doesn’t mean much in the short term, it puts the ACA behind the proverbial 8-ball in the long-term. Fighting against the will of the people is a sucker’s bet that the administration will lose. It’s inevitable. People want what they want. Markets respond to what people want, although it isn’t a stretch to say that governments don’t rooutinely respond to what people want.
Here’s what Robert Laszewski said about the Affordable Care Act:
If an entrepreneur had crafted Obamacare he would’ve gone to a middle class family. A family of four make(s) $54,000 a year has to pay $400 in premiums net of subsidy and for that the standard silver plan has an average deductible around $2,500 and a narrow network. They’re going to pay almost $5,000 for that? So the entrepreneur would say I’ve got $5,000 in premium and all this deductible, what do they want for that? And they probably would’ve said we want office visits and lab tests because the kids need to go in occasionally and then we want catastrophic care. The problem with Obamacare is it’s product driven and not market driven. They didn’t ask the customer what they wanted.
Telling families what they want is foolish. It’s like telling American families that they don’t like a gas-using sedans, that they’d rather buy a Volt. How’d that work out?
Here’s another of Mr. Laszewski’s opinions:
I think that’s the fundamental problem with Obamacare. It meets the needs of very poor people because you’re giving them health insurance for free. But it doesn’t really meet the needs of healthy people and middle-class people.
That’s tough criticism but it’s fair criticism. People are staying away in droves. There’s a reason for that. It’s likely that families went shopping but didn’t find products or prices they liked.
That’s what happens when people design things without listening to the people they’re selling the product to.