Healthcare Law Henceforth


I propose a new law that will empower all people. It is called the Health Care Reform Amendment Act 2010 and will henceforth be called The Law, with all the weight and profundity so implied.

Past reforms have proposed ridiculous ideas such as giving all people free health care managed by the government, while others have proposed forcing individuals to buy health care. These are all ridiculous and untenable. How can one imagine a resource distribution model that circumvents the market place? I call such nonsense flatly un-American. This is, above all things, a deeply principled nation after all.

I propose a new free market approach. First, company HR departments will be prohibited from buying insurance for their employees. This will empower individuals to research and purchase insurance based on it’s merits and price.

Second, we will circumvent the Hippocratic Oath by prohibiting individuals from going to the hospital if they do not have insurance. It will now be a crime punishable by fine and imprisonment.

This will empower individuals to make their own decisions about healthcare. Smart, shrewd individuals will be rewarded, while those who make bad decisions will be punished with death in the street at the scene of a car accident. More important than rewarding good decisions, The Law must assuredly punish bad ones. Its the American way.

These changes are necessary America. Without them, we will continue to give away health care and promote moral hazard in it’s most dastardly form and individuals will be crushed under the force of bureaucracy and government. I am sure you all agree no fate is worse than that dealt at the hands of government; even an identical or markedly worse fate at the whim of the American privateer.

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Poor and Minority Effects on the Subprime Crisis & The Economy as a Whole

This supposed link between minorities and the sub-prime crisis has bothered me for quite some time. Many conservatives are making the argument that illegal immigrants, minorities or the poor along with their Democratic allies have somehow created this sub-prime crisis. My fundamental argument is that the poor and minorities don’t control enough wealth to have the impact that conservatives are implying.

Let’s start with some basic numbers and do some basic arithmatic. The estimated value of the stock market in the USA in 2008 was 36 trillion dollars. The value of all real estate owned by households was in the range of 20 trillion. Insurance companies held 6.3 trillion, while the US GDP was 13 trillion. Commercial banks held about 10.8 trillion. Even with massive overlap in the asset classes that puts us up to at least 65 trillion in trade-able assets. The sub-prime was estimated at about 1.4 trillion in 2007, which makes it about 2%.

It gets a bit harder to discern what percent of the 1.4 trillion in subprime loans were made to minorities, illegal immigrants, and poor people, but one can estimate that if they were able to get loans at a rate similar to whites, then the percentages of loans should be similar to their percentage of the population.

That gives us the following.

  • 9.4% Black Subprime = 132 Billion = 2/10ths of a percent value of US tradable assets
  • 10.4% Hispanic Subprime = 146 Billion = 2/10ths of a percent value of US tradeable assets

Out of these numbers, what percentage could be illegal immigrants? Let’s estimate high and say that 25% of Hispanic, subprime loan customers are illegal. That gives us the following

  • 2.6% Illegal Hispanic Subprime = 36.5 Billion = 1/20th of a percent value of US tradable assets

Honestly, what effect could 1/20th of a percent have on our economy. It just sounds like rhetoric.

Links

  • http://www.180people.com/2008/November/The-Sub-Prime-Loan-Crisis-and-the-Illegal-Immigration-Link.htm
  • http://en.wikipedia.org/wiki/Demographics_of_the_United_States#Race_and_ethnicity
  • http://en.wikipedia.org/wiki/Homeownership_in_the_United_States#Race
  • http://www.nytimes.com/2008/08/03/realestate/03mort.html?_r=1&scp=4&sq=sub%20prime%20loans%20minorities&st=cse
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Arlen Specter has always been interesting

This article is fairly long and comes off at times a defense piece for Alren Specter, but in general his points are well taken for me.

http://www.nybooks.com/articles/22656

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