Now it’s “fraud.” The next desperate argument against your receiving free health care

The party of the rich never stops searching for ways to deny health care insurance to the middle and the poor. ( Remember the “repeal and replace” Affordable Care Act battle that was missing one thing: Replace)?

Image result for avoiding poor people
“Just lazy.”

The GOP leaders won’t admit it, but Senator McCain saved them from a disaster, had they succeeded in eliminating Obamacare.

To this day, the GOP has not come up with a viable replacement program that would guarantee health care insurance for even the poorest among us, (though the rich and the politicians are doing just fine, thank you.)

Well, here is yet another attempt to sabotage Medicare for All:

Single-Payer Health Care Will Increase Fraud, Corruption
By Chris Jacobs, June 18, 2019
(Chris Jacobs is founder and CEO of Juniper Research Group, and author of the forthcoming book “The Case Against Single Payer.” He is on Twitter: @chrisjacobsHC.)

It seems fitting that the Democratic National Committee chose Miami to host the first debates of the 2020 presidential campaign.

Given that many of the candidates appearing on stage have endorsed a single-payer health care plan, the debates’ location epitomizes how government-run care will lead to a massive increase in fraud and corruption.

Right away, Jacobs tells us either he doesn’t understand the difference between “single-payer health care” and “government-run care,” or more likely, he doesn’t want you to understand.

And this is someone who has devoted an entire book to the subject.

Since he won’t differentiate between “pay” and “run,” I’ll try to help him.

“Pay” is what you do when you go to the grocery store and buy a loaf of bread. “Run” is what the owner of the grocery store does when he rents space, hires employees, runs ads, negotiates with vendors, and makes the thousands of decisions a business manager must make every day.

Get it, Mr. Jacobs?

Why does Jacobs try to confuse his audience? I assume it’s because he knows that Americans have been programmed to hate the word “socialism,” So Jacobs is setting you up to believe Medicare for All is “socialism” or “socialized medicine.”

It isn’t.

Socialism is the ownership and control of the means of production and distribution. All hospitals and most doctors accept Medicare.

Does the federal government run your local hospitals? No. Does it buy or rent hospital locations? No. Does it hire nurses, doctors, and the rest of the staff, from the phone people to the clean-up people? No.

Does the federal government maintain the hospitals’ roofs, walls, and parking lots? No. Your local hospitals, despite accepting Medicare, are not examples of socialism.

There are socialist hospitals in America. The United States Veterans Health Administration and the medical departments of the U.S. Army, Navy, and Air Force are examples.

Not only is the pejorative “socialism” incorrectly used to describe Medicare, but so is the term “socialized medicine,”  and for the same devious reasons.

Per Wikipedia: When the term “socialized medicine” first appeared in the United States in the early 20th century, it bore no negative connotations.

However, by the 1930s, the term socialized medicine was routinely used negatively by conservative opponents of publicly funded health care who wished to imply it represented socialism, and by extension, communism.[

Universal health care and national health insurance were first proposed by U.S. President Theodore Roosevelt. President Franklin D. Roosevelt later championed it, as did Harry S. Truman as part of his Fair Deal and many others.

Truman announced before describing his proposal: “This is not socialized medicine”.

Government involvement in health care was ardently opposed by the AMA, which distributed posters to doctors with slogans such as “Socialized medicine … will undermine the democratic form of government. 

Still today, the right-wing party of the rich wants to prevent health care for those of you who are not-rich (or Congresspeople) by confusing you.

Since calling Medicare for All “socialism” or “socialized medicine,” hasn’t ended the public’s desire for health care insurance, we now move on to “fraud.”

In South Florida, defrauding government health care programs doesn’t just qualify as a cottage industry — it’s big business.

One former fraudster admitted that likely thousands of businesses in the Miami area alone were defrauding Medicare.

A 2009 Government Accountability Office report also highlighted pervasive fraud within Medicare.

For instance, some South Florida home health agencies “have submitted claims for visits that were probably not provided, such as claims for visits that allegedly occurred when hurricanes were in the area.”

Lest anyone believe that much has changed in the past decade, the spring of 2019 saw not one but two billion-dollar fraud rings against Medicare exposed in a single week.

If you think that the single-payer bills promoted by Sens. Bernie Sanders, Elizabeth Warren, and others would stop this rampant fraud, think again.

Both the House and Senate single-payer bills include not a single new provision designed to stop crooks from defrauding government health programs.

The bills would apply some existing anti-fraud provisions to the new government-run health program.

However, given the widespread fraud in Medicare and Medicaid, expanding the failed status quo would increase corruption rather than reducing it.

Mr. Jacobs wants you to be shocked to “learn” that where there is money, there is fraud. That includes all government programs and private programs, alike.

Since it is impossible to come up with provisions that will “stop crooks from defrauding government health programs,” you can be sure that any attempted provisions will be scorned by the GOP as not sufficient to eliminating fraud.

What Mr. Jacobs doesn’t mention is that defrauding the federal government may be the least harmful crime imaginable in that it costs no one, anything.

While fraud of any sort insults our Puritanical instincts, Medicare financial fraud actually stimulates economic growth.

Because the federal government (unlike state and local governments) is Monetarily Sovereign, it neither needs nor even uses your tax dollars to pay its bills. In fact, the federal government destroys (gasp!) your tax dollars upon receipt.

To pay its bills, the federal government creates brand new dollars, which is why federal deficit spending is stimulative and federal taxing is depressive.

Every dollar the federal government pays to fraudsters circulates through the economy, helping to grow honest business and employment.

Now, I am not advocating fraud. Far from it. I merely am saying that yes, for moral and some economic reasons, we should try to reduce fraud. But, because fraud against the federal government actually grows the economy, it certainly is not a valid reason to deny health care insurance for the masses.

If lawmakers like Bernie Sanders want to see the ways in which socialized medicine will increase fraud, they don’t have far to look.

And there it is: The ignorant and misleading pejorative “socialized medicine.”

No Mr. Jacobs, Medicare for All most certainly is not “socialized medicine.” And I suspect you know it.

At next week’s debates, moderators should ask candidates supporting Sanders’ plan whether they think concentrating all power in a government-run health plan will increase or decrease the incidence of fraud and corruption within our health care system.

The American people deserve better than to pay massive tax increases for this $32 trillion scheme, only to see much of that money end up in the hands of criminal fraudsters.

Jacobs ends his fakery with a series of . . . what else can you call them (?) . . . lies.

  1. Medicare for all does not concentrate all power in anything. It only requires the federal government to pay for health care insurance.
  2. The insurance is “government-run” but the health care is not — an important distinction Mr. Jacobs does not want you to understand or perhaps doesn’t understand, himself.
  3. There is need be no “massive tax increases,” or even tiny tax increases. In fact, FICA and all other federal taxes could (and should) be eliminated, and Medicare for All could be funded by the federal government, forever.

In summary, the rich do not want you to have health care, even if it would cost them nothing.  This is their way of increasing their distance from you and retaining power over you. (See: “Why you believe the Big Lie. The Gap Psychology con job.“)

This is the same battle the rich fought to prevent Medicare, Medicaid, and Obamacare. All benefits to the poor and middle classes are obtained only by a long struggle against disinformation.

Rodger Malcolm Mitchell
Monetary Sovereignty
Twitter: @rodgermitchell
Search #monetarysovereigntyFacebook: Rodger Malcolm Mitchell

…………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………..

The most important problems in economics involve the excessive income/wealth/power Gaps between the richer and the poorer.

Wide Gaps negatively affect poverty, health and longevity, education, housing, law and crime, war, leadership, ownership, bigotry, supply and demand, taxation, GDP, international relations, scientific advancement, the environment, human motivation and well-being, and virtually every other issue in economics.

Implementation of The Ten Steps To Prosperity can narrow the Gaps:

Ten Steps To Prosperity:

1. Eliminate FICA

2. Federally funded Medicare — parts a, b & d, plus long-term care — for everyone

3. Provide a monthly economic bonus to every man, woman and child in America (similar to social security for all)

4. Free education (including post-grad) for everyone

5. Salary for attending school

6. Eliminate federal taxes on business

7. Increase the standard income tax deduction, annually. 

8. Tax the very rich (the “.1%”) more, with higher progressive tax rates on all forms of income.

9. Federal ownership of all banks

10. Increase federal spending on the myriad initiatives that benefit America’s 99.9% 

The Ten Steps will grow the economy, and narrow the income/wealth/power Gap between the rich and you.

MONETARY SOVEREIGNTY

 

 

The solution for a non-problem: High prescription drug prices

High prescription drug prices are indeed a problem for many people, but they could be a non-problem. Unfortunately, the proposed “solutions” don’t solve the real problem.

AARP repeatedly runs articles devoted to the idea that prescription drug prices are too high, with the primary culprits being the “greedy pharmaceutical companies.”

AARP even publishes this logo, to help you remember why we must end excessive drug prices.Stop Rx Greed Cut Drug Prices Now

Among the solutions proposed by AARP are:

1. Let Medicare negotiate drug prices
Using the clout of the program’s 57 million beneficiaries to bargain with pharmaceutical companies could certainly lower prescription drug prices.

Such a move could produce as much as $16 billion in annual savings. The Veteran’s Administration already does this.

2. Allow more drugs to be imported
The prices of brand-name prescription drugs are typically much higher in the United States than in other developed countries, but there are strict limits on when and how consumers can buy drugs from other countries.

Setting up a system to ensure the safe and legal importation of less expensive prescription drugs could help put pressure on drug prices and allow consumers to save on medications.

3. Create transparency in drug pricing
There is no way now to verify the claim by drug companies that high prices are linked to the costs associated with research and development.

The public has very little information about how drug companies set the initial price of a drug or decide on subsequent price increases.

4. Provide for easier drug comparisons
The public has no means of knowing whether a newly approved medicine is better than those already on the market.

Increasing the availability of research that compares the safety and effectiveness of drugs treating the same conditions would help create price competition and reduce spending on unnecessary or ineffective treatments.

5. Implement “value-based pricing”
Shift the United States to a system in which drug pricing is based on how well drugs work (“value”) rather than what the market will bear.

For example, a drug that cures a disease would be priced higher than a drug that doesn’t improve on existing treatments.

AARP suggests other approaches, too: The Barriers Blocking Cheaper Prescription Drugs. This article describes the actions pharmaceutical companies take to slow or prevent the sale of generic drugs.

And then there are the patent-related tricks pharmaceutical companies use to extend the already generous patents on successful drugs — tricks that involve meaningless chemical changes that restart patents.

Finally, AARP lets us in on such tidbits as the fact that most actual research is not done by the big pharmaceutical companies.

It is done mostly by federally-funded and charity-funded groups such as universities and other non-profits, and by small companies that are purchased by the major pharmaceuticals.

The Fiscal Times published a “Chart of the Day: Big Pharma’s Big Profits”
By The Fiscal Times Staff, November 12, 2018

Virtually all of the revelations and suggestions focus on this one theme: Drug prices are too high because the big pharmaceuticals make too much money.

The idea is that if we can find ways to cut “big pharma’s” high prices and exorbitant profits, Americans would benefit.

But pharmaceutical company “greed” is not the real problem

The real problem with high drug prices is not that the drug companies make too much money. The problem is that consumers pay too much money, often unaffordable amounts.

In our capitalist economy, profits are beneficial. Even “exorbitant”  profits stimulate the economy. It is profits that pay for economic growth and employment.

The solution for high drug costs is not to lower drug prices, and thereby cut drug profits, but rather to reduce the amount that consumers pay.

This can be accomplished with a comprehensive, no-deductible, Medicare for All, that includes Part D, the part that pays for drugs.

The federal government, being Monetarily Sovereign, can afford to pay for any benefits in any amount, without collecting a dime in taxes.

Unlike state and local governments, the federal government has the unlimited power to create dollars and the unlimited power to prevent inflation.

We have to forget about the fear or envy that the pharmaceutical companies “make too much.” The more money the federal government pays the pharmaceuticals, the more growth dollars are pumped into the economy.

(If it goes against our moral grain to see big pharma pocketing so many dollars, the government can do what Medicare already does with regard to hospitals, doctors, and medical procedures. It can set the maximum amount it will pay, and determine that any company accepting any Medicare payments will have to abide by those terms for all the drugs it sells, or not be able to receive any federal dollars.)

But why limit the federal spending that is necessary for economic growth? It costs us nothing and it puts dollar into all our pockets.

Bottom line: The real problem is not how much profit pharmaceutical companies make. The more federal dollars they receive, the more growth dollars enter the economy.

The real problem is not drug pricing.

The real problem is how much consumers pay. 

Comprehensive, no-deductible, Medicare for All could eliminate that problem.

Rodger Malcolm Mitchell
Monetary Sovereignty
Twitter: @rodgermitchell
Search #monetarysovereigntyFacebook: Rodger Malcolm Mitchell

…………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………..

The most important problems in economics involve the excessive income/wealth/power Gaps between the richer and the poorer.

Wide Gaps negatively affect poverty, health and longevity, education, housing, law and crime, war, leadership, ownership, bigotry, supply and demand, taxation, GDP, international relations, scientific advancement, the environment, human motivation and well-being, and virtually every other issue in economics.

Implementation of The Ten Steps To Prosperity can narrow the Gaps:

Ten Steps To Prosperity:

1. Eliminate FICA

2. Federally funded Medicare — parts a, b & d, plus long-term care — for everyone

3. Provide a monthly economic bonus to every man, woman and child in America (similar to social security for all)

4. Free education (including post-grad) for everyone

5. Salary for attending school

6. Eliminate federal taxes on business

7. Increase the standard income tax deduction, annually. 

8. Tax the very rich (the “.1%”) more, with higher progressive tax rates on all forms of income.

9. Federal ownership of all banks

10. Increase federal spending on the myriad initiatives that benefit America’s 99.9% 

The Ten Steps will grow the economy, and narrow the income/wealth/power Gap between the rich and you.

MONETARY SOVEREIGNTY

 

An excellent article about Social Security, except for one small detail

The Week Magazine published an excellent article titled, “Social Security’s looming crisis is political, not economic,” by Jeff Spross.

It begins by agreeing with much of what we have been saying for the past 20 years.

Here are excerpts:

There are few traditions in American politics as cherished as the semi-regular panic over Social Security. There are equally few that are such utter balderdash on the economic merits.

The latest example of this time-honored practice comes to us courtesy of The New York Times. “Social Security’s so-called trust funds are expected to be depleted within about 15 years,” the outlet warned this week.

“Benefit checks for retirees would be cut by about 20 percent across the board.” The cuts could potentially rise to 25 percent in later years.

The question is whether the cuts, at the basic structural level, are actually necessary at all.

It’s widely assumed the federal government is just like a private household or business; it can run out of money if it doesn’t manage its spending and revenue properly.

Indeed, Social Security’s trust funds are designed on this premise.

But that’s actually not how it works at all. The federal government can never “run out” of money, nor can it ever suffer an involuntary debt crisis. 

The implications for Social Security should be obvious.

As far as the federal government’s ability to procure dollars is concerned, the depletion of the trust funds is a meaningless event.

It can keep right on paying every last Social Security benefit it has promised in perpetuity.

Absolutely correct. So far, so good.

Image result for politician lying
If you don’t pay more taxes, we’ll have to cut your Social Security. Believe me.

Unlike state and local governments, and unlike businesses, you and me, the federal government uniquely is Monetarily Sovereign.

It created the very first dollars at will –from thin air — and arbitrarily gave them a value.

Today continues to create dollars at will, from thin air, and still controls the value.

Even if the federal government didn’t collect a single dollar in taxes, it could continue spending, forever. 

[There are two why the federal government levies taxes, and neither reason has anything to do with funding federal spending:

Reason 1. To control the economy be encouraging certain kinds of private spending and discouraging other kinds. (Tax breaks for home ownership are an example of the former. “Sin” taxes are examples of the latter.)

Reason 2. To create the illusion that the federal government’s spending ability is limited without sufficient taxes. (This is the method used by the government’s leaders — i.e. the rich — to justify cuts to benefits for the poor and middle classes and to increase their taxes.)] 

The very first Social Security beneficiary, Ida May Fuller, got her initial benefits check in 1939, after paying into the system for just three years — hardly enough time to build up the necessary “savings” to fund her retirement.

The very fact that benefit cuts would reduce Social Security to a cashflow basis demonstrates that current workers finance the benefits for current retirees, as opposed to payroll taxes being stored up for the future retirement of the citizens who payed them.

Oops! Now, Mr. Spross begins to slide off the rails, a bit.

Current workers pay FICA, but FICA does not finance benefits. Federal taxes do not fund federal spending.

Remember, Spross said it himself:

“As far as the federal government’s ability to procure dollars is concerned, the depletion of the trust funds is a meaningless event.

It can keep right on paying every last Social Security benefit it has promised in perpetuity.”

The actual function of the payroll taxes is to remove demand from the economy, thus making room for the demand that Social Security’s spending injects into the economy.

Which is what keeps inflation on an even keel.

The above is the old, “federal money printing causes inflation” myth.

Think about why the price of, say apples, would go up. Because people have too much money?

No, the price of apples or of any other products or services is caused by one thing: Shortages. 

The price of apples goes up when there is an apple tree disease, or a drought, not because your salary went up and you have more money to spend.

The notion that money creation (erroneously called, “money printing”) causes inflation, may stem from a misreading of hyperinflation.

Governments often respond to hyperinflation by printing currency.

But all hyperinflations begin and continue with shortages — usually, shortages of food — and they end only when the shortages are alleviated.

In short: the system is fine.

Of course, Congress still faces the fact that it made a rule for itself that benefits must be cut when the trust funds run dry.

If it wants to maintain the fiction, Congress could do what previous reforms have done, and bring spending and revenue back into line through some combination of benefit cuts and payroll tax hikes.

The above is exactly what the rich want you to believe: The benefits for the poor and middle classes must be cut, while their taxes are increased.

At some point, however, you’d think the better move would be to acknowledge the trust funds are a political gimmick, and just spend whatever benefits our elected representatives deem appropriate.

Social Security may face a very interesting political crisis in the coming decade or two. But in hard economic terms, there is no crisis at all.

Amen, brother Spross. The invented danger that Social Security (and Medicare and all other federal programs) could run short of dollars is a myth.

Now, while we’re at it, let’s get rid of that inflation myth, too.

Rodger Malcolm Mitchell
Monetary Sovereignty
Twitter: @rodgermitchell
Search #monetarysovereigntyFacebook: Rodger Malcolm Mitchell

…………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………..

The most important problems in economics involve the excessive income/wealth/power Gaps between the richer and the poorer.

Wide Gaps negatively affect poverty, health and longevity, education, housing, law and crime, war, leadership, ownership, bigotry, supply and demand, taxation, GDP, international relations, scientific advancement, the environment, human motivation and well-being, and virtually every other issue in economics.

Implementation of The Ten Steps To Prosperity can narrow the Gaps:

Ten Steps To Prosperity:

1. Eliminate FICA

2. Federally funded Medicare — parts a, b & d, plus long-term care — for everyone

3. Provide a monthly economic bonus to every man, woman and child in America (similar to social security for all)

4. Free education (including post-grad) for everyone

5. Salary for attending school

6. Eliminate federal taxes on business

7. Increase the standard income tax deduction, annually. 

8. Tax the very rich (the “.1%”) more, with higher progressive tax rates on all forms of income.

9. Federal ownership of all banks

10. Increase federal spending on the myriad initiatives that benefit America’s 99.9% 

The Ten Steps will grow the economy, and narrow the income/wealth/power Gap between the rich and you.

MONETARY SOVEREIGNTY

 

“Whataboutisms”: The perfect defense for the indefensible

“Whataboutisms” are the perfect, all-purpose defense for all wrongdoings.

Yesterday, Donald Trump said he gladly would accept help from Russia in the 2020 election.

That is illegal. From an article in the 6/14/19 issue of the Chicago Tribune:

Federal Election Commission Chairwoman Ellen Weintraub released a statement Thursday making clear that candidates for public office may not receive help from a foreign government.

Tweeting her statement, Weintraub wrote, “I would not have thought I needed to say this.”

“Let me make something 100% clear to the American public and anyone running for public office,” Weintraub wrote.

“It is illegal for any person to solicit, accept, or receive anything of value from a foreign national in connection with a U.S. election. This is not a novel concept.”

Sen. Lindsey Graham of South Carolina, a staunch Trump ally, said “I think it’s a mistake of law. I don’t want to send a signal to encourage this.”

Then we come to the “whataboutism,” also quoted in the Tribune article:

But Graham likened Trump’s stance to Democratic support for a research firm run by British ex-spy Christopher Steele that explored Trump’s ties to Russia in the last campaign. (Steele was hired as a private citizen and used his contacts to gather information.)

It’s perfect. The idea is, if you break the law, you need only to find one other entity that has done anything questionable, and that immediately exonerates you.

Just find something — anything, really — that in some vague way approximates, or almost approximates, the illegal or immoral act and bingo, you’re home free.

Let me give you some other examples:

The claim: “Hitler was evil. He sent innocent people to die in concentration camps.”

The “whataboutism” that exonerates Hitler: What about Roosevelt? He sent innocent Japanese to concentration camps.

Hitler is cleared.

Here’s another:

Trump is an immoral, sex-crazed mysogneist. He cheated on all three wives, paid prostitutes to stay silent, walked in to watch naked women dressing for beauty contests, and boasted about groping women.

Whataboutism: What about Bill Clinton? He had affairs, too.

Therefore, Trump is innocent.

Or another: According to the Washington Post:

“It took President Trump 601 days to top 5,000 false and misleading claims in The Fact Checker’s database, an average of eight claims a day.

“But on April 26, just 226 days later, the president crossed the 10,000 mark — an average of nearly 23 claims a day in this seven-month period, which included the many rallies he held before the midterm elections, the partial government shutdown over his promised border wall and the release of the special counsel’s report on Russian interference in the presidential election.

“This milestone appeared unlikely when The Fact Checker first started this project during his first 100 days.

“In the first 100 days, Trump averaged less than five claims a day, which would have added up to about 7,000 claims in a four-year presidential term. But the tsunami of untruths just keeps looming larger and larger.”

And now for the “whataboutism”:

Whatabout Obama. He said, “If you like your health care plan, you can keep it.”

Therefore, either Trump is not a liar, or if he is, it doesn’t matter, because Obama was a liar.

You’ll see Trump’s defenders using whataboutisms every day, simply because Trump’s acts are so egregious, there are no true defenses.

Whataboutisms seem to say, “You can’t say anything negative about my guy, no matter how bad he may be, so long as your guy isn’t absolutely pure.”

It’s the perfect, all-purpose defense for the scoundrel.

Trump tried to explain his willingness to accept illegal election help from a foreign government as “opposition research.” They are not the same, and given that he is surrounded by lawyers, he knows it.

(In fact, he actually disputes it with FBI Director Christopher Wray

“Whataboutisms” appeal to the shallow thinkers — i.e Trump followers — who cannot see the inherent illogic.

Watch for “whataboutisms” in tomorrow’s newspapers, TV, and tweets.  “Whataboutisms” are everywhere, perhaps because shallow thinkers and evil-doers are everywhere.

Rodger Malcolm Mitchell
Monetary Sovereignty
Twitter: @rodgermitchell
Search #monetarysovereigntyFacebook: Rodger Malcolm Mitchell

…………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………..

The most important problems in economics involve the excessive income/wealth/power Gaps between the richer and the poorer.

Wide Gaps negatively affect poverty, health and longevity, education, housing, law and crime, war, leadership, ownership, bigotry, supply and demand, taxation, GDP, international relations, scientific advancement, the environment, human motivation and well-being, and virtually every other issue in economics.

Implementation of The Ten Steps To Prosperity can narrow the Gaps:

Ten Steps To Prosperity:

1. Eliminate FICA

2. Federally funded Medicare — parts a, b & d, plus long-term care — for everyone

3. Provide a monthly economic bonus to every man, woman and child in America (similar to social security for all)

4. Free education (including post-grad) for everyone

5. Salary for attending school

6. Eliminate federal taxes on business

7. Increase the standard income tax deduction, annually. 

8. Tax the very rich (the “.1%”) more, with higher progressive tax rates on all forms of income.

9. Federal ownership of all banks

10. Increase federal spending on the myriad initiatives that benefit America’s 99.9% 

The Ten Steps will grow the economy, and narrow the income/wealth/power Gap between the rich and you.

MONETARY SOVEREIGNTY