Eureka!

There; I said it.

While everyone else is looking at pieces of the problem, I found the crux. Therein, I also found the solution.

The only catch is that our leaders have not the intelligence, inclination or interest in fixing it.

Unless you have slept through the entire debt ceiling debate you have heard someone claim that 48% of Americans pay no tax. Those who wish to protect the wealthy and the corporations from the IRS consider it to be the ultimate argument. It would still be a stupid argument even were it true.

Follow this, step by step. In their ignorance or prevarication, they have inadvertently pointed the way.

That 48% are not paying income tax, as defined by the IRS.  They don’t make enough. Don’t you envy them? They do, however, pay FICA (Federal Insurance Contributions Act).

FICA is composed of 12.4% of your salary going to Social Security and 2.9% dedicated to Medicare. Ones paycheck will reflect half of that 15.3% tax. In order to not scare people so much the law says that the employer covers the other half. That half is also a part of ones compensation. It is simply a hidden tax for the employee.

As a point of interest, compare that 15.3% the capital gains tax of 15% for those who gamble rather than work.

That 48% pays sales tax, state income tax, gas tax, excise taxes, real estate tax, car tax, numerous fees and more. They pay no tax? Bat feces.

Social Security and Medicare taxes are generating surpluses, which are put into trust funds, until Congress replaces them with IOUs. That means those entitlement programs are paying their own way and making loans to those programs that don’t.

Cutting back on those programs hurts those programs and makes more money available in the trust funds for the Congress to borrow. Making their slush fund larger will not encourage congressmen to economize. It solves nothing for the government nor for the people, just for the politicians. They will be back for more cuts in the future.

Well, there’s no solution there.

That leaves increasing revenue. The parasites on Wall Street are adamant they will not pay their share. So, does that mean we suck more out of those on the bottom rungs of the economic ladder? Yes.

What?

‘splain yourself, Lucy.

The cost of the federal government as a percentage of the Gross Domestic Product is close to a post-WWII low. Then why are we running such debts? Because of a shortfall of revenue. This is not a problem that began in this millennium.

Some of that is easily explained by the Chicago School of Economics’ trickle down theory, an impractical joke. Cut taxes and job creators will create more jobs. But, in the real world, we have lowered their taxes and they didn’t produce; at least not in this country.

The wealthy and the corporations not pulling their own weight makes us justifiably angry but something else they have been doing is of greater import. Something else has been far more insidious, far more destructive of the country, the economy and the people.

You’re angry that we bail out the gamblers, the freeloaders, the parasites. You wonder what they could have done that was worse.

They set about to destroy the unions. They largely succeeded. The middle class was the strength of our economy and thereby the foundation upon which our status as the superpower has been based. The middle class came about only through the existence of the unions.

They didn’t stop with their victory over the unions. They set about dismantling the entire middle class. Our highest inflation-adjusted personal income happened in 1973. The oil embargoes of 1973 and 1979 started the descent. Trickle down and deregulation turned a temporary setback into a decline and fall of at least a couple of generations.

The relative size of the middle class has shrunk. That 48% not earning enough to pay income taxes is your proof. Masses of people continue to be booted from the middle class. Wages and salaries are not keeping up with inflation. Fewer people make enough to contribute to the non-FICA revenue.

So, the government remains the same relative size while revenue decreases. Simple subtraction. Too much subtraction. Too many negative notations.

The real solution is to make it possible for more people to attain and remain in the middle class. Then they will make enough to get the attention of the IRS. Then the government will have sufficient revenue. Wow! A revenue increase without a tax increase.

Our leaders can try this and try that. They can try all of the solutions they want. Some may work. Most won’t. Regardless, unless we reverse the decline of the middle class those other solutions will just buy more time for us to endure the decline of our country and its economy.

I didn’t promise an easy or quick solution. It will take time. But, it is the only long-term solution. Will it happen? Not unless we try something new – electing competent grownups.

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Yes, I’m back from vacation. I know. You didn’t even realize I was gone.

Well, it wasn’t really a vacation. It was 9 days at Fall Creek Falls State Park with about 70 of my wife’s relatives. No it wasn’t as bad as it sounds.

Actually there is a little good came about while I was there. Perhaps I should relate that before preaching on the topic of the day. Each family is assigned a meal to cook. They either produce their specialty or whatever is easiest to prepare for that size of a mob. Hot dogs and hamburgers are de rigueur for the 4^th. Diet food, it ain’t.

That’s the problem. I overcame seven books on economics in the past couple of months. Why? Research on my next book.

I needed a break. So, I did some Internet searching for ideas on nutrition and downloaded to my Kindle 3 books that seemed to make sense. Okay. So it’s my form of recreation.

Actually, as age and weight have crept up I have been tested for diabetes, metabolic rate, tumors, everything. It’s nice to know I don’t have any of those problems but there were no definitive answers. Nothing seems to work.

The good news? Having just begun reading 2-3 days before the trip, I was far from having mastered the subject. Again, their wasn’t any diet food in sight. Considering those conditions, I am shocked that I lost over 7 pounds. I was not reducing calories. None of it was the fluid loss that causes many diets to look good the first week or so. The theory is that it’s what you eat, not how much and that your body will find its own ideal weight. I hope so.

I didn’t starve. I didn’t explore the great outdoors. My arthritic joints and ever-present cane have trouble navigating a round trip to the rear of a Walmart. But now, back to the topic of the day.

Dancing On The Ceiling

What is going to happen with regard to the debt ceiling? What will happen if it isn’t raised? The truth is that no one knows.

But, how do I answer the question? I am neither a prophet nor a fortune teller. They are different. Prophets don’t predict the future. Most everyone misunderstands. A prophet passes on messages from God to the people. Most fortune tellers are gypsies.

Neither Oral Roberts, nor Bob Jones, nor Jerry Falwell’s Liberty Bible College is on my résumé. I am not a gypsy. I’m just going to rely on my unfamous (infamous?) ability to see through political BS.

First, they will not recognize the unconstitutional nature of the debt ceiling law. Politicians prefer complex and obscure machinations. They offer opportunities to hide from and/or misrepresent to their constituents what they are really up to. They are not fans of Occam’s Razor.

The debt ceiling will be raised. The Republican leadership in the Congress publicly assured Wall Street that it would. The Democrats’ action was never in doubt. Both are owned by the casinos and have heard  their master’s voice.

There possibly is a horsefly, or the rear of a centaur, in the ointment. Eric Cantor has put Speaker Boehner under siege in his quest to satisfy his ego, his desire for John’s job. To do this, he has decided to sell his soul to the Tea Party. Why is it so common for a centaur to be looking to the rear?

By some counts, Eric can muster more votes from their caucus on this issue than can John. Eric hopes that will translate to votes for John’s office. That explains Mitch, over in the Senate, showing the white flag with his Rube Goldberg proposal.

Dissension among the Republicans in the House has given Obama a chance for victory. I have trouble crediting the White House with mature, nuanced strategizing but they have made a helpful move or two; even if by accident.

This hullabaloo about the debt ceiling is mere political posturing. It has been brought in to the game solely for political reasons. The last Bush raised the ceiling 7 times. St. Ronny did it 17 times – yes, 17. There should be a clear-cut severing of the problem and the play.

Obama should say that the question of the debt ceiling will stand on its own. Vote it up or down. Let the people decide who is jeopardizing the world economy.

Since I see it as almost a given that the ceiling will be raised, what remains in question is the timing. The financial world may be foolhardy gamlbers with other people’s money but they are cowards when their own neck in on the block. They are getting skittish.

One final point. The Treasury has actually borrowed more money from the Social Security and Medicare trust funds than from China or anyone else. That money may have been borrowed by Congress but it isn’t theirs.

If creditors are to get paid while others stand by, Social Security and Medicare should be at the head of the line. They are just getting back their own money. That is not the same as the oil, agricultural, drug and other industries holding out their hands for subsidies.

The President has been speaking about the possibility of Social Security checks not going out on time. That is pure political theater. It is scare tactics. No group shows up at the polls in higher percentages than do seniors. No one wants to alienate them. Enjoy the show but live in reality.

Just remember the problem. Our economy is sick because there is insufficient blood (money) flowing through the system. Sending money to China and not letting seniors put it back into our economy would be the height of stupidity.

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What caused the debt? That sounds like an easy question. Could that be the problem?

One would hope that our “leaders” could get their arms around a simple question. Well, apparently we never learn.

The short-bus riders on The Hill are pretending to deal with what to do about the debt. It seems logical to ask the question in the title of this article before addressing any possible solutions. Knowing how you got here might be helpful in finding your way back.

Back to the initial debt question.

Even conservative economists acknowledge the role the tax cuts of the early aughts played in eliminating the surplus and creating a major portion of the debt. No rocket science required. No dispute, except among those who prefer playing politics and maintaining “Their” seat in Congress.

Rule of thumb: If a politician considers his career more important than the well-being of the people or the country, he/she does not belong in any public office.

Should American corporations enjoy loopholes that let them snub their noses at our country? Other countries aren’t so considerate. They use our government’s protection, services, infrastructure, airports, ports, education of their employees and enjoy other benefits of being and operating in our country.

Over two-thirds of the largest paid no corporate tax. They are freeloaders. They are parasites. And, many still get subsidies. Even some foreign corporations have discovered how to do the same. That means that you are paying their way. It means you are subsidizing them to send our jobs overseas and pay taxes to other countries. It’s difficult to fully appreciate your generosity.

Our glorious new Secretary of Wars is visiting our money in Iraq and Afghanistan. He tells us that we are close to defeating al-Qaeda. After only 10 years and we are close to defeating them? All 24 of them? Why not throw in another couple of hundred thousand and finish them within this decade?

They tell us they are drawing down a couple of squads this year from the 100,000-plus US troops over there. Why didn’t they mention our mercenary forces? They actually outnumber our troops. Whatever, I have been told in the utmost of secrecy that those military operations added somewhat to our present debt.

The oil industry needs subsidies? Enough said.

There have been various other expenses. We average consuming 170 pounds of sugar every year for every man, woman, child in this country. Aren’t we sweet? But, that just isn’t enough. Somehow, that industry just can’t survive without my pocket change. Ooops! They do survive without it. They get some of that Chinese money that puts us in debt.

If it were only the sweet guys. But, no. You either don’t have enough fingers and toes to count those struggling to get by on corporate welfare, or you belong in Ripley’s Believe It Or Not Museum.

Luckily, I already had 3 years of Chinese language courses in grad school. I can beg in their native tongue.

Cargill, Archer-Daniels-Midland (ADM), Land O’Lakes, Monsanto, Dole, Chiquita, Perdue Farms. These are needy family farmers that can’t afford to increase their fleets of corporate jets as much as they would like unless you go deeper into debt. Please, consider helping your neighborhood agricorp.

One more biggie; the drug lords. Medicare Part D. That needn’t cost the government any money, except they agreed to refrain from negotiating with the pushers and pay whatever their asking price is. Medicare is much larger than the Veterans’ Administration. They could have a lot more bargaining weight than the VA, which pays half as much as Medicare.

So, where do we cut?

That’s easy. First you cut Medicare and Social Security. Why? Because old geezers don’t need no stinking private jets, or sufficient and decent food (cat food is cheap and convenient), or full doses of their meds. They can move in with their kids. If those kids are unemployed they can squeeze out a little to help with the mortgage.

Neither Medicare (except Part D) nor Social Security has added a single nickel (or yuán 元) to the national debt. They are paid completely from taxpayer contributions via the payroll tax. Both are, and have been, running large surpluses. Those surpluses are projected to disappear in the future; Medicare, in about 12 years, or so. Social Security in several decades. Whatever, neither has contributed to our present debt problem.

We can save a few farthings by cutting the funding to such frills as air traffic control, highway maintenance, matching funds to states and local governments for practically everything they do (cops on the beat, firemen on pumpers, education, etc.), courts, passports, parks, prisons, paychecks for the troops we claim to support, the FBI, airport security, medical research, subsidies to hospitals and too many more to list.

The President says the Social Security checks may not go out on time next month. I might get upset if they decide not to send my Social Security checks. The IRS charges penalties if my taxes are late. Does anyone have any ideas about what size of a penalty I should impose?

Are our “leaders” serious? Are they planning and preparing for any of those doomsday scenarios that  are no longer unthinkable? Since it has never happened before, we really can only guess at what we will face. No. They are not planning and preparing. No. They are not serious.

Pay Up.

That first item I mentioned as playing a major role in creating our present mess needs revisiting. We have the lowest income tax rates in more than 60 years. Low taxes means the creation of jobs, so we are told. Then why are we creating the fewest jobs of the last 6 decades in the decade since the latest tax cuts? Because that old saw is a lie. With all of the misinformation, ideological nonsense and other lies getting the attention of the media, it’s time to cut through the BS and look at the realities.

For real? That’s the top marginal rates for the wealthiest taxpayers? Actually, not. That fails to take into consideration two fairly important factors. The wealthy have more deductions than those seniors without a private jet (by the way, those jets are deductible). They have so many it pays them to compensate CPAs and tax attorneys very well to make sure they don’t miss any.

The other factor is that most of the wealthiest don’t work for most of their income. They let their money work for them. That’s called capital gains. That little scam is taxed at less than working for a living. The capital gains tax rate is only 15%. Money gets a nice little benefit when it works. You don’t when you work.

You might be interested in a couple of further points about the other countries listed on these graphs. First, surveys have shown that the citizens of each of those countries are significantly happier with their lives than are Americans. Second, the overwhelming majority in each of those countries prefer their health care system to the American system. Are we missing something?

But, Mitch McConnell just repeated on the tube, with 9.2% unemployment, it isn’t the time to raise taxes, particularly on those poor benighted job creators. Well, have I got news for you. All of those other countries in the graph above that have much higher taxes, are all also doing better with employment. Look for yourself.

Note: Since this graph was constructed US unemployment has increased .5%. The others are the same or lower.

Social Security and Medicare are entitlements. We are entitled because we pay for them and were promised, by law, that we would receive them.

So, our “leaders” decide to make those who are entitled to be paid bear the burden while those who are not entitled cavort in their private jets and enjoy unconscionable incomes and subsidies. The 400 wealthiest are worth as much as 150,000,000 Americans on the other end. Yet, many pay no income tax.

We partied on a credit card for the past 30 years and the loudest voices scream for more tax cuts. I’m getting just a mite upset with some of my fellow Americans for wanting more tax cuts so we can consume our way out of debt, while damning everyone but themselves for the debt and proclaiming their patriotism. The new American motto seems to be, “No pain, just gain.”

I was not totally into the celebrations of this 4^th of July. I am not quite in the mood to lead everyone in a chorus of, I’m Proud to Be an American.

Will our honorable representatives treat us fairly? Surely, you jest. I’m inclined to agree with Jay Leno, “If God had wanted us to vote, he would have given us candidates.”

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We all agree.

Everyone thinks that the government’s primary responsibility is to help us. Well, at least some of us.

The problem is that we don’t agree on who the government should help. Some say help those who need help. That’s just silly.

It’s the upstanding parasitic plutocrats who will create a few more jobs in Canada, France or Brazil when they use your gift from the federal storehouse to acquire their next private jet. Mubarak set a new standard for them with nine of these upper class necessities, these ultimate penile substitutes.

The Enemy?

If your career choice is being a moonshiner, growing marijuana or holding up Seven-Elevens, government is your enemy. Otherwise, it shouldn’t be.

People are going around shouting that the government is your enemy. Listen carefully. They aren’t saying just that the government has done or is doing something to harm them – beyond requiring them to pay taxes, of course. They are saying that the very concept of government is your enemy.

Perhaps when they grow up they will appreciate the words of Oliver Wendell Holmes, “Taxes are the price we pay for civilization.” Perhaps not. Many demonstrate an apparently unbridgeable gap they must conquer to comprehend civilization.

“A society is judged by how it treats the least among them.” That rule has been attributed to Gandhi, Churchill, Truman and many others. Whomever, it is the very basis of civilization. Although, archeological evidence shows that our “barbaric” Cro-Magnon antecedents went to great lengths to care for members of their group needing assistance. It would seem that too many of our contemporaries have regressed a few score millennia.

Confucius, 孔夫子 K’ung Fu Tzu, is credited with one that is complimentary to it, “In a country well governed poverty is something to be ashamed of. In a country badly governed wealth is something to be ashamed of.” According to the old sage, the poor in this country have no reason to hide their faces.

These political Neanderthals, these libertarians, these juvenile acolytes, or adulators, of the late comedian Ayn Rand are profoundly anti-civilization.

If you are of the persuasion that the United States is, or should be, a civilized nation, you must also write them off as anti-American, despite their propensity for wrapping themselves in the flag. Also, egocentric political ideologies that object to helping those in need are in contradiction to Christianity and other religions. Caring for those in need is, simply, the litmus test for determining whether one is truly civilized, truly a patriot and truly religious.

Most of these people are unaware of how anti-civilization, anti-American, anti-Christian they are. From either intellectual laziness or incapacity, they have partaken of the political pablum fed to them by those who are full, knowing members of those categories. They are simply fools and tools. Some of the true villains are those I address next.

The Smartest Man On Wall Street? In Washington? Anywhere?

The geniuses pictured above all played major, definitive roles in bringing about the worldwide economic meltdown that we continue to enjoy. Did you remember to send them thank you cards?

Some fight under the banner of the Democratic Party. Some fight under the banner of the Republican Party. Actually, they are on the same side. They all fight the class war against us.

Do these parasites really believe what they infect the world with? It’s difficult to know. They do formulate the themes of the propaganda. We must remember, it’s not that uncommon for people who create and purvey lies to be taken in by their own handiwork.

They agree on all major policies. They all want big business to be unfettered. Their “Golden Age” is sometimes called the Era of the Robber Barons.” They have modified their image since the turn of the last century but they are direct descendants of those that hired the Pinkerton National Detective Agency to murder people who wanted enough to feed their families and educate their children for the better life they dreamed of for them.

The Newest Wonder Boy

Now the media have a new darling. Once again we are being told how this backwoods bozo is the master of the national budget.

Of course they leave out a few details. They use the journalistic equivalent of PhotoShop to turn Miss Piggy into Helen of Troy.

Did they tell you that he received over half a million dollars from the insurance industry? Did they tell you that ranks him above all other US Representatives from Wisconsin. It also ranks him above both of that state’s Senators.

Forget that he’s a prostitute. Capitol Hill is teeming with them. My initial thoughts about him brought to mind the Scarecrow from the Wizard of Oz. It’s hard to explain why. The Scarecrow was aware he had no brain. He wanted a brain.

They have almost nothing in common. And besides, the Scarecrow was too good of a dancer to end up on a reality show. This pitiful wannabe is likely to follow the career path of Tom Delay.

The Congressional Budget Office is a nonpartisan entity of Congress. It is responsible for providing all members their analyses of bills having an economic impact. In fact, it is generally acknowledged to lean just a bit to the right.

The CBO says that Ryan’s budget will cost a minimum of 700,000 jobs. That’s no big deal because those are jobs of government employees and those of suppliers to the government.

Another party that frequently weighs in is the Republican Study Group. It is a group of self-styled financial experts from among the Republican members of the House. They announced that the loss of those 700,000 jobs was a positive development. They say that since most of those losing their jobs are highly skilled and college graduates, putting them into the job market will further depress wages. You see, this group is not too smart. They often make such public pronouncements, that tell us what their real intentions are.

Exactly what is Mr. Ryan promising from his magnum opus? He tells us it will save Medicare. Presently, Medicare has a 20% co-pay. I, as many others, cover that with a private ‘medigap’ plan. Adding in monthly premiums, the average senior will pay as much as 22-25% of his or her medical costs. Ryan’s plan is estimated by the CBO to cost seniors at least 68% once it is phased in.

This means that most seniors will do without needed care or lean on the younger members of their family. Also, the procedure will be drastically changed. He proposes giving each senior a $15,000 voucher with which to purchase an alternative to Medicare coverage. Anyone pricing such individual plans will either laugh or cry uncontrollably.

While Mr. Ryan is generous enough to index that $15,000 for inflation, he uses the index for an almost overall inflation rate that comes in around 2%. Medical cost inflation runs from 2.9% up into the double digits. Another factor is that these plans will be purchased annually. That means that each year the rate will be further increased by the factor of age.

Not only is that amount completely unrealistic, it requires, as he puts it, ever-aging seniors to negotiate coverage details each year. They must do this with an industry famous for its perfidy; famous for its ability to increase the complexity of its products beyond outsiders’ comprehension – always to their advantage.

There are other features of his budget plan that target seniors, in addition to those aimed at children, the poor, the middle class, college students and their families, hell, everyone not in the economic top 10%.

Well, all those spending cuts will reduce our deficit. Ooops. Actually, the deficit will increase for the first 10-12 years. The budget might possibly be balanced in 70 years. I can’t wait. Seriously, I can’t wait.

With all of those cuts, why will it take his plan so long to reach its putative goal? You must remember some items, defense, for instance, will increase.

The cuts are described as modest at $4.3 trillion. I bet you thought to yourself, “Myself, that’s a bunch of cutting.” Don’t forget with whom you are dealing. The plan calls for $4.2 trillion in tax cuts. Oh. That explains a lot.

The nominal corporate tax rate, at 35% is second only to Japan. Mr. Ryan wants to reduce that to 25%. Instead of just swallowing that load, let’s take a slightly closer look at corporate taxes.

That 35% in the nominal rate. That means the law says that is the rate. Reading deeper into the tax code will bring to light a forest of deductions, exemptions, subsidies and other goodies. The ‘real’ rate then seems to become about 17%. That puts the US corporate tax rate at a much more competitive level. That puts it well into the lower half of developed nations.

Look at the chart. It would show a lower percentage but it only covers 1950-2003.

But we can’t stop at 17%. When 68% of corporations pay no tax (think General Electric’s nearly $15 billion untaxed), it lowers the effective rate even further. A quick calculation puts the effective rate at less than 5.5%.

If corporations are still moving jobs, capital and profits overseas at 5.5%, I’m guessing that lowering the nominal rate to 25% will not eliminate the deficit.

Those treating the government as their enemy may be on to something. Their aim should be slightly adjusted, however. It’s their own little darlings; their own ideological “friends” that are the enemy. It is the Paul Ryans who we and the government need protection from.

Mr. Ryan named his little plan The Path to Prosperity. He failed to say whose prosperity. I don’t think he liked the stories of Robin Hood. He seems to have identified with the Sheriff and King John. Somehow, rob from the poor and give to the rich just doesn’t have the same ring to it – at least not to me.

But, what do I know? After all, he is the media’s newest fair-haired Wunderkind*.

*German: Child Prodigy

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Medicare is wonderful. Medicare is terrible. Medicare is in trouble. Medicare is wonderful.

Medicare is also complex. People are always suggesting changes. Some wish to extend it. Some wish to eliminate it.

People are running around predicting bankruptcy for Medicare around 2017 or 2019 or whenever. No, it’s not that bad. There would be a shortfall beginning then, not a bankruptcy. It’s not a case of going from 100% immediately to 0%. As much as the politicians wish to avoid biting the bullet, they must address the problem. They faced the same problem a few years back with Social Security. It seems inconceivable that they didn’t deal with Medicare at the same time but we are not speaking of a group of geniuses here.

The most popular suggestion for changing Medicare is intended to salvage it for an extended period. Will it? Yes, but. But? Yes. Medicare is too complex for any changes to be simple.

The suggestion to which I refer is to raise the age for eligibility by two years. Now that was simple. The problem is that strange things will start to happen. Think about it.

Any 66-year old will not necessarily need more health care than any 64-year old but the statisticians will guarantee that the cost of insuring a 66-year old is more expensive than a 64-year old.

Insurance policies that account for expected payouts until Medicare kicks in at age 65 will cost more.

Health care coverage will cost you and/or your employer more. I’m not speaking of just when someone becomes a geezer. Policies will rise for everyone to adjust to the change. Also, remember that state and local governments are employers, so their costs will also be increased.

There is also the consideration of companies with a mandatory retirement at the age of 65. Will you have to go out on the individual policy market (the most expensive) and purchase a policy covering the most expensive age category the private insurance company offers? You don’t want to be ‘bare’ at that age and your income just got reduced.

The estimate by the Kaiser Family Foundation is that the increase for some individuals will be above $2,000 per year. The following figures are predicated by the foundation on the implementation of the change in 2014. It also assumes that the Supreme Court will uphold the recent changes made in health care insurance. If it doesn’t, the costs would be even higher.

Predictions are that 75% of those aged 65 and 66 will pay $2,400 more. That may have gotten the attention of some people.

The young people will see an increase of about 8% in the cost of health insurance.

The increased costs to business will be in the neighborhood of $4.5 billion. That either will make US companies less competitive or cause them to eliminate health care benefits for employees.

The government would save a ton of money by not covering those 65- and 66-year olds. So, those on Medicare would benefit from lower costs. Oh, no they wouldn’t. What? Why?

Medicare, as any insurance program, is based on actuarial figures. Eliminating the youngest from the pool eliminates the healthiest from the pool. The increase would be 3%. Medicare benefits but no one else does. Wasn’t the premise to save Medicare money so that it would be sustainable? Well, it does that and that’s the way it is.

I gave a passing mention above to an increase in the costs to states. There would be another. Those 65- and 66-year olds no longer eligible for Medicare but too poor to purchase their own policies would add to the states’ financial burden through MedicAid.

There is a better way. The solution is simple. Medicare-For-All. Eliminating the 30-32% overhead we presently pay private corporations would be a good start. Allowing the CMS to negotiate prices with the drug pushers should reduce the costs by at least 50% – same as the Veterans Administration now pays. Taking advantage of other economies of scale.

You don’t think the government should get involved in health care? Eliminate Medicare? Tell that to seniors. They rate it much higher than private policy holders rate any insurance corporation.

Eliminate MedicAid? So, do we force the hospital emergency rooms to absorb the total costs of indigent care or do we just make sure they don’t obstruct the gutters?

Eliminate SCHIP. Those 7 million children will die some day anyway.

Eliminate the VA. Why should we have to pay the health care costs for veterans?

Eliminate health care benefits for government employees, They are being pampered already by getting paid 78% as much as an equivalent employee in the private sector.

Eliminate the Public Health Service. The CDC is always scaring us with new flus, the return of Smallpox, Polio and such. The PHS has to stick their fingers into such things as sewers, water purity and all of those other things distracting us from American Idol.

Eliminate the subsidy the government provides employers who give their people health care benefits.

Put them all together they may not spell M-O-T-H-E-R but they do add up to the government paying 45% of all health care costs already.

No old people were harmed in the writing of this article.

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My days of playing football began 60 years ago. No. We did have helmets.

Back then, we played both offense and defense. Not just because I was the 2nd smallest guy on the team, I was terrible at both.

I don’t think I could have gotten better by using steroids. They may not even have existed back then. At least we had never heard of them.

But in football, as in other areas, there are and were other ways one could cheat. A receiver traps the ball. He’ll never win an Oscar™ for that performance. He knows it wasn’t a catch but he wants credit for it. Why?

Games should be played for the fun of it. That idea died even before leather helmets. Okay. We should play to see which team is the best. Remember? It’s supposed to be a team sport.

It isn’t about fun. It isn’t about who’s best. It’s about me winning. It’s about me.

Who’s faster? Who’s stronger? Who’s bigger? Who’s got the best steroids? Who cares?

A few years back I read an article based on a study that showed over half of college students admitted cheating on tests. Getting a good grade, or just a passing one, is more important than bothering to learn the subject matter. That could explain a lot of the blunders we read or hear about on a daily basis.

I know it sounds unAmerican but our esteemed leaders don’t care what the public wants, as long as they get what they want. A president was elected. The people said they wanted him and his policies. But that’s not what some politicians wanted. They did everything they could to thwart the wishes of the electorate. They lied. They obstructed.

While claiming that jobs and the economy topped their list of priorities, they have yet to offer a single bill that would create jobs. Additionally, they have pursued the repeal of health care reform. That would add $400 billion to the deficit. They have offered $32 billion in budget cuts while spending most of the House’s time on what they laughingly call family values issues.

Did the people really demand a redefinition of forceable rape that claimed it wasn’t necessarily rape if it was forceable? Is abortion the number one item on the national agenda that is, according to Mr. Orange, topped by jobs and the economy? And repeal of Don’t Ask, Don’t Tell trumps jobs?

Where are the polls that show those issues at the top? Where are the polls that show that the people even want those changes?

Health care reform has again managed to attract a greater number of supporters than opponents. When asked about specific components of that reform, the majorities run as high as 78%. Does the leadership of the house care what the people want? Really?

So, why would they swim upstream on so many issues? Because they think their strategy will continue the stagnation through the next election and benefit them then.

Why do they refuse to abide by their promises to create jobs and improve the economy? Well, it’s a dirty little secret. They don’t have any plans. Why? Because everything in their economic arsenal, tax cuts, have proven to have the opposite effects.

Where are the $500 billion budget cuts? Their political prospects would be worse than Hosni Mubarak’s if they tried to cut Medicare or Social Security. The same would be true if they cut too deeply into the welfare their friends in the military-industrial complex have enjoyed for low, these many years. Well, at least they found $32 billion in cuts and no one gets hurt, except poor women and children and our education system and . .

It isn’t just professional athletes. It includes more than even college athletes. Remember, it’s students at every level cheating on their tests. The list isn’t complete even after we have added in politicians of every stripe. Regardless of the outcome of the various games they play, cheaters are, in reality, losers.

Why do so many of us have such a desperate need to win, regardless of whether we are better or faster or stronger or smarter? Parents, grandparents, other relatives and teachers are some of the culprits. We tell kids they are the future, as though we creating the present have little value. We tell the kids they are important. Potentially, they are, but only potentially.

It is impossible to go to the mall without seeing kids reveling is disrespect, for their elders, their peers; in reality a disrespect for themselves. It’s a rare outing when I am not in danger of sprawling on the floor or caning someone for putting me in harm’s way. It isn’t limited to the young. Need I even mention the terror of rush hour traffic?

There is another major causative factor. Manifest destiny. Despite centuries of killing the natives and enslaving Africans, we’re the good guys. Despite developing and propping up generals, shahs, other tyrants in Guatemala, Chile, Nicaragua, Cuba, Iran, Vietnam, China, the Congo and many places, far-flung and in our good neighborhood, we are the champions of democracy and self-determination.

We are the richest; well, not any more. We are the most generous; not by a long shot. We are the most productive; not in a long time. We are the smartest; of course our kids lag on every educational measurement. Well, anyway, we deserve our position because, somehow, we are the best. God says so. Therefore, we deserve to win. Don’t look behind the curtain at Korea, Vietnam, Afghanistan, Lebanon, Somalia, et al.

Our three decades of support for Mubarak, against the best interest of Egyptians, may bite us where the sun don’t shine. Beyond that, it could lead to destabilizing several other regimes in the area.

Recent events, economic and otherwise, have sharpened our need to reassure ourselves that we still are special. The need to see ourselves as winners is the more acute. The cheating, the winning regardless, these things are not the cause, just the most obvious manifestations of the primal forces that control us. Altogether, they make us all losers.

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There are a few truisms in politics. It is obvious that the Democrats have yet to learn them. It appears necessary to take them back for a review of PoliSci 101.

Any nationwide election is multifaceted. This one was especially so. That means both the mistakes and correctives are many. I can cover them all but most of you have lives. So, I’ll touch on just the most glaring problems and their remedies.

Okay, class. There is no need to take notes. You must, however, pay attention. Truancy is its own punishment.

Friends and Enemies

Friends and enemies. There is a difference.

You dance with the one what brought you, not bought you. In 2008 Obama energized some existing constituencies. He also developed others. He had enthusiastic support from progressives, from unions, from youth, from women, from Blacks, from Latinos, from those who realized what the plutocrats and corporations had done to them and to their country.

He has spent that enthusiasm. Many of those in the groups still support him but many have put themselves at some distance. Hope and Change have been supplanted by Disappointment and Frustration.

They didn’t just decide one day to change their attitudes. It was brought about by the policies, positions and prostration of the administration. The White House and congressional delegations need to acknowledge their culpability and accept the blame. If they refuse to do so, they will lose on every point.

Not a single Republican in Congress voted for Obama. Not a single one will cooperate on the issues important to his constituency. The people that put him in office are important. Bipartisanship would be nice, but it is not the Holy Grail. It would make his job easier but its absence should not seen as his failure. Blind devotion to it will ensure his failure.

There was also the matter of trying to placate the Blue Dogs. The role they played in weakening the President was critical. They are a bunch of ideologues who actually think they understand economics and even other topics.

They love being called moderate, as though that was honorable. It may be when the center is the center but not when the entire political spectrum in this country rests on the right. It just means they are not as extreme right as some others.

The Blue Dogs paid a price. Even their constituencies didn’t see them as a recognizable political animal. They were seen as being as confused as their message. They were Republicans wearing a Democratic name tag. Of the 54 Blue Dogs, 31 are now gone and 3 others are in races too close to call. Good riddance.

Leadership

Leaders don’t always lead in the right direction. Leaders aren’t always nice. The most recent Bush was a leader. He saw himself as a leader. He told us he was a leader, or decider, or whatever. He acted as a leader.

The people accepted his claim of being a leader. Many who disagreed with him on almost every point willingly accepted his leadership.

People really, really want leadership. Admittedly, they were tired of LBJ’s and Nixon’s brands and thought they didn’t want a leader. So, both parties offered them non-leaders. The people quickly realized that they really wanted a leader. How conscious they were of what they wanted may be debated but those wants were there.

A conductor doesn’t just stand on the podium and see what happens. A conductor doesn’t expect a member of the stagehands union to thrill the audience with a virtuoso performance. He knows who to expect to contribute. He expects a concerted effort from them. He leads them.

Part of leadership is a clear objective, a clear direction, a clear message. All of that gets muddled in the attempt to bring the opposition on board. The opposition gets a free trump card by simply refusing to play. They don’t need a policy. They don’t need answers. They don’t need solutions. They just need to be seen as standing firm. Why? Because, while different leaders may follow different policies, firmness is a constant of leadership.

But, you say, we need to position ourselves and govern from the middle. Wrong. That is not the middle. It is the muddle. Perhaps Abraham Lincoln should have been advised to move to the middle. The middle is treacherous. One must be on guard on both sides. Being to the right or to the left leaves only the other side to be guarded.

Who won this election? The Republicans didn’t win by moving to the middle. They won despite making a hard right. Again, they won by displaying one aspect of leadership: standing firm. One was enough. It was one more than the Democrats evinced.

Is governing from either the right or the left the correct way? Not necessarily but it is a lot easier. And, the people will prefer it and reward it. That easier factor is particularly important when one is not very accomplished at leading. The only two accomplished leaders we have had during my lifetime were FDR and Eisenhower. Leaders are rare.

Someone will blurt out that St. Ronny was a real leader. Sorry. The Lipper was an actor. He wasn’t even very good as an actor, except he had that leader role down cold. Real leadership does require a bit of actual leading.

Talk to Them

With all of the money spent on campaign ads, it may be difficult to think that either side failed at effective communications.

It isn’t a matter of volume or money. It’s a matter of clarity. It’s a matter of selling what you have to offer or what you have done, not what your opponent says you are selling and doing. The opposition has been quite good at defining the Democrats and their products for them.

What did the voters buy? It certainly wasn’t what they thought they were buying.

The voter was concerned about the budget. They voted for politicians vowing to add a minimum of $3.5 trillion to the debt. They wanted jobs. They voted for people who stood against removing the tax incentive for moving jobs overseas.

They want to blame someone for America not being number one but voted for reduced spending on education, policemen, firemen, unemployment compensation, research on renewable energy, building a high-speed rail system, repairing roads and airports, cleaning the air you breathe and the water you drink.

They voted for politicians who want to eliminate consumer protections on credit cards, foreclosures, manipulation of the stock market and anything else the parasites want. Many voters blamed the Democrats for Bush’s and Paulson’s bailout.

They voted for people who want to eliminate Social Security and Medicare, put healthcare out of reach for 40 million people, allow insurance companies to refuse to cover people for a preexisting condition (btw, being a battered wife is having a preexisting condition) while placing no limit on price increases (remember those 56% increases attempted in California).

Somewhere the Democrats failed to get their message out. Other than the debt mostly caused by them and tax cuts, the Republicans had no message of their own. They wrote the Democrats’ message and fed the anger and fear. The Democrats deserved to lose but the people will pay a heavier price.

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All of the attention is on the Republican Pledge. Its 21 pages are supposed to tell voters what they promise.

Not really. It’s simply a distraction. They deceived the people with the Contract in 1994. The Pledge is supposed to do the same in 2010.

They will not accomplish any of the things they promise. They can not accomplish any of the things they promise.

Actually, they don’t want to.

How can I say that, after all the trouble they went to, having a lobbyist write 21 pages for them? Seeming to go to all of that trouble is what distraction is all about. You don’t distract with something that is unnoticeable.

So, where should we look? Have you paid any attention to what the candidates are talking about? That could be a hint as to what they consider important to their bases.

I’m a veteran, so I think I’ll begin there. No, I don’t use the Veterans medical benefits. I never have. Others have a greater need for those services. I rely on Medicare.

Despite what you’ve heard, the Republican leadership don’t really like veterans. WHAAAT? Yes. That’s correct. The Republican leadership don’t care for veterans. They are not enamored of Americans in general, to put a point on it.

Veterans rank their satisfaction with VA healthcare higher than any other group in the country ranks their own healthcare. Second comes Medicare. After falling off of a cliff, you come down to how satisfied people are with private healthcare plans.

So, they must really appreciate how the Republicans own the mantle of patriotism. No? How do I know that?

Veterans are not stupid. Four days after the start of the war in Iraq, the Bush Administration made serious cuts in veterans’ healthcare benefits. Yeah. That’s the way to really prove support for the troops.

The military is known to be one of the most conservative sectors of our electorate. During the last presidential campaign Obama received 6 times as much in donations from those serving overseas as did McCain, the war hero wannabe. Surprised? You shouldn’t be.

Veterans’ groups keep close tabs on what the Congress is up to. They have some lines of communication with the active troops.

During his campaign, McCain supported privatizing VA healthcare. That same idea is being pushed in this election by many, many Republicans. Zach Wamp (remember him?) actually said he wants to privatize VA healthcare but not really privatize it, all in the same sentence. He may have remembered that there are a couple of veterans in his district.

Okay, we know that, since we’ve already gotten what we want from them, veterans are disposable. Surely those tireless patriots can find more of their fellow Americans that are disposable.

Enter senior citizens.

Who needs them? Who needs grandparents? All that time wasted visiting grandma’s house could be spent playing Grand Theft Auto on your PlayStation.

We’ve already got about all of the productive, profit-making labor out of them we’re going to get. They are expensive, they are always taking up too many stalls and urinals in the rest room and they drive slowly.

Think how much money could be saved by eliminating Medicare. That pain will go away – eventually. Heart attacks are nature’s way of telling you your time is up. If you are not going to buy a new house or sell your gold teeth, you are just in the way.

Well, as long as you aren’t dead yet, we’ll probably have to continue Social Security. It needs a major overhaul, however.

The Republicans out on the hustings are harping on the privatization of Social Security. They want to put the money in the Wall Street casinos. I’m not certain that the best advice is to use retirement funds to support their gambling habits.

The Dow-Jones recently went below 10,000 and then went back above that number. The dollar has lost between 25 and 30% of its value since the first time it hit 10,000. Did you buy in when it was around 14k and now you’re looking at a realistic 8k? And when was it you wanted to retire?

Putting most or all of Social Security funds into the market would cause the market to rise. It would easily go past 20,000 within 3-4 years. It likely would go past 25k in that time frame. Why? Because there would be so much extra money chasing essentially the same amount of product.

I remember when little old ladies held blue chip stocks forever, in order to feel they had a secure retirement. Price/Earnings ratios were a good index of security. Eight-to-one or ten-to-one were considered solid. Fifteen-to-one was getting up into the risky realm.

Then the market favored 20-to-1. We began to see lots of 50-to-ones. Before the Internet bubble even 500-to-1 was not unheard of. Infinity-to-one was the result when stock prices went through the roof for companies that had never experienced a profit and showed little likelihood of ever doing so.

If Social Security money goes into the market, it doesn’t take a genius such as me to forecast another bubble. The price goes up but the profit and the underlying value doesn’t. Don’t plan on retirement.

We have already seen a great deal of retirement money added to the market. It comes mostly in the form of 401ks. Why do you think that the market is presently overvalued? A realistic Dow number right now should be no higher than 4,500, at best. The rest is hot air.

With all of that extra money, we will have a situation similar to what brought on the global economic crisis. Banks used to be able to loan $5 for every $1 they had available. Recently it has been up to $40. That means more money available for investment, doesn’t it? It isn’t real money until the taxpayer has to bail out the banks.

That money had to go somewhere and there were not sufficient places to place it. So, they sold mortgages that shouldn’t have been sold. Sub-prime. You may have heard of that.

Anyone who suggests privatizing Social Security is either intent upon robbing you of your retirement or a blithering idiot who is too easily fooled by the criminals.

So, you aren’t a veteran and you’re not a senior citizen and you don’t pay Social Security. You’re not disposable, right? Well, your job might be headed to Lower Slobovia, unless you are willing to take a pay cut. How long would you have to work to buy that new flat screen television at 12 cents per hour?

Pay no attention to the Pledge. It is a diversion. They have no intent of implementing it. If they really did try, it would have to be called the War on Arithmetic.

They say they want to reduce the deficit. They want to repeal healthcare reform. Healthcare reform reduces the deficit. They want to extend the tax cuts. There’s another $3.7 trillion of debt. They want to create jobs by not aiding small business or investing in infrastructure. See? It’s a War on Arithmetic, a War on Veterans, a War on Senior Citizens, a War on Reality, a War on the Middle Class, a War on Reason, a War on America.

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Thirteen states have filed a lawsuit claiming that the healthcare bill is unconstitutional.

Will they win or are they just wasting taxpayers money in an attempt to look good to their political bases? If you guessed the later, you didn’t require anyone to read this to you.

Given that we have five Supremes who can’t differentiate between human beings and things that human beings create, anything is possible. By the way, since voting is the most important form of free speech, why have corporations never voted? Sorry, I didn’t mean to give them any ideas.

Even if the courts were to rule in the favor of these thirteen grandstanding attorneys general, they can’t win.

They claim that it is unconstitutional to require people to purchase private health insurance. If someone doesn’t have health insurance, others must pay for it out of their taxes. The requirement is a protection measure for the rest of us.

Don’t get me wrong. I have no desire to see people forced to give these private monsters more money. This law, as presently configured, gives these corporations an additional 31 or so million customers. That is estimated to increase their bank accounts by some $70 billion annually. No. I definitely am not pleased with that.

Having the public option is less rational than Medicare-For-All but it would at least provide an alternative for many of this 31 million and others. Most of that $70 billion would not go to the leeches. We have been promised that the Congress will amend the law to include the public option.

So, there is a possibility that the courts could rule in their favor. What happens? This law, as with most others of any complexity, includes a separability clause. That means, if the courts rule against any part of it, the entire law is not scrapped. The remainder remains.

Interestingly, the suit cites no case law or precedent. Why? Because there is none. Federal law overrules state law.

Under the commerce clause of the Constitution the government has broad, unchallenged power to regulate interstate commerce. Interstate commerce has historically been interpreted very broadly. Also, the right of the government to tax has been firmly established.

Even given the present makeup of the Court, there is almost no likelihood that the attorneys general can prevail with this suit. A few may prevail in their races for the governor’s seat in their state based on the publicity they will garner.

The solution, should the courts rule in their favor, is to offer the public option, or make a public program mandatory. All the former would do is offer a better deal at less cost by eliminating about 30% of the costs that unnecessary overhead represents. Making it mandatory simply means reducing the amount one pays for coverage and calling it a tax rather than a premium. The courts have already ruled that Social Security, Medicare, et al., are constitutional.

So, if they win, and their win brings a public option or Medicare-For-All, what have they won?

America’s Favorite Loon, Michelle Bachmann, or as she calls herself on her web site, Amaricas Congress Woman, has introduced a bill which calls the healthcare bill unconstitutional. If she can’t spell America’s correctly or punctuate it correctly or doesn’t know that Congresswoman is one word, her bill may need the services of an editor.

Were it anyone else, save Sarah, we would consider her to be doing this only for its symbolic effect. She, however, seems convinced that the bill will succeed. How she will attain majorities in either house no one can explain. Then, either the President must sign it or his veto must be overridden by a two-thirds majority in each house of Congress. I would be hesitant to put too much money on any of those possibilities.

Then we have the Republican leadership saying that the passage of this bill is the death knell of the Democratic Party. Before passage they were exhibiting great concern for the welfare of the Democrats (pun intended). Their solicitude was impressive and heartwarming. Despite their concern for the wellbeing of their compatriots they intend to take advantage of this misstep by the Democrats by running on the position of repealing the healthcare bill.

I can see their logic. The people will swarm to their standard in order to reinstate the bar by the insurance companies of preexisting conditions. Their support will be overwhelming for reimposition of annual and total limitations of coverage.

Kids up to the age of 26 want to be independent. They will flock to the sides of the Republicans freeing them from sharing their parents coverage. Geezers like me will truly appreciate their efforts if we don’t have to worry about what to do with all of our money. We can just luxuriate in the do-nut hole and let the drug companies do all of that worrying.

I think those cagey Republicans have discovered the magic talisman of electoral politics.

Silly suit? Of course. But look to the source. To paraphrase Forrest Gump, “Silly is as silly does.”

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If you stay to the end of this post, you will see an offer you can’t refuse – no strings attached.

My last post was about a health issue, not healthcare reform. Writing so frequently on healthcare reform and the economy has built up a tremendous reserve of frustration.

I wanted to take a psychic break by expounding on other subjects but it seems not to be possible to get away from these matters. Storming once more into the breech they come again to the subject of reform.

Just now I feel more inclined to address the method than the substance. Could it be that there is so little substance to speak to?

I can’t help but wonder if anyone in Washington actually knows the definition of the word reconciliation. The dictionary says it is the reestablishing of cordial relations. All I see is animosity and hostility. How could a spirit of reconciliation engender such enmity and division? So, with the understanding that the term itself is inappropriate, let’s get on to the real problem.

That problem is the disdain so many Senators have for democracy. They seem to think that their prerogatives are more important than representing the needs and opinions of the people.

While the people have been confused, frustrated and angered at the shenanigans taking place in Congress, the majority still support the need for reform and, specifically, the public option. Many of those opposed do so out of a misunderstanding or lack of understanding of the problems and possible solutions.

Throwing around such accusations as this being an attempt to take over healthcare or mischaracterizing it as socialism come from ignorance or deliberate lies. The government has Medicare, Medicaid, SCHIP, medical care for the active military and veterans, coverage for civilian employees and other programs which it operates or for which it pays. It also subsidizes, through tax breaks, most private policies. The government already pays for 45% of healthcare costs, not including the subsidies.

The private insurance industry is permitted to skim off the cream. It is allowed to reject anyone they wish. They reserve the right to not pay the costs for whatever they wish to avoid. They skim the money to provide their executives multimillion dollar salaries and bonuses, private jets, lavish parties and such. Can you guess who bears the brunt of their exercise of these privileges?

At this time, several companies are attempting to increase premiums in a range from 22% to 59%. This while they are reducing the actual total amount they are paying out for your health care. Last year our health costs amounted to 17.3% of our entire economy. My untutored guess is that the above-cited increases might make the economic burden even greater. You get another guess as to who will get screwed.

Takeover? No. This is an attempt to provide almost everyone with health care and save our economy. As a nation, we cannot afford to rank 37^th in the world in health care. Nor can we afford an ever greater percentage of our total resources being designated as profits for the industry that has put at such a lowly ranking.

We shouldn’t forget the millions they spend on bribes. Is it possible this is a consideration when these “public servants” refuse to permit democracy to exist in the chambers of the Senate?

This talk of reconciliation may actually result in a vote. Even more important than the outcome of that vote is the fact that it will provide us undeniable evidence of who hates democracy and has no concern for their constituents. Every one of those opposing reconciliation needs to be thrown out of office. If your Senator opposes it, you have an obligation to yourself, your family, your country and the Constitution to oppose them. Yes, it is that simple.

My apologies for the preachy tone but it comes from frustration with our elected officials.

Now for the free offer. As mentioned earlier, my last post was on a health issue. It was one that is mired in misinformation. My book, Why Are You Mad?, is on the subject of mental illness. While this subject is not of interest to everyone, it does contain some nutrition information that is of universal concern. It speaks to another area drowning in misinformation: fats, saturated, polyunsaturated, monounsaturated, the whole panoply.

So, to anyone interested, I am offering a free copy of my book. Just send me an email and I will attach a copy of the book to the return. It will be in the form of a PDF file. If anyone prefers an actual dead tree version, I will send you one for $10 – $8 off of the retail price.

Why am I doing this? I did not spend 14 years of research and almost 3 years writing it because I wanted it to make money. I wrote it to provide as many as possible with an understanding of the subject. For those not interested in the overall subject, I feel that the dietary information is likewise of importance, but to everyone.

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