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Minimum Wage Is Too High For Paul Krugman

February 20, 2013 By: Scott Spiegel Category: Economy

Wage_labour.svgIn his State of the Union Address last week, President Obama called for yet greater federal interference in the economy via a $1.75 per hour minimum wage hike, from $7.25 to $9.00, with additional increases tagged to inflation.

New York Times gossip columnist Paul Krugman opined that, “surprisingly,” increasing the minimum wage may be good policy: “Why ‘surprisingly’?  Well, Economics 101 tells us to be very cautious about attempts to legislate market outcomes.”  No, I didn’t make up that disclaimer; that’s just Krugman trying to sucker you in with a little false modesty.  Don’t worry—he still comes out all in favor of the wage increase.

And what an increase it would be: Raising the minimum wage $1.75 an hour would be by far the biggest single hike since the federal minimum wage was established in 1938.  The next biggest increase—of $0.70 an hour—occurred three times in 2007, 2008, and 2009, when newly sworn-in Democrats spiked the rate three years in a row.  Before the 2006 wave of Democrats rode into power, the minimum wage had never increased more than $0.50 at a time.

The proposed 24% increase would be the largest hike by percentage since 1974, when Congress raised it 25% from $1.60 to $2.00.

So what’s the argument for raising the minimum wage?  Proponents claim that raising it:

(1) Is moral, because workers at the bottom of the economic ladder will earn more;

(2) Helps the economy, because those workers will spend more and stimulate the economy;

(3) Increases employment, because more spending will lead to more hiring.

(Never mind that the employers who will supposedly do all that extra hiring will be the ones paying their workers to buy more of their products in the first place.)

In contrast, opponents argue that raising the minimum wage:

(1) Is immoral, because it restricts employers’ ability to hire low-wage workers, and thus reduces their employment;

(2) Hurts the economy, because it forces employers to direct financial resources in less efficient ways;

(3) Decreases employment, because small businesses can’t keep up with the need to increase all of their workers’ wages to maintain relative parity.

So what happens after minimum wage increases take effect?  Do employers hire more or less?  Does the economy improve or worsen?

To answer this question, I took a look at all federal minimum wage increases since World War II, to see what transpired after these hikes—in particular, what happened to the unemployment rate and the gross domestic product (GDP).

First I looked at the monthly U.S. national unemployment rate following the passage of each post-WWII federal minimum wage increase, to see what effect minimum wage legislation had on employment.  I found that the average unemployment rate during the first full month after each minimum wage increase, for all increases from January 25, 1950 to July 24, 2009, was 6.00%.  From three months out through ten months out, the average monthly national unemployment rate progressed as follows: 6.01%, 6.09%, 6.10%, 6.11%, 6.13%, 6.23%, 6.25%, and 6.33%.  So over the ten months following mandatory federal minimum wage increases, the unemployment rate steadily and reliably increased, on average a third of a percentage point from what it had been upon passage of the law.

Next I looked at the quarterly percent change in GDP following passage of each hike, to see what effect minimum wage legislation had on GDP.  The average percent change in GDP for all quarters from 1950 to 2012 was +3.31%.  In contrast, the average percent change in GDP during the first full quarter after each wage increase was +2.48%, almost a full point lower.  In the second quarter after the wage increase, the percent change was +3.00%, and in the third it was +2.63%.

These aren’t huge differences, largely because many factors besides minimum wage affect employment and GDP.  Other economists have done more detailed studies and isolated the deleterious effects of minimum wage laws.  But even my cursory analysis confirms that Krugman and his ilk are loons if they think that placing restrictions on employers’ hiring practices—which is what minimum wage laws do—will somehow increase hiring and strengthen the economy.  (Other pet theories of Krugman’s are that wearing leg irons helps you walk faster and having laryngitis makes you speak more mellifluously.)

Krugman pooh-poohs the detrimental effects of minimum wage increases: “Now, you might argue that even if the current minimum wage seems low, raising it would cost jobs.  But there’s evidence on that question…  And while there are dissenters, as there always are, the great preponderance of the evidence from these natural experiments points to little if any negative effect of minimum wage increases on employment.”

Krugman is such a pathological liar that when he says “the great preponderance” of evidence shows “little if any” negative effect, you know he’s brushing aside mountains of data contradicting his position.  Krugman cites just one paper titled “Why Does the Minimum Wage Have No Discernible Effect on Employment?,” published by leftist D.C. think tank the Center for Economic and Policy Research, whose founder recently authored a book called “The End of Loser Liberalism: Making Markets Progressive.”

If liberals want a minimum wage hike, why don’t they just come right out and demand more redistribution of wealth from the bourgeois to the proletariat?  Could they spare us the act of dressing up their request in convoluted economic theories using data that can be manipulated to give them any results they want, and whose conclusions no one with common sense believes?

Previously published in modified form at Red Alert Politics


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Liberal Myths: Holiday Edition

December 12, 2012 By: Scott Spiegel Category: Economy

three donkeys copyHow many liberal myths can a mainstream news announcer cram into one innocent, 90-second, top-of-the-hour news briefing?  On WABC’s New York affiliate one recent December evening, I counted eight.

First the news reader (as they more appropriately call them in Japan) cheerfully announced that seasonal hiring—inventory control agents, sales clerks, deliverymen—was way up this year compared to last year; that increased holiday spending was a sign the economy was improving; and that goods being purchased in the U.S. are unfortunately being made more often overseas.

There’s three myths right there: (1) elevated part-time hiring reflects economic health; (2) consumer spending drives growth; and (3) trade imbalances are harmful.

(1) That retailers are hiring more temporary help isn’t a sign the economy is thriving; it’s a sign there are more underemployed workers taking part-time work below their skill level.  If permanent, full-time employment were stable, we wouldn’t see such a leap in short-term hiring during peak economic season.  Increased part-time hiring also reflects employers’ reluctance to take on “full-time,” 30-hour-a-week employees whom they must soon provide health insurance per Obamacare.

(2) Consumer spending does not drive economic growth; investment and production do.  There’s nothing to consume if manufacturers don’t have the capital and the optimism that investing in productive enterprise will be worth it.  And manufacturers don’t think production will be worth it if they’re saddled with confiscatory tax rates, burdensome regulations, and long-term uncertainty.  Consumer spending is the last step in the economic chain of production, not the first.

(3) Trade imbalances reflect the fact that some countries have more stable economies and reliable currencies than others, the latter of whom must depend more on tangible production efforts to demonstrate they have something of value to trade.  Trade imbalances also signal advanced nations’ capacity to provide high-tech, intangible services and sophisticated knowledge transfer that aren’t as concrete or visible as shiploads of dry goods.

After this trio of falsehoods, the announcer chirped that gas prices were lower than they’d been in months—a boon for the economy—but higher than this time last year, which could reflect rising wages.

There’s two more myths: (4) seasonal fluctuations in gas prices reflect economic growth; and (5) high gas prices reflect improving wages.

(4) Gas prices are always higher in the summer; this is a reliable, cyclical variation, and gas prices declining from June to December say nothing about comparative economic performance at the end of the year.

(5) Our current high gas prices are less likely a reflection of increasing income—which we know is at historically low levels—and more likely the result of instability in the Middle East (due to our President’s weak foreign policy), forecast scarcity of oil (due to drilling restrictions), and looming inflation (due to the Federal Reserve’s currency devaluation).

After a commercial break, the reporter referenced the recent renewal of the Kyoto Protocol and uncritically repeated the news that (6) scientists are alarmed because 2012 is on track to be one of the hottest years on record.

(6) The Met Office in Great Britain recently released a report showing global temperature the same in 2012 as it was in 1996.  The period over which no global warming has been taking place (1996-2012) is thus the same length as the period over which it was supposedly taking place (1980-1996).  But never mind: news outlets such as The New York Times inveigle us to “Bundle Up: It’s Global Warming.”

The announcer then mentioned Obama’s recent trip to Michigan to grandstand on the end-of-the-year fiscal showdown, and parroted his claim that (7) spending cuts must be balanced with tax increases to balance our budget.  The announcer concluded that (8) the Dow Jones Industrial Average was up slightly due to optimism over progress in the fiscal cliff talks.

(7) Liberals refuse to understand that revenue increases are not the same as tax increases.  One means more money going to the government; the other means a higher percentage of people’s income being taken from them.  Paradoxically, lowering marginal tax rates on high-income earners increases revenue, because then they don’t scale back their investment and hiring to avoid being gouged.  Cutting taxes increased revenue under JFK, Ronald Reagan, and Bill Clinton.  Yet liberals forever believe Republicans want the government to run with no revenue.

(8) No one can say on any given day why the Dow is up or down, and analysts frequently project their prejudices onto such causal pronouncements.  It’s equally possible that the DJI is up because investors believe little progress is being made as the end of the year approaches, automatic budget cuts are going to kick in, and we’re finally going to start reining in spending.

At this rate, the mainstream media will soon be reporting flying reindeer sightings.

(For more liberal howlers, see Liberal Myths: Tax Day Edition!)

Previously published in modified form at Red Alert Politics


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Quinnipiac: Only 8% of Voters Think Polls Biased Toward Obama!

October 03, 2012 By: Scott Spiegel Category: Elections: 2012

Contrary to popular opinion, which is being grossly distorted by the detestable misreporting of left-leaning pollsters, Mitt Romney is not floundering in the race against President Obama.

Every time you read a story about how Romney must “reverse course” after a “disastrous month” of “Obama momentum,” realize that this narrative was entirely created by biased pollsters and a complicit media seeking to sway election turnout.

Left-leaning pollsters are actively trying to discourage conservative voters and donors, put the Republican ticket on the defensive, and suppress GOP turnout.  What’s the proof?

Modern-day pollsters weight their raw sample results to match the electorate by expected turnout for key demographic groups.  Almost every poll showing Obama ahead of Romney in swing states by double digits uses a weighting model that predicts Democratic turnout equal to or greater than it was in 2008.  Specifically, these polls overweight demographic groups that flocked out en masse for Obama in 2008 and underweight anti-Obama groups.

Rather than assuming that unemployed college students and African Americans are more excited about voting for Obama this year than in 2008, reliable polling agencies such as Rasmussen, Purple Strategies, Gallup, and AP are using a weighting model that predicts Democratic voter turnout closer to what it was in 2004, or to a combination of 2004 and 2008.  These firms have consistently found the race to be a toss-up, or for Obama to have only a slight lead.

The issue of weighting is not a statistical lacuna, a minor methodological difference that leads to slight differences among polls without affecting the overall result.  In close cases, weighting is everything.  It determines the predicted results.

Imagine a state with 5.1 million registered Democrats and 4.9 million Republicans.  If both parties saw 75% turnout in 2012, the Democratic candidate would beat the Republican 51% to 49%.

Now suppose that Democrats saw 80% turnout and Republicans only 70%, comparable to 2008.  In this case the Democrat would win 54% to 46%.  But if Democrats saw 70% turnout and Republicans saw 80%, closer to what happened in 2004, the Republican would win 52% to 48%.

Assuming only slight differences in numbers of registered voters across parties, as in most swing states, turnout decides results.  And most pollsters are relying on an outdated turnout model that enormously benefits Democrats, despite the fact that Democratic voter enthusiasm is down and Republican enthusiasm is up.

To get a flavor of how off-the-mark most polling firms’ numbers are, consider the regularly updated Real Clear Politics average of poll averages.  As of September 30, it predicts Obama beating Romney by a greater margin than he did McCain in Ohio, Florida, and North Carolina, three key swing states; and by similar margins in other swing states.  Factor out the more reliable, unbiased polls, and Obama is outpacing Romney to such a degree as to make the 2008 election look like a nail-biter.  In North Carolina, the average of averages predicts that Obama’s margin of victory over Romney will be almost four times greater than his win over McCain.

Taking an average of several polls doesn’t solve the problem, because most polls are making the same mistake.  This isn’t a case of some polls being a little biased one way, some another way, so let’s take the average and call it even.  It’s a case of almost all polls being hugely biased in the same direction and for the same reason.

Defenders of the insanely optimistic pro-Obama polls claim that even right-leaning pollsters such as Rasmussen and Fox show slight Obama leads.  Fine—they show slight Obama leads, not double-digit leads.  But pollsters with an agenda know that a lead of a point or two six weeks before an election is not enough to dispirit and demoralize half the population.

As former New York Times columnist Bob Herbert noted, “There’s a disconnect between what the polls are showing and… what the feel is… among the electorate.  The polls are showing within the margin of error or close races.  But there is this feeling that Romney is losing it, and if that becomes the general impression, that’s really bad for Romney…  If this impression of Romney gets set in stone, that’s very difficult to overcome, debates or no debates.”

If we’re lucky, left-leaning pollsters’ efforts will be overcome by Romney and Ryan performing well in the upcoming debates, September and October jobs reports proving the economy still disastrous, Romney parlaying his monetary advantage over Obama, states implementing new voter fraud laws, and undecided voters breaking against the incumbent as they have historically done.

If pollsters successfully influence voter turnout by suppressing Republican enthusiasm and push the election to Obama, they will have electoral blood on their hands.

Previously published in modified form at Red Alert Politics

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NYT Charges for Content People Avoided When It Was Free

March 30, 2011 By: Scott Spiegel Category: Media

paywall

With the news that Frank Rich and Bob Herbert have left The New York Times, the selection of my 20 free Times articles a month couldn’t be less strongly affected if Paul Krugman and Maureen Dowd decided to quit.

Recently John Gruber of Daring Fireball deconstructed the imbecilic, overly complicated pricing structure the non-business-adept Times has spent a year-and-a-half and tens of millions of dollars devising to undergird its new digital subscription plan.

The Times’ business model, in addition to being extraordinarily confusing, includes the following giant loophole: “Readers who come to Times articles through links from search engines, blogs and social media will be able to read those articles, even if they have reached their monthly reading limit.”

So if you find a story on the Times site that looks worthwhile (suspend your disbelief for a moment), but you’ve reached your monthly limit, you can just copy the title, paste it in a search engine, and click on it from a site that links to it.

Admittedly, this is too much work for most people to bother to find out, say, Dowd’s opinion on the rise of Mormons in popular culture, but some tenacious fans will undoubtedly make the effort.

Perhaps The Times hopes its free backdoor policy will lead more social media outlets to link to their articles.  Maybe they’re afraid they won’t easily be able to regulate access from third-party sources.  But either way, doesn’t this aspect of their plan defeat the purpose of limiting content in order to make people buy subscriptions?

All articles from the Top News section will continue to be available for free via New York Times smartphone and tablet apps.

Also, purchasing just the Sunday print version will give you the most comprehensive tier of unlimited access to digital content, including online, smartphone, and tablet.  This leads Reuters’ Felix Salmon to wonder, “[I]f you get a Sunday-only subscription and then suspend delivery of the physical newspaper while you ‘go on vacation’ for a month or two at a time, how long can you drag out your free access to the website before the NYT gets wise to what you’re doing?”

I guess we shouldn’t expect a sterling business model from a paper whose editorial board believes the way to create wealth is to blow up federal spending and increase federal regulation of the economy by an order of magnitude.

Isn’t The Wall Street Journal’s model much more sensible: everyone has free access to most online content, but key articles require a subscription?  Isn’t it easier to tie access to content, rather than try to tabulate the ephemeral surfing activities of millions of users out there in the ether?

The Times and Journal’s payment plans seem to reflect their ideological worldviews: The Journal, which leans right, offers general content funded via advertising and charges for premium content readers are willing to pay for, a typical capitalist arrangement.  In contrast, The Times, which leans left, will rely on a cadre of loyal followers willing to donate the equivalent of welfare to keep the sputtering paper going, regardless of how frequently the journal offers specific content worth paying for.

In the same way that liberal celebrities frequently announce how much they love paying taxes, soon I can imagine New York elites sanctimoniously defending the Times’ plan by declaring how much they adore shelling out for its superlative content.

Given the astronomical cost of the Times’ plan, only rich liberals will be able to afford it anyway.

At least the new digital subscription plan is an improvement over the short-lived TimesSelect debacle, in which the paper charged for online access to the site’s premium content—which included such must-read material as the repetitive, stale-as-a-cigarette-butt columns of Krugman, Herbert, Rich, and Dowd.

Borrowing language from President Obama’s State of the Union address, New York Times publisher Arthur Sulzberger, Jr. announced in a letter to readers that the new subscription plan is an “investment in our future.”

In other words, Obama implied that taxpayers should subsidize inefficient, underused high-speed rail—so more people will be forced to use something they didn’t use when they didn’t have to pay for it, and other options hadn’t been driven from the market.  Similarly, Times readers will now have to pay for biased, slanted content so more people will be forced to read something they didn’t want to read when they didn’t have to pay for it, and other options hadn’t been driven from the market.

Except that The Times won’t continue to dominate the news market the way government-subsidized boondoggles like high-speed rail and ObamaCare will take over their markets.  Does The Times really think they’re the only game in town?  The Times is one of those papers everyone reads because everyone else reads it.  That won’t be true once people start getting charged hundreds of dollars a year to read it.

Unless the federal government steps in and gives The Times a giant bailout, consumers are going to wise up and start getting their content elsewhere.  Not only does the sclerotic, past-its-prime paper’s poorly conceived paywall fail to invest in its own future, it indirectly invests in its competitors’ futures.

Which is fine with me.

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Doesn’t Matter What This Column Says—You’ll Call It Racism

September 16, 2009 By: Scott Spiegel Category: Racism

Jonathan Martin of Politico notes that, even though racism against the president is supposedly widespread, “it’s still a sensitive enough issue that the [Democratic] party doesn’t broach it directly.”  By “sensitive,” of course, he means “far-fetched, ludicrous, and laughable.”

Representative Hank Johnson (D-GA) claims that in Senator Joe Wilson’s outburst toward the president last week, Wilson “kind of winked at that element” of the U.S. that disrespects Obama because he is black.  I’m not sure what criminal statutes are on the books for “kind of winking” at an “element,” but I do know that Democrats’ charges of racism until recently have been so timid and indirect, because they know that if they made them openly, they might have to produce actual evidence of racism.

Lately some of the attempts to label opposition to socialized medicine and trillion-dollar deficits as racism have gotten more blatant.

The Reverend Jeremiah Wright was just caught on video snarling, “I think the racists in the right wing are upset because poor people are about to be helped.”  And it wasn’t even during one of his weekly sermons!

Jimmy Carter weighed in on the subject over the weekend: “[A]n overwhelming portion of the intensely demonstrated animosity toward President Barack Obama is based on the fact that he is a black man… [and] a belief among many white people… that African Americans are not qualified to lead this great country.”

MSNBC bloggers recently wrote, “Whether it’s fair or not, there is a perception growing that race is driving some elements of the opposition to Obama.”

Maureen Dowd wrote of Wilson in the New York Times, “[F]air or not, what I heard was an unspoken word in the air: You lie, boy!”  Oh, the New York Times doesn’t need to be fair!  Stop being so hard on yourself!

According to Dowd, who was praised by liberal bloggers everywhere for finally stating openly what they believed but didn’t feel comfortable expressing, “Wilson clearly did not like being lectured and even rebuked by the brainy black president presiding over the majestic chamber.”  Note to Dowd: None of the conservatives in Congress did, and it had nothing to do with Obama’s being brainy or black—it had everything to do with his being wrongheaded and pompous.

Dowd lamented “the frantic efforts to paint our first black president as… socialist, fascist, Marxist, racist, Commie, Nazi; a cad who would snuff old people.”

I don’t know—some would say that taking over banks, car companies, and the health care industry is a bit socialist; wanting to “spread the wealth around” is a bit Marxist; having a spiritual mentor who railed against white people in church for 20 years is a bit racist; nominating former communists as czars is a bit Commie; receiving material support from groups that beat up health care protestors at townhall meetings is a bit Nazi; and planning to set up government panels to ration end-of-life care implies a willingness to snuff old people.  Then again, some don’t write for the New York Times.

Dowd added, “Wilson’s shocking disrespect for the office of the president… convinced me: Some people just can’t believe a black man is president and will never accept it.”  Yes, and the “shocking disrespect” for the office of Congressman at mostly white Senators and Representatives’ townhall meetings has convinced me: Some people just can’t believe white people can be in Congress and will never accept it.

Dowd charged that Obama is “at the center of a period of racial turbulence sparked by his ascension” and that “this president is the ultimate civil rights figure—a black man whose legitimacy is constantly challenged by a loco fringe.”

For liberals, the equation is “challenged” plus “black” = “victim of racism.”

I suppose we need to inform Thomas Sowell, Larry Elder, Walter Williams, Sonja Schmidt, Mychal Massie, and other fantastic black conservative and libertarian commentators and harsh Obama critics that their opposition is based on mere black self-hatred.

It was also insinuated by major media outlets that the massive tea party held in Washington over the weekend was fueled by racist resentment of a black man in the White House.  As amply documented by photos of the event, however, signs protested the actions of not just Obama but: Bush, Congress, Nancy Pelosi, Harry Reid, Barney Frank, Steny Hoyer, Saul Alinsky, government, and the mainstream media, among many other targets.

Tea party signs protested Medicaid and Medicare’s insolvency, passing on trillions of dollars of debt to future generations, providing health care to illegal immigrants, paying for abortions through health care legislation, excessive taxes, cap-and-trade schemes, government takeover of the automobile industry, and the appointment of czars.  (Take that, NAACP!)

Finally, signs supported tort reform, health savings accounts, a flat tax, gun rights, the war on terror, and a strange, unheard-of cult called “Liberty.”

Notably absent from protest signs were calls for the repeal of the Civil Rights Act and the resegregation of water fountains.  As Obama correctly observed in one of his health care speeches this summer, “This is not about me.”

As for the occasional reference to race on protest signs, Martin writes, “Republicans see an important distinction between Obama critics who are genuinely worried about his… policies and those whose fears go beyond the president’s liberalism…  But for some Democrats, it’s difficult to make that distinction when conservative marchers take to Washington bearing images of Martin Luther King, Jr. and Obama that read, ‘He had a dream, we got a nightmare.’”  And for some Republicans, it’s difficult to make a distinction between signs comparing King and Obama that would be acceptable to liberals and those that would be branded “racist.”

As one prescient and widely photographed sign at the protest read, “It doesn’t matter what this sign says—you’ll call it racism anyway.”

Reconcile This

September 02, 2009 By: Scott Spiegel Category: Health Care

In anticipation of the humiliating defeat of their socialized medicine scheme, Democrats are feverishly working to get their legislation passed by cheating.

Their plan, known as “budget reconciliation,” works as follows: (1) have Senate committees expand Medicaid, cut Medicare, force individuals to buy and businesses to offer insurance, give subsidies to low-income people and tax credits to small businesses, levy new taxes, and do everything else Democrats wanted to do in their health care bill but knew would never pass; (2) lump it all into a bill; and (3) pass it with 50 votes and no filibuster.

The bill would also contain language to support enactment of a health care overhaul, but because provisions unrelated to the budget cannot legally be included, the Senate parliamentarian will likely strike these from the bill.  According to the New York Times, which favors the reconciliation swindle, it is unclear whether two key elements will be allowed in the bill: the requirement that insurance companies accept all candidates and charge the same regardless of condition, and the creation of a government health insurance exchange.

The Times eggs Democrats on to declare that these two provisions, while irrelevant to the budget, “are so intertwined with other reforms that they are [necessary] for other provisions that do affect spending or revenues.”

If that ruse doesn’t work, the Times notes, then the process could “leave the reform package riddled with holes—perhaps providing subsidies to buy insurance on exchanges that do not exist, for example.”  In this eventuality, Democrats would pass a second bill, subject to filibuster, that fills in gaps where budget-irrelevant provisions were removed.

Ignore for the moment the fact that Democrats’ chess-playing skills obviously aren’t very good: to wit, why would Republican senators support a bill to prop up the reconciliation bill, if the two bills in combination would lead to an outcome they opposed in the first place?

Ignore, too, the stipulation that the reconciliation bill may not legally cause deficits to increase, which a health care overhaul clearly would do.

There’s just the inconvenient detail that reconciliation was never designed to be used for anything remotely like what Democrats propose to use it for.

According to the U.S. House of Representatives’ Committee on Rules, the purpose of budget reconciliation is to “fine tune revenue and spending levels.”  Admittedly, in the Obama era, adding a trillion-dollar program here or there could be characterized as “fine tuning,” but I don’t think this is what the creators of reconciliation had in mind.

Democrats have offered the following compelling argument for using reconciliation to socialize health care: Republicans have used reconciliation!

Yes, Republicans have used reconciliation—for things it was supposed to be used for, such as adjusting tax rates and decreasing entitlement spending.  Claiming that reconciliation can be used for health care because Republicans have used it is like claiming that pesos can be used at Taco Bell because Mexicans have used them.

Even the New York Times admits, “The approach is risky.  Reconciliation bills are primarily intended to deal with budget items that affect the deficit, not with substantive legislation like health care reform.”  Note the sneaky, dishonest addition of “primarily.”

As Judd Gregg explained to Norah O’Donnell, who insisted Gregg was a hypocrite because he had favored reconciliation in the past, “Reconciliation is meant to adjust already existing programs.  You adjust tax rates, or you adjust already existing programs at the margin.  What’s being proposed here is, ab initio, a brand-new, major initiative which is the total rewrite of the health care system of the United States.”

President Clinton floated the idea of using reconciliation to pass health care legislation in 1993, but Senator Robert Byrd reminded him that reconciliation was meant to be used to square away budgets, not turn us into Canada.  In 2003, Congressional Republican leaders considered, then rejected, using reconciliation to pass their prescription benefits program.

In 2005, Senate Republicans introduced a provision allowing drilling for oil in the Arctic National Wildlife Refuge, an attempt that failed when the provision was removed during reconciliation.  Whether this attempt was appropriate or not, it should be pretty clear that if we’re not allowed to use reconciliation to drill in a barren wilderness that makes up less than 0.5% of Alaska in the middle of an energy crisis and a war in Iraq, then it’s not appropriate to use budget reconciliation to take over 17% of the economy.

There’s a reason budget reconciliation was introduced as a separate parliamentary process: it was to be used to make adjustments to existing programs, not introduce massive new ones.  The total amount of debate time allowed for reconciliation is only 20 hours—about twice as long as Congress had to read the 1,600-page stimulus bill before voting, but still not very long.

By the way, I don’t fault Obama for threatening to violate the spirit of bipartisanship with the reconciliation maneuver, inasmuch as (1) I don’t favor Republicans in charge having to compromise when Democrats propose screwy ideas and (2) in order to put a halt to bipartisanship, Obama would have had to actually start practicing it first.  But it’s ironic that Congressional Democrats believe they are putting aside their longstanding, magnanimous display of bipartisanship by resorting to sleazy use of a tactic called “reconciliation.”

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Times Turns on Obama; Can Flyover Country Be Far Behind?

August 26, 2009 By: Scott Spiegel Category: Health Care

The new test of liberal political ideology seems to be, not whether you favor Obama’s health care plan, but how long it takes you to realize what a disaster it is.

The American people were, as usual, first out of the gate to demonstrate their common-sense conservatism.  Although a slim majority voted for Obama in November, a growing preponderance has been telling pollsters they disapprove of the President and his handling of health care.   On Sunday, Rasmussen reported that Obama had reached a new low in their Presidential Approval Index, with health care one of his lowest-rated issues.

Like a teacher indulging a failing student’s pleas to find a way to give him extra points on his test, the Congressional Budget Office has spent all summer admonishing Obama for presenting legislation that will be more expensive than advertised, produce no savings, and yield expanding and unsustainable deficits for the next 10 years.  (“Now, Barry, I’ve already given you all the credit I can—next time you’ll just have to try harder.”)

The Mayo Clinic, which Obama cites as a model for cost-cutting measures, called the Medicare payment model proposed by Congress a “catastrophe.”

Seven state medical associations banded together with private medical societies and two previous AMA presidents in a letter to the President opposing the legislation.  The American Hospital Association is imploring hospital directors to counter Congress’s bill, as are specialty associations such as the American College of Physicians.

John Mackey, CEO of Whole Foods, penned an op-ed in the Wall Street Journal cataloging the myriad flaws in Democrats’ proposal.

Sixty-thousand AARP members have cut up their cards since July over their leadership’s endorsement of Congress’s approach.  Though AARP supports the President’s general strategy, even they had to smack Obama down for claiming they had endorsed a bill when they had not yet done so.

After Obama insulted the Postal Service in his quest for a bill, the National Association of Postal Supervisors wrote Obama a letter expressing “our collective disappointment that you chose to use the Postal Service as a scapegoat …  [I]t was a kick to the chest to have you take a shot at a group of federal employees who are working hard every day to support this country.”

Pseudo-moderate network CNN recently chronicled “Five Freedoms You’d Lose in Health Care Reform,” including the freedom to negotiate details of your plan, cut costs by living healthier, choose a high-deductible plan, keep your current plan, and select your doctors.

The Associated Press fact-checked Obama’s claims and called him out for continuing to tell the same lies: e.g., if you like your health insurance, you can keep it—the implication being that you can keep it for as long as your employer and insurance company would otherwise have offered it without government health care, which is outlawed in Congress’s plan.

The Washington Post, no friend to conservatives, has been barraging readers with columns opposing ObamaCare.  Columnist David Hilzenrath affirmed that the administration would not be able to ensure that employees can keep the plans they have now.  Martin Feldstein explained that the 85% of Americans who now have insurance would pay higher taxes and receive fewer services.  Maya MacGuineas ridiculed the administration’s pledge that it can add an expensive new health care plan covering millions more Americans that will cost no extra and actually alleviate the budget deficit.

The Post’s editorial board also reminded the administration of the CBO’s harsh projections and warned him not to treat these lightly.  In a separate editorial, they scorned Democrats’ stubborn, mindless fixation on a public option.

Obama’s own Hyde Park doctor suggests that Congress’s legislation is worthless and adds of his patient, “I’m not sure he really understands what we face in primary care.”

In the workers’ paradise to our north, the current and incoming presidents of the Canadian Medical Association recently bemoaned the failures of Canada’s universal health care system, calling it “sick,” “precarious,” and “imploding,” and urged Canadian doctors to support free market reforms to the system.

The artist of the Obama “Joker” poster, Palestinian socialist and Dennis Kucinich supporter Firas Alkhateeb, admitted, “[Y]ou had all of these people who basically saw him as the second coming of Christ.  From my perspective, there wasn’t much substance to him.”

Air America host Christiane Brown decried Obama’s reversal of his promise not to bar negotiation for lower drug prices, then purred, “He’s such a charming liar, though.  He’s such a nice guy when he lies like that.”

On Sunday, Senator Joe Lieberman, who caucuses with Democrats, said he’s changed his mind on proposed legislation and urges postponing it until the economy recovers.

Now The New York Times has gotten on the bandwagon; you might say they finally have some “skin in the game.”  Times reporter David Pear reported a few days ago that there is, after all, a legitimate basis for elderly Americans’ fear that legislation will lead to rationing of health care.

Paul Krugman criticized the President’s priorities, belittled his dwindling ability to inspire confidence, and lamented that “his speeches and op-eds still read as if they were written by a committee.”

Bob Herbert scolded Obama for not explaining why a gargantuan new government program is in our country’s interest in the middle of a recession: “Many sane and intelligent people who voted for Mr. Obama… have legitimate concerns about the timing of this health reform initiative…  [He] has not been at all clear about how the reform that is coming will rein in runaway costs…  [P]eople are starting to lose faith in the president.”

I’m glad the Times is finally starting to see the light on Obama’s executive inexperience and his disastrous agenda.  Maybe now millions of Middle Americans who hang on Krugman and Herbert’s every word will develop more confidence in expressing their opposition at all those town hall meetings I keep hearing about.

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