Category Archives: Business

The Arbitrary Health-Care Mandate

“My whim is my command“:

…the sudden demand that businesses stop adjusting for regulatory policy is nearly the height of hypocrisy for this administration, which has repeatedly offered short-term gimmicky tax credits for business decisions that boost its policies, including an ill-considered credit for hiring that ended up costing taxpayers millions for hiring decisions that would have been made anyway. Suddenly, the Obama administration has to take action outside of the law because employers respond to regulatory signals more predictably than one-off credits.

In other words, it’s a demonstration of arbitrary power, of precisely the kind predicted by Hayek. And it’s no longer just opponents of the ACA noticing.

At National Journal, Major Garrett blasted the latest unilateral changes in enforcing statutory law by noting, “The Affordable Care Act means what it says and says what it means. Until it doesn’t. … [T]he arbitrary is the norm.”

The editorial board at The Washington Post blasted Obama for his “increasingly cavalier approach to picking and choosing how to enforce this law. “ Garrett’s colleague Ron Fournier and the Daily Beast’s Kirsten Powers both declared their patience at an end to the arbitrary changes and continuing incompetence from the Obama administration – and all of these people support the law in principle.

The attempt to create a command economy in the health-insurance market has failed, in the same manner that Hayek predicted, and resulted in the same arbitrary use of power to attempt to compensate for those failures. The demand for businesses to “self-attest” that they aren’t following standard business principles foreshadows the later stages of unreality that will take from F. A. Hayek to George Orwell on a long enough continuum.

This is what tyranny looks like.

[Update a while later]

“Obama is legislating without the legislative branch. This is corrosive of self-government, counter to our constitutional system and contemptuous of the rule of law.”

Nothing new for him.

National Review

No, it is not doomed:

By the likes of The Week, Salon, and Politico in quick succession, we are said to be in “deep trouble,” likely “doomed,” facing a “wipe out.”

This is in part a tale of lazy reporting and even headline cribbing.

None of the writers of these articles ever called National Review. They didn’t ask what our chances in court were, or even bother to get basic facts about the case right. Damon Linker of The Week, the one who got this meme rolling, made rudimentary mistakes without trying to check them, and then lectured us about journalistic standards.

You’d think people who write about media and the law would know, instinctively, to consider this factor: libel insurance.

You’d think that, until you realize that they’re leftist hacks, and idiots.

Why Republicans Are The Stupid Party

Reason #2436:

The plainness of the usurpation of power on the part of this administration is obvious, and one wonders how many Democrats — some of whom surely have respect for the rule of law — will continue to abide it. Would any Democrat want a Republican president to view the law — or the scope of executive power to “adjust,” “peel back,” or ignore the law — in this way?

The account, however, also highlights problems on the other side of the aisle. It says, “GOP lawmakers, who oppose the law, seized on the delay to argue the administration should relax other key provisions, including the requirement that individuals carry coverage or pay a penalty, which has been in effect since the beginning of this year.” The New York Times provides an almost identical account: “Republicans denounced the unilateral move as a violation of the law and called on the White House to throw out all of the Affordable Care Act’s coverage mandates.”

This is exactly the wrong response. Republican lawmakers should be insisting that the Obama administration execute the law as written — and should start holding high-profile hearings in the House to have administration officials explain why they don’t think they need to execute the law as written, while having constitutional experts explain why they do. Secondarily, Republicans should insist that the Democratic Senate pass, and Obama sign, actual changes to the law itself — which have already been passed by the House with a fair amount of Democratic support — to delay the individual mandate alongside the employer mandate that the business lobbyists are so “pleasantly astounded” they were able to get delayed in clear violation of the written law itself.

Yes. The Republicans need to continue to insist that the administration follow the law, not just on principle, but to force the Democrats to lie in the bed they unilaterally made. If the Dems want to fix the law, they need to change the law, with both houses of Congress, not “adjust” it.

[Update a few minutes later]

More ObamaCare unraveling:

…it is hard to figure out just where the Obama administration is going with all of this.

For employers with more than 50 workers this is a delay not a fix. Employers will only now up the pressure to change the law completely, knowing they have the administration on the political run over these issues. And, small employers will still have to comply with the very costly minimum benefit mandates––really the biggest complaint they have had. Just exactly what is the Obama administration accomplishing with a delay?

What will the administration back off on next? Given the very small exchange enrollment so far coming from the ranks of the uninsured, will they next postpone or eliminate the individual mandate?

No one has been more critical of the various requirements in Obamacare that I have.

But to make an insurance system work you have to have a set of consistent and consistently applied rules. You can’t have some people choosing to be out today and in tomorrow. You can’t have a system where insurers price products based upon one set of conditions and then you keep backing off on the conditions consumers and employers have to follow.

The administration really has three options:

  • Full speed ahead––enforce all of the original rules. Just take the political heat believing you have crafted a system that will work. This is what they have been telling us for almost four years now!
  • Do a comprehensive and rational fix that provides for a modified system for everyone learning from the mistakes that were made.
  • Let it unravel one step at a time caving in to every constituency that threatens a vulnerable Democratic Senator and end up with a worse mess.

Looks to me like they are on track for number three. Ironically, I don’t think these delays will do the Democrats one bit of good for their vulnerable Senators. These aren’t permanent fixes and these concessions will just reinvigorate the people complaining that their cause is justified.

Yes. They’re panicking. And because they’re incompetent, they’re just flailing and playing it by ear at this point, even though they’re completely tone deaf.

[Update a few minutes later]

Adding irrationality to lawlessness:

The officers’ responsibility is to the owners of the company, the shareholders. The business exists to create value, not to provide employment – employing workers is a function of the value added to the enterprise, not the need to create a more favorable election environment for the statist political party. Corporate officers who overlooked material tax consequences would be unfit to be corporate officers.

What is illegal and irrational is not a company’s commonsense deliberation over its costs, it is Obama’s edict. And look what attends this one: criminal prosecution if Obama’s Justice Department decides the business has falsely certified that its staffing decision was not motivated by Obamacare.

Think about that for a second. The waiver is illegal. It flouts the language of the Obamacare statute, under which the employer mandate is required already to have been implemented by now. There is nothing in the law that empowers Obama to waive the mandate, much less to attach lawless conditions to such a lawless waiver. A business that seeks the waiver and fails to pay the mandated tax (in lieu of providing the required coverage) is in violation of federal statutory law, regardless of its compliance with Obama’s outlaw edict. The payments required by the statute, after all, are owed to the public, not to Obama – he’s got no authority to deprive the government of these funds just because it would harm Democrats to collect them.

Yet, Obama proclaims his illegal waiver with impunity – Congress apparently unwilling to stop him. You, on the other hand, will be prosecuted for breaking the “law” if you do not comply to Obama’s satisfaction with the illegal and irrational condition he has unilaterally placed on his illegal waiver.

This is tyranny, plain and simple.

Should Americans Be Poorer?

Kevin Williamson takes on an idiot academic:

Labor is a resource, and American labor a particularly valuable one. Sensible people want Americans to work for the same reason that we want to make use of our natural gas and to irrigate California farmland: We want the country to be richer rather than poorer.

This sort of thing is utterly lost on Professor Hunnicutt, who produces from his pocket a particularly stale chestnut regarding Henry Ford, that he believed that paying higher wages was essential to “assuring adequate consumer demand.” I have often heard it said that Henry Ford was a genius for “paying his workers enough to afford his cars.” I very much doubt that Henry Ford believed any such thing, but perhaps he did; he believed a lot of crazy things. The actual history of Ford very strongly suggests that the firm paid market wages, higher than those paid by some similar firms largely because the company had difficulty keeping employees, who were quickly burnt out on its assembly lines. (Ford would sometimes see personnel turnover equivalent to the company’s entire work force in the course of a few months.) “Paid them enough to buy his cars” is a timeless, deathless myth, but it is economically illiterate on its face: Why doesn’t Ferrari pay its workers enough to buy Ferraris? Rolls-Royce? The belief that one can create a functioning consumer market for one’s own goods by overpaying for labor or any other input is magical thinking. But our academics have a weakness for magical thinking.

The newly organized anti-work faction for the most part is little more than the flashing of partisan gang signs: Obamacare apologists are abject, and there simply is no failing in the program that they will not attempt to defend. That is to be expected.

The real problem is that there are people who apparently actually believe this stuff. They have made an elementary conceptual error: National economies are not household economies. There are times in individuals’ lives when leisure becomes more valuable than the return from an additional hour’s work. We take vacations and retire for a reason. But you cannot put a national economy on vacation, much less retire it. To argue that Americans as a whole should work less is to argue that Americans should be poorer.

Yup. But it’s not like these people have even the most basic understanding of economics. They are stuck in the childishness of Marxism in their attitudes, even if they’ve never read a word of his works.

President Romney’s Lawlessness

The Democrats and the media bash him for it:

Schumer’s colleague, Senator Harry Reid of Nevada, described the Romney administration’s behavior as “the nuclear option.” “This abuse of executive discretion is beyond the pale,” Reid fumed. “I’m a lawyer, I know.” (For more information on the American system of government please take a look at Ezra Klein’s comprehensive explanatory primer, “Our Constitution in Exile: Why Everything President Romney Does Is Illegal,” over at VoxProg. Alternatively, consult Greg Sargent’s excellent Washington Post column, “Article I: A Love Story,” published January 20th, 2013.)

Others went further. “It’s. The. Law,” animated Democratic spokesman Debbie Wasserman-Schultz told reporters at a hastily assembled press conference in Miami, barking out each monosyllable and pounding her fist on her desk. “The terrorist, anarchist, hostage-taking neo-confederates in the Republican Party tried for years to delay this in the legislature and now, simply because they have a Senate they dislike, they are trying to do so with the executive branch. It’s a disgrace to the memory of our Founding Persons and it will not stand.”

Wasserman-Shultz’s claim of impropriety is a strong one, and it echoes Democratic complaints from last June, when President Romney delayed the income tax by two years to allow compliance deadlines to be met and to make sure that he was standing up for the middle class. George Washington University law professor and frequent critic of executive power, Jonathan Turley, broke through tears to tell National Review Online that the development was “merely the latest in an endless series of corruptions, and another devastating step on the road to monarchy.” “D’you know what?” Turley added, his voice cracking. “I’m thinking of moving to Cyprus.”

Despite the criticism, Republican strategists remained sanguine. “What you’re seeing here is the Democratic Party reaping the whirlwind,” a GOP operative explained on condition of anonymity. “This is the train that the last guy set in motion — and he was cheered on by politicians and journalists alike. Can they really complain now our guy has the reins? I think not.”

Those damned Republicans, who don’t give a damn about the law or the Constitution.