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Week of March 29, 2009 - April 4, 2009

Another Smart Guy in DC figures out Healthcare is Expensive


In an article linked to on the TPM front page, yet another oh so smart guy, Jonathan Cohn, writing in The New Republic amazingly reveals his insightful discovery in a piece titled "The Single Biggest Issue that Could Undermine Reform". http://blogs.tnr.com/tnr/blogs/the_treatment/archive/2009/04/01/the-single-biggest-issue-that-could-undermine-reform.aspx  Along with everyone else I'm sure; I was shocked to learn the single biggest issue that could undermine health reform is... money!  Wow!  Ya think?

The author points out how expensive it will be to have "reform" in the general sense that our cowardly political leaders are comfortable discussing it.  Naturally, any program of subsidizing the parasitic health insurance industry in order to get more (not all, just more) people covered by the rotten system we have now while maintaining the precarious and inexcusably expensive employer based health insurance racket most working people rely on, is going to be damned expensive.  That should not be considered news. 

Cohn also reveals that Obama has not proposed how to fully pay for this pig in a poke proposal he has made though he vows to "work with Congress" on finding the rest of the money at some undefined future point in time.  Cohn ends the article with hands raised and shoulders shrugged like most of the smart guys in the mainstream and inside the beltway.  He doesn't see how reform gets done and offers no possibilities of how to do it.  In some ways I don't blame him.  Why should he waste his time?  After all, even if what the President proposes actually gets passed, all it does is provide subsidies for insurance companies to keep sucking the lifeblood out of premium payers and our economy.  It's not reform, it's a shell game.  At best, the President's proposal would serve as a band aid and an excuse for those who don't want to do what is obviously necessary which is to assign our current system to the ash heap of history, and subordinate it to a supplementary role in a new, single payer health care system.  Such a model would replicate the superior models we find in all the industrialized nations of the west.  If the band aid is passed, it will only delay the inevitable and give aid and comfort to the very interests that continue to grow rich by sucking money out of productive society to keep their bottom lines fat and bloated.

Yes, obviously, changing our health care system and then paying for it is going to cost money.  But since our current situation is the most expensive on earth and does not produce outcomes comparable to the allegedly "inferior" systems elsewhere what the hell are we waiting for?  The only practical solution to our health care crisis is a single payer system of some kind.  Everyone knows that if they are honest about it.  It's the only way to cover everyone and it's the cheapest alternative and it will provide better outcomes because it will be health based instead of profit based.

Yes, the insurance industry and other vested interests will oppose it.  This is a given.  But for crying out loud, are we to accept cowardice as an excuse for not doing anything about any of our major problems?  I think it's time to let our "leaders" who seem to all be chickenshits that they need to start doing their jobs which is representing the interests of the people who elected them instead of the people who wine and dine them.

But, back to Mr. Cohn's revelation.  Where is the money going to come from?  Well for one thing, if we'd quit fooling around with these dumbass subsidy plans that won't improve anything for anyone in the long run and go for single payer, there will be substantial funds available in the form of all the trillions of dollars that go for paying the premiums to the health insurance parasites right now since people wouldn't need to be paying off those bloodsuckers anymore.  In all probability, both employers and employees could pay less than they pay now and get more health care as a result.  For another thing, if we start taking a look at the waste, fraud, and abuse that is available to cut in the federal budget and we don't exempt anything we could probably find on the order of $300-$500 Billion annually by cutting out all the obscene and unnecessary, wasteful contracts and programs for instruments of war upon which we waste grotesque amounts.  We spend more on defense annually than all the other nations on earth combined.  Last year, without the two wars we're talking about $650 Billion for "defense" and we all know it isn't because it is needed it is because the legendary Military Industrial Complex is an insatiable and malignant cancer on our nation that instead of protecting us drains the very lifeblood from America and robs our future of enormous possibilities including peace and prosperity.

So, if you need the cheapest and best "reform" it's clear that some form of the Medicare for All bill sponsored by Rep. John Conyers is the route to take.  It provides the best coverage for all our citizens--not some---ALL our citizens for much less than our current system costs and will improve the health of the nation dramatically.  And if you need money to pay for it there ought to be plenty to be found in the private sector that would, under single payer, be freed up and available to be rerouted to pay for the new single payer plan instead of paying for premiums to keep the parasites fat sucking off of the productive members of society.  Combine that windfall of money with massive cuts in our obscene and utterly unjustified "defense" budget and there's more than enough money to pay for making sure all Americans have what every citizen takes for granted in all the other industrialized nations on earth and have for years: knowing that when they get sick they can get the medical care they need because they need, not because they can pay for it out of their own pocket.

When I see the nation's smart guys like Cohn going round and round in circles about how to do this healthcare thing but being so blinded by the wedded bliss they experience as part of the status quo, it makes me wonder why anybody thinks these smart guys are so damn smart.  And of course, in my foolishness I start thinking that I see the same sort of limited vision, bad judgment and defense of the status quo everywhere I look in our society whether it is the financial sector disaster and handout, er, I mean "bailout" or the coddling of the interests of big oil at the expense of our environment, or just about anything else you can think of.  And then in my foolishness I start to conclude that maybe what we need is to flush our society altogether, top to bottom of the atrophied thinking and leadership that has led us to so many disasters they are now asking us foolish little people to pay for.  Our economic, political, civic, and media elites with precious few exceptions have utterly and completely discredited themselves.  Their incompetence, failures, irresponsibility, and disasters appear to know no bounds.  I know I'm not one of the smart guys in DC but seems to me it's high time that we got a new New Deal that radically redistributes power and wealth in this society if we hope ever to see improvement on any of the major issues the nation faces.  But you won't read about that in the New Republic or any other established organ of the status quo even if it claims to be "liberal". 

I think it is time Americans started thinking along the radical lines of Martin Luther King with respect to how this society works and how we both want it to work and how we must have it work if we are actually a nation that values justice, fairness, equality before the law, peace and prosperity.  See this link for a reminder of what King was really all about:  http://tpmcafe.talkingpointsmemo.com/2009/03/31/remembering_and_misremembering_king/index.php#comment-3426293

 

Pointing Fingers and Bringing GM and Chrysler Back to Life


With the government moving in and essentially acting as a new majority stockholder would act after a takeover, by demanding all kinds of changes in the auto companies in return for their investment, including the immediate removal of a CEO and stern warnings to hourly employees about "sacrifices" they will need to make, I think people need to keep a couple of things in mind while the state of the industry gets debated.

First, it is self-evident that there is a stark double standard in the behavior and posture of the federal government toward the auto industry versus that taken toward the major players in the financial sector.  This hypocritical approach, in my opinion, does not serve the public interest well at all.

Personally, I think we'd all be better off if Obama, et al started taking charge of the financial sector too and demanding far more in terms of changes in the way they do business in return for our vast investment, but it's clear that the government is beholden to the fat cats of finance and we can all see that they pay excessive and ill-advised deference to the alleged wisdom and skill of the crooks and con-men of Wall Street in reviving the industry they destroyed... not because of competition mind you!  No, unlike Detroit, Wall Street had no real competition.  Wall Street did not lose out to foreign competition at all.  It was primarily their own irresponsible, unquenchable greed that destroyed the American financial sector and subsequently the world economy.  Given that it was the thievery, irresponsibility, and incompetence of the banking and finance sector that brought our economy (including the auto companies) to its knees and the rescue of that industry involves vastly more money and obviously calls for much closer involvement by the government, it is very frustrating having to put up with the hypocrisy of the administration when it comes to this obvious double standard. 

One commentator on Countdown last night noted that it was difficult for the administration to come down as hard on the financial sector as it has on the auto industry because "after all" many of them on both sides went to college and grad school together, etc... I certainly believe this is a big factor (in addition to the current regulators seeing their future working for and with the people they now regulate) and all the more reason to feel like vomiting when such pathetic excuses are offered their failure to do their duty which is to act at all times in the interest of the public.  But because the car execs aren't their ol buds from school we're supposed to swallow this crap and we and our children, and grandchildren are being put on the hook for trillions of dollars in the years to come?  How long would that kind of excuse be tolerated in a situation involving hundreds of billions of dollars elsewhere?

But, getting back to the auto industry...

I'd just like to remind people as the bullshit starts getting thicker about what is "needed" to get GM and Chrysler back on their feet that nothing and I repeat absolutely nothing that was done to drive these companies into the ground was caused either by the UAW leadership or by the hourly employees who belong to and run the UAW.  The elected leadership, on behalf of their members, negotiated wages and benefits for their employees but they were never in charge of the company.  We'd probably be better off if the UAW had been running the companies but the fact is they never have. 

Before people get all hot and bothered about bashing the workers in the auto industry and their union remember that the truth is that assembly workers make between $14/hour for new hires and $28/hour as the head of the UAW pointed out not long ago to Congress. http://banking.senate.gov/public/_files/GettelfingerSenateTestimony12408.pdf  There is no truth at all to the pernicious lie about autoworkers making over $70/hour: none.  I would note in this context that there is not even a hint of anyone discussing rearranging the pay and/or benefits of anyone in the financial sector to get it back on its feet and viable.  Given the outrageous salaries paid not just to top management but to all kinds of "professionals" in the financial sector I find it curious that the topic of restructuring how they get paid in order to lower overhead is never, ever discussed.

Also, remember this:

·         Neither the UAW elected leadership nor the members of the union make management decisions of any kind and they never have.

·         Neither the UAW elected leadership nor the members of the union design, style or engineer the automobiles they assemble.

·         Neither the UAW elected leadership nor the members of the union have any voice at all in terms of long range planning for the company and/or decisions impacting the future direction of the company.

·         Neither the UAW elected leadership nor the members of the union make any decisions bearing on how well the company has done in recent times.  That is and always has been the sole province of management.

·         The UAW elected leadership and the members of the union have repeatedly shown their willingness to do whatever it takes to keep the US auto industry thriving and healthy including major concessions in their wage and benefits structures over the years. 

The point is that despite the popularity of bashing the autoworkers and their union during the past 30 years or more, the union leadership and the workers in the three major companies have always done their level best to keep the industry healthy and viable.  It is completely unfair to blame the workers or the union they belong to for the current state of the industry and no one should grudge the people who make these cars the wages they work very hard to earn.  The responsibility for the disaster that has befallen GM and Chrysler is completely that of the management.  Anyone who says otherwise is not only being unfair to the workers but they either are just dead wrong or lying.

America needs a healthy auto industry and I feel certain GM at least will get back on its feet.  While that is going on, I would hope that people don't use the workers who've done as good a job as any workers at any of their competitors as scapegoats.  But the bottom line is the workers don't design the production line, they don't design the products, they don't determine whether to emphasize gas guzzling SUV's over hybrids, etc... they assemble the vehicles to the best of their ability and that is all they can do.  In fact, when you realize this, the autoworker is probably the most reliable and functional part of the industry and the part that needs "fixing" least.   So please, don't blame the hourly workers for failures that management and management alone is responsible for.

 

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oleeb

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