–Cuts to Medicare vs deficit spending

An alternative to popular faith

I just received a note from Mark Kirk, Republican Congressman, listing the cuts to be made in Medicare. I don’t know how factual they all are, because frankly the new program not only is complex, but evolving.

In any event, this is what the Republicans (and Democrats) should work on, rather than the “repeal and replace” political effort that has no chance to succeed. Forget the McCain, “There will be no cooperation for the rest of the year” attitude. Focus on correcting the negatives rather than throwing out the baby with the bathwater.

By the way, every one of these cuts could be eliminated if wrongheaded, deficit paranoia were eliminated. The federal government can and should pay, via deficit spending, to eliminate all these cuts. Consideration of real damages to real people should take precedence over imaginary, unproven damage from federal deficits

Here is what Rep. Kirk wrote:

“2010: Medicare Cuts to Hospitals: The federal government will reduce Medicare reimbursements for hospitals who provide seniors with long-term and inpatient and rehabilitation care.

2011:Medicare Advantage Cuts Begin: Approximately 121,000 Illinois seniors will be dropped from their chosen Medicare Advantage coverage. Drug Discounts for those in Medicare Part D “donut hole” begin: The federal government will impose a new requirement on pharmaceutical companies to provide a 50% discount on “brand name” prescriptions. Increased Medicare Part D Premiums: Seniors with incomes above $85,000 for individuals and $170,000 for couples will be forced to pay higher Medicare Part D premiums. Medicare Imaging Cuts: The federal government will cut Medicare reimbursements for seniors who use MRI and CT scans. Medicare Cuts to Ambulance Services and Durable Medical Equipment: The federal government will begin cutting Medicare reimbursements for seniors who use ambulances or durable medical equipment.

2012: Medicare Cuts for Hospitals with Readmissions: The federal government will cut Medicare reimbursements to any hospital with a high readmission rate. Medicare Cuts for Hospice Care: The federal government will cut Medicare reimbursements for seniors on hospice care. Medicare Cuts for Dialysis Care: The federal government will cut Medicare reimbursements for Americans – both youth and seniors – on dialysis.

2014: Medicare Board Cuts: The federal government will establish an Independent Payment Advisory Board with powers to make further cuts to seniors on Medicare.

2015: Medicare Home Health Cuts: The federal government will cut Medicare reimbursements for seniors who depend on home health care.”

I’d be interested in hearing from those of you who think reducing federal deficits is more important than eliminating these cuts, together with your evidence that deficits are harmful in any way.

Rodger Malcolm Mitchell
http://www.rodgermitchell.com

–We hate big government

An alternative to popular faith

Perhaps it began with President Reagan, who said, “[…] government is not the solution to our problem; government is the problem.” Or maybe it began long before that, when brave, heroic, self-sufficient individuals populated this land, doing everything for themselves, and asking help from no one.

I don’t know when it started, but somewhere along the line, it has become quite knowledgeable and oh so chic to express hatred for big government and big business.

These days, to demonstrate how clever we are, we parrot the popular faith that socialism, deficits and tax increases are bad. Yes, we like Medicare, Medicaid and Social Security, but we hate big government, taxes and deficits.

We like having a strong army, a national highway system, being first to go to the moon, flu vaccine, smallpox eradication and ecologically friendly cars, but we don’t want that big, bad government telling us what to do.

We want federal help when we are hit by floods, tornados, hurricanes, volcanic eruptions and blizzards, but please no big government, taxes or deficits.

We want someone to inspect our food, take a census, protect our savings, build our dams, supervise our courts and maintain our prisons. But, not big government.

Yes, we love Yellowstone, Grand Teton, Grand Canyon and the other 389 national parks. And sure, we also appreciate the many national monuments, seashores, recreation areas, historic sites, military parks and battlefields maintained by the government, but remember this: We hate big government.

Sure, protect our borders, our airports, trains, bus stations, subways, and cities from terrorists, but please do it without big government, tax increases or deficits.

Most recently, we’ve criticized all suggestions for improving health care, because they involve big government, or big insurance companies, or federal spending or tax increases, all of which we hate. And of course, doctors are overpaid; hospitals charge too much; pharmaceutical companies gouge us, and the poor don’t deserve our help, so we hate them all, too.

We join groups like the Tea Party, so we can be with other people who prove their understanding of the world, by hating socialism, big government and big business. You see, the federal government is wasteful, inefficient and stupid. And because small business can’t compete with large foreign businesses, they need to grow, but when they become large, they get greedy. And unsuccessful large companies go out of business, firing millions of people, so yes, we hate them. And we especially hate them when the government bails them out, so they don’t have to go out of business and fire millions of people.

We just wish someone would take care of things for us. But no more taxes, no more deficits, and by all means, no big government or big business.

Is magic available?

Rodger Malcolm Mitchell
http://www.rodgermitchell.com

–Republicans fall into Obama trap

An alternative to popular faith

04/01/10: (AP) “GOP wary of health law repeal push in fall races”

You read it here, “Republicans are on the wrong side of history.” (Sabotaging health care, March 24, 2010).

As I’ve told you, historically I’ve voted for Republicans, because I’ve felt they better understood the economy. Though they never have been leaders for social improvements, whether Social Security, Medicaid, Medicare or human rights, they traditionally have been strong for business, which benefits everyone. Though they always have had to be dragged, kicking and screaming, into anything that smacks of human benefits for the less fortunate, at least a strong minority of Republicans did participate in passing these major intitiatives.

Not this time. An astounding 100% toed the party line. As if that weren’t bad enough, after the vote they all picked up the right-wing mantra, “repeal and replace.” What a horrible, self-destructive plan.

First, repeal isn’t going to happen. As more people see what they receive from the program, they will be less likely to want to give it up. And many of these perks are quite attractive: Millions more people covered, restrictions on dropping people from coverage, no pre-existing health declinations, ability to change jobs without losing your insurance. Even the insurance industry will begin to like it, because they won’t have to spend millions evaluating for pre-existing conditions.

Second, because repeal isn’t going to happen, those voters calling for repeal will become disillusioned with the Republican party for failing to fulfill its pledge. In short, the Republicans will disappoint everyone.

Make no mistake. That 100% vote was an unmitigated disaster, compounded by the failure of Republican leadership to understand what has happened. If each Republican had voted his/her conscience and beliefs, some could have voted for the program “with misgivings,” and the party would have been able to claim it “participated” in one of the great movements in American history.

Instead, for many years and many elections, well into the future, Democrats will be able to throw this in Republican faces — “the party that voted against health care.” The Republican party, by pandering to the extreme right, has positioned itself as a fringe party, left behind in the social march to the future.

And this I regret most. We need the Republican support of business. The Democrats, left to their own whims, will tax, tax, tax, especially business and wealthier Americans, the very ones who supply employment for all and make our economy grow. A one-party Congress will hurt America.

I curse the Republican leaders, who have fallen into Obama’s trap. (As I write this, here arrives yet another “repeal and replace” letter from John McCain.) This Grand Old Party has been McCained, Palined and Fox Newsed into believed and following the strident voices of the religious right.

Remember this Republicans: Those voices may be loud, but they each carry only one vote, just like the more numerous moderate voices. It’s too late to undo that shameful 100% vote, but now is the time to move away from “the party of ‘No.” to the party of progress.

First step: Disavow the McCains, the Palins and the Fox News right-wing panderers. Go to your strength, which is business and jobs. Teach voters that strong business means employment, and employment means wealth. Teach America you know the path to the American dream.

Rodger Malcolm Mitchell
http://www.rodgermitchell.com

–Debt “unsustainable” no longer.

An alternative to popular faith

        Just when I thought the Chicago Tribune was starting to get it, they ruined everything. For years, the Tribune has told its readers the federal deficits and debt are unsustainable, that China and the other nations would refuse to lend to us, that the government would be unable to service its debts and that federal taxes needed to be increased or spending reduced.
        And because the federal debt is unsustainable, the government is not able to support Medicare, Social Security, Medicaid and universal health care without significant tax increases or benefit cuts.
        Then I saw this in the March 30, 2010 editorial titled, “Debt Dangers”:“But the U.S. is not about to run out of money, even if it keeps overspending. Why not? First it can appropriate more of its citizens earnings through the tax system. Second and most important, it can print money to pay its bills.”
        Wow, is the staid, old Tribune finally starting to understand? Do they realize the government can support Medicare, Social Security, Medicaid and universal health care, even if taxes are reduced? Do they understand we don’t need China and the other nations to lend to us, because we can create money without borrowing?
         Sadly we were not to be so fortunate, for a few sentences later, the editorial said, “The danger is that (the government) would create money to make those debts payable, a course that would lead to much higher inflation.”
        Never mind that today, following the most massive deficits in our history, the government’s chief worry is deflation, not inflation. Never mind that for the past forty years, there has been zero relationship between deficits and inflation, and in fact, the largest deficits have corresponded with inflation reductions. (See the graph, below).

Debt vs inflation

        And never mind that deficits repeatedly have proved stimulative, while reduced deficits are depressive. Intuition and popular faith trump facts every time.
        Then the Tribune editors compounded the crime by stating, “The economy would also suffer as businesses and households scrambled to cope with the disruptive effects of soaring prices. It would suffer again if and when the government decided to curb inflation by driving up interest rates — a step that virtually guarantees a sharp downturn.”
        Never mind that high interest rates have not slowed GDP, nor have low rates stimulated, which is why the Fed’s twenty rate cuts failed to prevent or cure the recession. (See the next graph. If high interest rates slowed GDP, the peaks of the blue line would have to correspond with the troughs of the red line.)

InterestratesvsGDP

         But at least, the Tribune has taken the first step, and perhaps we never again shall see that ridiculous sentence, “The federal debt is unsustainable.”

Rodger Malcolm Mitchell
http://www.rodgermitchell.com