Category Archives: Business

Federal Mandates

meet the real world:

The pressure of this law will eventually force restaurants like Davanni’s to reduce consumer choice as a way of managing the overwhelming burden of maintaining their disclosures. Smaller chains that succeed in satisfying their customers and managing their business used to be rewarded with growth, but this law will put an artificial cap on expansion at 19 locations. That means that fewer people will find jobs, and even in existing stores, money that may have funded more jobs will instead go to reprinting the same menu boards over and over again. And all of this comes because political elites think that people are too stupid to know that a pizza is fattening or how to access information that already exists in much more efficient formats than menu boards.

When will we wake up from this Atlas Shrugged nightmare?

[Early afternoon update]

One nation, under arrest. With liberty and justice for none.

I think we should just throw out the entire federal code and start over.

Hope

…and change:

The U.S. standard of living, says superstar Northwestern University economist Robert Gordon in a new paper, is about to experience its slowest growth “over any two-decade interval recorded since the inauguration of George Washington.” That’s right, get ready for twenty years of major-league economic suckage. It is an event that would change America’s material expectations, self-identity and political landscape. Change in the worst way.

…America faced a similar turning point a generation ago. During the Jimmy Carter years, the Malthusian, Limits to Growth crowd argued that natural-resource constraints meant Americans would have to lower their economic expectations and accept economic stagnation — or worse. Carter more or less accepted an end to American Exceptionalism, but the 1980 presidential election showed few of his countrymen did. They chose growth economics and the economy grew.

Now they face another choice. Preserve wealth, redistribute wealth or create wealth. Hopefully, President Barack Obama will choose door #3. Investing more in basic research (not just healthcare) would be a start, as would slashing the corporate tax rate. A new consumption tax would be better for growth, but only if it replaced the current wage and investment income taxes. Real entitlement reform would help avoid the Reinhart-Rogoff scenario. The choices made during the next few years could the difference between America in Decline or the American (21st) Century.

Unfortunately, we have to wait at least two and a half more years to get rid of Jimmy Carter II.

Liberty Over Big Government

Michael Barone writes about the Tea Parties and the great ongoing debate about the purpose of America:

The Progressives had their way for much of the 20th century. But it became apparent that centralized experts weren’t disinterested, but always sought to expand their power. And it became clear that central planners can never have the kind of information that is transmitted instantly, as Friedrich von Hayek observed, by price signals in free markets.

It turned out that centralized experts are not as wise and ordinary Americans are not as helpless as the Progressives thought. By passing the stimulus package and the health care bills the Democrats produced expansion of government. But voters seem to prefer expansion of liberty.

The Progressives’ scorn for the Founders has not been shared by the people. First-rate books about the Founders have been best-sellers. And efforts to dismiss the Founders as slaveholders, misogynists or homophobes have been outweighed by the resonance of their words and deeds.

The Declaration of Independence’s proclamation that “all men are created equal” with “unalienable rights” to “life, liberty and the pursuit of happiness” has proved to be happily elastic. It still sings to us today, thanks to the struggles and sacrifices of many Americans who gave blacks and women the equality denied to them in 1776.

In contrast, the early Progressives’ talk of an “industrial age” and an outmoded Constitution sounds like the language of an age now long past. Their faith in centralized planning seems naive in a time when one unpredicted innovation after another has changed lives for the better.

The “progressives” are retrogressive. A set of “elites” (who are elite only in terms of their power, not their intellect or competence) running the lives of the rest of society is the oldest idea in human history. It was opposition to such a notion on which the Constitution was based.

And central planning works no better with space policy than with any other.

The Insurance Death Spiral

I’m pretty sure this was the plan all along:

So there are penalties for not purchasing insurance. But there’s no serious enforcement mechanism allowing the IRS to make sure those penalties get paid?

Given the importance of the mandate to the health reform project, this doesn’t make much sense. The law was designed to expand the number of individuals with health insurance. But without the ability to enforce the individual mandate, any expansion will likely be significantly smaller than projected.

But remember, if you like your plan, you can keep it! Untilless your insurance company goes out of business…

[Update a few minutes later]

You mean they don’t have to cover pre-existing conditions? More thoughts here and here.

Gee, do you mean that when a multi-kilopage bill is rushed though without anyone actually reading it, there could be screwups? Who would have guessed? Certainly not some of the morons in my comments section, who think that passing bills without reading them is just dandy.

Every day, November is a day closer.

[Update a couple minutes later]

And speaking of November approaching, this isn’t good new for the Dems, though it’s great news for the Republic:

Nearly two-thirds of Americans say the health care overhaul signed into law last week costs too much and expands the government’s role in health care too far, a USA TODAY/Gallup Poll finds, underscoring an uphill selling job ahead for President Obama and congressional Democrats.

…Supporters “are not only going to have to focus on implementing this kind of major reform,” says Robert Blendon, a professor of health policy and political analysis at Harvard. “They’re going to have to spend substantial time convincing people of the concrete benefits of this legislation.”

This is hilarious. The president and the Democrats have spent the last fourteen months telling us how wonderful this plan is, to no avail. Now that it’s going to start to actually bite, they think that they’re going to be able to explain it better, and be more convincing? Especially when they don’t know what’s in it any more than they did before it passed?

And note, this is a Gallup poll, which means it’s “adults.” I haven’t checked Rasmussen yet, but I’m sure that the news for them from “likely voters” is even more grim. For them, that is, not for us.

The Green Pharaoh

See, he was just trying to save the Nile delta. I’m even more amused at the leftist outrage in the comments. But then, leftists, and particularly watermelons, don’t have much of a sense of humor.

[Update a couple minutes later]

I love this comment from Bernstein:

Jon Stewart is funny because of the ways he bugs his eyes out, and otherwise makes funny faces. Can’t get that effect on a blog, I’m afraid.

It’s funny ‘cuz it’s true.

Premiums Will Go Up

…and you may not be able to keep your plan. But what would the head of Aetna know?

And I’m sure that this is completely unrelated:

Americans have a pragmatic sort of optimism in adversity, and after ObamaCare’s passage, I figured that would take the form of a “wait and see” attitude. Democrats made a lot of promises about this legislation, and there would be some impulse to wait to see how this bill fulfills or fails them.

Certainly, Democrats in office had hoped for that kind of response, but thus far, they’re not getting it. That may be due to some of the unpleasant details that the media have finally reported. Businesses are having to take big charges on lost tax credits, and promises over pre-existing condition treatment raised expectations to unrealistic heights. Instead of making lives easier, the bill has already made lives more complicated.

The real test will come in Rasmussen and other polling around September. If 54% of people still want it repealed — and that opposition has remained relatively unchanged for the last several months — then Democrats won’t have anywhere to hide.

Wind sowing now. Whirlwind reaping in November.

[Update a while later]

Congressional (dis)approval ratings have approached the levels last seen in late October, 1994. Remember what happened a few days later? And it’s only March…

A Thugocracy

Fascists like Henry Waxman are upset that companies are following SEC regulations:

People’s Commissar Henry Waxman is now planning to haul the companies before his committee because their disclosures fail to play along with the our Leftist rulers’ script that Obamacare “will expand coverage and bring down costs.”

As Andy notes:

If we are now under a system where disclosure gets you a public whipping and other threats by the Powers That Be while nondisclosure promises the ruinous expenses of defending against criminal investigations and civil enforcement, this is no longer anything but a thugocracy.

It’s the Chicago (and West LA) way.