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Pebbles for Dollars
8 years ago  ::  Oct 14, 2014 - 6:16AM #1
Bronxbob
Posts: 3,240
By Cameron S. Schaeffer · Oct. 13, 2014



It is now widely claimed that the Affordable Care Act is creating jobs. If we pay five hundred people to drop pebbles in a parking lot, and we pay another five hundred people to pick them up, we can create one thousand jobs. Such is the thinking of those who believe the law creates jobs.


In his recent article entitled “How Much Will Expanded Medicaid Cost Kentucky?,” reporter John Cheves of Lexington’s Herald Leader revealed that some economists do not take accounting, which teaches both sides of the ledger. Money spent by government must come from somewhere, like taxes and tariffs, or it is created out of thin air, which decreases the value of the money already in circulation. Energy is booming, yet gasoline is still over three dollars per gallon, partly due to money-printing and dollar devaluation over the last several years. Paying your debts with devalued money gets you something for free, so governments have a habit of doing it.


One would think the recent failed government “stimulus” would at last drive a stake into the heart of Keynesianism, the delusion that government spending creates lasting wealth and jobs. If this were true, how did America get built before the 1930’s, and why do we not always have stimulus? Of course the Affordable Care Act will create more health care jobs, and goodies for constituents, but it comes at a cost.


One cost is the damage to the medical profession, with demoralized doctors now being herded like cattle. Another is the massive wealth transfer from the middle class to the lower class through higher copays and deductibles. The biggest cost is the other side of ledger, which Mr. Cheves' economists are ignoring- the new federal debt required to create those jobs.


Government debt is future taxation on the private sector, levied directly on wages and profits or indirectly through inflation. Every dollar spent by the ACA is ultimately a dollar taken from the wealth-creating private economy. No one can say what that private dollar would have done as a capital investment. But when the government spends money to “create” jobs, the politicians can say: “Look at this person who is now working, and look at these people who now have health care.” New York just spent over one hundred thousand dollars per job in a solar panel deal with Tesla CEO and crony capitalist Elon Musk, who had just penned a more expensive deal with Nevada to make batteries.


There is no denying what is front of your eyes, like a battery factory and the people working in it, or a free trip to the doctor, but the trick is to imagine what you cannot see- all of the things that might have been accomplished had the capital been spent privately. At least something tangible will come from Mr. Musk’s factories, unlike health care spending which, like food, is consumed, leaving little of tangible monetary value. Rare is government money spent more wisely than private money, and even rarer is a man who spends another man’s money more wisely than his own.


Instant gratification is the norm for politicians and those who live by the sweat of another man’s brow, or worse, the sweat of their children’s brows. The ACA is just another expansion of the entitlement state at a time when nearly half the people already do not pay federal income taxes. It is now even more unlikely that the people will elect politicians who will bring the nation’s finances under control. A dollar worth a pebble seem inevitable.


What will happen when the federal government cuts subsidies to Kentucky’s Medicaid program in a few years? By its own admission, the administration Governor Steve Beshear does not know. When the crunch comes, they will no doubt be living on a beach. A better question is: “What will happen to Kentucky Medicaid when interest rates return to normal, historic levels and the interest on the national debt consumes the federal budget?”


Life is tough, but it's tougher when you're stupid.
In order to see the rainbow, you must first endure the rain!
If you don't stand behind our troops, please feel free to stand in front of them.
8 years ago  ::  Oct 14, 2014 - 9:57AM #2
61in61
Posts: 26,516

I don't know why the ACA has touched such a raw nerve. The same states complaining about the ACA have no problem taking billions of dollars from the Feds for things like roads that go nowhere.

8 years ago  ::  Oct 14, 2014 - 11:47AM #3
Max
Posts: 42,830

Oct 14, 2014 -- 9:57AM, 61in61 wrote:


I don't know why the ACA has touched such a raw nerve. The same states complaining about the ACA have no problem taking billions of dollars from the Feds for things like roads that go nowhere.




You know why 61. It's because to the (R) Govs in those states just like the (R's) in DC, it's about not working with the POTUS no matter how much good a program he started will do. Compromise in now a dirty word to the GOP. They won't try to improve the ACA by making it a single payer plan because it's all about money, power and control with them. That will never change until the working poor and middle class (R) voters who just vote for the party line and against their own best interests wake up. Or until the Latino community who vote (D) in a large majority eventually become the majority in the Nation. Things are already changing but not enough to make a difference just yet. Anyone that needs proof of that only has to notice the silence of the GOP on all the gay marriage bans that are being overturned so close to the election. Not long ago those same silent GOPers would be using that issue to rally voters on their side. US history shows that the party not in the White House are favorite to win seats in the 6th year of a Presidency, but the GOP is still scared to pee off voters by making an issue of the overturn ban on Gay Marriage. 

.
8 years ago  ::  Oct 14, 2014 - 12:10PM #4
MajorYankFan
Posts: 32,868

Hey Baghdad Bob is back, Mr. Supply-side Marxist himself.


Trickle-down theory—the less than elegant metaphor that if one feeds the horse enough oats, some will pass through to the road for the sparrows.  - John Kenneth Galbraith

8 years ago  ::  Oct 14, 2014 - 12:44PM #5
61in61
Posts: 26,516

Oct 14, 2014 -- 11:47AM, Max wrote:


Oct 14, 2014 -- 9:57AM, 61in61 wrote:


I don't know why the ACA has touched such a raw nerve. The same states complaining about the ACA have no problem taking billions of dollars from the Feds for things like roads that go nowhere.




You know why 61. It's because to the (R) Govs in those states just like the (R's) in DC, it's about not working with the POTUS no matter how much good a program he started will do. Compromise in now a dirty word to the GOP. They won't try to improve the ACA by making it a single payer plan because it's all about money, power and control with them. That will never change until the working poor and middle class (R) voters who just vote for the party line and against their own best interests wake up. Or until the Latino community who vote (D) in a large majority eventually become the majority in the Nation. Things are already changing but not enough to make a difference just yet. Anyone that needs proof of that only has to notice the silence of the GOP on all the gay marriage bans that are being overturned so close to the election. Not long ago those same silent GOPers would be using that issue to rally voters on their side. US history shows that the party not in the White House are favorite to win seats in the 6th year of a Presidency, but the GOP is still scared to pee off voters by making an issue of the overturn ban on Gay Marriage. 




LOL...yeah, I knew the answer to my question. Its just fun to watch cons squirm when you pose the same question to them. I spend a lot of time in Tennessee and they opted out of the Medicaid portion of the ACA. They cite with great pride how they want to be "independent" from federal handouts and regulations. Surprise! The reality is, Tennessee is one of the biggest recipients of Federal handouts. For every tax dollar sent to Washington they get $1.60 back. Highway construction projocets have been a huge source of "money laundering" and construction kick-backs on both the state and local levels for decades.  Tenneeseans also love to brag about their cheap electric rates. Guess why its cheap? The TVA! One of the most highly subsidized government agencies. Then the ACA comes along, which would be highly beneficial to the general public due to the high poverty rate in the state, and the politicians start screaming about BIG government invading their little state. Makes me laugh or cry.

8 years ago  ::  Oct 14, 2014 - 1:30PM #6
Max
Posts: 42,830

Oct 14, 2014 -- 12:44PM, 61in61 wrote:


Oct 14, 2014 -- 11:47AM, Max wrote:


Oct 14, 2014 -- 9:57AM, 61in61 wrote:


I don't know why the ACA has touched such a raw nerve. The same states complaining about the ACA have no problem taking billions of dollars from the Feds for things like roads that go nowhere.




You know why 61. It's because to the (R) Govs in those states just like the (R's) in DC, it's about not working with the POTUS no matter how much good a program he started will do. Compromise in now a dirty word to the GOP. They won't try to improve the ACA by making it a single payer plan because it's all about money, power and control with them. That will never change until the working poor and middle class (R) voters who just vote for the party line and against their own best interests wake up. Or until the Latino community who vote (D) in a large majority eventually become the majority in the Nation. Things are already changing but not enough to make a difference just yet. Anyone that needs proof of that only has to notice the silence of the GOP on all the gay marriage bans that are being overturned so close to the election. Not long ago those same silent GOPers would be using that issue to rally voters on their side. US history shows that the party not in the White House are favorite to win seats in the 6th year of a Presidency, but the GOP is still scared to pee off voters by making an issue of the overturn ban on Gay Marriage. 




LOL...yeah, I knew the answer to my question. Its just fun to watch cons squirm when you pose the same question to them. I spend a lot of time in Tennessee and they opted out of the Medicaid portion of the ACA. They cite with great pride how they want to be "independent" from federal handouts and regulations. Surprise! The reality is, Tennessee is one of the biggest recipients of Federal handouts. For every tax dollar sent to Washington they get $1.60 back. Highway construction projocets have been a huge source of "money laundering" and construction kick-backs on both the state and local levels for decades.  Tenneeseans also love to brag about their cheap electric rates. Guess why its cheap? The TVA! One of the most highly subsidized government agencies. Then the ACA comes along, which would be highly beneficial to the general public due to the high poverty rate in the state, and the politicians start screaming about BIG government invading their little state. Makes me laugh or cry.




That reminds me of this clip. An oldie but goodie. 


.
8 years ago  ::  Oct 14, 2014 - 10:07PM #7
61in61
Posts: 26,516

Oct 14, 2014 -- 1:30PM, Max wrote:


Oct 14, 2014 -- 12:44PM, 61in61 wrote:


Oct 14, 2014 -- 11:47AM, Max wrote:


Oct 14, 2014 -- 9:57AM, 61in61 wrote:


I don't know why the ACA has touched such a raw nerve. The same states complaining about the ACA have no problem taking billions of dollars from the Feds for things like roads that go nowhere.




You know why 61. It's because to the (R) Govs in those states just like the (R's) in DC, it's about not working with the POTUS no matter how much good a program he started will do. Compromise in now a dirty word to the GOP. They won't try to improve the ACA by making it a single payer plan because it's all about money, power and control with them. That will never change until the working poor and middle class (R) voters who just vote for the party line and against their own best interests wake up. Or until the Latino community who vote (D) in a large majority eventually become the majority in the Nation. Things are already changing but not enough to make a difference just yet. Anyone that needs proof of that only has to notice the silence of the GOP on all the gay marriage bans that are being overturned so close to the election. Not long ago those same silent GOPers would be using that issue to rally voters on their side. US history shows that the party not in the White House are favorite to win seats in the 6th year of a Presidency, but the GOP is still scared to pee off voters by making an issue of the overturn ban on Gay Marriage. 




LOL...yeah, I knew the answer to my question. Its just fun to watch cons squirm when you pose the same question to them. I spend a lot of time in Tennessee and they opted out of the Medicaid portion of the ACA. They cite with great pride how they want to be "independent" from federal handouts and regulations. Surprise! The reality is, Tennessee is one of the biggest recipients of Federal handouts. For every tax dollar sent to Washington they get $1.60 back. Highway construction projocets have been a huge source of "money laundering" and construction kick-backs on both the state and local levels for decades.  Tenneeseans also love to brag about their cheap electric rates. Guess why its cheap? The TVA! One of the most highly subsidized government agencies. Then the ACA comes along, which would be highly beneficial to the general public due to the high poverty rate in the state, and the politicians start screaming about BIG government invading their little state. Makes me laugh or cry.




That reminds me of this clip. An oldie but goodie. 





That pretty much sums it all up.

8 years ago  ::  Oct 15, 2014 - 2:14PM #8
realglenn
Posts: 4,010

Oct 14, 2014 -- 9:57AM, 61in61 wrote:


I don't know why the ACA has touched such a raw nerve. The same states complaining about the ACA have no problem taking billions of dollars from the Feds for things like roads that go nowhere.




Because it has ripped up so many people's health care and thrown it in the garbage bin.

8 years ago  ::  Oct 15, 2014 - 9:54PM #9
61in61
Posts: 26,516

Oct 15, 2014 -- 2:14PM, realglenn wrote:


Oct 14, 2014 -- 9:57AM, 61in61 wrote:


I don't know why the ACA has touched such a raw nerve. The same states complaining about the ACA have no problem taking billions of dollars from the Feds for things like roads that go nowhere.




Because it has ripped up so many people's health care and thrown it in the garbage bin.




Do you have any real data to support that claim?

8 years ago  ::  Oct 15, 2014 - 10:24PM #10
NW
Posts: 13,163

Oct 15, 2014 -- 9:54PM, 61in61 wrote:


Oct 15, 2014 -- 2:14PM, realglenn wrote:


Oct 14, 2014 -- 9:57AM, 61in61 wrote:


I don't know why the ACA has touched such a raw nerve. The same states complaining about the ACA have no problem taking billions of dollars from the Feds for things like roads that go nowhere.




Because it has ripped up so many people's health care and thrown it in the garbage bin.




Do you have any real data to support that claim?




Probably not.  My healthcare is pretty much unchanged...except that we get more options.

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