Category Archives: Healthcare

DiLorenzo Dishes It Out To Subcommittee On Domestic Monetary Policy

Business, Debt, Economy, Federal Reserve Bank, Healthcare, Individual Rights, Inflation

Pearls before swine? Probably. Still, the freedom movement is gaining momentum. First came Randy Barnett’s powerful testimony before the Senate Judiciary Committee (read “Turning Citizens Into Subjects: Why The Health Insurance Mandate Is Unconstitutional”). My good friend Thomas DiLorenzo, Professor of Economics at Loyola University in Maryland, followed. Tom tried to explain to members of the Committee on Financial Services (Subcommittee on Domestic Monetary Policy and Technology) that the “Fed’s monetary policies tend to create temporary and unsustainable increases in employment while being the very engine of recession and depression that creates a much greater degree of job destruction and unemployment.”

Here’s an excerpt from “How the Fed Fuels Unemployment”:

When the Fed expands the money supply excessively it not only is prone to creating price inflation, but it also sows the seeds of recession or depression by artificially lowering interest rates, which can ignite a false or unsustainable “boom” period. Lower interest rates induce people to consume more and save less. But increased savings and the subsequent business investment that it finances is what fuels economic growth and job creation.
Lowered interest rates and wider availability of credit caused by the Fed’s expansionary monetary policy causes businesses to invest more in (mostly long-term) capital projects (primarily real estate in the latest boom-and-bust cycle), and there is an accompanying expansion of employment in those industries. But since the lower interest rates are caused by the Fed’s expansion of the money supply and not an increase in savings by the public (i.e., by the free market), businesses that have invested in long-term capital projects eventually discover that there is not enough consumer demand to justify their investments. (The reduced savings in the past means consumer demand is weaker in the future). This is when the “bust” occurs.
The economic damage done by the boom-and-bust policies of the Fed occur in the boom period when resources are misallocated in the ways described here. The “bust” period is actually a necessary cure for the economic miscalculations that have occurred, as businesses liquidate their unsound investments and begin to make decisions on realistic, market-based interest rates. Prices and wages must return to reality as well.
Government policies that bail out businesses that have made these bad investment decisions will only delay or prohibit economic recovery while encouraging more of such behavior in the future (the “moral hazard problem”). This is how short recessions can be turned into seemingly endless ones. Worse yet is for the Fed to create even more monetary inflation, rather than allowing the necessary economic adjustments to take place, which will eventually set off another boom-and-bust cycle.

MORE.

UPDATED: Healthscare Halted?

Constitution, Democrats, Healthcare, Individual Rights, Individualism Vs. Collectivism, Justice, Law, Natural Law

“I must reluctantly conclude that Congress exceeded the bounds of its authority in passing the Act with the individual mandate,” Judge Roger Vinson writes. “Because the individual mandate is unconstitutional and not severable, the entire Act must be declared void.” (http://www.campaignforliberty.com/blog.php?view=40520) District Judge Roger Vinson hails form in Pensacola, Florida. He sided with 26 suing states.

Will those Senators who’re up for re-election in 2012 bring themselves to vote with their lower-chamber colleagues to repeal the thing? Will the same representatives admit that forcing an individual to purchase a product is wrong, and certainly beyond their mandate?

I doubt it. They’ll tell us that the (Rousseauist) common good, as defined by the state, takes precedent over the common man. We have not heard the last from Obama’s advancing Politburo Of Proctologists.

UPDATE: Vinson’s is really a beautifully written and reasoned Decision. It cleaves to the Constitution. Keith Olbermann’s proxies have begun to tarnish Judge Vinson as a judicial activist, whatever that means. Do these sound like unfair proceedings?

Both sides have filed strong and well researched memoranda in support of their motions for summary judgment (“Mem.”), responses in opposition (“Opp.”), and replies (“Reply”) in further support. I held a lengthy hearing and oral argument on the motions December 16, 2010 (“Tr.”). In addition to this extensive briefing by the parties, numerous organizations and individuals were granted leave to, and did, file amicus curiae briefs (sixteen total) in support of the arguments and claims at issue.

“… I conclude that the individual mandate seeks to regulate economic inactivity, which is the very opposite of economic activity. And because activity is required under the Commerce Clause, the individual mandate exceeds Congress’ commerce power, as it is understood, defined, and applied in the existing Supreme Court case law….”

AND:
The individual mandate is outside Congress’ Commerce Clause power, and it cannot be otherwise authorized by an assertion of power under the Necessary and Proper Clause. It is not Constitutional. Accordingly, summary judgment must be
granted in favor of the plaintiffs… ”

Also adjudicated was the state plaintiffs objection “to the fundamental and ‘massive’
changes in the nature and scope of the Medicaid program that the Act will bring about. They contend that the Act violates the Spending Clause [U.S. Const. art. I, § 8, cl. 1] as it significantly expands and alters the Medicaid program to such an extent they cannot afford the newly-imposed costs and burdens. They insist that they have no choice but to remain in Medicaid as amended by the Act, which will eventually require them to ‘run their budgets off a cliff.’ This is alleged to violate the Constitutional spending principles set forth in South Dakota v. Dole, 483 U.S. 203, 107 S. Ct. 2793, 97 L. Ed. 2d 171 (1987), and in other cases.5 Under Dole, there are four restrictions on Congress’ Constitutional spending
power: (1) the spending must be for the general welfare; (2) the conditions must be stated clearly and unambiguously; (3) the conditions must bear a relationship to the purpose of the program; and 4) the conditions imposed may not require states ‘to engage in activities that would themselves be unconstitutional.’ Supra, 483 U.S. at 207-10. In addition, a spending condition cannot be ‘coercive.’ This conceptional requirement is also from Dole, where the Supreme Court speculated (in dicta at the end of that opinion) that ‘in some circumstances the financial inducement offered by Congress might be so coercive as to pass the point at which ‘pressure turns into compulsion.’ … If that line is crossed, the Spending Clause is violated.”

[SNIP]

Left-liberals believe a judicial activist is someone who reverses precedent. Republicans think a judicial activist is someone who disobeys the President. That’s the sum total of how the two parties relate to the law.

UPDATE II: Me On Russian TV (RT) + YouTube Clip

China, Healthcare, Ilana Mercer, Ilana On Radio & TV

I was just on Russian TV (RT) to discuss the healthcare repeal vote and China. I like RT America a lot because, unlike American TV, they seem to value contrarian opinions, and mine certainly don’t fall within the permissible, Demopublican range. The interview was with the lovely Kristine Frazao. Should you locate the clip, please be charitable to me. I was on Skype and am sure I stared in the wrong direction. Besides, I am no circus performer, but, rather, the quintessential writer, always most comfortable at her PC screen typing.

http://rt.com/

http://www.youtube.com/rtamerica

UPDATED I: As promised, here’s the RT YouTube clip.

UPDATE II (Jan. 20): Thanks for the encouragement, however, I would hope that Robert is being unduly negative (and dark) about the prospects of future RT invitations. Just what I need! RT is not really mainstream. Our friend Nebojsa Malic appears on RT often; he is thoughtful and unorthodox.

Besides, unless I am autistic to American reaction (this is indeed possible), I thought the anchor was pleasant to me, even smiling and reacting positively. I liked her a lot. All in all, I found the RT folks professional and pleasant.

“The Great American Waiver Act”

Government, Healthcare, Regulation, Republicans, Socialism, The State

With a title such as “Repealing the Job-Killing Health Care Law Act,” you’d think the House Republicans’ plan to kill HealthScare would find its way onto the front pages of the parrot press. Alas, unless the migraine I’ve suffered for the past two days has interfered with my vision, I saw no exclusive report on the bill over the website pages of the New York Times, TIME magazine, Newsweek, Orange County Register, or the Los Angeles Times.

Luckily, there is Michelle Malkin, who covers the news exceptionally well.

Befitting a Republican political ploy is how the Obama houseboys of Hardball saw this simple Bill and its title.

From the hulking horror itself I had originally excerpted here, so that you could get a feel for the impenetrable legalese the Managerial State has evolved over time to ensure the people have not the faintest notion what’s upon them.

If the H.R.4872 Reconciliation Act of 2010 was not cause for revolution, I don’t know what is. It has thousands of sections. Green provisions, early learning fund, promotion of employment experience, translation or interpretation services, whistle blower provisions—all sub-chapters in what is a violative bill by every conceivable criterion.

The two pages endeavoring “to repeal the job-killing health care law and health care-related provisions in the Health Care and Education Reconciliation Act of 2010” are indeed too sweet and simple to be true. Not in Washington.