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The War on Logic

19 Jan
John Boehner

Image via Wikipedia

Paul Krugman, columnist for the New York Times, published a web-article on Sunday entitled, “The War on Logic.” In his article he questions the logic that speaker of the House, John Boehner (who totally looks like this game character, by the way), and his followers seem to have in regards to healthcare reform, based on a recent analysis published by Boehner’s office.
As I mentioned a few weeks ago, the Republicans have been busy with the repealing of healthcare reform. Recently, however, the Congressional Budget Office has mentioned that repealing the reform will actually increase our budget deficit. The speaker and his followers, always so quick to dismiss the concerns of others when they don’t jive with their opinions, calls this finding, “their opinion.” I’m sorry, how would the Congressional Benefit Office benefit from falsely claiming the effects of repealing healthcare reform? But whatever, that’s their opinion to, and they’re entitled to it.

In Paul’s article he compares the Republican’s logic behind the cost of healthcare reform to going out to dinner. In his analogy he states that going out to dinner with his wife will actually cost more than just the final bill once he factors in his mortgage payment. Now that doesn’t make sense does it? But when you look at Boehner’s logic it turns out to be the same. In the analysis his office filed he claims the cost of healthcare reform is going to cost several times more than what other, proponents, have indicated.

When you get down to it you find the reason for this discrepancy is that he included the cost of things that need to be done with or without reform. For example, the 1997 Medicare payments to physicians formula is out of whack and can lead to doctors being paid to little for them to be enticed to accept Medicare. Instead of changing the formula, as they should have done from the beginning, over the past decade they’ve instituted a series of one-year fixes. It has been calculated that continuing these fixes over the next decade will cost upwards of $208 billion, an amount they feel should be added to the bill of healthcare reform. The analysis is littered with additional fixes totalling $115 billion which they say should also be tacked on. These are things that would need to be done even if we weren’t even talking about healthcare reform, so how can those be included. I can tell you how, it’s all in an effort to discredit the benefits of healthcare reform, make it look stupidly expensive and everyone will be against it. BRILLIANT!

The budget office claims that healthcare reform would actually increase Social Security revenues and reduce Medicare costs. That sounds entirely logical to me, fix the problems and costs go down. But in a further effort to give reform a black eye, the analysis claims that these findings don’t count, as the savings will extend the life of these programs’ trust funds and counting them as deficit reduction would be “double-counting.” What?!?

What else have we got here? “Relies on accounting gimmicks that mask its true cost to taxpayers.” Really? Sounds more like they don’t understand accounting principles and, like a peasant watching a magician, claims its wizardry.

The analysis continues to indicate that the Budget Office determined that the healthcare laws would reduce the “amount of labor used in the economy by…roughly half a percent…” hard to tell what the ellipses left out in the middle and end as they don’t list a reference to anywhere the Budget Office actually said this. They then conclude that, based on recent unemployment data, this would add up to 650,000 jobs lost. Who? Who’s jobs? I don’t know, because they seem to be leaving out details to keep it vague.

Having said all this, there is something in the analysis that I actually do agree with, the problems inherent with the Employer Mandate. While I think it’s good that this could help get healthcare to people who may not otherwise be able to afford it. This shouldn’t be falling on the backs of businesses. Many small businesses (especially restaurants, with their razor-thin profit margins) just simply can’t afford to provide healthcare for all of their employees. In this case, if they don’t, they end up paying a penalty. This could spell destruction for many a small business that are already on a tight budget. Don’t get me wrong, I’ve worked for my fair share of small businesses that offered no health insurance and now work for a larger organization that does, and it’s amazing. If this mandate is left in place we could see the end of a lot great businesses, such as White Castle, who was specifically mentioned in the analysis. I don’t joke around, if White Castle were to go under I would be extremely heartbroken. Alternately, some employers, in an effort to stay in business, could do a couple of things to be able to afford compliance, none of which would be good. Cut pay: don’t need that right now,  cut workforce: definitely don’t need that, or raise prices to consumers: which could cause a major reduction in business.

Paul goes on, in his article, to state that the reason for the Republican’s hesitance towards reform has nothing to do with a deficit, nothing to do with unemployment and everything to do with covering the uninsured. That the current Republicans don’t think that the government should be concerned with the suffering of the unfortunate and that remedying that suffering at taxpayer expense is immoral. But they couldn’t come out and actually say that though, they would have sounded like heartless bastards. Instead they threw a report together stuffed with goofy, nonsensical arguments and incoherent charts then shoved it out to everyone to scare them into ignoring our nation’s healthcare issue.

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2 Comments

Posted by on January 19, 2011 in Political Crap

 

2 responses to “The War on Logic

  1. Pat Reagin

    January 24, 2011 at 9:43 AM

    Okay, response time…

    The Congressional Budget Office (CBO) also INITIALLY concluded that “Obamacare” would cost in excess of 1 TRILLION (1,000,000,000,000) (yep, it looks like a lot when you actually type it out in numbers) dollars over the next decade, and that takes into consideration that it really doesn’t cost anything at all until 2014. After some arm twisting, and a plan to cut 1/2 trillion from medicare or medicaid, the CBO changed their tune and cut their estimates in half. Months after Nancy crammed it down our throats (and noone had the juevos to actually cut the $500,000,000,000 from the handout program), the CBO then changed their estimates again to say that it will cost 1.3 Trillion.

    What was their reason to miss the extra 300 Billion from their initial estimate? The answer to everything: Power and Money.

    The problem with Obamacare isn’t really even the cost of it, which would likely be covered by an increase in taxes, if the Democrats could have maintained their majority. The problem with Obamacare is that it doesn’t address the real problem. That real problem is the escalating cost of healthcare. What Obamacare does say is that everyone needs to have health insurance, if you don’t buy it, you or your employer pays a penalty and you go on the government plan. That doesn’t make it less expensive, that just shifts the cost and control to the government, that’s real bad. That’s not healthcare reform, that is healthcare revolution.

    The new plan (that won’t get passed until the GOP controls the Senate and Tim Pawlenty is President) will hopefully revolve around “reform” not “revolution”. It will include the keystones of reform, some of which are actually in Obamacare:
    1. Ban on denying based on pre-existing conditions (in Obamacare).
    2. 26 y.o. can stay on parents’ insurance (in Obamacare).
    3. Tort reform.
    4. Expanding consumer choice, allowing the purchase of insurance across state lines.

    I could go on, but you can see more here: http://www.gop.gov/solutions/healthcare

    By the way, I too would dearly miss White Castle. No trip south of Anderson is complete without a 10 sack for the ride home.

     
    • Nick

      January 24, 2011 at 11:14 AM

      Quite right, they did say initially that the cost would be in excess of a trillion dollars. However, I’m guessing, at one point they were encouraged to include items in that tally that would have been expenses regardless of healthcare reform to inflate the numbers. All in an effort to mask what good the reform could have done. Who knows exactly what is going on in CBO that would make them change their minds like that. No doubt there’s some form of corruption at play there.

      I agree with you 100% in regards to Obamacare’s costs. While its intent was certainly noble it didn’t approach it in the right way. Insurance for everyone is extremely important, but if you don’t account for the cost of doing this its gonna end up failing. Healthcare costs are out of control, there’s no doubt about that. True reform is absolutely what we need, but that won’t be enough, there will still be those that need healthcare but are unable to afford it. Part of getting healthcare costs under control needs to revolve around getting the uninsured, insured. Once they stop going to the ER for the common cold because it doesn’t cost them anything, that’s when you’ll start to see costs start dropping.

      Having said that, I still believe Boehner is misconstruing facts and misleading everyone with incomprehensible graphs and fudged numbers. That doesn’t change the fact that they are right about reform needing to be done properly. But, just as Nancy was guilty of misleading people to get it passed, Boehner is guilty of misleading people to get it repealed. From the very beginning the reform’s opponents have been spinning up all sorts of negative buzz, most of it completely false and designed to do nothing more than scare everyone into hating it.

       

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