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Archive for the ‘Health Care’ Category

Last September, I shared a disconcerting video showing an unfortunate young woman getting her OB/GYN exam from a very creepy version of Uncle Sam.

Well, you’ll be pleased to know that “Creepy Uncle Sam” does not discriminate. In this video, a young man faces the unpleasant experience of getting his prostate checked.

Kudos to Generation Opportunity for putting together such clever videos.

But I think their most recent video is a true masterpiece. It manages to showcase almost all the bad features of Obamacare in a short, amusing, pithy form.

And if you like videos that make fun of Obamacare, here are some other examples from the archives.

*The head of the National Socialist Workers Party finds out he can’t keep his health plan.

*Young people discover that they’re screwed by Obamacare.

*Remy of Reason TV sings about the joy of part-time work.

*A cartoon video imagines a world where buying coffee is like buying government-run healthcare.

*One of the biggest statists of the 20th century is angry that the Obamacare exchanges don’t work.

Let’s close with a good cartoon from Ken Catalino.

And whatever the government says Obamacare costs, you can feel confident (albeit depressed) that the real cost will be higher. Especially if you’re also counting non-fiscal costs such as fewer jobs.

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I thought TARP was the sleaziest-ever example of cronyism and corruption in Washington.

The Wall Street bailout rewarded politically well-connected companies, encouraged moral hazard, and ripped off taxpayers. Heck, it was so bad that it makes the sleaze at the Export-Import Bank seem almost angelic by comparison.

But I may have to reassess my views.

One of the provisions of Obamacare allows the White House to give bailouts to big health insurance companies. You’re probably wondering why these big firms would need bailouts. After all, didn’t Obamacare coerce millions of people into becoming involuntary customers of these companies? That should give them lots of unearned profits, right?

But here’s the catch. The President wasn’t being honest when he repeatedly promised that Obamacare would reduce premiums for health insurance. And since the Democrats don’t want consumers to get angry about rising costs (particularly before the 2014 elections), they want health insurance companies to under-charge.

Avik Roy of Forbes explains in greater detail how the White House is coercing health insurance companies to limit premium increases before the mid-term elections. Here are some excerpts.

Hidden in the midst of a 436 page regulatory update, and written in pure bureaucratese, the Department of Health and Human Services asked that insurance companies limit the looming premium increases for 2015 health plans. But don’t worry, HHS hinted: we’ll bail you out on the taxpayer’s dime if you lose money. …The White House is playing politics with Americans’ health care—and they’re bribing health insurance companies to play along. The administration’s intention is clear: Salvage the 2014 midterm elections. …Technically, the regulations don’t force health insurance companies to tamp down their premium spikes. But the White House isn’t asking nicely. …Under Obamacare, insurers are so heavily regulated that they have to play nice with the bureaucrats who call the shots. …If insurance companies don’t give in, regulators have powerful ways to make life hard for them. A shrewd CEO doesn’t need to look far to see what might happen if his company opts out.

But before you feel sorry for Big Insurance, remember that these corrupt companies supported Obamacare and fully expect to get bailed out by taxpayers. Here are some blurbs from an article last month in the Weekly Standard.

Most Americans don’t think it’s their job to bail out insurance companies who lose money under Obamacare, but that’s exactly what’s poised to happen. Obamacare’s risk-corridor program — which President Obama has been using as a slush fund to placate his insurance allies and keep them quiet about his lawlessness — shifts financial risk from insurers to taxpayers. According to the House Oversight Committee, health insurers expect Obamacare’s risk corridors to net them nearly $1 billion, at taxpayer expense, this year alone. …It was a win-win that would boost Obamacare in its early days — to the benefit of those who’ve gained extraordinary power at the expense of Americans’ liberty, and of those whose product has become mandatory for Americans to purchase.

In other words, we have a stereotypical example of Mitchell’s Law. Government screws up something, and then uses that mess as an excuse to impose more bad policy!

This Lisa Benson cartoon is a perfect summary of what’s happening.

P.S. If you’re in the mood for some dark humor, here’s the federal government’s satirical bailout application form.

P.P.S. Switching to a different topic, it’s time for me to rectify a mistake. When I first created the Moocher Hall of Fame last year, I didn’t include the “Octo-moocher” as a charter member. After all, having 14 kids while living on the dole didn’t seem particularly noteworthy.

But now we’ve discovered that she could afford her kids. She just wanted other people to pick up the tab.

Octomom Nadya Suleman pleaded no contest Monday to a single count of misdemeanor welfare fraud for failing to disclose income she was receiving from videos and personal appearances while collecting more than $26,000 in public assistance funds to care for her 14 children.

This may not be as impressive as the deadbeat who got handouts while living on a $1.2 million yacht, but still worthy of membership.

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Let’s enjoy some semi-good news today.

We’ve discussed many times why Obamacare is bad news, whether we’re looking at it from the perspective of the healthcare system, taxpayers, or workers.

But it could be worse. Writing in the Washington Post, Robert Samuelson explains that two-dozen states have refused the lure of expanding Medicaid (the means-tested health care program) in exchange for “free” federal money.

From 1989 to 2013, the share of states’ general funds devoted to Medicaid has risen from 9 percent to 19 percent, reports the National Association of State Budget Officers. Under present law, the squeeze will worsen. The White House report doesn’t discuss this. …To the White House, the right-wing anti-Obamacare crusade is mean-spirited partisanship at its worst. The 24 non- participating states are sacrificing huge amounts of almost-free money… Under the ACA, the federal government pays all the cost of the Medicaid expansion through 2016 and, after that, the reimbursement rate drops gradually to a still-generous 90 percent in 2020.

But that “almost-free money” isn’t free, of course. It’s simply money that the federal government (rather than state governments) is diverting from the productive sector of the economy.

So the 24 states that have rejected Medicaid expansion have done a huge favor for America’s taxpayers. To be more specific, Nic Horton of Watchdog.org explains that these states have lowered the burden of federal spending (compared to what it would have been) by almost $90 billion over the next three years.

By not expanding Medicaid, 24 states are saving taxpayers $88 billion over the next three years. That is $88 billion that will not be added to the national debt — debt that will not be passed on to future generations of taxpayers. On the other hand, states that have expanded Medicaid through Obamacare are adding roughly $84 billion to the national debt through 2016.

Returning to Samuelson’s column, he would like a grand bargain between states and the federal government, with Washington agreeing to pay for all of Medicaid (currently, states pay a portion of the bill) in exchange for states taking over all spending for things such as roads and education.

We could minimize this process for states and localities by transferring all Medicaid costs to Washington (or at least the costs of the elderly and disabled). To pay for it, Washington would reduce transportation and education grants to states. Let Washington mediate among generations. Let states and localities concentrate on their traditional roles of education, public safety and roads. Spare them the swamp of escalating health costs. This is the bargain we need — and probably won’t get.

I like half of that deal. I want to transfer education, law enforcement, and roads back to the state level (or even the local level).

But I don’t want Washington taking full responsibility for Medicaid. Instead, that program also should be sent down to the states as well. This video explains why that reform is so desirable.

P.S. Since we’re on the topic of Obamacare, this Chip Bok cartoon perfectly captures the essence of the Hobby Lobby decision. The left wants the mandate that contraception and abortifacients be part of health insurance packages.

Rather than exacerbate the damage of using insurance to cover routine costs, wouldn’t it make more sense to have employers simply give their workers more cash compensation and then allow the workers to use their money as they see fit?

That way there’s no role for those evil, patriarchal, oppressive, and misogynistic bosses!

I realize this might upset Sandra Fluke, but at least she has the comfort of knowing that her narcissistic statism generated some good jokes (here, here, and here).

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I wrote a few weeks ago about the hidden economic damage of Obamacare, particularly the harm to the job market.

Today, let’s get further depressed by looking at the ever-worsening fiscal damage of the law.

Here’s some of what Chuck Blahous of Mercatus wrote about this costly new entitlement.

The ACA was enacted in 2010 with the promise of reducing the federal budget deficit while expanding health insurance coverage. Nearly lost amid the recent press cheerleading over ACA enrollment figures is that this promise has disintegrated, and now no one…can say how much fiscal damage the ACA will ultimately cause. …CBO currently estimates that the ACA’s coverage provisions will cost the federal government $92 billion a year by FY2015. This is roughly 0.5 percent of projected U.S. economic output for 2015, well exceeding the relative costs of Social Security and Medicaid at similar points in their histories. (The amount falls just short of the proportion of GDP absorbed by all of early Medicare.) Worse, the federal fiscal position was far weaker when the ACA was passed than when Social Security, Medicare, and Medicaid were created.

That’s bad news, but things will get even worse in coming years.

Troubling though the ACA’s startup costs are, they represent only the tip of the fiscal iceberg that will be the fully phased-in law. CBO projects that its annual costs will hit $200 billion by FY2020, or nearly 0.9 percent of GDP. Yet this assumes that lawmakers will be content to allow the ACA’s health insurance subsidies to grow more slowly than low-income beneficiaries’ health care costs, as the law now stipulates. Thus there is every reason to believe that the ACA’s eventual costs will far exceed initial estimates, as happened with Social Security, Medicare, and Medicaid. …Also unclear is whether the ACA’s reinsurance and “risk corridor” provisions will produce unexpected federal budget costs; these provisions were included in the ACA to protect insurers… the Obama administration continues to promise both participating health insurers and taxpayers that they will each be protected from loss under the risk corridor provisions.

The potential bailout for insurance companies is bad news for taxpayers, but it’s even more upsetting for moral and practical reasons.

The big insurance companies got into bed with the White House, figuring it was a good idea for the federal government to coerce Americans into buying their product. As far as I’m concerned, they should swallow heavy losses.

But in Washington, there’s rarely a downside for doing the wrong thing. Instead, this could be like TARP. A reward for bad behavior.

By the way, it’s not just policy wonks who are concerned about the fiscal burden of Obamacare. According to Roll Call, the Congressional Budget Office has – for all intents and purposes – given up trying to estimate the fiscal burden of the legislation.

For Democratic lawmakers who were hesitant to sign onto the sweeping 2010 health care law, one of the most powerful selling points was that the Affordable Care Act would actually reduce the federal budget deficit…the answer to that question has become something of a mystery. In its latest report on the law, the Congressional Budget Office said it is no longer possible to assess the overall fiscal impact of the law. That conclusion came as a surprise to some fiscal experts in Washington and is drawing concern. …In a little-noticed footnote to a report issued in April, “Updated Estimates of the Effects of the Insurance Coverage Provisions of the Affordable Care Act,” the CBO wrote that it and the Joint Committee on Taxation “can no longer determine exactly how the provisions of the ACA that are not related to the expansion of health insurance coverage have affected their projections of direct spending and revenues.”

Translated into plain English, Obamacare is a budgetary black hole.

If only somebody could have predicted that this would happen. But actually, many people did. The history of entitlement programs is that they are bad news in theory and even worse news in reality.

Indeed, even I warned that Obamacare was going to be a bigger fiscal nightmare than originally predicted, as seen in this video.

This Eric Allie cartoon doesn’t focus on the fiscal problems of Obamacare, but it’s worth sharing because the entire law is a mess.

Too bad the American people are the guinea pigs for this experiment in statism.

Wouldn’t it be nice if instead we had the freedom to experiment with market-based healthcare?

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Obamacare resulted in big increases in the fiscal burden of government (ironically, it would be even worse if Obama hadn’t unilaterally suspended parts of the law).

The legislation increased government spending, mostly for expanded Medicaid and big subsidies for private insurance.

There were also several tax hikes, with targeted levies on medical device makers and tanning beds, as well as some soak-the-rich taxes on upper-income taxpayers.

These various policies are bad news for economic performance, but the damage of Obamacare goes well beyond these provisions.

Writing for Real Clear Markets, Professor Casey Mulligan of the University of Chicago explains that Obamacare contains huge implicit tax hikes on work and other forms of productive behavior.

…can we begin to take seriously the idea that the fiscal policies and regulations hidden in the Affordable Care Act are shrinking our economy? …Politicians and journalists use the term tax more narrowly than economists do, but the economic definition is needed to understand the economic effects of the ACA. …Withholding benefits from people who work or earn is hardly different than telling them to pay a tax. For this reason, economists refer to benefits withheld as “implicit taxes.” What really matters for labor market performance is the reward to working inclusive of implicit taxes, and not the amount of revenue delivered to the government treasury… The ACA…is full of implicit taxes. Many of them have remained hidden in the “fog of controversy” surrounding the law and their effects excluded from economic analyses of it.

In other words, his basic message is that the government reduces incentives to be more productive and earn more money when it provides handouts that are based on people earning less money.

Indeed, click here to see a remarkable chart showing how redistribution programs discourage work.

And speaking of charts, here’s one from Professor Mulligan’s article, and it shows the nation’s largest tax hikes based on what happened to the marginal tax rate on working.

Wow. No wonder we’re suffering from a very anemic recovery.

Professor Mulligan elaborates.

During a period that included more than a dozen tax increases, the ACA is arguably the largest as a single piece of legislation, adding about six percentage points to the marginal tax rate faced, on average, by workers in the economy. The only way to cite larger marginal tax increases would be to combine multiple coincident laws, such as the Revenue Acts of 1950 and 1951 and the new payroll tax rate that went into effect in 1950. Even with these adjustments, the ACA is still the third largest marginal tax rate hike during the seventy years. …Let’s not be surprised that, as we implement a new law that taxes jobs and incomes, we are ending up with fewer jobs and less income.

By the way, other academics also have found that Obamacare will lure many people out of the workforce and into government dependency.

The White House actually wants us to believe this is a good thing, as humorously depicted by this Glenn McCoy cartoon.

But rational people understand that our economic output is a function of how much labor and capital are being productively utilized.

In other words, Obamacare is a mess. It’s hurting the economy and should be repealed as the first step in a long journey back to market-based healthcare.

P.S. Mulligan’s chart also re-confirms that unemployment benefits increase unemployment. Heck, that’s such a simple and obvious concept that it’s easily explained in this Wizard-of-Id parody and this Michael Ramirez cartoon.

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Since I’ve already created a Moocher Hall of Fame to acknowledge the strangest and most reprehensible examples of government dependency, it’s occurred to me that there also should be a Bureaucrat Hall of Fame to highlight the government employees that have figured out how to most successfully rip off taxpayers (and here are some good candidates for charter membership).

But what if an entire bureaucracy was eligible?

The paper pushers at the Veterans Administration sure have figured out how to milk the system. Check out these excerpts from Associated Press report.

Nearly 80 percent of senior executives at the Department of Veterans Affairs got performance bonuses last year despite widespread treatment delays and preventable deaths at VA hospitals and clinics, a top official said Friday. …Workers at the Phoenix VA Health Care System — where officials have confirmed dozens of patients died while awaiting treatment — received about $3.9 million in bonuses last year, newly released records show. The merit-based bonuses were doled out to about 650 employees, including doctors, nurses, administrators, secretaries and cleaning staff.

This is such an outrageous waste of money that even the politicians who created it feel it should be criticized.

Rep. Jeff Miller, R-Fla., chairman of the House Veterans Affairs Committee, said the VA’s bonus system “is failing veterans.” Instead of being given for outstanding work, the cash awards are “seen as an entitlement and have become irrelevant to quality work product,” Miller said. Rep. Phil Roe, R-Tenn., said awarding bonuses to 80 percent of executives means that the VA was setting the bar for performance so low that “anybody could step over it. If your metrics are low enough that almost everybody exceeds them, then your metrics are not very high.” Rep. Ann McLane Kuster, D-N.H., said the VA suffered from “grade inflation, or what (humorist) Garrison Keillor would refer to as ‘all of the children are above average.’” Kuster and other lawmakers said they found it hard to believe that 80 percent of senior employees could be viewed as exceeding expectations, given the growing uproar over patients dying while awaiting VA treatment and mounting evidence that workers falsified or omitted appointment schedules to mask frequent, long delays. …Miller, the panel’s chairman, noted that in the past four years, none of the VA’s 470 senior executives have received ratings of minimally satisfactory or unsatisfactory, the two lowest ratings on the VA’s five-tier evaluation system.

But the real lesson is that government simply doesn’t work very well

Or let me rephrase that. Government works very well…but only if you’re a politician, lobbyist, contractor, bureaucrat, or some other insider who has figured out that “the public sector” is a great way to obtain unearned wealth.

If you’re a taxpayer, by contrast, you get the short end of the stick (I was thinking of another analogy, but decided to keep things clean).

And if you’re someone – like a veteran – who is relying on government, then you’re in a very unfortunate position (sort of like the person in the other analogy that crossed my mind).

The main thing to understand is bureaucrats respond to incentives. And when you have government programs with no bottom-line reason to  deliver efficiency and good service, we shouldn’t be surprised that we get bloated payrolls and absurd compensation packages.

This video explains that it’s a government-wide phenomenon.

And to close out today’s column, here’s a Steve Kelley cartoon about Forrest Gump and the VA.

P.S. Don’t let politicians and interest groups get away with claiming that “inadequate funding” caused the VA scandal.

P.P.S. And grit your teeth because the government-run veterans health system is a good predictor of what we’ll all experience if the government-run Obamacare system is fully implemented.

P.P.P.S. Don’t forget that bonuses for poor performance are standard operating procedure in Washington. The bureaucrats at the IRS have been rewarded with extra cash notwithstanding all the scandals.

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I’ve written a couple of serious posts about the death panels at the VA’s government-run health facilities.

I think it’s particularly important to understand that the problem has nothing to do with funding levels. Instead, it’s about the chronic inefficiency of government.

But sometimes mockery is more effective than analysis, and this Remy video, produced by Reason TV, is definitely worth sharing.

Enjoy.

By the way, if you like the Remy videos from Reason TV, here’s one about Sandra Fluke and the birth control mandate, one about the TSA Hokey Pokey, and two more Christmas-themed songs about the TSA (here and here).

But I want to spend the rest of today’s column celebrating the fact that America is not Venezuela. No matter how much we complain about the inefficiency, waste, and corruption in Washington, things could be worse.

Much worse.

Here are three stories to give you an idea what total statism produces.

First, I’ve written about how government intervention is causing toilet paper shortages and food shortages in Venezuela (also in Cuba). Well, there’s also a shortage of water, as reported by Bloomberg.

The rationing of tap water amid a drought and a shortage of bottles because of currency controls are forcing people to form long lines at grocery stores and bottle shops as soon as deliveries are made. …a government-mandated water rationing plan in Caracas and hot weather are fueling demand as supply shrinks. “I haven’t been able to find 5-liter bottles of water in the supermarket for the past two weeks, and there haven’t been half-liter bottles this week,” Maria Hernandez, a 36-year-old secretary, said in an interview in Caracas today. “I have four at home, but I’m afraid that they’ll run out and that I won’t be able to find more. They ration water at my house on Wednesdays.”

Though maybe water rationing is a good thing. At least when you live in a nation where the water that does (sporadically) materialize is contaminated.

Some areas of the city receive water service only three days a week, with most neighborhoods going without water at least one day a week. When water does flow, few residents dare to drink it because of contamination.

So why is there a problem? Because the government doesn’t let the market operate.

Regulated prices for bottled water have not been raised since November 2011, industry association Anber said in a May 19 statement. Since then, consumer prices have risen 110 percent, according to central bank data, while the bolivar has lost 87 percent of its value on the black market, according to dolartoday.com, a website that tracks the value on the Colombian border.

Our second story also comes from Bloomberg. It’s about the one thriving sector of the Venezuelan economy.

The arrival of a Liberian-flagged freighter with Ukrainian, Arab and Filipino sailors spells one thing for Elena — dollars. And greenbacks are king in Venezuela, the 32-year-old prostitute says. …Prostitutes more than double their earnings by moonlighting as currency traders in Puerto Cabello. They are the foreign exchange counter for sailors in a country where buying and selling dollars in the streets is a crime — and prostitution isn’t. Greenbacks in the black market are worth 11 times more than the official rate as dollars become more scarce.

Indeed, some women may be turning to prostitution because the government is doing so much damage to the economy.

Prostitution has become the only boom industry in Venezuela’s biggest port. …“Before I was working to support my kid and my mom; now I support my entire family,” said Paola, a prostitute who like Elena comes from Zulia and declines to give her real name. “Dollars are the only way to get by. The bolivar wages of my uncles and cousins barely mean anything now.” …“We can make more in two hours here than working in a shop in a month,” said a prostitute who calls herself Giselle. …For women like Giselle, Elena and Paola, prostitution for dollars has become a lifeline keeping them from poverty. “We haven’t studied, we have no education. What would we do now if we stopped?” said Giselle. “Work for a minimum wage that doesn’t even pay for food? If we wouldn’t be here working the scene, we would be living on the streets.”

Amazing. Venezuelan women are famous for their beauty, but the economy is such a mess that they earn twice as much money by trading currency. Way to go, big government!

Last but not least, our third story shows that government intervention is even making death more difficult. Here are some excerpts from a report in the UK-based Guardian.

…even in death, Venezuelans are afflicted by shortages. Coffin production has dropped between 20% and 30% this year for lack of materials, forcing funeral and burial delays… Pedro Navarro, former president of Venezuela’s funeral parlor association, has blamed lagging production at the state-run foundry Sidor. …Demand for coffins has grown in recent years. Venezuela has one of the world’s highest murder rates. People have been coping with shortages since 2006, long before the death from cancer last year of the pro-socialist president, Hugo Chávez.

The moral of the story is that government interventions such as price controls and government policy mistakes such as inflation have very negative consequences for ordinary people. It’s not just shortages of water and a prostitution-encouraging desire to escape the local currency.

The entire economy is a mess.

Empty shelves in shops and long queues have become a fixture of the daily hunt for staples such as milk, cooking oil and flour. Pharmaceuticals and medical supplies are also scarce. The anti-government street protests that began in February by an emboldened opposition have grown with the shortages.

So when someone tells you that big government is good for people, ask them for an example of successful statism.

And if they’re open to rational evidence, show them this chart. It shows that Venezuela used to be twice as prosperous as Chile.

But Venezuela has stagnated because of statism and Chile has boomed because of free markets. Kind of hard to argue with these facts (though Chile’s current crop of politicians apparently don’t like success and are seeking to expand the burden of government).

Let’s close with some very accurate humor. This poster nicely summarizes the difference between capitalism and statism.

Or the parable of the two cows also does the job.

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Back in 2011, I shared a video making the moral argument that adults should be allowed to buy and sell kidneys.

After all, if one person is made better off by selling a kidney and another person is made better off by buying a kidney, why should the rest of us be allowed to ban that voluntary exchange?

In a new video looking at anti-market bias, Professor Bryan Caplan of George Mason University uses kidney sales as an example of how capitalism yields great results.

So why is it against the law to buy and sell kidneys, particularly when the actual buyers and sellers – by definition – both benefit?

In 2010, I speculated that a knee-jerk fixation on the wrong kind of equality might be part of the answer. The current system, with long waiting lines and thousands of needless deaths, may be bad, but at least rich people suffer just as much as poor people.

…it is perplexing that statists are so viscerally opposed. The only interpretation I can come up with – which I admit is very uncharitable – is that they are willing to let people die because they are myopically fixated on equity. No system is acceptable, in their minds, unless it results in equal death rates by income class and equal kidney donations by income class.

In reality, a free market would benefit both rich and poor. Not only would some poor people get a lot of money by selling their spare kidneys, but poor people on dialysis would be far more likely to get transplants since private charities would be able to raise money to save their lives.

P.S. Professor Caplan is the creator of the “libertarian purity quiz.” I only got 94 out of 160 possible points, which doesn’t sound that impressive, but it was enough to get me classified as “hard core.”

P.P.S. In my posts about unemployment benefits, I’ve argued that there’s a big downside to giving people money on the condition that they don’t have a job. Simply stated, you trap people in unemployment.

And I’ve cited lots of academic evidence to support that hypothesis. And for those who prefer anecdotes, check out this story from Michigan and this example from Ohio.

I’ve even cited left-wing economists who admit that unemployment benefits translate into more joblessness. And this Michael Ramirez cartoon on the issue is both amusing and persuasive.

But one thing I haven’t done is share data from actual people without jobs. So here’s some data from a national scientific poll of unemployed Americans.

…80 percent agree that it “is giving me time to find the right position.” …82 percent of those receiving benefits said if their unemployment compensation were to run out prior to their finding a job, they would “search harder and wider for a job.” …48 percent agree that they “haven’t had to look for work as hard” thanks to unemployment compensation.

Gee, what a shocker. Endless unemployment benefits enable people to be less diligent about finding work. That may not be a big problem if people are out of the labor force for two months. But when politicians keep extending jobless benefits, you create permanent unemployment.

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In hopes of warning people about the dangers of Obamacare, I’ve shared horror stories from the United Kingdom about patients languishing on waiting lists and being left to die.

Now, thanks to whistleblowers, we have horror stories from America. The government-run system operated by the Veterans Administration has maintained secret waiting lists that have led to lots of delayed care and numerous deaths.

The Wall Street Journal opines on the scandal.

The real story of the VA scandal is the failure of what liberals have long hailed as the model of government health care. Don’t take our word for it. As recently as November 2011, Paul Krugman praised the VA as a triumph of “socialized medicine,” as he put it… What the egalitarians ignore, however, is that a government system contains its own “perverse incentives,” such as rationing that leads to treatment delays and preventable deaths, which the bureaucracy then tries to cover up. This isn’t an accident or one-time error. It is inherent in a system that allocates resources by political force rather than individual consumer choices. The VA is ObamaCare’s ultimate destination. …As in every government-run system, the only way the VA can provide universal, low-cost health care is by rationing. At the VA, this means long waiting lists to see doctors and get the “free” treatment veterans are entitled to.

Here is some of the evidence.

A retired doctor at a veterans hospital in Phoenix last month charged that staff concealed months-long delays for as many as 1,600 veterans, allegedly resulting in 40 preventable deaths. Excessive wait-times have also been reported in Fort Collins, Durham, Cheyenne, Austin and Chicago, among others. A new Inspector General report is all but certain to reaffirm the conclusions from its 2005, 2007 and 2012 reports. To wit, VA centers fudge their data. The VA has consistently boasted in its performance reviews that more than 90% of patients receive appointments within 14 days of their “desired date.” Yet according to the IG’s 2012 report, the measures “had no real value”… Maintaining long backlogs can help VA centers procure more funding. Like other government institutions, VA centers have a financial incentive to keep services in-house.

The key issue is whether policy makers draw the right conclusions.

Unfortunately, the WSJ almost surely is right that the statists will assert that this is simply a sign that the VA needs more money (just as they argue that the government’s education monopoly needs more money, even though we have decades of evidence that more money doesn’t work).

The inevitable liberal defense—it’s coming, we guarantee it—will be that Congress isn’t spending enough money. Yet as the nearby charts show, funding soared by 106% to $57.3 billion in 2013 from $27.7 billion in 2003. Yet over the same period the number of VA patients has increased by only 30%. …throwing more money at the VA hasn’t improved accountability, and neither have Congressional attempts at reform dating to the 1980s. …rearranging the deck chairs won’t fix the VA’s core problem, which is that a government-run system inevitably leads to wait lists and reduced access to quality care. The modern VA is a vestige of the flood of veterans coming out of World Wars I and II, but it is as unnecessary as a health-care system dedicated solely to police or firefighters. The best solution is to privatize the system.

The last couple of sentences are key. Why do we have a separate system of government-operated medical care for one segment of the population?

This isn’t to say that veterans shouldn’t receive care, particularly if they have medical conditions tied to their military service. National defense is a legitimate function of the federal government, and healthcare can be an appropriate form of deferred compensation.

But why isolate veterans in a substandard system? Just give them vouchers or some other form of subsidy, and then they can pick the care that is best for them.

But let’s look at the bright side. The scandal is already generating some very good political cartoons.

Here’s A.F. Branco making the obvious link between the VA mess and the looming Obamacare mess.

Glenn McCoy, meanwhile, warns us that some monsters are real.

Henry Payne also connects the dots between the VA and Obamacare.

And Robert Ariail does the same thing, using the train wreck theme.

Last but not least, Lisa Benson mocks the President, who never seems to realize bad things are happening in his Administration until he reads the newspapers.

P.S. Since the final cartoon also incorporated the IRS because of its scandalous actions to suppress political speech, this is an opportunity to share some good news. The tax-collection bureaucracy has backed down, at least temporarily, in its efforts to systematically regulate and constrain some of our First Amendment rights to participate in the political arena. Here are some blurbs from a story in the New York Times.

The Internal Revenue Service said Thursday that it has delayed and is revamping new rules intended to curb political activity by tax-exempt groups and that were proposed after the agency was accused last year of targeting Tea Party groups. The I.R.S. said it made the decision after receiving 150,000 comments — both positive and negative — about the proposal, the biggest public response to any proposed rule in its history. …“Today’s decision is a long overdue step in the right direction,” Senator Orrin Hatch, Republican of Utah, said in a statement. He said the proposed rules, as they now stood, “threatened free speech and the rights of all American citizens to participate in the democratic process.”

To be sure, delay is not the same as victory, and I have little doubt that the IRS – and its political masters in the White House – still would like to move forward with this scheme to distort the political process.

But at least the bureaucrats have been forced to temporarily retreat. Maybe we can do real tax reform at some point and have a permanent win over the IRS.

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What’s the worst economic development during Obama’s reign?

Some would say it’s the higher tax burden.

Some would say it’s the wasteful faux stimulus.

Others would say it’s the fiscal nightmare of Obamacare.

And others would say it’s the loss of millions of workers from the labor force.

I suppose there’s no objective way to pick the most ill-conceived policy, but if you think the biggest problem is either Obamacare or falling labor force participation, then I have some very grim news that will confirm your fears.

According to new research, it appears Obamacare will drive many more people from the labor force. More specifically, the Medicaid expansion will alter – in a very destructive way – the tradeoff between labor and leisure.

Researchers Laura Dague, Thomas DeLeire, and Lindsay Leininger argue in a National Bureau of Economic Research working paper that Medicaid enrollment will lead to significant and lasting reductions in employment among childless adults. …Dague and her colleagues conclude that if the Medicaid expansion enrolls about 21 million additional adults, anywhere from 511,000 to 2.2 million fewer people will be employed. Furthermore, they argue that the Medicaid expansion will knock almost a full point off of today’s labor force participation rate — or share of the civilian population that is working — a measure of economic health that is already at its lowest point since 1977. …This research provides strong evidence for the contention that enrolling in Medicaid traps people in poverty and makes it harder for them to make their way into the middle class. Furthermore, it links the Medicaid expansion to the weakening of our nation’s economy.

By way of background, Medicaid is the federal government’s healthcare entitlement for (supposedly) poor people, while Medicare is the entitlement for old people. And, as part of Obamacare, the eligibility rules for Medicaid were dramatically weakened.

But the new research cited above shows that if you give people “free” health care, that makes them less likely to work.

Particularly when you combine that freebie with food stamps, housing subsidies, welfare, and other handouts.

That’s obviously bad news for taxpayers, who bear the direct cost of a bloated welfare state.

Welfare CliffBut it’s also bad for the less fortunate. They get trapped in a web of dependency, both because handouts reduce the incentive to work (humorously depicted here and here), band also because they face very high implicit marginal tax rates if they actually try to escape government dependency.

But Obama and other leftists probably see this as a feature, not a bug.

After all, those who are lured into being dependent on government presumably have an incentive to vote for those who give them the most goodies.

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As you can imagine, there’s a lot to choose from in the contest for the most spectacular waste of tax dollars.

But the politicians in Oregon must really want the prize, because they managed to flush several hundred million dollars down a rat hole by putting together a state-run Obamacare website that has to be abandoned because it is so dysfunctional.

And if the Oregon website is so bad that it’s switching to the much-derided Washington Obamacare website, it must be a disaster of unparalleled dimensions!

Here are some excerpts from an AP report.

After months of trying to get its problem-plagued online health exchange to work, Oregon on Friday officially gave up on the state portal… Officials say fixing the existing system would be too costly at $78 million and would take too long. …Oregon’s exchange is seen as the worst in more than a dozen states that developed their own online health insurance marketplaces. The general public still can’t use Cover Oregon’s website to sign up for coverage in one sitting. Instead, Oregonians must use a time-consuming hybrid paper-online process to sign up for insurance — despite $134 million the state paid Oracle Corp. to build the online exchange. …In March, the federal Government Accountability Office announced an investigation of Oregon’s exchange, including looking at whether the federal government can reclaim grant money given to Cover Oregon if taxpayer funds were mismanaged.

Heck, it’s not just the GAO that’s investigating.

The FBI reportedly is probing the failed launch of Oregon’s ObamaCare insurance exchange, joining several other agencies looking into the multimillion-dollar program that was scrapped last month.  …the FBI has interviewed several people as part of the inquiry. The Oregonian reported that the bureau held a 90-minute meeting with a former Republican lawmaker who detailed potential wrongdoing — including suspicions that the state showed the feds a misleading demonstration to keep money flowing. …A U.S. House committee already is probing the Oregon debacle, as is the Government Accountability Office. The state received more than $300 million in federal grants to launch and operate the health care system. Much of what it has spent so far has gone to Oracle Corp.

But let’s be fair. Not all of the $300 million was squandered on the failed website.

The politicians also coughed up $3 million for this video, which presumably was supposed to lure people to the non-working website but probably just made people think Oregon is infested by patchouli-soaked deadbeats.

The video almost stands by itself as a form of left-wing self parody.

But what makes it especially amusing is that it generated this amusing segment on one of HBO’s programs.

Well done.

I don’t watch TV, so I don’t know if the guy who did this segment is on the right, the left, or somewhere in between.

But it would be nice to have a talk show host who is willing to go after all sides, unlike Colbert and Stewart who clearly bend over backwards to curry favor with the White House.

Anyhow, if you like videos that use humor to mock government-run healthcare, here are some good options.

*The head of the National Socialist Workers Party finds out he can’t keep his health plan.

*A creepy version of Uncle Sam wants to know about your sex life.

*Young people discover that they’re screwed by Obamacare.

*One of the biggest statists of the 20th century is angry that the Obamacare exchanges don’t work.

*A cartoon video showing how to buy coffee in an Obamacare world.

But never forget that this is a serious issue. Government has screwed up the healthcare system, yet politicians then use the mess they create to justify even more intervention.

The only effective solution is economic liberty.

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Sigh. Another day, another grim Obamacare update.

Actually, we have two updates on the never-ending disaster of government-run healthcare.

Our first story comes from the Washington Times, which reports that the company hired to fix the failed Obamacare website is way behind schedule and way over budget.

Fixing the Obamacare website to get it ready to handle a second round of enrollments will cost the federal government $121 million… The deal, which Accenture announced on its website Tuesday, costs more than the $93.7 million it took to build HealthCare.gov in the first place. It’s also $30 million more than the government projected for fixes just a few months ago… “There doesn’t seem to be a light at the end of the tunnel for Obamacare website expenses,” said House Oversight and Government Reform Committee Chairman Darrell E. Issa, California Republican.

I’m mystified, by the way, why taxpayers always have to cough up more money on these contracts.

If some company promises to do X in exchange for Y amount of money, shouldn’t that contract be binding?

Instead, this is just the latest chapter in the endless book of government cost overruns.

Our second story comes from the Washington Examiner, which reports that there are some big problems with Obama’s supposed success of bribing and coercing people into Obamacare.

…officials from President Obama down have touted 8 million Americans signing up for coverage through the program’s exchanges. But, among other things, they haven’t revealed how many of those individuals formally completed their enrollment by paying their premiums. …>what the committee heard back was that just 67 percent of individuals signing up for health insurance through the federal health exchange as of April 15 paid their first month’s premiums and actually completed enrollment.

Gee, if that’s a success, I’d hate to see a failure.

And the story also notes that the White House has been unable to trick sufficient numbers of young people into overpaying for healthcare. That’s very bad news for the insurance companies that put their trust in government.

In addition, just 25 percent of enrollees were between the ages of 18 and 34, according to the report. The administration had been aiming for roughly 40 percent of enrollees to come from this younger demographic to help offset the cost of providing coverage to older and sicker participants.

I guess this means stupid birth control ads weren’t enough to get young folks to flush away their dollars.

Geesh, no wonder I’m tempted to feel sorry for the President.

But let’s not forget that there actually are some people who are benefiting from Obamacare. It’s too bad, though, that we can’t all be corrupt DC insiders.

Let’s close with some cartoons from Townhall. Since we’ve already talked about the absurdity of counting coerced enrollments as an indicator of success, we may as well share a funny Glenn McCoy cartoon that makes the same point.

If you like this cartoon, Ted Cruz’s office put together a satirical – yet accurate – look at the “success” Obama has achieved. And this Eric Allie cartoon has the same message.

And here’s Henry Payne on Obama’s mission-accomplished moment. Reminds me of the low-expectations theme Lisa Benson used in another very amusing Obamacare cartoon.

Yup, the mission has been accomplished. A few million more Americans are now more dependent on government (which Mark Steyn explained was one of the left’s main goals) and the political class has made it harder for people to achieve the American dream.

P.S. Switching topics, I can’t resist sharing this Michael Ramirez cartoon.

That’s because it reminds me of this joke about what would happen if Noah tried to build the ark today.

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If Obamacare is a success, as the White House and establishment media would like us to believe, then why is the Obama Administration so anxious to hide the numbers?

After all, surely we haven’t set the bar so low that the Administration can claim victory simply because it has coerced and/or bribed a few million people into an Obamacare plan?

Here’s some of what the Wall Street Journal recently wrote about a very suspicious change in the way the government measures health insurance coverage.

Out of the blue, the Census Bureau has changed how it counts health insurance—at the precise moment when ObamaCare is roiling the insurance markets. Since 1987, the Current Population Survey, or CPS, has collected information on the health-insurance coverage status of Americans. …But this year the Census revamped the CPS household insurance questions, muddying comparisons between the pre- and post-ObamaCare numbers. …Robert Pear of the New York Times obtained internal Census documents that note that the new CPS system produces lower estimates of the uninsured as an artifact of how the questionnaire is structured. …For changes this substantial, standard procedure would be to ask the new and old questions concurrently. With an overlap, researchers could study changes over time using the long-term historical information without introducing bias, as well as interpret emerging developments with new tools. …this sudden change will undermine public trust in the supposedly nonpartisan institutions of government. Muddying a useful source of information about ObamaCare’s results is definitely unfortunate, but our guess is that it wasn’t coincidental.

Allow me to re-phrase that last sentence. The disingenuous change to the Census data on insurance is about as coincidental as the Administration’s efforts to re-define poverty and about as random as the IRS’s decision to only undermine and attack the political rights of Tea Party groups.

But there’s more to say about Obamacare than merely pointing out dishonest manipulation of government data.

We also have some very bad news for taxpayers.

Here’s what Chuck Blahous wrote for E21, starting with an observation of how the media wants to boost Obama.

Earlier this month there was tremendous press attention to new data indicating that enrollment in the Affordable Care Act (ACA)’s health insurance exchanges had surpassed 7 million. …much of the press, desperate to write something positive after months of reporting on website glitches and insurance plan cancellations, characterized the milestone as good political news for ACA supporters.

I’ve already explained that the supposed good news is actually bad news, but Chuck has some very important details on how taxpayers are especially vulnerable.

…what is unfolding before our eyes is a colossal fiscal disaster, poised to haunt legislators and taxpayers for decades to come.It is quite possible that the ACA is shaping up as the greatest act of fiscal irresponsibility ever committed by federal legislators. …the ACA is a commitment to permanently subsidize comprehensive health insurance for millions who could not otherwise afford it, which the federal government has no viable plan to finance. Moreover, experience shows that it is very difficult to scale back such spending once large numbers of Americans have been made dependent.

The article includes a graph that compares the early costs of major entitlement programs.

As you can see, Obamacare’s fiscal burden is second only to Medicare.

Chuck then explains that the costs in the early years for new entitlements are just a drop in the bucket.

…after these initial rollouts, Social Security, Medicare and Medicaid costs grew far faster than originally envisioned, sometimes due to subsequent legislation, sometimes due to unanticipated healthcare cost growth. It wouldn’t be surprising for either factor to affect the ACA, which would be even more problematic… We do know that the ACA’s financing mechanisms are already falling apart. The ACA’s much-reported website glitches and enrollment shortfalls had actually suggested an upside; if enrollment continued to fall short of previous projections, it was possible that some of the fiscal damage could be contained. But if enrollment has picked up as the law’s financing mechanisms disintegrate, the fiscal damage will be worse than anticipated.

Needless to say, this is hardly shocking news.

Entitlements inevitably become fiscal swamps and the costs almost always are far higher than the early estimates.

Here’s an oldie-but-goodie video I narrated on the topic of ever-climbing taxpayer burdens for health entitlements.

I’d like to claim that this video proves I have great insight and brilliance, but that would be akin to claiming superior ability for predicting that Chicago is warmer in July than in February.

P.S. Since we’re on the topic of government-run healthcare, I recently wrote about Vermont’s plans for a single-payer system.

Except I didn’t really write about the Green Mountain State’s experiment with socialism. Instead, I used the opportunity to discuss third-party payer, which is America’s real government-created healthcare problem.

Now it’s time to say something specifically about what’s happening in Vermont. Though, to be more accurate, all I really need to do is quote Megan McArdle’s column from Bloomberg.

Of the plans that states have hatched for the Affordable Care Act, none has been bolder than that of Vermont, which wants to implement a single-payer health-care system, along the lines of what you might find in Britain or Canada.

Except Vermont politicians haven’t bothered to find a way to pay for this boondoggle.

Vermont needs to find some way to pay for it. Although Act 48 required Vermont to create a single-payer system by 2017, the state hasn’t drafted a bill spelling out how to raise the additional $1.6 billion a year (based on the state’s estimate) the system needs. The state collected only $2.7 billion in tax revenue in fiscal year 2012, so that’s a vexingly large sum to scrape together. …Paying for this program would likely make Vermont the highest-taxed state in the nation, by quite a lot.

Megan thinks the cost would so high that Vermont will abandon the scheme. And she has a very optimistic assessment on what this means nationally.

…this is going to be expensive. So expensive that I doubt Vermont is actually going to go forward with it. This should be instructive for those who hope — or fear — that Obamacare has all been an elaborate preliminary to a nationwide single-payer system. It isn’t. The politics are impossible, and even if they weren’t, the financing would be unthinkable.

I very much hope she’s right, and I’ve actually expressed optimism that Obamacare has changed (in a favorable way) the political dynamics on the healthcare issue.

But I’m still not quite as hopeful as Megan.

Leftists are too clever to make an all-or-nothing push for single-payer on the national level. They know that’s too risky.

But they have been quite adept at incremental changes to expand the role of government and undermine markets.

And if they ever get a new source of revenue, like an energy tax, financial transactions tax, or a value-added tax, then they’ll be able to push for even more statism.

P.P.S. If you want some fun reading about single-payer, check out these horror stories about the system in the United Kingdom.

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The statists are claiming Obamacare is now a success.

Needless to say, I think this is a laughable assertion. Indeed, I shared a very clever graphic from Ted Cruz to help explain why it’s hardly a big achievement to destabilize the insurance market and then coerce and/or bribe some people into using Obamacare.

More recently, I debunked the claim that government-caused inefficiency in the current healthcare system somehow is an argument for a single-payer system.

But I’m getting tired of kicking the dead horse of government-run healthcare. As time passes, it will become increasingly apparent that Obamacare is making things worse rather than better.

So I’d rather enjoy some laughs by sharing some Obamacare cartoons.

Let’s start with this Nate Beeler gem about Obama “succeeding” after the goalposts were moved.

Reminds me of this funny cartoon from Gary Varvel.

And speaking of Varvel, he doesn’t seem to think that Obamacare will become more popular over time.

It’s amazing that some people think this botched system is a success. Let’s call it the soft bigotry of low expectations.

As Lisa Benson illustrates.

And if you agree that Obama is being graded on a curve by a biased press, the Glenn McCoy cartoon in this post also will make you chuckle.

And since I just mentioned Glenn McCoy, here’s his contribution today. Same theme as Varvel, and just as funny.

Last but not least, we have the award-winning Michael Ramirez.

I’m surprised, by the way, that I don’t see many cartoons using the Titanic analogy. Perhaps my memory is fading, but I think this cartoon from Eric Allie is the only other time that a ship heading toward an iceberg has appeared on my blog.

P.S. Since I’m a big advocate of reducing the burden of government spending, this chart from Mercatus is definitely worth sharing.

It shows the huge amount of fraud and waste in many government programs.

But remember that we don’t want to shrink the federal government because of waste, fraud, and abuse.

We want Washington to be smaller because we respect the Constitution and think it’s wrong to trap people in government dependency.

And, needless to say, the easiest way to make matters worse is to acquiesce to higher taxes. That would give politicians an excuse to spend even more money and surely kill any chances of meaningful entitlement reform.

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The new leftist website, Vox, has an article by Sarah Kliff on Vermont’s experiment with a single-payer healthcare system.

But I don’t really have much to say about what’s happening in the Green Mountain State, other than to declare that I much prefer healthcare experiments to occur at the state level. Indeed, we should reform Medicaid and Medicare and also fix the tax code so that Washington has no role in healthcare. Then the states can experiment and compete to see what works best.

But that’s a topic for another day. The real reason I cite Kliff’s article is that Ezra Klein tweeted this image from the article and stated that is was “The case for single payer, in one graphic.”

Vox Third-Party Payer

I don’t know if the numbers in the graphic are correct, but I have no reason to think they’re wrong.

Regardless, I certainly don’t disagree with the notion that our healthcare system is absurdly expensive and ridiculously inefficient.

In other words, the folks at Vox have accurately diagnosed a problem.

However, do these flaws prove “the case for single payer”?

It’s probably true that “single payer” has a lower monetary cost than the system we have today (assuming you don’t include the cost of substandard care and denied treatment), but that doesn’t mean it’s the ideal system.

Indeed, there is a better way to deal with the waste, inefficiency, and bureaucracy of the current system. third-party-2The answer is free markets and genuine insurance, both of which would help address the real problem of third-party payer.

Third-party payer, for those who are new to the healthcare field, is what you get when somebody other than the consumer picks up the tab. And because of government intervention, that’s what happens with about 90 percent of healthcare spending in the United States. Here’s what John Goodman had to say about this problem.

Almost everyone believes there is an enormous amount of waste and inefficiency in health care. But why is that? In a normal market, wherever there is waste, entrepreneurs are likely to be in hot pursuit — figuring out ways to profit from its elimination by cost-reducing, quality-enhancing innovations. Why isn’t this happening in health care? As it turns out, there is a lot of innovation here. But all too often, it’s the wrong kind. There has been an enormous amount of innovation in the medical marketplace regarding the organization and financing of care. And wherever health insurers are paying the bills (almost 90 percent of the market) it has been of two forms: (1) helping the supply side of the market maximize against third-party reimbursement formulas, or (2) helping the third-party payers minimize what they pay out. Of course, these developments have only a tangential relationship to the quality of care patients receive or its efficient delivery.

And here’s some analysis from a study published by the National Bureau of Economic Research.

In most industries, higher quality is associated with higher prices. That is not true in medical care, however, largely because of the public sector. …Every analysis of medical care that has been done highlights the significant waste of resources in providing care. Consider a few examples: one study found that physicians spent on average of 142 hours annually interacting with health plans, at an estimated cost to practices of $68,274 per physician (Casalino et al., 2009). Another study found that 35 percent of nurses’ time in medical/surgical units of hospitals was spent on documentation (Hendrich et al., 2008); patient care was far smaller. …In retail trade, the customer is the individual shopper. If Wal-Mart finds a way to save money, it can pass that along to consumers directly. In health care, in contrast, the situation is more complex, since patients do not pay much of the bill out-of-pocket. Rather, costs are passed from providers to insurers to employers… About one-third of medical spending is not associated with improved outcomes, significantly cutting the efficiency of the medical system and leading to enormous adverse effects.

Here’s my humble contribution to the discussion, starting with an explanation of how special tax breaks deserves some of the blame.

…how many people realize that this bureaucratic process is the result of government interference? For all intents and purposes, social engineering in the tax code created this mess. Specifically, most of us get some of our compensation in the form of health insurance policies from our employers. And because that type of income is exempt from taxation, this encourages so-called Cadillac health plans. …We have replaced (or at least agumented) insurance with pre-paid health care.

I then explain why this isn’t a good idea.

Insurance is supposed to be for unforseen major expenses, such as a heart attack. But our gold-plated health plans now mean we use insurance for routine medical costs. This means, of course, we have the paperwork issues…, but that’s just a small part of the problem. Even more problematic, our pre-paid health care system is somewhat akin to going to an all-you-can-eat restaurant. We have an incentive to over-consume since we’ve already paid. Except this analogy is insufficient. When we go to all-you-can-eat restaurants, at least we know we’re paying a certain amount of money for an unlimited amount of food. Many Americans, by contrast, have no idea how much of their compensation is being diverted to purchase health plans. Last but not least, we need to consider how this messed-up approach causes inefficiency and higher costs. We consumers don’t feel any need to be careful shoppers since we perceive that our health care is being paid by someone else. Should we be surprised, then, that normal market forces don’t seem to be working?

And I ask readers to think about the damage this approach would cause if applied in other sectors of the economy.

Imagine if auto insurance worked this way? Or homeowner’s insurance? Would it make sense to file insurance forms to get an oil change? Or to buy a new couch? That sounds crazy. The system would be needlessly bureaucratic, and costs would rise because we would act like we were spending other people’s money.  But that’s what would probably happen if government intervened in the same way it does in the health-care sector.

This is probably more than most people care to read, but it underscores the point that we don’t have a free market in health care. Not now, and not before Obamacare.

So the folks at Vox are right about the current system being a mess. But I disagree with the notion that more government is a way to solve problems created by government.

The real answer, as I’ve already noted, is to get Washington out of health care. This means entitlement reform AND tax reform.

And if you want to get a flavor of why this would generate better results, watch this Reason TV video and read these stories from Maine and North Carolina.

So how do we get there? Repealing Obamacare is a necessary but far from sufficient condition. Cato’s Adjunct Scholar, John Cochrane, has a nice roadmap of what’s really needed.

Though Vermont certainly is welcome to travel in the other direction. It’s always good to have bad examples and I wouldn’t be surprised if the “Moocher State” played that role.

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I’ve observed, reported, mocked, written, and explained that Obamacare is a cluster-you-know-what.

So I’m rather bemused and frustrated by the latest pro-Obamacare spin that the law is a “success” because there are now 7 million people who have picked a plan.

There are lots of reasons for normal people to have a what-the-expletive-deleted response to this declaration of victory. For instance:

The goal of Obamacare was to insure the uninsured, yet that number has barely budged, so why is the Administration allowed to move the goalposts to something far more modest?

Obamacare also was supposed to lower premiums by $2500 and allow everyone to keep their plans and their preferred providers, so what happened to those goals?

And why should we even believe the White House spin when we have no idea whether people who have picked a plan have actually paid for that plan?

Moreover, what’s so impressive about getting some people to sign up for plans when they can get something that’s subsidized by taxpayers or other consumers?

But here’s an image put together by Senator Cruz’s office that may be the best – and certainly most amusing – look at the Administration’s supposed “achievement.”

Obamacare Broken WIndows

Amen. People are being both coerced and bribed to sign up for Obamacare, in many cases after the law forced the cancellation of plans that they liked.

So why are we supposed to applaud the fact that a small fraction of the population has chosen the only possible option?

That’s the same mentality that allows politicians to brag about our “voluntary” tax system. As if any of us send our hard-earned money to the crooks in Washington for any reason other than the fact that otherwise we would get arrested.

P.S. Since I commented on our acquiescence to the IRS and our “voluntary” tax system, I will admit thatWashington Tax I’m amused and chagrined by this poster. It’s minimized since it uses a sometimes-inappropriate synonym for wimps.

P.P.S. Since this post was about the “broken window” theory of Obamacare, let’s make sure to give ultimate credit to Bastiat, who came up with the original broken windows analogy (as captured by this cartoon mocking Keynesian economics).

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I spoke yesterday to the Memphis Economics Club about America’s looming fiscal crisis, and I did my usual song-and-dance routine about potential Greek-style chaos in the absence of genuine entitlement reform.

But I confess I was stumped when, after the speech, someone from the audience asked me what was going on with Obamacare.

I can pontificate at length about why government intervention has screwed up our healthcare system, and I can wax poetic about the need to restore market forces both with tax reform and with significant changes to Medicare and Medicaid.

But I was asked to speculate about the Obama Administration’s strategy, and I didn’t know what to say other than they’re in panic mode and they’re arbitrarily changing or ignoring the law based on short-term political imperatives.

To get an idea what I’m talking about, here’s what the Wall Street Journal opined.

Liberals say they believe in a living Constitution, and apparently they think the Affordable Care Act is a living document too. Amid one more last-minute regulatory delay, number 38 at last count, the mandate forcing nuns to sponsor birth control is more or less the only part of ObamaCare that is still intact. On Tuesday evening, the Health and Human Services Department announced that the six-month open enrollment period for ObamaCare insurance that began in October 2013 and was supposed to end on the last day of March would be extended indefinitely. …The expanded enrollment period was slipped into a legal crevice related to “exceptional circumstances” signing up such as natural disasters including “an earthquake, massive flooding, or hurricane.” …By the way, as part of this delay HHS will make no attempt to verify real enrollment problems and will instead rely on what the agency calls “the honor system.” No one will be asked why they need an extension. …This pattern of dishonesty and political improvisation has come to define ObamaCare, which is the law for some people, sometimes, except when it isn’t. Nothing HHS claims can be trusted, and little that the President of the United States promised about his signature law has turned out to be true.

Well, I must confess that I (sort of) agree with part of what the White House is doing. Obamacare has been a natural disaster.

Building on this theme, Abby McCloskey and Tom Miller have a column in the WSJ with a blunt message about the mandate.

The individual mandate has failed. After a last-ditch effort with President Obama himself encouraging “young invincibles” to sign up before the deadline, …the White House announced that people who applied for coverage on the federal health-insurance exchange will have until mid-April to finish the paperwork. …The individual mandate had the least effect on those it was supposed to encourage to gain coverage—the uninsured. … Goldman Sachs analysts estimate that about one million uninsured Americans will sign up for the ObamaCare exchanges before open enrollment ends. For perspective, that’s about 2% of the 48 million uninsured. A larger share of the exchange enrollees is likely coming from people whose previous coverage was canceled (due to other ObamaCare rules) or those who found a somewhat better deal for exchange coverage (due to much more generous low-income subsidies).

Wow, just 2 percent of the uninsured. That’s a high failure rate, even by government standards.

At this stage, the only good response is to laugh.

So let’s enjoy some Obamacare cartoons, starting with this gem from Glenn McCoy.

Reminds me of my quip about Syria and Obamacare, which even got noticed by Rand Paul!

Here’s Chip Bok having some fun with the government’s disgusting enforcement mechanism.

Brings to mind this flying monkeys cartoon.

Here’s McCoy again, this time mocking the left’s claim that we should be happy about the people who have lost their jobs because of Obamacare.

This Michael Ramirez cartoon is a classic. I especially love the eyes (a talent that Ramirez often exploits).

Needless to say, the White House’s disregard of its own law is largely driven by a desire to avoid election-day backlash, which is why this Gary Varvel cartoon is a good way to close today’s collection.

P.S. If you have a strange yearning to watch me predict the collapse of the western world (basically the same topic of my speech in Memphis), here’s a recording of my recent speech to the Center for Political Studies in Denmark.

And if you get bored with more than 60 minutes of my supposed wisdom, you can skip the rest of the video and look at the real highlight of my trip to Copenhagen, the “welfare state party ship.”

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I wish there was a magic wand that somebody could wave and all of us would have more money. Or maybe Santa Claus could play that role, or some version of the Tooth Fairy.

And if that magic person only had limited powers, I would want more money specifically for those with modest incomes.

Unfortunately, we don’t live in this fantasy world. As a society, we can’t enjoy output unless we first go through the toil and trouble of working, saving, and investing.

Heck, even some leftists have admitted that you can’t redistribute unless somebody first produces.

But that doesn’t stop some politicians from practicing free-lunch economics. They tell us, for instance, that government can impose a higher minimum wage with no job losses.

And now the Obama Administration is claiming that it can expand overtime eligibility rules without any adverse impact of base pay, hours, or employment.

In my role as the designated bad guy who has to inform people there’s no magic wand or Santa Claus, here’s what I told the New York Times.

“There’s no such thing as a free lunch,” said Daniel Mitchell, a senior fellow with the Cato Institute, who warned that employers might cut pay or use fewer workers. “If they push through something to make a certain class of workers more expensive, something will happen to adjust.”

I also shared my putative wisdom with the International Business Times, underscoring the principle that government shouldn’t intervene in labor markets.

“Our view is pretty straightforward,” Daniel Mitchell, a fellow at the libertarian CATO Institute in Washington D.C., told International Business Times by phone on Wednesday. “From a philosophical perspective the government shouldn’t get involved with labor contacts between two consenting adults. You can’t impose more labor costs and have them magically disappear.”

I also pontificated on this issue for CBS News radio, but the “highlight” of the day was having to dispel economic myths in a series of TV interviews.

In this debate for Nightly Business Report, I had to explain that faster growth was the only effective way to improve living standards, but my opponent somehow thought we should go back to the glorious 1970s.

And in this interview with Ali Velshi on AJ, I’m stunned that he blames today’s weak job market on free markets.

Last but not least, I made what will probably be my last appearance on Larry Kudlow’s great show on CNBC and used the opportunity to say we shouldn’t copy Europe’s failed welfare states.

Larry is retiring at the end of the month and he will be sorely missed.

P.S. Lots of people are suffering because of Obamacare, especially taxpayers and patients.

But since our main topic today is jobs, let’s not forget that millions of workers are being screwed over by this bad law. They’re losing jobs, losing hours, and/or losing take-home pay thanks to Obama’s ham-fisted intervention.

If you like gallows humor, Reason TV addresses this issue in a new video. Enjoy.

And if you like Obamacare parody videos, here are the other ones that will produce some smiles and laughs.

*The head of the National Socialist Workers Party finds out he can’t keep his health plan.

Varvel Obamacare Ambulance*A creepy version of Uncle Sam wants to know about your sex life.

*Young people discover that they’re screwed by Obamacare.

*One of the biggest statists of the 20th century is angry that the Obamacare exchanges don’t work.

*A consumer tries to buy Obama-coffee.

By the way, if you’re concerned about America’s fiscal future, here’s a video on Obamacare that definitely is not funny.

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Obamacare may not be good news for taxpayers or consumers, but let’s look at the bright side. At least the law has generated some superb political humor, including funny videos.

*The head of the National Socialist Workers Party finds out he can’t keep his health plan.

*A creepy version of Uncle Sam wants to know about your sex life.

*Young people discover that they’re screwed by Obamacare.

*One of the biggest statists of the 20th century is angry that the Obamacare exchanges don’t work.

We have another addition to this amusing collection. This cartoon video employs lots of snark to expose the illogical underpinnings of Obamacare.

My one complaint with this video, though, is that it merely scratches the surface.

Yes, Obamacare is a cluster-you-know-what, but there are many other government programs and policies that cause inefficiency and high costs

Here’s some of what I wrote on this topic back in 2009, starting with an explanation of how government intervention in the tax code has distorted the insurance market and turned it into an inefficient form of pre-paid healthcare.

Insurance is supposed to be for unforseen major expenses, such as a heart attack. But our gold-plated health plans now mean we use insurance for routine medical costs. This means, of course, we have the paperwork issues discussed above, but that’s just a small part of the problem. Even more problematic, our pre-paid health care system is somewhat akin to going to an all-you-can-eat restaurant. We have an incentive to over-consume since we’ve already paid. Except this analogy is insufficient. When we go to all-you-can-eat restaurants, at least we know we’re paying a certain amount of money for an unlimited amount of food. Many Americans, by contrast, have no idea how much of their compensation is being diverted to purchase health plans.

I then ask readers to contemplate what car insurance would look like if government also intervened in that market. Or to think about the consequences if insurance for houses also was subject to government-caused distortion.

Imagine if auto insurance worked this way? Or homeowner’s insurance? Would it make sense to file insurance forms to get an oil change? Or to buy a new couch? That sounds crazy. The system would be needlessly bureaucratic, and costs would rise because we would act like we were spending other people’s money.  But that’s what would probably happen if government intervened in the same way it does in the health-care sector.

The best way of fixing the mess in health insurance, for what it’s worth, is a flat tax. This is because the “healthcare exclusion” is repealed and compensation in the form of fringe benefits is taxed at the same (low) rate as other forms of income.

This presumably will end the incentive for gold-plated Cadillac health plans since workers – once the playing field is level – will prefer a greater amount cash compensation. So health plans gradually will be scaled back so they offer genuine insurance.

This video from the Center for Freedom and Prosperity offers a good explanation.

You also should watch this Reason TV video that shows a real-world example of how prices fall and the system is more efficient when consumers are in charge of healthcare.

For the same reason, I also recommend this story from North Carolina, as well as this example of capitalism from Maine.

It’s also worth noting that there are a few tiny parts of our healthcare system where markets are allowed to operate and consumers are in charge of spending their own money, and in these areas – such as cosmetic surgery, laser eye surgery, and abortion (regardless of whether you approve or disapprove) – we find stable prices and rising quality.

Free markets work…when they’re allowed to function.

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There’s an old joke that a quandary exists when your mother-in-law drives off a cliff in your new Porsche. Are you more happy about losing her or more unhappy about losing your sports car?

I’m not clever enough to come up with humorous quandaries, but I have shared policy quandaries.

I’ve asked, for instance, whether libertarians might have second thoughts about an end to drug prohibition if the result was bigger government.

And I speculated whether leftists or social conservatives would be more upset about a gay man legally adopting his lover in order to minimize Pennsylvania’s death tax.

And if you like this kind of thing, I have more than one dozen additional examples of these types of quandaries.

I have something else to add to the list, and it’s near and dear to my heart because I like to think that I’m among the biggest critics of both Obamacare and bureaucracy.

But what happens if there’s an issue pitting Obamacare and bureaucrats against each other? Would I be able to pick sides?

This isn’t theoretical speculation. Check out these excerpts from a recent report in the New York Times.

Cities, counties, public schools and community colleges around the country have limited or reduced the work hours of part-time employees to avoid having to provide them with health insurance under the Affordable Care Act, state and local officials say. …Even after the administration said this month that it would ease coverage requirements for larger employers, public employers generally said they were keeping the restrictions on work hours because their obligation to provide health insurance, starting in 2015, would be based on hours worked by employees this year. Among those whose hours have been restricted in recent months are police dispatchers, prison guards, substitute teachers, bus drivers, athletic coaches, school custodians, cafeteria workers and part-time professors.

To be honest, I don’t know how to react to this.

Am I glad that we have more evidence that Obamacare is hurting people and reducing labor supply?

That’s obviously the case, and it’s an embarrassment to the Obama Administration.

For months, Obama administration officials have played down reports that employers were limiting workers’ hours. But in a report this month, the Congressional Budget Office said the Affordable Care Act could lead to a reduction in the number of hours worked, relative to what would otherwise occur. Jason Furman, the chairman of the president’s Council of Economic Advisers, reaffirmed the White House view that the law was “good for wages and incomes and for the economy over all.” …The Obama administration says “there is absolutely no evidence” of any job loss related to the Affordable Care Act.

One suspects, by the way, that the Obama White House must have a very strange definition of “job loss.”

They’ll only confess culpability, one imagines, if Obama personally delivers the pink slip or HHS Secretary Sebilius personally orders the loss of hours.

But let’s get back to our main point. I was wondering whether I should be happy to have this additional evidence against Obamacare.

But perhaps I should be glad instead that local governments are squeezing the hours and benefits of the bureaucracy, particularly since the alternative would be higher taxes.

Check out these passages from the NYT’s story. Isn’t it wonderful to read about sulking bureaucrats?

William J. Lipkin, an adjunct professor of American history and political science at Union County College in Cranford, N.J., said: “The Affordable Care Act, rather than making health care affordable for adjunct faculty members, is making it more unaffordable. Colleges are not giving us access to health care, and our hours are being cut, which means our income is being cut. We are losing on both ends.” The American Federation of Teachers lists on its website three dozen public colleges and universities in 15 states that it says have restricted the work assignments of adjunct or part-time faculty members to avoid the cost of providing health insurance.

Some people love the smell of napalm in the morning. Not me. I prefer the whining of angry and resentful bureaucrats. Maybe (as I’ve suggested before) Obamacare isn’t all bad after all.

But 98 percent bad is still bad. The law is a trainwreck and needs to be repealed.

P.S. On another topic, is anyone surprised that the IRS doesn’t like obeying the laws it enforces against the rest of us.

Treasury’s inspector general for tax administration found that the expenses for nine IRS executives — out of 31 whose travel was examined — were wrongly deemed to be nontaxable, on average reimbursements of $51,420. Those executives traveled an average of 140.5 days combined in fiscal 2011 and 2012, the two years examined by the inspector general. The IRS had at least 350 executives in each of those years, meaning the inspector general report covers just a fraction of the agency’s top officials.

Maybe we should save the IRS bureaucrats from potential legal trouble by scrapping the internal revenue code and replacing it with a simple and fair flat tax.

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Just like Clark Kent could change into Superman, President Obama has a remarkable ability to change into King Obama.

Tired of that pesky Constitution? Irritated that the Founding Fathers created a system based on separation of powers? Well, there’s a superhero to overcome those obstacles.

Faster than a last-minute Obamacare reg! More powerful than the Tenth Amendment! Able to leap the enumerated powers clause in a single bound! (“Look! Up in the sky!” “It’s a bird!” “It’s a plane!” “It’s SuperPresident!”)… Yes, it’s SuperPresident … strange visitor from corrupt Chicago, who came to Washington with powers and hubris far beyond those of the Founding Fathers! SuperPresident … who can change the course of the Constitution, bend the Bill of Rights in his bare hands, and who, disguised as Barack Obama, mild-mannered uniter who stops the rise of the oceans and heals the planet, fights a never-ending battle for redistribution, statism, and the French way!

And what has our superhero done lately?

He’s arbitrarily and unilaterally changed the Obamacare law.

Since it’s the 18th time he’s done that, this may not seem very newsworthy. But the latest change is particularly interesting because the President is ordering certain companies to maintain their existing payrolls.

Check out this blurb from a Fox News story.

Obama officials made clear in a press briefing that firms would not be allowed to lay off workers to get into the preferred class of those businesses with 50 to 99 employees. …Firms will be required to certify to the IRS–under penalty of perjury–that ObamaCare was not a motivating factor in their staffing decisions. To avoid ObamaCare costs you must swear that you are not trying to avoid ObamaCare costs.

When this story first came to my attention, thanks to James Taranto, something seemed eerily familiar.

Where had I read about a government ordering companies to freeze in place their employment levels.

I went through all the usual suspects in my mind. Was it Argentina? Was it France? How about California?

And then it struck me that life was imitating fiction. Obama’s policy is so bad that it resembles a scene in an Ayn Rand novel.

In her most famous work, Atlas Shrugged, the political elite try to halt the economy’s decline by imposing Directive 10-289, which seeks to freeze in place all factors of production – including the number of workers at each firm.

All workers, wage earners and employees of any kind whatsoever shall henceforth be attached to their jobs and shall not leave nor be dismissed nor change employment.

Obama’s latest diktat doesn’t go nearly as far as Directive 10-289, thankfully, but it’s more than a bit disturbing that we’ve gotten to the point where a bunch of hacks in Washington think that they have the right to tell private companies how many people they’re allowed to have on the payroll.

But I guess we shouldn’t be surprised.

This isn’t the first time that the real-world unfolding of Obamacare has resembled a scene from Atlas Shrugged. Back in 2011, I wrote about how the waiver process for escaping the law was almost identical to the corrupt system of unfreezing railroad bonds in the book.

P.S. While searching online to get the details of Directive 10-289, I saw that John Sexton, writing for Breitbart, beat me to the punch.

P.P.S. If you prefer to get anti-statism satire from Superman instead of Atlas Shrugged, you may enjoy this cartoon.

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We’ve reached the stage where Obamacare is the punchline to a bad joke.

The law has been a disaster, both for the economy and for the Democratic Party. Not that we should be surprised. You don’t get better healthcare with a poisonous recipe of higher taxes, added government spending, and more intervention.

With any luck, Obamacare will be a textbook example of why we should never again give power to a bunch of political hacks and dreamy-eyed central planners.

Because when they try to buy votes and create more dependency with Rube Goldberg schemes, the results are…well, we see the cluster-you-know-what of Obamacare unfolding before our eyes.

Not that anyone should be surprised. Remember what happened when politicians decided government would make housing more affordable?

And remember what happened when politicians decided government should extend American tax law into other nations?

Simply stated, grandiose plans for expanded government don’t end well.

But this isn’t a normal public policy issue.

The Obama Administration has just announced that it arbitrarily will be ignoring one of the requirements in the law, and this is the executive branch’s 18th unilateral change to Obamacare.

We have to ask whether the American political system is being corrupted by a White House that doesn’t feel bound by the rule of law.

To put it mildly, the Wall Street Journal is not impressed.

…the law increasingly means whatever President Obama says it does on any given day. His latest lawless rewrite arrived on Monday as the White House decided to delay the law’s employer mandate for another year and in some cases maybe forever. …last summer the Treasury offered a year-long delay until 2015 despite having no statutory authorization. …Now the new delay arrives amid a furious debate about jobs after a damning Congressional Budget Office report last week, only this time with liberals celebrating ObamaCare’s supposed benefits to the job market. …Oh, and the Treasury also notes that, “As these limited transition rules take effect, we will consider whether it is necessary to further extend any of them beyond 2015.” So the law may be suspended indefinitely if the White House feels like it. …The text of the Affordable Care Act specifically says when the mandate must take effect—”after December 31, 2013″—and does not give the White House the authority to change the terms. Changing an unambiguous statutory mandate requires the approval of Congress, but then this President has often decided the law is whatever he says it is.

I admit that part of me wants Obamacare delayed as much as possible.

After all, even more jobs will be lost if the employer mandate is properly enforced, and that would add to an already anemic employment situation.

But America isn’t Argentina, or some other Banana Republic, where the law is based on the arbitrary and capricious decisions of some political thug.

Political Cartoons by Lisa Benson

At least it shouldn’t be.

If the President wants to change the law, he should propose legislation and send it to Congress.

But it’s obvious what that isn’t happening. The White House understands that it would be forced to make concessions to get the changes it wants.

So why not make a mockery of the rule of law instead?

As nicely illustrated by the Lisa Benson cartoon.

This is such a depressing topic that we need to close this post with some cartoons about the failure of Obamacare.

We’ll start with Henry Payne, who uses an Olympics theme.

Political Cartoons by Henry Payne

Gary Varvel has some fun mocking the left about being “liberated” from the drudgery of employment.

Political Cartoons by Gary Varvel

Fans of James Bond my remember a certain scene from Goldfinger, and Glenn McCoy recreates that scene.

Political Cartoons by Glenn McCoy

Steven Breen looks at the law’s impact on jobs.

Political Cartoons by Steve Breen

And Robert Gorrell makes a nice point about labor supply incentives.

Political Cartoons by Bob Gorrell

These are all amusing cartoons, but let’s not forget that Obama will get the last laugh if the final result is more dependency and a permanent expansion of the welfare state.

At some point, we need to restore genuine market forces and get a lower-cost, more-efficient healthcare system.

And that means not only repealing Obamacare, but also addressing all the other programs and policies which have caused the third-party payer crisis.

P.S. Here’s some good news showing we’re not quite at the same level as Argentina.

You may remember what I wrote back in 2012 about the IRS seeking to impose new restrictions on the tax preparation industry.

This was a power grab with no legal justification. Indeed, it seems to have been an example of crony capitalism since H&R Block wanted to shut down low-cost competitors.

That was the bad news. The good news is that the Institute for Justice sued to block the IRS/H&R block scheme.

And the great news is that the D.C. Circuit Court of Appeals just drop-kicked the IRS thugs into a dumpster.

Here’s part of the Court’s decision, as reported in the Washington Post.

It might be that allowing the IRS to regulate tax-return preparers more stringently would be wise as a policy matter. But that is a decision for Congress and the President to make if they wish by enacting new legislation…. The IRS may not unilaterally expand its authority.

Let’s keep our fingers crossed that the Courts do the same – by defending the rule of law – on future Obamacare decisions.

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I asked back in September whether all the bad news about Obamacare meant it was time to feel sorry for President Obama and other statists.

Some people apparently didn’t realize I was being sarcastic, so I got some negative feedback.

I’ve since learned to be more careful with my language, and subsequent columns about Obamacare developments have used more direct rhetoric such as Obamacare disaster, Obamacare Schadenfreude, and the continuing Obamacare disaster.

Well, I don’t even know if there are words that can describe the latest bit of bad news about Obamacare. The Congressional Budget Office, which usually carries water for those who favor bigger government, has been forced to acknowledge that Obamacare is going to wreak havoc with America’s job market.

Today’s Wall Street Journal has a column on the topic, giving considerable and deserved credit to Casey Mulligan, an economics professor at the University of Chicago who has produced first-rate research on implicit marginal tax rates and labor supply incentives.

Rarely are political tempers so raw over an 11-page appendix to a dense budget projection for the next decade. But then the CBO—Congress’s official fiscal scorekeeper, widely revered by Democrats and Republicans alike as the gold standard of economic analysis—reported that by 2024 the equivalent of 2.5 million Americans who were otherwise willing and able to work before ObamaCare will work less or not at all as a result of ObamaCare. As the CBO admits, that’s a “substantially larger” and “considerably higher” subtraction to the labor force than the mere 800,000 the budget office estimated in 2010. The overall level of labor will fall by 1.5% to 2% over the decade, the CBO figures. Mr. Mulligan’s empirical research puts the best estimate of the contraction at 3%. The CBO still has some of the economics wrong, he said in a phone interview Thursday, “but, boy, it’s a lot better to be off by a factor of two than a factor of six.”

That’s a lot of lost jobs, which is going to translate into lower levels of economic output and reduced living standards.

By the way, I can’t resist quibbling with the assertion that CBO is “widely revered” and that it’s the “gold standard of economic analysis.”

Utter nonsense. CBO helped grease the skids for Obamacare by producing biased numbers when the law was being debated.

And that’s just the tip of the iceberg. CBO also produces “analysis” which implies that you maximize growth with 100 percent tax rates. And the bureaucrats at CBO also are reflexive advocates of Keynesian economics, which is why they claimed that Obama’s so-called stimulus was creating jobs even though unemployment was rising.

So you can understand why I don’t like citing CBO numbers, even when they happen to support my position.

As far as I’m concerned, the bureaucracy should be shut down. And if Republicans win the Senate in the 2014 elections, it will be interesting to see whether they have the brains to at least reform CBO to limit future damage.

But I’ve digressed long enough. Let’s get back to the WSJ column about the latest Obamacare disaster.

Our friends on the left are in a very tough position.

…liberals have turned to claiming that ObamaCare’s missing workers will be a gift to society. Since employers aren’t cutting jobs per se through layoffs or hourly take-backs, people are merely choosing rationally to supply less labor. Thanks to ObamaCare, we’re told, Americans can finally quit the salt mines and blacking factories and retire early, or spend more time with the children, or become artists. Mr. Mulligan reserves particular scorn for the economists making this “eliminated from the drudgery of labor market” argument, which he views as a form of trahison des clercs. …A job, Mr. Mulligan explains, “is a transaction between buyers and sellers. When a transaction doesn’t happen, it doesn’t happen. We know that it doesn’t matter on which side of the market you put the disincentives, the results are the same. . . . In this case you’re putting an implicit tax on work for households, and employers aren’t willing to compensate the households enough so they’ll still work.” Jobs can be destroyed by sellers (workers) as much as buyers (businesses).

By the way, just in case you’re an unsophisticated rube like me, Wiktionary says that trahison des clercs means “a compromise of intellectual integrity by members of an intelligentsia.”

Which is a pretty good description of leftists who are twisting themselves into pretzels trying to rationalize that joblessness and government dependency are good things.

And Prof. Mulligan makes the right analogy.

He adds: “I can understand something like cigarettes and people believe that there’s too much smoking, so we put a tax on cigarettes, so people smoke less, and we say that’s a good thing. OK. But are we saying we were working too much before? Is that the new argument? I mean make up your mind. We’ve been complaining for six years now that there’s not enough work being done. . . . Even before the recession there was too little work in the economy. Now all of a sudden we wake up and say we’re glad that people are working less? We’re pursuing our dreams?” The larger betrayal, Mr. Mulligan argues, is that the same economists now praising the great shrinking workforce used to claim that ObamaCare would expand the labor market. He points to a 2011 letter organized by Harvard’s David Cutler and the University of Chicago’s Harold Pollack, signed by dozens of left-leaning economists including Nobel laureates, stating “our strong conclusion” that ObamaCare will strengthen the economy and create 250,000 to 400,000 jobs annually.

Gee, that “strong conclusion” about an increase in jobs somehow turned into a cold reality that the economy might lose the equivalent of 2.5 million jobs.

This is very grim news. We can be happy that there’s now even more evidence that big government doesn’t work, but we should never forget that there are real victims when statist policies lead to less growth and more joblessness.

So let’s try to bring some cheer to a dismal situation with some new Obamacare cartoons.

Our first entry is from Chip Bok, who is mocking the New York Times for writing that fewer jobs was “a liberating result of the law.”

Gary Varvel’s analysis of the job impact has a seasonal theme.

And the great Michael Ramirez points out that the death panel has been very busy.

Lisa Benson picks up on the same theme, pointing out that at least Granny is still safe.

And Henry Payne makes a subtle, but superb point about labor supply incentives.

Just like this Chuck Asay cartoon, this Wizard-of-Id parody., and this Robert Gorrell cartoon.

Let’s now look at another Lisa Benson cartoon. It’s not about the job losses, but the underlying foolishness of how Obamacare is designed.

And if you like cartoons with sharks, here’s a classic one about Keynesian economics.

Let’s close with a couple of cartoons that look at the big picture.

Glenn McCoy shares a warning label.

And Steve Breen also has a warning label about Obamacare, but it’s much quicker to read.

Last but not least, Scott Stantis looks at one of the side effects of Obamacare.

Stantis Obamacare Cartoon

Stantis, by the way, produced the best-ever cartoon about Keynesian economics.

P.S. If you want to learn more about how redistribution programs such as Obamacare trap people in dependency and discourage them from the job market, click here.

There are even some honest leftists who recognize this is a serious problem.

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A just-released report from the bean counters at the Congressional Budget Office is getting lots of attention because the bureaucrats are now admitting that Obamacare will impose much more damage to the economy than they previously predicted.

Of course, many people knew from the start that Obamacare would be a disaster and that it would make the healthcare system even more dysfunctional, so CBO is way behind the curve.

Moreover, CBO’s deeply flawed estimates back in 2009 and 2010 helped grease the skids for passage of the President’s failed law, so I hardly think they deserve any applause for now producing more realistic numbers.

But today’s post isn’t about the Obamacare fiasco. I want to focus instead on some other numbers in the new CBO report.

The bureaucrats have put together their new 10-year “baseline” forecast of how much money the government will collect based on current tax laws and the latest economic predictions.

These numbers show that tax revenue is projected to increase by an average of 5.4 percent per year.

As many readers already know, I don’t fixate on balancing the budget. I care much more about reducing the burden of government spending and restoring the kind of limited government our Founding Fathers envisioned.

But whenever the CBO publishes new numbers, I can’t resist showing how simple it is to get rid of red ink by following my Golden Rule of fiscal restraint.

Here’s a chart showing projected revenue over the next 10 years, along with lines showing what happens if spending (currently $3.54 trillion) follows various growth paths.

Balancing the Budget Is Easy

The two biggest takeaways are that a spending freeze (similar to what we got in 2012 and 2013) would almost balance the budget in 2016 and would definitely produce a budget surplus in 2017.

I also highlight what would happen if politicians merely limited spending so it grew at the rate of inflation, about 2.3 percent per year. Under that scenario, the budget would be balanced in 2019 (actually a $20 billion surplus, but that’s an asterisk by Washington standards).

In other words, there is no need to raise taxes. It’s very simple to balance the budget without extracting more money from taxpayers.

This means the Simpson-Bowles people are wrong. The Domenici-Rivlin folks are wrong. Senator Patty Murray is wrong. Jeb Bush and Lindsey Graham are wrong. And (here’s a surprise) the Obama Administration is wrong.

And we have some additional evidence. It’s a chart taken directly from the CBO report and it shows that revenues over the next 10 years will be above the long-run average. This is because even weak growth slowly but surely produces more revenue for Washington, in part because it gradually pushes people into higher tax brackets.

CBO Above-Average Revenues

And this chart just looks at the next 10 yeas. If you peruse the long-run fiscal projections, you’ll see that the tax burden is projected to increase dramatically over the next several decades.

The moral of the story is that there should be tax cuts (ideally as part of tax reform), not tax increases.

P.S. Just in case you think I was being unfair in my description of the Congressional Budget Office, keep in mind that these are the bureaucrats who advise Congress that economic performance increases when taxes go up.

P.P.S. And even though CBO is finally admitting some of the flaws in Obamacare, the bureaucrats are still unrepentant Keynesians. Check out this excerpt from a story in yesterday’s Washington Post.

Rep. Chris Van Hollen (Md.), the top Democrat on the committee, cited the CBO’s finding that the law will “boost overall demand for goods and services over the next few years,” This is because people benefiting from its expansion of Medicaid and insurance subsidies will likely have extra money to spend, which “will in turn boost demand for labor over the next few years,” the report says.

So CBO would like us to believe that the more money the government redistributes, the more growth we’ll get. I guess this explains why France is such an economic dynamo.

More seriously, this is the same flawed analysis that allowed CBO to claim the so-called stimulus was creating jobs as employment was falling.

You can understand why I’ve written that Keynesian economics is the left’s perpetual motion machine.

P.P.P.S. Here’s a Center for Freedom and Prosperity video that I narrated back in 2010, which explains why it is simple to balance the budget. The numbers in the video obviously need to be replaced with the ones I shared above, but the analysis is still right on the mark.

P.P.P.P.S. And if you want to know how to achieve the modest spending restraint needed to balance the budget, the Swiss “debt brake” would be a good place to start.

It’s really a spending cap, and it’s worth noting that the Swiss budget has increased by only 2 percent per year since voters imposed the law back in 2001.

Or maybe we could somehow hope that politicians would simply be responsible, like lawmakers in Canada and New Zealand in the 1990s. Or we could reincarnate Reagan. Or even bring back Clinton.

P.P.P.P.P.S. Since we started this post by talking about how Obamacare is undermining the economy, let’s close with a great example of Obamacare humor.

Remember Pajama Boy? Well, he’s back for an encore performance thanks to some very clever people at Americans for Prosperity.

There’s no update, by the way, on whether being without a job impacts his chances of getting a date with Julia. They’d make such a good couple.

Pajama Boy Jobless

This is amusing, but it surely isn’t as funny as President Obama’s Chief Economist, who actually argued with a straight face that it was a good sign that Obamacare was leading people to drop out of the labor force because unemployment  “might be a better choice and a better option than what they had before.”

Sort of reminds me of this Chuck Asay cartoon, or this famous set of wagon cartoons.

Dependency for more and more people. Such an inviting concept…until this happens.

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The President’s main “accomplishment” has been such a disaster that I wonder whether it’s time to feel sorry for Obama.

And if you looked in the dictionary for a definition of Schadenfreude, you might find a picture of me reading a story exposing more evidence that Obamacare isn’t working.

Heck, I’ve even shared Hitler parody videos (two of them!) mocking the law.

But to paraphrase Mae West, there’s no such thing as too much of a good thing.

Today, we’re going to look at the opinions of two experts, both of whom expect further bad news for Obamacare.

Here’s some of what Michael Tanner, my Cato colleague, wrote for the New York Post.

…“the State of ObamaCare” is growing ever more troubled. For starters, it’s falling far short of the goal of universal coverage. …just 1.5 million have actually completed the ObamaCare checkout, including payment. Worse, surveys indicate that less than a third of those enrolling were previously uninsured. …Even using the most optimistic reading of these figures, fewer than 11 percent of uninsured Americans have gotten coverage because of the ObamaCare law; most likely, fewer. This is what we’re getting for the $2.7 trillion that ObamaCare will cost over the next 10 years? Plus, we should subtract the roughly 500,000 Americans who, by the White House’s own count, have lost insurance because of ObamaCare.

And Mike expects things will get worse over time.

…that’s just the tip of the iceberg, because those policy-killing rules will hit another part of the market over the course of this year — namely, the “small group” market, where employers now buy health policies that cover about 78 million Americans. Many of those with cancelled plans will ultimately end up with similar, if more expensive, employment-based policies, but some are likely to simply wind up uninsured. …Then there’s the bad news about who is enrolling in ObamaCare plans — or rather, who isn’t: not enough of the young and healthy folks that the program needs to overpay for insurance so as to offset the costs of covering older and sicker people. …Oh, and a Reuters survey finds that new enrollees are also less healthy than ObamaCare’s designers hoped, too. Humana, one of the nation’s largest insurers, reports that so far enrollment in its exchange-based plans has been far “more adverse than previously expected.”

Megan McArdle of Bloomberg is similarly unimpressed with how Obamacare has developed.

Enrollment is below expectations: According to the data we have so far, more than half of the much-touted Medicaid expansion came from people who were already eligible before the health-care law passed, and this weekend, the Wall Street Journal reported that the overwhelming majority of people buying insurance through the exchanges seem to be folks who already had insurance. Coverage is less generous than many people expected, with narrower provider networks and higher deductibles. The promised $2,500 that the average family was told they could save on premiums has predictably failed to materialize. And of course, we now know that if you like your doctor and plan, there is no reason to think you can keep them.

But it’s going to get worse, she writes.

The Barack Obama administration is in emergency mode, pasting over political problems with administrative fixes of dubious legality, just to ensure the law’s bare survival — which is now their incredibly low bar for “success.” Although the fixes may solve the short-term political problems, however, they destabilize the markets, which also need to work to ensure the law’s survival. The president is destroying his own law in order to save it.

The article has lots of detail, but here are a few highlights of the bad things that already have happened.

Obamacare’s exchange facility was conceived as a “three-legged stool”: guaranteed issue, community rating, mandate. …Take one away, and the whole thing is in danger of collapsing. Unfortunately, whenever someone has voiced discontent with the way things are going, the administration has taken a hacksaw to another leg. …some folks who had policies they liked before were being forced to drop them and buy new policies they didn’t like so much. That caused an outcry, followed by an emergency grandfathering rule. Other major emergency fixes include…A one-year delay of the employer mandate…Numerous extensions of enrollment and payment deadlines…Changes in the rules governing the “risk corridor” programs that cover excess losses at insurers.

And here are the bad things that Megan expects will happen in the future.

…the worst is yet to come. Here’s what’s ahead…2014: Small-business policy cancellations…Summer 2014: Insurers get a sizable chunk of money from the government to cover any excess losses. When the costs are published, this is going to be wildly unpopular…Fall 2014: New premiums are announced…2014 and onward: Medicare reimbursement cuts eat into hospital margins…Spring 2015: The Internal Revenue Service starts collecting individual mandate penalties…Spring 2015: The IRS demands that people whose income was higher than they projected pay back their excess subsidies…Spring 2015: Cuts to Medicare Advantage…Fall 2015: This is when expert Bob Laszewski says insurers will begin exiting the market if the exchange policies aren’t profitable…Fall 2017: Companies and unions start learning whether their plans will get hit by the “Cadillac tax,”…January 2018: The temporary risk-adjustment plans, which the administration is relying on to keep insurers in the marketplaces even if their customer pool is older and sicker than projected, run out…Fall 2018: Buyers find out that subsidy growth is capped for next year’s premiums…I expect that the administration is going to issue “temporary” administrative fixes for most of the law’s unpopular bits — just as it has so far. That’s not going to get any easier as midterms and then a presidential election creep closer.

Wow. If I was a Democrat politician, I would not be overly happy at that list – particularly since Obamacare already has caused several dozen involuntary retirements from Congress.

And if I was a partisan Republican, I would get down on my knees every day to give thanks because Chief Justice John Roberts was willing to disregard the Constitution to keep Obamacare alive.

But since I’m a humble policy wonk who simply wants to protect and restore economic liberty, I’m just glad that there’s growing recognition that Obamacare is a turkey that needs to be repealed. No wonder I’m getting more optimistic with each passing day.

Let’s close with a couple of new Obamacare cartoons.

Using an image that will cause many of us to wince, Glenn Foden manages to combine Obamacare and the NSA spying scandal.

Obamacare Cartoon Tampa 2

Hmmm…I think the images in this example of NSA humor is more pleasurable.

And here’s Henry Payne mixing Obamacare and movie awards.

Obamacare Cartoon Tampa 1

This post has focused on Obamacare’s failings, so let’s close with an acknowledgement that it’s hard to beat something with nothing.

That’s why reformers need to advocate the types of policies that would undo decades of intervention and re-introduce market forces to the healthcare system.

This video from Reason TV is  a great introduction to that topic.

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The title of today’s column may not make much sense if you’ve never watched The Producers, a 1960s Mel Brooks comedy featuring Gene Wilder and Zero Mostel, but you’ll soon see the connection.

That’s because we’re going to laugh at Obamacare, otherwise known as the gift that keeps on giving, and Hitler is part of our satire.

The President’s ill-fated takeover of the healthcare sector has been a complete cluster-you-know-what for the left. It’s not only helped make the American people far more skeptical of big government, it’s also generated some first-rate political humor.

We’ve had everything from Pajama boy abuse to clever political cartoons, all of which has helped turn government-run healthcare into a punch line.

I think Obamacare videos are particularly effective, whether they’re based on sex or mockery, and one of my favorites, from last October, featured the former Fuehrer of Germany’s National Socialist Workers Party.

Now we have a second example of Hitler Obamacare parody, and it is equally funny. It appears that a national socialist shouldn’t rely on the promises of an American quasi-socialist.

One of my favorite parts, which takes place about three minutes into the video, is the reference to Sandra. I assume that’s a clever dig at Ms. Fluke, the female version of Pajama Boy. If it was unintentional, then it’s merely serendipity.

But the whole video is amusing, including the references to the corrupt waiver process that has exempted many unions from provisions of Obamacare.

Heck, the humor assault on the President’s main “accomplishment” is so brutal that I sometimes – when sharing cartoons mocking Obamacare – can’t help but talk about a spirit of Schadenfreude and I also wonder whether it’s time to feel sorry for the President.

Maybe I’m becoming a softie.

P.S. If you like Hitler parody videos, here are two more that are worth viewing.

Here’s Hitler learning about Europe being downgraded.

And here’s the Fuehrer finding out that Scott Walker prevailed in his fight against government bureaucrats in Wisconsin.

But if you want a serious video about Obamacare, you can click here and watch me pontificate about why government-run healthcare is a fiscal nightmare.

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Welcome Instapundit readers. To augment the depressing and worrisome message in this post, I suggest you read this article showing how we can restore market forces to our government-dictated healthcare system.

=============================================

I hate to dredge up bad memories so early in a new year, but we need to remind ourselves of the awful TARP bailout of 2008.

Our financial system had gone out of whack because of bad monetary policy from the Federal Reserve and unsustainable housing subsidies from Fannie Mae and Freddie Mac.

Some financial institutions gambled on the government’s misguided policies and got caught with their pants down when the bubble burst.

But rather than let those companies fail and use the sensible and non-corrupt “FDIC resolution” method to recapitalize the banking system, we got a taxpayer-to-Wall-Street bailout.

Or, from the perspective of the big banks, they got a very good return on their campaign contributions (read Kevin Williamson if you want to get upset about this disgusting form of cronyism).

Well, as Yogi Berra might say, it’s deja vu all over again.

Except now the fat cats lining up at the Treasury door are the big health insurance corporate titans. They got in bed with the White House to push Obamacare and now they’re worried about losing money now that it’s becoming more apparent that the American version of government-run healthcare doesn’t work any better than the British version.

Charles Krauthammer warns us about what may happen in his Washington Post column.

…there’s a Plan B. It’s a government bailout. Administration officials can’t say it for political reasons. And they don’t have to say it because it’s already in the Affordable Care Act, buried deep. First, Section 1341, the “reinsurance” fund collected from insurers and self-insuring employers at a nifty $63 a head. (Who do you think the cost is passed on to?) This yields about $20 billion over three years to cover losses. Then there is Section 1342, the “risk corridor” provision that mandates a major taxpayer payout covering up to 80 percent of insurance-company losses.

At this point, you may be wondering why there’s bailout language buried in the Obamacare legislation.

The simple answer is that politicians always love to accumulate power, and the insurance industry probably lobbied very hard to get this back-door access to our money.

But maybe the White House knew that Obamacare would be unstable and they needed a bailout option to keep the system from totally unraveling. Particularly when it seems that the Obama Administration is arbitrarily changing the system every other day.

First, it postponed the employer mandate. Then it exempted from the individual mandate people whose policies were canceled (by Obamacare). And for those who did join the exchanges, Health and Human Services Secretary Kathleen Sebeliusis “strongly encouraging” insurers — during the “transition” — to cover doctors and drugs not included in their clients’ plans. The insurers were stunned. Told to give free coverage. Deprived of their best customers. Forced to offer stripped-down “catastrophic” plans to people age 30 and over (contrary to the law). These dictates, complained an insurance industry spokesman, could“destabilize” the insurance market.

So what does all this mean? It’s not good news for Big Insurance.

Shrinking revenues and rising costs could bring on the “death spiral” — an unbalanced patient pool forcing huge premium increases (to restore revenue) that would further unbalance the patient pool as the young and healthy drop out. End result? Insolvency — before which the insurance companies will pull out of Obamacare. Solution? A huge government bailout. It’s Obamacare’s escape hatch. And — surprise, surprise — it’s already baked into the law.

This sounds depressing, but Krauthammer suggests that there could be a way of derailing a bailout before it begins.

…the GOP needs to act. Obamacare is a Rube Goldberg machine with hundreds of moving parts. Without viable insurance companies doing the work, it falls apart. No bailout, no Obamacare. Such a bill would be overwhelmingly popular because Americans hate fat-cat bailouts of any kind. Why should their tax dollars be spent not only saving giant insurers but also rescuing this unworkable, unbalanced, unstable, unpopular money-pit of a health-care scheme? …Do you really think vulnerable Democrats up for reelection will vote for a bailout? And who better to slay Obamacare than a Democratic Senate — liberalism repudiating its most important creation of the last 50 years. Want to be even bolder? Attach the anti-bailout bill to the debt ceiling. That and nothing else. Dare the president to stand up and say: “I’m willing to let the country default in order to preserve a massive bailout for insurance companies.” …Who can argue with no bailout? Let the Senate Democrats decide: Support the bailout and lose the Senate. Or oppose the bailout and bury Obamacare.

I hope his political judgement is correct, though I suspect the statists (and their echo chamber in the media) would portray any effort to amend the debt limit as a sore-loser attack on Obamacare.

But if it’s a simple no-bailout message, perhaps that would be sufficiently popular to overcome the political establishment. As Krauthammer points out, the legislation could be very simple: “Sections 1341 and 1342 of the Affordable Care Act are hereby repealed.”

Let’s close today’s post with some good Obamacare cartoons. We’ll start with Eric Allie’s amusing look at how the White House is measuring success.

Obamacare Cartoon Jan 2014 1

Nice gimmick, huh? You pass a law that destroys people’s existing insurance policies, then you claim victory when some of them sign up for more expensive Obamacare insurance.

Next we have Nate Beeler welcoming the new year.

Obamacare Cartoon Jan 2014 2

Chip Bok’s cartoon is somewhat optimistic in that he’s suggesting that Obamacare may unravel.

Obamacare Cartoon Jan 2014 3

And Gary Varvel mocks the moving goalposts of Obamacare.

Obamacare Cartoon Jan 2014 4

Lisa Benson congratulates the President for winning Politifact’s Lie of the Year Award.

Obamacare cartoon Jan 2014 5

Michael Ramirez hints that the President may not be in a position to enjoy his multi-million dollar Hawaiian vacation.

Obamacare Cartoon Jan 2014 6

Last but not least, Scott Stantis warns us that Obamacare violates the Hippocratic Oath about doing no harm.

Obamacare Cartoon Jan 2014 7

P.S. Under no circumstances should you feel sorry for the insurance companies. As I noted the other day, they endorsed Obamacare and actively lobbied for its passage. They deserve every bad thing that might happen to them.

P.P.S. It’s hard to find much humor in this situation, but perhaps this funny “bailout application” could be updated to make it easier for big insurance companies to rape and pillage taxpayers.

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Not counting humor-oriented pieces such as this and this, it’s been nearly a month since I’ve written about Obamacare.

To make up for this oversight, today we’re going to look at a way out of the Obamacare mess.

But the goal isn’t simply to repeal the President’s bad policy. That merely gets us back to where we were in 2009. We need to figure out how to restore market forces to healthcare, and that means undoing decades of misguided government intervention.

Fortunately, we have a roadmap thanks to John Cochrane, a Cato adjunct scholar and Professor at the University of Chicago. Writing in the Wall Street Journal, he explains how radical deregulation is the right approach.

He starts with an essential point that “settled law” doesn’t mean unchangeable law.

…proponents call it “settled law,” but as Prohibition taught us, not even a constitutional amendment is settled law—if it is dysfunctional enough, and if Americans can see a clear alternative.

And he points out that Obamacare will get worse over time.

This fall’s website fiasco and policy cancellations are only the beginning. Next spring the individual mandate is likely to unravel when we see how sick the people are who signed up on exchanges, and if our government really is going to penalize voters for not buying health insurance. The employer mandate and “accountable care organizations” will take their turns in the news. There will be scandals. There will be fraud. This will go on for years.

But the law won’t collapse on its own. Indeed, its failures will be used as excuses for even more government.

Yet opponents should not sit back and revel in dysfunction. …Without a clear alternative, we will simply patch more, subsidize more, and ignore frauds and scandals, as we do in Medicare and other programs.

So what should be done?

Professor Cochrane points out that the healthcare system isn’t a free market now and it wasn’t a free market when Obamacare was imposed.

Instead, it’s one of the most heavily government-controlled sectors of our economy.

The U.S. health-care market is dysfunctional. Obscure prices and $500 Band-Aids are legendary. The reason is simple: Health care and health insurance are strongly protected from competition. There are explicit barriers to entry, for example the laws in many states that require a “certificate of need” before one can build a new hospital. Regulatory compliance costs, approvals, nonprofit status, restrictions on foreign doctors and nurses, limits on medical residencies, and many more barriers keep prices up and competitors out. Hospitals whose main clients are uncompetitive insurers and the government cannot innovate and provide efficient cash service.

He then explains how a market could operate – if it was allowed.

A much freer market in health care and health insurance can work, can deliver high quality, technically innovative care at much lower cost, and solve the pathologies of the pre-existing system. …We’ll know we are there when prices are on hospital websites, cash customers get discounts, and new hospitals and insurers swamp your inbox with attractive offers and great service. …Only deregulation can unleash competition. And only disruptive competition, where new businesses drive out old ones, will bring efficiency, lower costs and innovation.

If this sounds familiar, it may be that you watched this video from Reason TV on market-based hospitalization. And if you haven’t, you should!

Cochrane writes that deregulation will enable the “creative destruction” that brings progress in other parts of the economy.

We need to permit the Southwest Airlines, Wal-Mart, Amazon.com and Apples of the world to bring to health care the same dramatic improvements in price, quality, variety, technology and efficiency that they brought to air travel, retail and electronics. …Health insurance should be individual, portable across jobs, states and providers; lifelong and guaranteed-renewable, meaning you have the right to continue with no unexpected increase in premiums if you get sick. Insurance should protect wealth against large, unforeseen, necessary expenses, rather than be a wildly inefficient payment plan for routine expenses. People want to buy this insurance, and companies want to sell it. It would be far cheaper, and would solve the pre-existing conditions problem. We do not have such health insurance only because it was regulated out of existence.

Needless to say, Obamacare is the opposite of a free market. It assumes that you solve government-created problems by adding additional layers of government.

The Affordable Care Act bets…that more regulation, price controls, effectiveness panels, and “accountable care” organizations will force efficiency, innovation, quality and service from the top down. Has this ever worked?

Cochrane has the right diagnosis and right cure, but that’s the easy part. The real challenge is implementing the policies that would restore a functioning market.

That requires reforms to Medicare and Medicaid, not only to save money for taxpayers, but also because those are some of the steps that are needed if we want market forces to bring down the cost of healthcare.

Health care liberalization also means a flat tax, not only for the pro-growth impact of lower tax rates, but also because it gets rid of the internal revenue code’s healthcare exclusion, thus ending the distortion that encourages over-insurance.

It means state-by-state battles to get rid of regulations, mandates, and other forms of intervention that hinder competition and markets.

They say that even long journeys begin with a single step. That’s true, but it’s also important to walk in the right direction.

That hasn’t happened in recent decades, so it’s time to scrub the slate clean. We need free markets, not more government. We need more consumer sovereignty, not more third-party payer.

Since I’m a sucker for good political humor, we’re going to close with a great Michael Ramirez cartoon. As you can see, there’s a reason why he won my political cartoonist contest. Indeed, if I ever do another contest, this could replace his award-winning “Julia” cartoon.

Pajama Boy Move Out

It’s almost enough to make you feel sorry for Pajama Boy.

Maybe somebody should fix him up with Julia. I’m guessing they wouldn’t even know how to reproduce without intervention, handouts, and subsidies, so that would be an additional way of improving the gene pool.

And it would offset the reproductive advantage of the bureaucracy.

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I’m beginning to think the Obama White House has a sinister and devious plot to undermine the productivity of people who believe in small government.

Yes, I know I’ve written that it doesn’t make sense to believe in conspiracy theories, but every time I think about writing a long and serious article on some important economic issue, I get distracted by some new jokes, cartoons, and mockery of the slow-motion, long-lasting train wreck of Obamacare.

Consider, for instance, the White House’s new effort to trick young people into buying over-priced health insurance policies (humorously depicted here). It features this dorky guy in pajamas.

Pajama Boy

Well, as you can imagine, people are having lots of fun mocking this image. And that’s time they could spend discussing free markets and small government instead!

And I’m guilty as well.

But let’s at least enjoy the moment. Here’s my favorite bit of satire, which mixes Obamacare with the President’s “selfie” at Mandela’s funeral.

Pajama Boy Selfie

Obama probably has unhappy memories of that moment, by the way.

Our next example is downright weird, but is it any stranger than the image the White House put together?

Pajama Boy Weirdo

Our final selection in the “Pajama Boy” series adds the entitlement mentality to the mix.

Pajama Boy Entitled

I’m guessing this is because Pajama Boy is still living at home thanks to the weak Obama economy and the dismal job market.

Our last example of new Obamacare humor deals with the fact that the White House has hired someone from Microsoft to work on the website. I don’t know whether that means healthcare.gov will be as clunky and useless as Internet Explorer, but some clever person has put together this image.

Microsoft Obamacare

If you like website-related humor about Obamacare, this Hitler parody is definitely worth watching.

And if you like Obamacare humor videos, here’s a very unsettling one about the government having a database about our sex lives.

P.S. If you really want to let the Obama White House succeed in undermining your productivity, you can easily spend about 30 minutes enjoying more Obamacare  cartoons, videos, and jokes by clicking here, here, here, herehere, here, here, here, here, here, here, here, here, here, here, here, here, and here.

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On Thanksgiving, I shared a bunch of cartoons mocking the national turkey known as Obamacare.

One of those cartoons, by Robert Ariail, mocked the President for repeatedly lying when he said we could keep our health insurance plans if we liked them.

Well, we have more humor using that theme.

And if you like these images and cartoons, you can keep them!

Our first example (which arrived in my inbox, so I don’t know who deserves the credit) will be familiar to fans of the original Star Wars trilogy.

Keep It Image 2

Next we have a Lisa Benson cartoon, which would have been a good addition to a Thanksgiving cartoon collection.

Keep It Cartoon 1

Here’s a cartoon from Gary Varvel and it shows a group that is now terrified because of Obama’s deceit.

Keep It Cartoon 2

As a matter of fact, there already is evidence that many politicians did lose their jobs back in 2010 because of Obamacare.

It would be nice if more of them were punished next year.

Last but not least, we have some doggies that are a bit troubled by a version of Obama’s big lie.

Keep It Image 3

If you need more Obamacare humor, you can enjoy various cartoons, videos, and jokes by clicking here, here, hereherehereherehere,hereherehereherehereherehereherehereherehere, and here.

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