Just in time for Thanksgiving, Sen. Harry Reid has given us a giant turkey of a health-care bill. At 2,074 pages and more than 370,000 words, it’s officially “scored” as costing $849 billion over 10 years—$400 million per page, or $2.3 million per word.

But that doesn’t come close to measuring its true cost. The bill uses various accounting gimmicks to hide its true cost. For example the bill doesn’t include more than $200 billion needed to prevent a 21 percent cut in Medicare next year. [The CBO “score” actually assumes Reid cuts Medicare 23 percent—Ed.] That cost has been spun off into a separate bill, even though the Senate voted down that approach last month.

Moreover (as Jeffrey H. Anderson notes), much of the spending is back-loaded. The bill doesn’t start spending until 2014, and only costs $9 billion that year. But by 2019, the annual cost hits $196 billion. The minority staff of the Senate Budget Committee reports that, if you factor out all the budget gimmicks and look at the 10 years of actual implementation, the cost is closer to $2.5 trillion. ...

much of the cost has simply been shifted from the federal budget onto the backs of workers, businesses and state governments. Judging by previous reforms, as much as 60 percent of the cost won’t show up in government accounting.

To pay for all the new spending, Reid would enact at least 15 new or increased taxes totaling more than $493 billion.

But the cost alone doesn’t begin to describe how intrusive this bill would be for the average American. For instance, it would require everyone to buy a government-designed insurance plan, even if it was more expensive than their current policy. Failure to comply brings a penalty of up to $6,750 for a family of four.

Another provision would mandate that employers provide insurance to their workers. If they fail to do so, and if even a single worker qualified for federal subsidies, the employer could be fined up to $750 per employee. The CBO estimates that those penalties will amount to more than $28 billion.

Unemployment is now 10.2 percent, and the Senate bill will make it more costly to hire workers. And because the penalty only applies in the case of subsidy-eligible workers, it is low-wage and unskilled workers that will suffer the most.

Of course, the plan contains the government-run “public option” that many experts believe will ultimately crowd out private insurers. And don’t be misled by Reid’s “opt-out” provision: It comes with so many restrictions that it will be nearly impossible for a state to actually opt out.

Besides, there won’t be any opting out of the taxes that will ultimately be necessary to pay for it.

Finally, the bill sets the stage for government-imposed rationing. If you think the recent controversy over mammograms is something, just wait until the dozens of new boards, commissions and agencies created by this bill get to work. The “reform” also gives the secretary of Health and Human Services broad new powers to determine “quality,” “efficiency” and “appropriate utilization.”

At first, these restrictions would only apply to government programs like Medicare, but they’d create the framework for eventual extension to private insurance.

If Reid gets the 60 votes he needs to pass this, US taxpayers, businesses and patients can expect to pay a high price for this congressional feast.

From Gateway Pundit:

Senate Democrats will only deliberate 10 hours on Saturday before they vote to nationalize one-sixth of the US economy.

The bill will nationalize the nation’s health care industry, increase costs, ration care, tax cosmetic surgery, cut Medicare, charge a monthly abortion fee, and take away your freedom.

Please take time tomorrow and Saturday to call your US Senator.

HERE IS THE PHONE LIST.

Don’t let the democrats destroy our health care system.

Support for this disastrous bill is down to 40% with 52% opposing.

(T)he most worrying item is tucked into the CMS’s “caveats and limitations of estimates” section, which is well worth reading. They point out that they, like most other agencies, are assuming a sort of frictionless universe in which 34 million new people demanding more health services increases the supply of health services in order to meet that demand. That is not, notes the CMS, a very realistic assumption:

In estimating the financial impacts of H.R. 3962, we assumed that the increased demand for health care services could be met without market disruptions. In practice, supply constraints might interfere with providing the services desired by the additional 34 million insured persons. Price reactions—that is, providers successfully negotiating higher fees in response to the greater demand—could result in higher total expenditures or in some of this demand being unsatisfied. Alternatively, providers might tend to accept more patients who have private insurance (with relatively attractive payment rates) and fewer Medicaid patients, exacerbating existing access problems for the latter group. Either outcome (or a combination of both) should be considered plausible and even probable.

The latter possibility is especially likely in the case of the higher volume of Medicaid services. Despite a provision to increase payment rates for primary care to Medicare levels, most Medicaid payments would still be well below average. Therefore, it is reasonable to expect that a significant portion of the increased demand for Medicaid would not be realized.

We have not attempted to model that impact or other plausible supply and price effects, such as supplier entry and exit or cost-shifting towards private payers. A specific estimate of these potential outcomes is impracticable at this time, given the uncertainty associated with both the magnitude of these effects and the interrelationships among these market dynamics. We may incorporate such factors in future estimates, should we determine that they can be estimated with a reasonable degree of confidence. For now, we believe that consideration should be given to the potential consequences of a significant increase in demand for health care meeting a relatively fixed supply of health care providers and services.

In other words, while we are nominally increasing the number of “the insured”, it’s not clear we’re increasing their access to health care very much. The supply of health care services is actually pretty inelastic, because it depends on relatively scarce labor. There’s already a nursing shortage, and doctors already don’t want to become GPs because the pay is mediocre, the work is routine, and the hours aren’t particularly compelling. To some extent they can be replaced by nurse practitioners—but they are neither particularly cheap, nor in endless supply. And there’s a limit to how much of our health care costs we can fix by replacing current workers with less skilled labor.

When you increase the demand for something without increasing the supply, you either get price increases, or shortages. Neither is what the authors are promising for their bills.

(Yes, yes, I know what you’re about to say . . . end the AMA cartel’s artificial restrictions on entry into the medical profession! That’s a different post, but here’s the short version: the constraint on the supply of doctors isn’t the medical school slots, but the residency slots. And we’re already importing a substantial number of doctors to fill our family practice slots, because about a third of them go unfilled during the “match”. This does not suggest that there are hordes of eager potential doctors clamoring for a crack at family practice. There’s a lot of demand for specialist slots. But creating more cardiac surgeons will not put much downward pressure on health care costs.)

But this is not an indictment of the bill’s ability to control costs, as of the ability of any bill to control costs. Controlling costs means consuming less health care. There is no magic pot of money waiting to be painlessly seized from some undeserving wretch, preferably one that voters already hate. The only way we are going to cut costs is by cutting someone’s benefits.

Bird Dog asks: If the ObamaCare proposal is so good, why do you have to imprison people who don’t want to participate?

Dick Morris identifies the relevant portions of the Bill.

The nonpartisan Joint Committee on Taxation reported that the House version of the healthcare bill specifies that those who don’t buy health insurance and do not pay the fine of about 2.5 percent of their income for failing to do so can face a penalty of up to five years in prison!

The bill describes the penalties as follows:

Section 7203 — misdemeanor willful failure to pay is punishable by a fine of up to $25,000 and/or imprisonment of up to one year.

Section 7201 — felony willful evasion is punishable by a fine of up to $250,000 and/or imprisonment of up to five years.” [page 3]

That anyone should face prison for not buying health insurance is simply incredible.

And how much will the stay-out-of-jail insurance cost? The Joint Committee noted that “according to a recent analysis by the Congressional Budget Office, the lowest-cost family non-group plan under HR 3862 [the Pelosi bill] would cost $15,000 by 2016.”

What side of history do democrats want to be on? Not the side of Washington and Jefferson.

John Cassidy, in the New Yorker, identifies whose side they are on.

In extending our health-care system, all we are doing is catching up with Otto Von Bismarck’s Germany, which recognized a hundred and twenty-five years ago that universal health and disability coverage, along with old age pensions and a system of public education, were essential elements of a modern society.

Otto von Bismarck

Der Staatssozialismus paukt sich durch. (State Socialism will forcibly move forward.)—Otto von Bismark.

Democrats want to replace the Liberal American ideals of limited government, personal freedom, and individual responsibility with Mitteleuropean statism, socialism, and collectivism. Their “modern society” is, just like Bismark’s, centralized, bureaucratized, and dirigiste.

Socialism, statism, collectivism are all actually terribly old-fashioned ideas, representing nothing other than a variety of negative responses to the Liberal Enlightenment ideals of individual liberty and the restraint of state power in favor of voluntary and organic order. The would-be rulers of mankind simply ceased appealing to claims of Divine Right and hereditary superiority and began attempting to gain power by flattering and bribing the masses, while arousing their passions with fraudulent claims of injury and entitlement.

Human appetite for power is unlimited and the possession of power is always addictive. The Central European monarchies, Germany, Austria, Russia, which pioneered centralizing statism with unprecedentedly expansive regimes of taxation, regulation, and conscription, inevitably turned their power against one another, and destroyed themselves with the war they launched in 1914.

From its grand dynastic monarchies, the tradition of Continental European collectivism passed in 1917 to populist rule by cafe intellectuals, bringing within a generation an even greater war and murderous barbarism producing atrocities and deaths on a scale unprecedented in European civilization.

European exhaustion and the demoralization of the traditional leadership classes, after WWII, produced generally more benign socialist rule, but the European welfare state politics American liberals yearn to share produced nothing but European stagnation and decline. Britain was still rationing food as it had in wartime in 1954.

America surged dramatically ahead of Europe, economically and culturally, and (until the late 1960s) enjoyed decidedly less divisive and destructive politics.

Europe only began catching up to the United States in material prosperity, after many long years, when deference to market considerations on the basis of the American example significantly began to influence European economic policies.

Yet, despite the manifest superiority of the American political tradition and the American ideals of Liberty and Individualism, our domestic community of fashion continues to yearn to replace those with European-style statism. They seem to feel instinctively that, because French cheese, German cars, and Scandinavian design are such effective markers of class superiority that Europeans must also possess a more chic and desirable kind of politics. They are dead wrong.

Our liberals are like the Bourbons, and the Fall of Communism (whose anniversary, with respect to the opening of the Berlin Wall, we begin to celebrate tomorrow) is like the French Revolution, a historical watershed producing some definitive judgments on the Past. Like the Bourbons, American liberals have learned nothing about economics. And like the Bourbons, they refuse to relinquish their illusions and their ancient animosities.

The New York Times called it “their defining social policy achievement.”

I think it defines them alright, as socialists, collectivists, liars, frauds, and thieves.

Stephen Green speaks bitterly for the rest of us:

How do you cure high unemployment and sluggish growth?

Proven methods include reducing regulation and lowering taxes.

So it comes as no surprise that the House has just approved one of (if not the) biggest increases in taxes and regulation after virtually zero debate and in the middle of a weekend night when almost no one is paying attention.

They’re cowards. Shrewd cowards, but cowards still. ...

Which is the greater number: Pages in the bill the House just passed, or the minutes spent debating it?

The Hill:

HATCH: That’s their goal. Move people into government that way. Do it in increments. They’ve actually said it. They’ve said it out loud.

Q: This is a step-by-step approach —

HATCH: A step-by-step approach to socialized medicine. And if they get there, of course, you’re going to have a very rough time having a two-party system in this country, because almost everybody’s going to say, “All we ever were, all we ever are, all we ever hope to be depends on the Democratic Party.”

Q: They’ll have reduced the American people to dependency on the federal government.

HATCH: Yeah, you got that right. That’s their goal. That’s what keeps Democrats in power.

Around 19:50 in the 33:57 video.
———————————————————————-

Duncan Black speaks for the left blogosphere generally by parsing Hatch’s warning into a more flattering form.

Orrin Hatch says we can’t have health care reform because it will be awesome and everyone will love it and they’ll be so grateful that they will vote for Democrats for all eternity.

Health care delivered by government will actually, judging by the experience of other countries, be crappy, severely rationed, and lacking innovation. The rich and powerful will simply go outside US borders to obtain first class health care at luxury clinics located in convenient resort destinations. The ordinary middle class citizen will find himself standing in long queues behind welfare moms, junkies, gangbangers, and illegal aliens.

The quality will be low, the service will be slow, but lunch will come without a check.

Democrats are counting on human nature being on their side. Free goods and services at somebody else’s expense have a powerful appeal. Also, they are addictive.

Once anyone has contributed revenue into the system, he is going to feel he has a claim to get those promised benefits. Once one sixth of the American economy goes down the federal anaconda’s throat, it won’t be coming back up.

Duncan Black’s boast can be more accurately paraphrased that the heroin will be so awesome, and will be so effective that the suckers’ will love it and will be unable afterward to do without it, and they’ll be so dependent on their dealer that they will happily surrender to him all the money and power he ever asks for.

Free government services, like addictive drugs, are morally corrosive, enervating to the human character and will, and a sure path to dependency and slavery.

Hat tip to Bruce Kessler.

I do not think it’s so much because people want freedom and choice (altho they do) as it is because people have no confidence in government entitlement programs (which the Dem plans are all about, ultimately). Why?

Social Security – bankrupt
Postal Service – bankrupt
Welfare – had devastating unintended consequences for which the nation still pays and from which the nation continues to suffer (eg huge rates – up to 70% – of single motherhood among beneficiaries)
Medicare – bankrupt
Medicaid – bankrupting the states
Government-run (ie union-controlled) schools: are people thrilled with them?
Fannie Mae and Freddy Mac – bankrupt
The “stimulus” – a failure, but it did create 25,000 new government jobs!

The future tax consequences of the above are daunting to people, and the idea of adding another trillion or so frightens the heck out of people who are thinking about their own well-being, their kids’ futures – and also about the nation’s. ...

Abundant, high quality, and fairly expensive medical care is one of the great blessings and privileges of a prosperous society, and thus an important economic engine. Why kill it? People want these things.

Do Americans want to be grown-ups, or children? It’s our call.

My liberal classmates, I find, are simply members of a religious cult whose object of worship is the state. Everything enlarging state income, power, and authority is good. Anything you want done, just turn it over to the federal government.

The government is to them rather the the genie in the lamp. Want poverty eliminated? Want free health care for everyone? Want a perfect world? Just rub the lamp, let those democrats pass an appropriations bill, and voilà! your friendly government genie grants your wish.

They actually believe that the same government that buys $435 hammers, $640 toilet seats, and $7600 coffee makers, the same government whose lawmakers can neither read the healthcare bill they’re voting on or arrange to have it put on-line, is going to streamline delivery and make health care cheaper and more efficient. Pure insanity.

Whether it is the socialism espoused by the Nazis or the socialism of the former Soviet Union or the socialism that is emerging in the United States, there is one overarching sentiment, however different socialism in these three societies may be. Socialism everywhere expresses envy of excellence by treating the contributions and wealth of the successful as the wages of sin.

The Nazis saw the sin as a Jewish conspiracy, the Soviets saw sin as exploitation by the bourgeoisie, and what is emerging in the United States is the sin of the wealthy.

In the Obama administration greed is considered the sin that must be opposed. But greed, whatever its deficiencies, is, as Adam Smith pointed out, an incentive for the promotion of capitalism which, in the aggregate, has a salutary influence on the economy. To combat greed, the socialists emphasize envy. Since equality is the goal, even trivial differences in income are exaggerated and the progressivity in the tax system is employed as a blunt instrument to impose equality.

Lincoln said “you can’t make a poor man rich by making a rich man poor.” But President Obama seems to believe that wealth is invariably related to the wages of sin and must be controlled or, to use his language, “spread around.” To make sure this happens, government must expand and, in so doing, the private sector will inevitably contract. That explains why socialism, which purports to represent the interests of the average person, ends in overwhelming government control or outright tyranny. ...

President Gerald Ford put this matter in perspective when he noted “that a government that can give you everything you want will be large enough to take everything you have.”

Read the whole thing.

Since we are moving toward socialism with ObamaCare, the time has come to do the same with other professions—especially lawyers. Physician committees can decide whether lawyers are necessary in any given situation. ...

Following are highlights of a proposed bill authorizing the dismantling of the current framework of law practice and instituting socialized legal care:...

Legal “DRGs.” Each potential legal situation will be assigned a relative value, and charges limited to this amount. Program participation and acceptance of this amount is mandatory, regardless of the number of hours spent on the matter. Government schedules of flat fees for each service, analogous to medicine’s Diagnosis Related Groups (DRGs), will be issued. For example, any divorce will have a set fee of, say, $1,000, regardless of its simplicity or complexity. This will eliminate shady hourly billing. Niggling fees such as $2 per page photocopied or faxed would disappear. Who else nickels-and-dimes you while at the same time charging hundreds of dollars per hour? I’m surprised lawyers don’t tack shipping and handling onto their bills.

 Legal “death panels.” Over 75? You will not be entitled to legal care for any matter. Why waste money on those who are only going to die soon? We can decrease utilization, save money and unclog the courts simultaneously. Grandma, you’re on your own.

Ration legal care. One may need to wait months to consult an attorney. Despite a perceived legal need, physician review panels or government bureaucrats may deem advice unnecessary. Possibly one may not get representation before court dates or deadlines. But that’ s tough: What do you want for “free”?

Physician controlled legal review. This is potentially the most exciting reform, with doctors leading committees for determining the necessity of all legal procedures and the fairness of attorney fees. ...

Electronic legal records. We should enter the digital age and computerize and centralize legal records nationwide. All files must be in a standard, preferably inconvenient, format and must be available to government agencies. A single database of judgments, court records, client files, etc. will decrease legal expenses. Anyone with Internet access will be able to search the database, eliminating unjustifiable fees charged by law firms for supposedly proprietary information, while fostering transparency. It will enable consumers to dump their clunker attorneys and transfer records easily. ...

New government oversight. Government overhead to manage the legal system will include a cabinet secretary, commissioners, ombudsmen, auditors, assistants, czars and departments.

Collect data about the supply of and demand for attorneys. Create a commission to study the diversity and geographic distribution of attorneys, with power to stipulate and enforce corrective actions to right imbalances. The more bureaucracy the better. One can never have too many eyes watching these sleazy sneaks.

Read the whole thing.

Leftwing baby boomers will really have have something to look forward to under Obamacare, look at what Britain’s National Institute for Health and Clinical Excellence (Nice—You have to love the acronym!) is doing for patients there.

Telegraph:

In a letter to The Daily Telegraph, a group of experts who care for the terminally ill claim that some patients are being wrongly judged as close to death.

Under NHS guidance introduced across England to help doctors and medical staff deal with dying patients, they can then have fluid and drugs withdrawn and many are put on continuous sedation until they pass away. ...

The warning comes just a week after a report by the Patients Association estimated that up to one million patients had received poor or cruel care on the NHS. ...

The scheme, called the Liverpool Care Pathway (LCP), was designed to reduce patient suffering in their final hours.

Developed by Marie Curie, the cancer charity, in a Liverpool hospice it was initially developed for cancer patients but now includes other life threatening conditions.

It was recommended as a model by the National Institute for Health and Clinical Excellence (Nice), the Government’s health scrutiny body, in 2004.

It has been gradually adopted nationwide and more than 300 hospitals, 130 hospices and 560 care homes in England currently use the system.

Under the guidelines the decision to diagnose that a patient is close to death is made by the entire medical team treating them, including a senior doctor.

They look for signs that a patient is approaching their final hours, which can include if patients have lost consciousness or whether they are having difficulty swallowing medication.

However, doctors warn that these signs can point to other medical problems.

Patients can become semi-conscious and confused as a side effect of pain-killing drugs such as morphine if they are also dehydrated, for instance.

When a decision has been made to place a patient on the pathway doctors are then recommended to consider removing medication or invasive procedures, such as intravenous drips, which are no longer of benefit.

If a patient is judged to still be able to eat or drink food and water will still be offered to them, as this is considered nursing care rather than medical intervention.

Dr Hargreaves said that this depended, however, on constant assessment of a patient’s condition.

He added that some patients were being “wrongly” put on the pathway, which created a “self-fulfilling prophecy” that they would die.

(US Health Care today) unites rich and poor in a common private insurance system.

Here’s how it works. When a rich person rolls into the operating room, the nurse asks him: “Would you like a warm blanket? How about a pillow?” The anesthesiologist numbs his skin before putting in the I.V. Every effort is made to make him happy.

People in the operating room pay attention to a rich patient’s wishes because they know a rich person can make their lives miserable. He can complain to the hospital president, or call the mayor. But the side effect is that their high quality care becomes habitual, and all patients receive it. When a poor person complains in most environments, no one listens. But in health care, through a common private insurance system, poor people go to the same hospitals and doctors as rich people and thus enjoy the benefit of rich people’s power.

The public option severs this link. Dissatisfied with government-run health care, the rich will exit the system. The poor and middle-class will be left to flounder alone inside the public system. Government-run health care will become like the public schools.

The best doctors will be opening luxury clinics in Carribean resort locations, and the wealthy will simply jet off for their health care, leaving everyone else experiencing the equivalent of inner city hospital emergency room service, endless queues, drastic rationing and triage.

Get out the shovels and start burying it, folks, before it starts to smell. It’s dead. The Obama Revolution is over. The high tide of American leftism has crested. The Retreat from Moscow is on.

In 2008, a glib and fortunate beneficiary of a massive legacy of liberal guilt was able to smooth talk his way into an electoral victory based on a sudden market crash created by the combination of long-standing democrat housing market interventions combined with well-founded fears of the possibility of his election.

Ironically, it was Mr. Market’s bipolar panic attack which actually assured that the nightmare of his own imaginings could and would become reality. The GOP turned chicken, too, and chose what the bosses thought must be the safest play, nominating the geriatric and politically incoherent John McCain, who ran an uninspired campaign, trying to oppose age to youth and promises of less to promises of everything paid for by somebody else. Everything fell apart at once. So the least qualified, most radical candidate ever, a community organizer and Alinskyite radical, whose best friends have been black Communist poets, Weathermen cop killers, and racist clergymen, waltzed into the White House, accompanied by a Star Wars bar’s assemblage of exotic representatives of the radical fringe, all bent of bringing Socialism to America.

He spent a few trillions in a matter of weeks, assuring a dimmer future to a generation of Americans, then gleefully nationalized General Motors delivering control of America’s largest auto maker to the UAW’s commissars. Barack Obama took to heart Rahm Emanuel’s dictum about using an economic crisis as an empowering opportunity. But that power was only on loan. The American people were frightened and willing to put their faith in the two party system, roll the dice, and give the party which had been out of power a chance. Their decision had only been based on the “we’re tired of A and unhappy, let’s try B for a while” approach. The assertion by democrats and by Barack Hussein Obama that the 2008 election gave them a mandate for Socialism has been proven wrong.

Obama in 2009 has wound up just like Napoleon in 1812. Flushed with a string of victories, armed with an unfilibusterable Congressional majority, backed by an enormous army of labor unions, interest groups, and activist organizations, funded by George Soros, allied to the mainstream media, and well-supported by the mass artillery of the leftwing blogosphere, the Obama Administration even succeeded in negotiating free passage for the invasion from large corporations like Walmart and the pharmaceuticals companies (no doughty Belgium in 1914, they). As always, capitalists will willingly sell the rope used to hang free enterprise to the bolsheviks for short term profit as long as the sellers get assurances that they themselves will be hanged last.

But the denoument is worthy of Tolstoy. The Grand Armee of Socialist Ideology, despite all its votes in Congress; its media support; its grand alliance of corrupt businesses, unions; the AMA and the AARP; ACORN and George Soros has been brought to a crashing halt. Its morale is crumbling. It is in complete disorder, and it will soon be in full retreat. Barack Obama has been dealt a devastating defeat, one which will permanently shatter his image of invincibility, and placing Barack Obama, the democrat party, and the American left on the defensive, struggling to avoid complete and total ruin.

The left is crying out that it was the weak and inferior forces of the Republican Party and the American Right that brought them low. I’m a Movement Conservative and a rock-ribbed Republican myself. I wish that it were so. But the truth is the Republican Party and the Conservative Movement have no such capabilities. What defeated Obamacare was the American People.

Barack Obama believed the American People are so stupid, so selfish, and so greedy that they would fall for democrat promises of health care free lunch, all the health care everybody needs or wants, paid for by the upper tiny few percent of staggeringly rich taxpayers (who won’t even miss it anyway). Uncle Sam will just nudge the taxes on Warren Buffett, Bill Gates, and the guys at Goldman getting those multi-million dollar bonuses up just a notch, essentially sneaking into their bedrooms and removing some extra spare change from the tops of their bureaus, and granny gets her hip replacement gratis, and Tiny Tim will walk again, even if Bob Crachit has no insurance.

None of these promises were true, of course. The democrat “health care reform” was never going to bring ordinary Americans the kind of care US Senators get, “just like me,” as Obama promised so persistently during the campaign. What it was going to do, obviously, was to create a new and enormous federal entitlement program necessitating a massive increase of government’s share of the US economy. Socialism would have made a scarce and desirable service, medical care, cost free, obviously dramatically increasing demand. Most Americans would inevitably pay more and get less, as the health care butter got spread by the federal knife onto ever more slices of bread.

America today is a rapidly aging nation. The time to offer the Woodstock Generation a nice socialist health care system was 40 years ago when we were young and perfectly healthy, and could not imagine ourselves ever really needing it. Today, there are lots of Boomer generation geezers out there who have a real personal interest in just how health care reform will affect them now and who are old enough to know better. A lot of people tried sharing the granola and peanut butter supply back on the commune in 1969. They know just how “sharing” works out.

It was not Dick Armey and Rush Limbaugh who showed up with greater strength and larger funding or who beat back the democrat advance with superior cunning. It was the American People, who are experiencing this country’s economy right now, who saw Obama’s stimulus package and his bailouts, who paid their income taxes, and who are beginning to become afraid, very afraid of where Barack Obama’s economic policies are leading us. It was the American People that said, No, we do not believe there is really such a thing as a free lunch. It is the American People who are turning out at those Town Halls, and whose negative opinions are showing up in all the polls. It is the American People, not the Republican Party, that has defeated Obamacare.

My jaw doesn’t often drop, but this story had it heading for the basement:

Thousands of Canadians who are infertile in Canada have to place all their hopes on just 33 men who are Canadian sperm donors.

What? A nation of 30 million people has just 33 sperm donors? Apparently so. Now why would that be?

At one time Canada had two dozen sperm banks but when the Assisted Human Reproduction Act made it illegal to pay for sperm or egg donors they dried up in 2004.
Today there are very few men willing to give up their sperm for nothing.

...

“Today, there is one South Asian donor for all of Canada,” he says, noting that couples are often shocked at the limited choices.

One donor for thousands of wannabe parents? He must be working round the clock. Well, not quite. For Canadian womenfolk have now been reduced to the ultimate indignity:

Doctors and patients have had little choice but to use sperm and eggs from south of the border.

One of the biggest suppliers of donor sperm is Outreach Health Services which imports and distributes semen for assisted reproduction clinics across Canada. The company imports sperm from an agency that collects primarily from men in Georgia and northern Florida, where donors are paid about $100 per visit.

With so much sperm coming from the States, some estimate that up to 80 per cent of babies conceived in Canada through donor sperm have American DNA.

Wow. This isn’t your father’s War of 1812. The poor Canucks never saw it coming. Millions of Yank sperm leaping like salmon up the Ontario side of Niagara Falls.

A wait for semen seems pretty much the logical reductio of “free at the point of demand” health care. But, as Kathy Shaidle says, how can this go wrong? Canada, circa 2050: Eighty percent drawling rednecks demanding grits with their maple-creme donuts, and the remainder a vast tribe of intermarried step-siblings riddled with genetic disorders descended from “one South Asian donor.”

Support for President Obama’s overhaul of the American health-care system is dropping because he’s not doing enough to “sell” the effort, according to a growing number of liberal voices. The public is deeply sympathetic to what Obama and Democrats want to do; the task for them is simply to instruct the unknowing masses on what is best for them (see Andrea Mitchell’s commentary here). In fact, the problem with Obama’s effort isn’t a failure to communicate; it is his inability to refute health-care facts and figures that, as they become more salient, are undermining his effort.

The most important facts are related to health-care costs. Barack Obama made “bending the curve” the cornerstone of his efforts. The status quo is unacceptable when it comes to the increasing cost of health care, Obama insists; his plan will make health care cheaper. On the contrary, it will dramatically increase costs. According to the Congressional Budget Office, the House bill would cost in excess of $1.2 trillion over the next decade; the Senate Finance Committee bill, around $1 trillion over 10 years. In the words of the CBO, “relative to current law, the [House] proposal would probably generate substantial increases in federal budget deficits during the decade beyond the current 10-year budget window.”

The second set of figures has to do with the number of people insured in America — 85 percent, according to the 2007 Census — and the vast majority’s (83 percent, according to a recent Washington Post–ABC News poll) being either “somewhat” or “very” satisfied with the health care they receive, with 81 percent feeling the same way about their insurance. The same poll also found that 84 percent of respondents said they were “very” or “somewhat” concerned that reform would increase their health-care costs, 82 percent worried it would reduce their health-insurance coverage, and 81 percent worried it would hurt the quality of their care.

President Obama is predicating his overhaul of health care on the assumption that most people are profoundly unhappy with the health care they are receiving. But when an overwhelming majority of the nation are more or less pleased with the product they are receiving, a radical redesign of the system becomes problematic.

There is an old saying: “Everyone’s your brother ‘til the rent comes due.”

Free health care services for every indigent wino, junkie, and welfare recipient is a nice idea when somebody else is going to be paying for it, but as ordinary Americans come to their senses and realize that more health services for the uninsured really means less health services for those actually paying for it all, i.e. themselves, all that do-goody-good BS (as Pink Floyd puts it) looks a lot less attractive.

Tammy Bruce reports that posters depicting Barack Obama as the villainous and insane Joker (as portrayed by Heath Ledger in the 2008 film The Dark Knight) have been appearing recently in public places in Los Angeles.

Noel Sheppard (who is not easy to get to, since he is being flooded by readers from Drudge) says it has been seen in LA since last April and links a copy (with unreadable inscription on forehead) posted at a KFC near Atlanta.

Health Care Costs are Soaring

No, they are not. The amount we spend on health care has indeed risen, in absolute terms, after inflation, and as a percentage of our incomes and GDP. That does not mean costs are soaring.

You cannot judge the “cost” of something by simply what you spend. You must also judge what you get. I’m reasonably certain the cost of 1950’s level health care has dropped in real terms over the last 60 years (and you can probably have a barber from the year 1500 bleed you for almost nothing nowadays). Of course, with 1950’s health care, lots of things will kill you that 2009 health care would prevent. Also, your quality of life, in many instances, would be far worse, but you will have a little bit more change in your pocket as the price will be lower. Want to take the deal? In fact, nobody in the US really wants 1950’s health care (or even 1990’s health care). They just want to pay 1950 prices for 2009 health care. They want the latest pills, techniques, therapies, general genius discoveries, and highly skilled labor that would make today’s health care seem like science fiction a few years ago. But alas, successful science fiction is expensive.

In the case of health care, the fact that we spend so much more on it now is largely a positive. The negative part is if some, or a lot, of that spending is wasteful. Of course, that is mostly the government’s fault and is not what advocates of government control want you to focus upon. We spend so much more on health care, even relative to other advances, mostly because it is worth so much more to us. Similarly, we spend so much more on computers, compact discs, HDTV, and those wonderful one shot espresso makers that make it like having a barista in your own home. Interestingly, we also spend a ton more on these other items now than we did in 1950 because none of these existed in 1950 (well, you could have hired a skilled Italian man to live with you and make you coffee twice a day, so I guess that existed and the price has in fact come down; my bad, analogy shot). OK, you get the point. Health care today is a combination of stuff that has existed for a while and a set of entirely new things that look like (and really are) miracles from the lens of even a few years ago. We spend more on health care because it’s better. Say it with me again, slowly – this is a good thing, not a bad thing.

By the way, I do not mean that the amount we spend on health care in this country isn’t higher than it needs to be. ...

In summary, if one more person cites soaring health care costs as an indictment of the free market, when it is in fact a staggering achievement of the free market, I’m going to rupture their appendix and send them to a queue in the UK to get it fixed. Last we’ll see of them. ...

Socialized Medicine Works In Some Places

...The funny part is socialized medicine has never been truly tested. Those touting socialism’s success have never seen a world without a relatively (for now) free US to make or pay for their new drugs, surgical techniques, and other medical advancements for them. When (and I hope this doesn’t happen) the US joins in the insanity of socialized medicine we will see that when you remove the brain from the body, the engine from a car, the candy from the striper, it just does not work.

So, please, stop pointing to all those “successes” that even while living off the US still kill hard-working people who could afford their own health care while they stand in line for the government’s version (people’s cancers growing while waiting ten weeks for a routine scan, which these people could often afford on their own if allowed, is a human tragedy). Even the successes you gin up for them would not be possible without the last best hope of humankind (the US) on the front lines again making the miracles for the world. ...

A Public Option Can Co-Exist with a Private Option

The government does not co-exist or compete fairly with private enterprise, anywhere. It does not play well with others. The regulator cannot be a competitor at the same time. It cannot compete fairly while it owns the armed forces and courts. Finally, it cannot be a fair competitor if when the “public option” screws up (can’t pay its bills), the government implicitly or explicitly guarantees its debts. We have seen what happens in that case and don’t need a re-run.

The first thing the government does is underprice the private system. You can easily be forgiven for thinking this is a good thing. Why not, cheaper is better, right? Wrong. They will underprice private enterprise by charging less to the purchaser of health insurance, not by actually creating it cheaper. Who makes up the difference? Well, you and your family do if you pay taxes, or your kids will pay taxes, or their kids will pay taxes. The government can always underprice competition, not through the old fashioned way of doing it better, they never do that, but by robbing Peter to pay for Paul. They are taking money from your left pocket and giving you a small portion of it back in your right pocket. They do it every day before breakfast, and take a victory lap for the small portion they return.

Second, the government ultimately always cheats when it’s involved in “honest” competition. Try mailing a first class letter through Fed-Ex, or placing an off-track bet on your favorite horse with a bookie, or playing a lottery through a private company. Uh, you can’t, so please stop trying, I don’t want you to hurt yourself. Once the government discovers it cannot win, it changes the rules. You see, the government has the power to legislate, steal, imprison, and even kill. Those are advantages most private firms do not have…

Health Care is A Right

Nope, it’s not. But we are at the nuclear bomb of the discussion. The one guaranteed to get me yelled at or perhaps picketed by a mob waving signs printed up with George Soros’s money. Those advocating socialized medicine love to scream “health care is a right.” They are loud, they are scary, but they are wrong about rights…

This is more philosophy than economics, and I’m not a philosopher. But, luckily it doesn’t take a superb philosopher to understand that health care simply is not a “right” in the sense we normally use that word. Listing rights generally involves enumerating things you may do without interference (the right to free speech) or may not be done to you without your permission (illegal search and seizure, loud boy-band music in public spaces). They are protections, not gifts of material goods. Material goods and services must be taken from others, or provided by their labor, so if you believe you have an absolute right to them, and others don’t choose to provide it to you, you then have a “right” to steal from them. But what about their far more fundamental right not to be robbed?

In fact, although it’s not the primitive issue, the constant improvement in health care gives another good example of why the “right” to health care makes little sense. Did you have a right to chemotherapy in 1600 AD? You could have protested to Parliament all you wanted, but chemo just didn’t exist. Then, did you have a right to it the moment some genius invented it? You did not pay for the research. You did not make the breakthrough. Where do you get the right? How did it come into existence for you the moment somebody else created these things? I’m pretty sure you cannot have rights to material goods that don’t exist, and I am pretty certain that the moment some genius (or business, or even government) brings them into the world your “rights” do not improve. ...

So why do people scream health care is a “right” if it so obviously is not? If not a right it can still be willingly provided as charity by society. But those screaming “health care is a right” worry that this will not work out as well for them. In fact it would work out if all they cared about was good health care for all, and not power, but they do love that power.

Those seeking free health care could admit these are not rights but they simply want other people’s stuff, and be honest supplicants, or open thieves. However, they believe that guilt and the false moral high ground work better for them.

Read the whole thing.

Obama’s health care proposal is, in effect, the repeal of the Medicare program as we know it. The elderly will go from being the group with the most access to free medical care to the one with the least access. Indeed, the principal impact of the Obama health care program will be to reduce sharply the medical services the elderly can use. No longer will their every medical need be met, their every medication prescribed, their every need to improve their quality of life answered.

It is so ironic that the elderly – who were so vigilant when Bush proposed to change Social Security – are so relaxed about the Obama health care proposals. Bush’s Social Security plan, which did not cut their benefits at all, aroused the strongest opposition among the elderly. But Obama’s plan, which will totally gut Medicare and replace it with government-managed care and rationing, has elicited little more than a yawn from most senior citizens.

It’s time for the elderly to wake up before it is too late! ...

Today, 800,000 doctors struggle to treat adequately the 250 million Americans who have insurance. Obama will add 50 million more to their caseload with no expansion in the number of doctors or nurses. Indeed, his plan will likely reduce their number by lowering reimbursement rates and imposing bureaucrats above them who will force medical decisions down their throats. Fewer doctors will have to treat more patients. The inevitable result will be rationing.

And it is the elderly who rationing will most effect. Who should get a knee replacement a 40 year old or a 70 year old? Who should get a new hip, a young person or an old person? Who should have priority in the operating room a seventy year old diabetic who needs bypass surgery or a younger person? Obviously, it is the elderly who will get short shrift under his proposal.

Read the whole thing.
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Skeptical? Just read between the lines of this New York Times article by radical leftwing ethicist Peter Singer, no less, hailing government rationing of heath care as inevitable and a fine thing, too. Says Singer:

The debate over health care reform in the United States should start from the premise that some form of health care rationing is both inescapable and desirable.

With more than a trillion dollars in new taxes, falling primarily on small business owners and investors, as the Wall Street Journal explains:

(The) draft bill would impose a “surtax” on individuals with adjusted gross income of more than $280,000 a year. This would hit job creators especially hard because more than six of every 10 who earn that much are small business owners, operators or investors, according to a 2007 Treasury study. That study also found that almost half of the income taxed at this highest rate is small business income from the more than 500,000 sole proprietorships and subchapter S corporations whose owners pay the individual rate.

In addition, many more smaller business owners with lower profits would be hit by the Rangel plan’s payroll tax surcharge. That surcharge would apply to all firms with 25 or more workers that don’t offer health insurance to their employees, and it would amount to an astonishing eight percentage point fee above the current 15% payroll levy.

Here’s the ugly income-tax math. First, Mr. Obama has promised to let the lower Bush tax rates expire after 2010. This would raise the top personal income tax rate to 39.6% from 35%, and the next rate to 36% from 33%. The Bush expiration would also phase out various tax deductions and exemptions, bringing the top marginal rate to as high as 41%.

Then add the Rangel Surtax of one percentage point, starting at $280,000 ($350,000 for couples), plus another percentage point at $400,000 ($500,000 for couples), rising to three points on more than $800,000 ($1 million) in 2011. But wait, there’s more. The surcharge could rise by two more percentage points in 2013 if health-care costs are larger than advertised—which is a near-certainty. Add all of this up and the top marginal tax rate would climb to 46%, which hasn’t been seen in the U.S. since the Reagan tax reform of 1986 cut the top rate to 28% from 50%.

States have also been raising their income tax rates, so in California and New York City the top rate would be around 58%. The Tax Foundation reports that at least half of all states would have combined state-federal tax rates of more than 50%.

Mr. Rangel also wants to apply his surcharges to investment income like capital gains. So the combined effect of repealing the Bush tax cuts and the new surcharges would be to raise the tax on stock appreciation by at least 60%—to as high as 24% from 15% today. President Obama has been worrying about a capital squeeze on small businesses, but raising the capital gains tax would only further starve them of funds. ...

America’s successful small businesses would pay higher tax rates than the Fortune 500, and for that matter than most companies around the world. The corporate federal-state tax rate applied to General Electric and Google is about 39% in the U.S., and the business tax rate is about 25% in the OECD countries. So the U.S. would have close to the most punitive taxes on small business income anywhere on the globe.

(Some) calculations seem to ignore sales taxes, which are significant in many states. Because income earned will eventually be spent and thus subject to sales taxes, sales tax rates need to be combined with income tax rates to find the true tax wedge that distorts the consumption-leisure decision. Once sales taxes are included, a top earner in a typical state would face a marginal tax rate of about 55 percent.

So much for an economic recovery. If this monstrosity passes, get ready for many years of economic chaos and decline. Teach your kids how to ask “Will you have fries with that?” in Mandarin would be my advice.

David Brooks and David Frum have a new companion in the crowd of policy experts rushing to endorse the new era of Big Government.

Thaddeus G. McCotter reports in the American Spectator:

Breaking his half-a-millennium media silence from eternal damnation, Fyodor Dostoevsky’s Grand Inquisitor joined a chorus of presumed conservatives to endorse President Obama’s health care reforms.

Resplendently stooped beneath a banner reading “Enslave, But Feed Us!” the Grand Inquisitor commenced with a veiled shot at former President Bush: “The present fate of men may be summed up in three words: unrest, confusion, and misery! The bulk of humanity could never be happy under the old system, it is not for them.”

Inspired that Obama has made government capable of “saving mankind a millennium of useless suffering on earth,” the Grand Inquisitor averred that “only now has it become possible to us, for the first time, to give a serious thought to human happiness.” ...

He was compelled to endorse the Obama plan because it matches his core principles for social justice: “There are three Powers upon earth, capable of conquering the conscience of these weak rebels—men—for their own good; and these forces are Miracle, Mystery, and Authority.”

Legendary as a master of abstruse statutory interpretation, the Grand Inquisitor praised the Obama plan’s specifics. “Receiving their bread from us, they will clearly see that we take the bread from them, the bread made by their own hands, but to give it back to them in equal shares. They will be only too glad to have it so.”

Regarding the dicey issue of patients’ choices, the Grand Inquisitor was dismissive. “Oh, never, never, will they learn to feed themselves without our help! No science will ever give them bread so long as they remain free, so long as they refuse to lay that freedom at our feet.” The goal, he said, was to find a universal health care plan “all others will believe in, and consent to bow down to in a mass.”

He said he empathized with the burden Obama selflessly carries upon his strapping shoulders. He urged critics to find common ground, but the grizzled visage lashed out at a Fox News reporter: “You have no right to add one syllable to that which was already uttered before!” The wizened wag then subtly positioned Republicans as the party of “no” in the health care debate by deriding its plans for patient-centered health care: “They have saved but themselves while we have saved all.”

Hat tip to Tristyn Bloom and Will Wilson.

(N)ow the Statist Democrats are launching the most massive attack on the American people in the history of government.

They promise health care for everyone, but they will not—and they can’t possibly—deliver it.

While our health care system is certainly imperfect—because all humans are imperfect, including doctors, nurses, hospitals and insurance companies—they are more perfect, more competent, more informed, more capable than all of the bureaucrats to whom they’ll be forced to report: a bureaucracy that will make all decisions about your health care.

And it is easy to confirm the havoc that socialized medicine will wreak on American society. All you need to do is to look at how Democrats are trying to ram home socialized medicine: they’re doing it as fast as possible with as little debate as possible. For the indigent and the poor, we already have programs like Medicaid and SCHIP and dozens of state programs. Yet we’re told tens of millions of us must give up our private insurance and pay for a government-run program.

Democrats claim it will be more cost-effective and efficient. ... The man who’s had the least experience at running anything is going to unleash the most massive federal leviathan in history, nationalizing nearly 20% of the economy.

This has been the dream of the Statist Democrats since FDR: to force each and every one of you, whether you like it or not, into a strait-jacket form of health care. It controls you; the actual being, the person.

Nameless, faceless bureaucrats substituting their decisions for those of your doctor.

Deciding whether you will have an operation or not. Whether you will have an MRI or not. Whether you will receive a life-saving, life-extending drug or not.

And we know this, because this is what occurs in Canada and Britain and other centralized bureaucracies, where you simply can not have access to advanced health care, period.

Where will their new drugs come from, since we produce half of them? Who will invent the new medical technologies for them, since we invent roughly three-fourths of them?

Who will run the hospitals and what will they look like when the government unions run them? ...

They’ve been lying about the number of people without health care. They’ve been lying about whether the public is satisfied with health care. They’ve been lying about every aspect of health care.

They unleashed the slip-and-fall lawyers on the medical system, causing untold higher costs for medical practitioners. They’ve attacked the health care system relentlessly, driving up costs just like they’ve attacked the energy industry and the automakers.

And even when they have complete monopolistic control of a system, like the educational system in America, they want more control. It’s never enough. They want more money, more regulations. More. They need to “invest”. They need to raise taxes. They need to repress. They need to compel.

Read the whole thing.

Hat tip to the News Junkie.
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David B. Rivkin Jr and Lee A. Casey, in the Wall Street Journal, argue that, if the 14th Amendment protects a “central right of privacy” entitling freedom of choice on abortion, wouldn’t the same right protect freedom of choice in health care generally, precluding government confiscation, redistribution, and subsequent rationing of individual health care resources?

The Supreme Court created the right to privacy in the 1960s and used it to strike down a series of state and federal regulations of personal (mostly sexual) conduct. This line of cases began with Griswold v. Connecticut in 1965 (involving marital birth control), and includes the 1973 Roe v. Wade decision legalizing abortion.

The court’s underlying rationale was not abortion-specific. Rather, the justices posited a constitutionally mandated zone of personal privacy that must remain free of government regulation, except in the most exceptional circumstances. As the court explained in Planned Parenthood v. Casey (1992), “these matters, involving the most intimate and personal choices a person may make in a lifetime, choices central to personal dignity and autonomy, are central to the liberty protected by the Fourteenth Amendment. At the heart of liberty is the right to define one’s own concept of existence, of meaning, of the universe, and the mystery of human life.”

It is, of course, difficult to imagine choices more “central to personal dignity and autonomy” than measures to be taken for the prevention and treatment of disease—measures that may be essential to preserve or extend life itself. Indeed, when the overwhelming moral issues that surround the abortion question are stripped away, what is left is a medical procedure determined to be “necessary” by an expectant mother and her physician.

If the government cannot proscribe—or even “unduly burden,” to use another of the Supreme Court’s analytical frameworks—access to abortion, how can it proscribe access to other medical procedures, including transplants, corrective or restorative surgeries, chemotherapy treatments, or a myriad of other health services that individuals may need or desire?

Read the whole thing.

When President Barack Obama tells you he’s “reforming” health care to “control costs,” the point to remember is that the only way to “control costs” in health care is to have less of it. In a government system, the doctor, the nurse, the janitor and the Assistant Deputy Associate Director of Cost-Control System Management all have to be paid every Friday, so the sole means of “controlling costs” is to restrict the patient’s access to treatment. In the Province of Quebec, patients with severe incontinence – i.e., they’re in the bathroom 12 times a night – wait three years for a simple 30-minute procedure. True, Quebeckers have a year or two on Americans in the life expectancy hit parade, but, if you’re making 12 trips a night to the john 365 times a year for three years, in terms of life-spent-outside-the-bathroom expectancy, an uninsured Vermonter may actually come out ahead.

As Louis XV is said to have predicted, “Après moi, le deluge” – which seems as incisive an observation as any on a world in which freeborn citizens of the wealthiest societies in human history are content to rise from their beds every half-hour every night and traipse to the toilet for yet another flush simply because a government bureaucracy orders them to do so. “Health” is potentially a big-ticket item, but so’s a house and a car, and most folks manage to handle those without a Government Accommodation Plan or a Government Motor Vehicles System – or, at any rate, they did in pre-bailout America. ...

[B]y historical standards, we’re loaded: We have TVs and iPods and machines to wash our clothes and our dishes. We’re the first society in which a symptom of poverty is obesity: Every man his own William Howard Taft. Of course we’re “vulnerable”: By definition, we always are. But to demand a government organized on the principle of preemptively “taking care” of potential “vulnerabilities” is to make all of us, in the long run, far more vulnerable. A society of children cannot survive, no matter how all-embracing the government nanny.

When I was young, eons ago, when dinosaurs still walked the earth, doctors didn’t turn people away because they didn’t have health insurance. When Doctor Jones ran into an indigent patient, he simply shrugged, took care of the patent, and figured that it was his turn to do something charitable.

What has changed isn’t human nature, but the intensity of our regulatory environment and our politics. Government tax policy gradually created a health care corporate regime in which people employed by big companies used to get any amount of health services for absolutely nothing.

When you don’t pay for things, you have no incentive to economize, so demand rose and health care costs dramatically escalated. Meanwhile, government went along giving away more and more free health care to the elderly. So a while back, it became a joint interest of government and insurance companies to do something to control costs.

They made a deal. Government would set fixed prices for procedures and services delivered via medicare, and insurance companies would only pay at those same (lesser) medicare rates. Hard cheese for doctors, of course, but hey! cost cutting is important.

We have since experienced a bizarre regime of increasingly reduced health insurance benefits, managed by occult fine print to bamboozle beneficiaries into thinking they have coverage until doctors and hospitals subsequently surprise them by balance billing. The balance is the difference between what insurance companies are willing to pay and what health care providers want to charge.

The current situation featuring constant covert fighting over dollars makes charity its victim, too. If a hospital or physician treats that derelict indigent for free, ahem! the eyeshade-wearing bean-counter in Mega Insurance’s head office contends that was only possible by adding extra unjustified costs to the services Mega is paying for, and Mega wants a refund. That refund, you see, is supposed to come from your uncle and mine in Washington.

Thus, Capitalism is busily greasing the skids as we slide into Socialism.

Karl Rove notes that now that he’s in office Americans are getting basically the opposite of what Barack Obama promised during the campaign. Obama has continued some of his campaign rhetoric, but has again and again contradicted himself by continuing Bush Administration national security policies.

Barack Obama inherited a set of national-security policies that he rejected during the campaign but now embraces as president. This is a stunning and welcome about-face.

For example, President Obama kept George W. Bush’s military tribunals for terror detainees after calling them an “enormous failure” and a “legal black hole.” His campaign claimed last summer that “court systems . . . are capable of convicting terrorists.” Upon entering office, he found out they aren’t.

He insisted in an interview with NBC in 2007 that Congress mandate “consequences” for “a failure to meet various benchmarks and milestones” on aid to Iraq. Earlier this month he fought off legislatively mandated benchmarks in the $97 billion funding bill for Iraq and Afghanistan.

Mr. Obama agreed on April 23 to American Civil Liberties Union demands to release investigative photos of detainee abuse. Now’s he reversed himself. Pentagon officials apparently convinced him that releasing the photos would increase the risk to U.S. troops and civilian personnel.

Throughout his presidential campaign, Mr. Obama excoriated Mr. Bush’s counterinsurgency strategy in Iraq, insisting it could not succeed. Earlier this year, facing increasing violence in Afghanistan, Mr. Obama rejected warnings of a “quagmire” and ordered more troops to that country. He isn’t calling it a “surge” but that’s what it is. He is applying in Afghanistan the counterinsurgency strategy Mr. Bush used in Iraq.

On the other hand, during the campaign, Obama promised fiscal moderation, and in that department, too, he is delivering the exact opposite of those campaign promises.

Mr. Obama campaigned on “responsible fiscal policies,” arguing in a speech on the Senate floor in 2006 that the “rising debt is a hidden domestic enemy.” In his acceptance speech at the Democratic National Convention, he pledged to “go through the federal budget line by line, eliminating programs that no longer work.” Even now, he says he’ll “cut the deficit . . . by half by the end of his first term in office” and is “rooting out waste and abuse” in the budget.

However, Mr. Obama’s fiscally conservative words are betrayed by his liberal actions. He offers an orgy of spending and a bacchanal of debt. His budget plans a 25% increase in the federal government’s share of the GDP, a doubling of the national debt in five years, and a near tripling of it in 10 years.

On health care, Mr. Obama’s election ads decried “government-run health care” as “extreme,” saying it would lead to “higher costs.” Now he is promoting a plan that would result in a de facto government-run health-care system. Even the Washington Post questions it, saying, “It is difficult to imagine . . . benefits from a government-run system.”

Making adjustments in office is one thing. Constantly governing in direct opposition to what you said as a candidate is something else. Mr. Obama’s flip-flops on national security have been wise; on the domestic front, they have been harmful.

In both cases, though, we have learned something about Mr. Obama. What animated him during the campaign is what historian Forrest McDonald once called “the projection of appealing images.” All politicians want to project an appealing image. What Mr. McDonald warned against is focusing on this so much that an appealing image “becomes a self-sustaining end unto itself.” Such an approach can work in a campaign, as Mr. Obama discovered. But it can also complicate life once elected, as he is finding out.

Mr. Obama’s appealing campaign images turned out to have been fleeting. He ran hard to the left on national security to win the nomination, only to discover the campaign commitments he made were shallow and at odds with America’s security interests.

Mr. Obama ran hard to the center on economic issues to win the general election. He has since discovered his campaign commitments were obstacles to ramming through the most ideologically liberal economic agenda since the Great Society.

Mr. Obama either had very little grasp of what governing would involve or, if he did, he used words meant to mislead the public. Neither option is particularly encouraging. America now has a president quite different from the person who advertised himself for the job last year. Over time, those things can catch up to a politician.

The Obama administration is bent on becoming a major player in—if not taking over entirely—America’s health-care, automobile and banking industries. Before that happens, it might be a good idea to look at the government’s track record in running economic enterprises. It is terrible.

In 1913, for instance, thinking it was being overcharged by the steel companies for armor plate for warships, the federal government decided to build its own plant. It estimated that a plant with a 10,000-ton annual capacity could produce armor plate for only 70% of what the steel companies charged.

When the plant was finally finished, however—three years after World War I had ended—it was millions over budget and able to produce armor plate only at twice what the steel companies charged. It produced one batch and then shut down, never to reopen.

Or take Medicare. Other than the source of its premiums, Medicare is no different, economically, than a regular health-insurance company. But unlike, say, UnitedHealthcare, it is a bureaucracy-beclotted nightmare, riven with waste and fraud. Last year the Government Accountability Office estimated that no less than one-third of all Medicare disbursements for durable medical equipment, such as wheelchairs and hospital beds, were improper or fraudulent. Medicare was so lax in its oversight that it was approving orthopedic shoes for amputees.

These examples are not aberrations; they are typical of how governments run enterprises.

Read the whole thing.

Ilya Somin wonders when the Federation lost its freedom.

Tom Suhadolnik explains how Barack Obama is simply setting aside conventional bankruptcy law in order to nationalize the automobile industry while moving simultaneously to nationalize the financial system using existing regulatory powers combined with intimidation.

How many Americans who pulled the democrat lever last November really intended to vote for Marxism?

At the end of April the Obama administration tested its ability to take direct control of the US financial system. The test was a success. There is a revolution underway which would impress Chavez or Castro. If you were like most people, you did not realize it happened.

As the details of the GM restructuring plan emerged, on Monday, April 27th, Lawrence Kudlow was one of the first to sound the alarm as secured lenders and bond holders were being given a fraction of the amount owed to them under long established bankruptcy law.

What is going on in this country? The government is about to take over GM in a plan that completely screws private bondholders and favors the unions. Get this: The GM bondholders own $27 billion and they’re getting 10 percent of the common stock in an expected exchange. And the UAW owns $10 billion of the bonds and they’re getting 40 percent of the stock. Huh? Did I miss something here? And Uncle Sam will have a controlling share of the stock with something close to 50 percent ownership. And no bankruptcy judge. So this is a political restructuring run by the White House, not a rule-of-law bankruptcy-court reorganization. ...

To understand the gravity of the events you need a basic understanding of bankruptcy laws. The pecking order of bankruptcy claims is supposed to be:

1. Debtor in Possession (DIP) financing which is loaned to the restructuring company
2. Secured Lenders – creditors whose loans are backed by assets such as real estate or equipment
3. Unsecured Lenders – creditors such as bond holders, vendors and the UAW
4. Equity Owners – shareholders

When a company files for bankruptcy the claims that are superior (represented by a lower number) in the pecking order are paid first. Claims with equal status are treated equally; those claims are almost always paid on the same pro rata basis. It is an explicit goal of our bankruptcy system is to treat all creditors equally. ...

In the case of GM, the UAW and bond holders are both unsecured creditors with equal rights under bankruptcy law. As The Cleveland Plain Dealer reported Monday April 27th, interim GM CEO Fritz Henderson contends a 2007 deal between GM and the UAW gives preference to unsecured claims of the UAW. The bond holders never explicitly agreed to have their claims subordinated to the union so that contention is certainly open to debate in bankruptcy court.

Considering GM owes the UAW $20 billion (Henderson says the figure is closer to $30 billion) and bond holders $27 billion, they should receive a similar ratio of shares in the restructured GM. The deal announced by Henderson gives roughly 40% of the stock in a reorganized GM to the UAW, 50% to the government and 10% to the bond holders. The math does not make sense even if you accept Henderson’s contention that the UAW is owed $30 billion. ...

The Chrysler reorganization details are more bizarre. At Chrysler the institutions owed $6.9 billion by Chrysler are secured creditors. As a matter of law, the secured claims would be superior to those of the UAW in bankruptcy court.

Putting the Chrysler deal in terms of household finances, the secured creditors would be the banks holding the mortgage and car note. Instead of the car and house going back to the bank in bankruptcy, the Chrysler deal calls for the car and house to be shared with unsecured creditors like credit card companies and the cable company. That is not how the system is supposed to work.

These bedrock principles are codified in our bankruptcy laws. ...

Obama has made it clear he is willing to use his political muscle on the banks as well. ...

The Obama administration will be able to make a plausible argument that nationalization of the banks was forced upon the administration by capitalism run amok. Given the type of patently absurd statements made by politicians of all stripes, this rather nuanced position will pass without a second thought.

In summary, the mechanism to nationalize the US financial system is now in place. All the levers are controlled by the executive branch. Here how it works:

1. The government determines various loses have eroded a particular bank’s balance sheet and regulatory intervention is necessary.
2. The bank is ordered to raise additional capital to maintain the proper asset ratio.
3. Increasing government activism causes private capital to avoid investing in banks.
4. The government is “forced” to loan more money to the bank in exchange for more stock and control via loan conditions like those found in earlier TARP loans and legislation.
5. As government acquires more power they force the bank to accept loses to benefit key constituencies of the administration (like the UAW) or the sale of toxic assets to firms like Pimco.
6. If the government does not own the majority of the bank’s stock return to step 1and repeat.

On May 5th, Fox reported as many as 10 of the top 19 banks in the country will need to raise additional capital following the stress tests. The troubled asset auction program is expected to start within a few weeks. If the administration chooses to do so the largest banks in the country can be nationalized by the end of summer.

There is no additional legislative action required to allow the executive branch to continue on this path. The regulatory framework was reviewed and approved by the judicial branch decades ago. The public at large may not even notice what is happening. Anyone looking for strutting fascists will be disappointed; this revolutionary change will be brought about by clean cut men and women in pinstripes.

Not only can it happen here, it is happening here.

Read the whole thing.

I must be naive. I really thought the administration would welcome the return of bank bailout money. Some $340 million in TARP cash flowed back this week from four small banks in Louisiana, New York, Indiana and California. This isn’t much when we routinely talk in trillions, but clearly that money has not been wasted or otherwise sunk down Wall Street’s black hole. So why no cheering as the cash comes back?

My answer: The government wants to control the banks, just as it now controls GM and Chrysler, and will surely control the health industry in the not-too-distant future. Keeping them TARP-stuffed is the key to control. And for this intensely political president, mere influence is not enough. The White House wants to tell ‘em what to do. Control. Direct. Command.

It is not for nothing that rage has been turned on those wicked financiers. The banks are at the core of the administration’s thrust: By managing the money, government can steer the whole economy even more firmly down the left fork in the road.

If the banks are forced to keep TARP cash—which was often forced on them in the first place—the Obama team can work its will on the financial system to unprecedented degree. That’s what’s happening right now.

Here’s a true story first reported by my Fox News colleague Andrew Napolitano (with the names and some details obscured to prevent retaliation). Under the Bush team a prominent and profitable bank, under threat of a damaging public audit, was forced to accept less than $1 billion of TARP money. The government insisted on buying a new class of preferred stock which gave it a tiny, minority position. The money flowed to the bank. Arguably, back then, the Bush administration was acting for purely economic reasons. It wanted to recapitalize the banks to halt a financial panic.

Fast forward to today, and that same bank is begging to give the money back. The chairman offers to write a check, now, with interest. He’s been sitting on the cash for months and has felt the dead hand of government threatening to run his business and dictate pay scales. He sees the writing on the wall and he wants out. But the Obama team says no, since unlike the smaller banks that gave their TARP money back, this bank is far more prominent. The bank has also been threatened with “adverse” consequences if its chairman persists. That’s politics talking, not economics.

As Krauthammer observes, Obama “has now gotten himself so entangled in the car business that he is personally guaranteeing your muffler.” But, he notes:

Obama has far different ambitions. His goal is to rewrite the American social compact, to recast the relationship between government and citizen. He wants government to narrow the nation’s income and anxiety gaps. Soak the rich for reasons of revenue and justice. Nationalize health care and federalize education to grant all citizens of all classes the freedom from anxiety about health care and college that the rich enjoy. And fund this vast new social safety net through the cash cow of a disguised carbon tax.

Obama is a leveler. He has come to narrow the divide between rich and poor. For him the ultimate social value is fairness. Imposing it upon the American social order is his mission.

Fairness through leveling is the essence of Obamaism.

American exceptionalism is not just something that Americans claim for themselves. Historically, Americans have been different as a people, even peculiar, and everyone around the world has recognized it. I’m thinking of qualities such as American optimism even when there doesn’t seem to be any good reason for it. That’s quite uncommon among the peoples of the world. There is the striking lack of class envy in America—by and large, Americans celebrate others’ success instead of resenting it. That’s just about unique, certainly compared to European countries, and something that drives European intellectuals crazy. And then there is perhaps the most important symptom of all, the signature of American exceptionalism—the assumption by most Americans that they are in control of their own destinies. It is hard to think of a more inspiriting quality for a population to possess, and the American population still possesses it to an astonishing degree. No other country comes close. ...

The exceptionalism has not been a figment of anyone’s imagination, and it has been wonderful. But it isn’t something in the water that has made us that way. It comes from the cultural capital generated by the system that the Founders laid down, a system that says people must be free to live life as they see fit and to be responsible for the consequences of their actions; that it is not the government’s job to protect people from themselves; that it is not the government’s job to stage-manage how people interact with each other. Discard the system that created the cultural capital, and the qualities we love about Americans can go away. In some circles, they are going away.

Why do I focus on the elites in urging a Great Awakening? Because my sense is that the instincts of middle America remain distinctively American. When I visit the small Iowa town where I grew up in the 1950s, I don’t get a sense that community life has changed all that much since then, and I wonder if it has changed all that much in the working class neighborhoods of Brooklyn or Queens. When I examine the polling data about the values that most Americans prize, not a lot has changed. And while I worry about uncontrolled illegal immigration, I’ve got to say that every immigrant I actually encounter seems as American as apple pie.

The center still holds. It’s the bottom and top of American society where we have a problem. And since it’s the top that has such decisive influence on American culture, economy, and governance, I focus on it. The fact is that American elites have increasingly been withdrawing from American life. It’s not a partisan phenomenon. The elites of all political stripes have increasingly withdrawn to gated communities—”gated” literally or figuratively—where they never interact at an intimate level with people not of their own socioeconomic class.

Haven’t the elites always done this? Not like today. A hundred years ago, the wealth necessary to withdraw was confined to a much smaller percentage of the elites than now. Workplaces where the elites made their livings were much more variegated a hundred years ago than today’s highly specialized workplaces.

Perhaps the most important difference is that, not so long ago, the overwhelming majority of the elites in each generation were drawn from the children of farmers, shopkeepers, and factory workers—and could still remember those worlds after they left them. Over the last half century, it can be demonstrated empirically that the new generation of elites have increasingly spent their entire lives in the upper-middle-class bubble, never even having seen a factory floor, let alone worked on one, never having gone to a grocery store and bought the cheap ketchup instead of the expensive ketchup to meet a budget, never having had a boring job where their feet hurt at the end of the day, and never having had a close friend who hadn’t gotten at least 600 on her SAT verbal. There’s nobody to blame for any of this. These are the natural consequences of successful people looking for pleasant places to live and trying to do the best thing for their children.

But the fact remains: It is the elites who are increasingly separated from the America over which they have so much influence. That is not the America that Tocqueville saw. It is not an America that can remain America. ...

What it comes down to is that America’s elites must once again fall in love with what makes America different. I am not being theoretical. Not everybody in this room shares the beliefs I have been expressing, but a lot of us do. To those of you who do, I say soberly and without hyperbole, that this is the hour. The possibility that irreversible damage will be done to the American project over the next few years is real. And so it is our job to make the case for that reawakening. It won’t happen by appealing to people on the basis of lower marginal tax rates or keeping a health care system that lets them choose their own doctor. The drift toward the European model can be slowed by piecemeal victories on specific items of legislation, but only slowed. It is going to be stopped only when we are all talking again about why America is exceptional, and why it is so important that America remain exceptional. That requires once again seeing the American project for what it is: a different way for people to live together, unique among the nations of the earth, and immeasurably precious.

Read the whole thing.

What a pity he’s not here to comment on the follies of the Bush and Obama administrations.

2:24 video

Edward Cline observes that the left’s dishonest and temporary triumph is being marred by a stubborn dissent on the part of ordinary Americans armed with very different ideas, ideas having a great deal to do with a very thick novel published just over half a century ago.

The world seems to be emerging from a moral and intellectual coma, perhaps temporarily, perhaps permanently. It is discovering that other ideas have other consequences, as well, ideas that promote life, promote prosperity, promote ambition and personal success, and that they are possible only in political freedom, and that this freedom has been violated, abridged, and nullified by the first set of ideas. True, politics is the last thing to be affected by a philosophical revolution. But one cannot help but be pleased with how startled the collectivists and altruists are now by the knowledge that they have not successfully pulled a fast one on Americans. These Americans have come knocking on the doors of elitists or leaning over the café railings or invading their legislated smoke-free bars and restaurants to ask: What in hell do you think you are doing?

The Americans who recently protested the spendthrift policies of the Obama administration and Congress with “tea parties,” and who plan to protest them on an even larger scale in the near future, one can wager are not regular readers of The New York Times. They cannot have much in common with its columnists and editors, nor with the news media.

So the collectivist and altruist elite become very touchy when the people for whom they are “doing good” for their own sake, even to the point of enacting coercive and felonious legislation, exhibit signs of intelligence, resistance and anger. How dare these yokels!

And nothing raises their hackles higher than any mention of Ayn Rand.

I’ve heard more fully developed analyses and better eloquence, but not often by people speaking from the heart from notes written at three o’clock in the morning after a lengthy session of work.

9:50 video

Leftie blogs are full of Rand villains sneering in response. Dagny would shoot the lot of ‘em.

Today’s Daily Mail has a story illustrating how government-provided health services really work: by rationing.

Thousands of patients with terminal cancer were dealt a blow last night after a decision was made to deny them life prolonging drugs.

The Government’s rationing body said two drugs for advanced breast cancer and a rare form of stomach cancer were too expensive for the NHS.

The National Institute for Health and Clinical Excellence is expected to confirm guidance in the next few weeks that will effectively ban their use.

The move comes despite a pledge by Nice to be more flexible in giving life-extending drugs to terminally-ill cancer patients after a public outcry last year over ‘death sentence’ decisions. Leading campaigners last night said Nice had failed the ‘acid test’ of whether it really intended to give new priority to people with just a few months to live.

One drug, Lapatinib, can halve the speed of growth of breast cancer in one in five women with an aggressive form of the disease.

Dr Gillian Leng, Nice deputy chief executive, said ‘The committee concluded that Lapatinib is not a cost-effective use of NHS resources when compared with current treatment.’

Up to 1,500 stomach cancer patients also face a ban on Sutent – the only drug that can extend their lives.

Why does Obama preach gloom and doom? Because he is so anxious to cram through every last spending bill, tax increase on the so-called rich, new government regulation, and expansion of healthcare entitlement that he must preserve the atmosphere of crisis as a political necessity. Only by keeping us in a state of panic can he induce us to vote for trillion-dollar deficits and spending packages that send our national debt soaring.

And then there is the matter of blame. The deeper the mess goes — and the further down his rhetoric drives it — the more imperative it becomes to lay off the blame on Bush. He must perpetually “discover” — to his shock — how deep the crisis that he inherited runs, stoking global fears in the process.

So, having inherited a recession, his words are creating a depression. He entered office amid a disaster and he is transforming it into a catastrophe, all to pass every last bit of government spending and move us a bit further to the left before his political capital dwindles.

But the jig will be up soon. The crash of the stock market in the days since he took power (indeed, from the moment he won the election) can increasingly be attributed to his own failure to lead us in the right direction, his failed policies in addressing the recession and his own spreading of panic and fear. The market collapse makes it evident that it is Obama who is the problem, where he should, instead, be the solution.

Hat tip to the News Junkie.

The New York Times rejoices that Obama and the democrat Congress are “sweeping away” the ideas of Ronald Reagan and breaking with policies that led to three decades of growth and prosperity.

After all, Socialism has worked out so well everywhere it’s been tried.

The budget that President Obama proposed on Thursday is nothing less than an attempt to end a three-decade era of economic policy dominated by the ideas of Ronald Reagan and his supporters.

The Obama budget — a bold, even radical departure from recent history, wrapped in bureaucratic formality and statistical tables — would sharply raise taxes on the rich, beyond where Bill Clinton had raised them. It would reduce taxes for everyone else, to a lower point than they were under either Mr. Clinton or George W. Bush. And it would lay the groundwork for sweeping changes in health care and education, among other areas.

More than anything else, the proposals seek to reverse the rapid increase in economic inequality over the last 30 years. They do so first by rewriting the tax code and, over the longer term, by trying to solve some big causes of the middle-class income slowdown, like high medical costs and slowing educational gains.

Bob Krum remarks sardonically:

Barack Obama’s plans to hyper-inflate the government bubble while he taxes the rich at confiscatory levels, is so certain to collapse the economy that I can only conclude that he is a brilliant Rovian plant whose purpose is to finally drive a stake into the heart of the era of big government.

I only hope the nation survives that long.

After all, in 2008, with two wars underway, we spent the staggering sum of $667 billion (base budget of $480 billion and $187 billion in supplemental spending) on national defense. Why, we wasted almost as much money last year on defending the country as Obama spent in his first month in office on “community development” (i.e., ACORN), the National Endowment for the Arts, more welfare, green boondoggles, and fattening the wallets of politically connected construction companies.

President Obama is putting the finishing touches on an ambitious first budget that seeks to cut the federal deficit in half over the next four years, primarily by raising taxes on businesses and the wealthy and by slashing spending on the wars in Iraq and Afghanistan, administration officials said.

In addition to tackling a deficit swollen by the $787 billion stimulus package and other efforts to ease the nation’s economic crisis, the budget blueprint will press aggressively for progress on the domestic agenda Obama outlined during the presidential campaign. This would include key changes to environmental policies and a major expansion of health coverage that he hopes to enact later this year.

A summary of Obama’s budget request for the fiscal year that begins in October will be delivered to Congress on Thursday, with the complete, multi-hundred-page document to follow in April. But Obama plans to unveil his goals for scaling back record deficits and rebuilding the nation’s costly and inefficient health care system tomorrow, when he addresses lawmakers and budget experts at a White House summit on restoring “fiscal responsibility” to Washington. ...

Even before Congress approved the stimulus package this month, congressional budget analysts forecast that this year’s deficit would approach $1.2 trillion—8.3 percent of the overall economy, the highest since World War II. With the stimulus and other expenses, some analysts say, the annual gap between federal spending and income could reach $2 trillion when the fiscal year ends in September.

Obama proposes to dramatically reduce those numbers, said White House budget director Peter Orszag: “We will cut the deficit in half by the end of the president’s first term.” The plan would keep the deficit hovering near $1 trillion in 2010 and 2011, but shows it dropping to $533 billion by 2013, he said—still high but a more manageable 3 percent of the economy.

To get there, Obama proposes to cut spending and raise taxes. The savings would come primarily from “winding down the war” in Iraq, a senior administration official said. The budget assumes continued spending on “overseas military contingency operations” throughout Obama’s presidency, the official said, but that number is lower than the nearly $190 billion budgeted for Iraq and Afghanistan last year.

Obama also seeks to increase tax collections, mainly by making good on his promise to eliminate some of the temporary tax cuts enacted in 2001 and 2003. While the budget would keep the breaks that benefit middle-income families, it would eliminate them for wealthy taxpayers, defined as families earning more than $250,000 a year. Those tax breaks would be permitted to expire on schedule in 2011. That means the top tax rate would rise from 35 percent to 39.6 percent, the tax on capital gains would jump to 20 percent from 15 percent for wealthy filers and the tax on estates worth more than $3.5 million would be maintained at the current rate of 45 percent.

Obama also proposes “a fairly aggressive effort on tax enforcement” that would target corporate loopholes, the official said. And Obama’s budget seeks to tax the earnings of hedge fund managers as normal income rather than at the lower 15 percent capital gains rate.

Overall, tax collections under the plan would rise from about 16 percent of the economy this year to 19 percent in 2013, while federal spending would drop from about 26 percent of the economy, another post-World War II high, to 22 percent.

Gateway Pundit relishes the irony.

Excessive intervention in economic activity and blind faith in the state’s omnipotence is another possible mistake. True, the state’s increased role in times of crisis is a natural reaction to market setbacks. Instead of streamlining market mechanisms, some are tempted to expand state economic intervention to the greatest possible extent… In the 20th century, the Soviet Union made the state’s role absolute. In the long run, this made the Soviet economy totally uncompetitive. This lesson cost us dearly. I am sure nobody wants to see it repeated.”

Modern liberalism came to America in three waves, and it’s useful to think of Obama in this light.

The progressives of the early 20th century were the original liberals, developing the essential tenets of liberalism as a political doctrine. Woodrow Wilson and others argued that the Constitution was an 18th-century document, based on 18th-century notions of rights. While suited to its day, they said, it was now painfully inadequate unless interpreted in a vital new spirit.

This spirit was Darwinian and evolutionary, turning Hamilton’s “limited Constitution” into a “living Constitution” that must be able to adapt its structure and function to meet the latest social and economic challenges. To guide this evolution, to organize society’s march into the future, presidents had to cease being merely constitutional officers and become dynamic leaders of popular opinion.

Obama accepts all the major elements of this evolutionary approach to the Constitution and American government. As he wrote in “The Audacity of Hope,” the Constitution “is not a static but rather a living document, and must be read in the context of an ever-changing world.”

Likewise, in his inaugural address he declared, “The question we ask today is not whether our government is too big or too small, but whether it works….”

This emphasis on what “works” is his nod to pragmatism, which he implies is almost the opposite of ideological liberalism. In fact, however, such pragmatism is part of liberalism.

What “works,” after all, depends on what you think government’s purpose is supposed to be. Pragmatism tries to distract us from those ultimate questions, while assuming liberal answers to them. Thus Franklin D. Roosevelt’s New Deal promised “bold, persistent experimentation.” Obama’s domestic agenda betrays the same eagerness.

Liberalism’s second stage was economic. In the New Deal, the Great Society, and its sequels, liberals turned to the wholesale minting of new kinds of rights. Citizens were thus entitled to socioeconomic benefits through programs such as Social Security, Medicare, and Medicaid. Besides these entitlements, the federal government also extended its regulatory authority to areas previously private or under state and local jurisdiction.

But this wave crested unexpectedly, and for a while, contemporary liberals seemingly lost their enthusiasm for such top-down regulation and the work of transforming privileges into rights.

With the fall of the Soviet Union and the discrediting of socialist economies around the globe, liberals such as Bill Clinton took a second look at the free market. He populated his Treasury department with highfliers from Goldman Sachs and other Wall Street firms. In left-leaning think tanks and even in the academy, capitalism commanded strange new respect. This rehabilitation of the market, though never more than partial, was the greatest change in American liberalism in the past 40 years. Obama absorbed it, as did many members of his new administration.

But the financial crisis and market meltdown have changed things.

It looks like 1932 again, a time for reinvigorated government activism. ...

An enduring Democratic majority is not out of the question. The wild scramble to stop the economic and financial downturn may well leave America with a politically controlled economy that would corrupt the relationship between citizens and the federal government – sapping entrepreneurship and encouraging new forms of dependence on the state, as in much of Europe. That would be consistent with the more socialized democracy that liberalism has been striving for ever since the Progressive Era.

Obama likes to emphasize that America is more like the world than we realize, and must become still more like it if the US is to remain the world’s leader. Despite his summoning oratory, his sense of American exceptionalism thus is far less lofty, far more constrained, than Reagan’s or FDR’s. The greatest stumbling block to Obama’s ambition is likely to be the inability of this exceptional president to persuade Americans to follow him into so unexceptional a future.

The health-related provisions take a sharp turn toward greater government control over our health sector, without any hearings or serious debate in Congress and without telling the American people what the changes would mean for their personal health care. This is the biggest land grab in the health sector ever attempted by the federal government, and it would be a major step toward thrusting full responsibility for health-care financing onto the American taxpayer—today and for decades to come.

For starters, the bill would create a 15-member federal health board, composed entirely of federal employees appointed by the president, charged with running “comparative effectiveness” research to assess which drugs and other medical treatments are most effective. The board’s decisions would determine what medical treatments the federal government would or would not pay for. The treatments some patients desperately need might not be on the list. House Appropriations Chairman David Obey (D., Wis.) explained that drugs and treatments “that are found to be less effective and in some cases, more expensive, will no longer be prescribed.”

The bill would also establish a $400 million slush fund, which the secretary of health and human services would use to give government, not doctors and patients, more control over health-care decisions.

There will be a substantial burden on employers: The bill would impose a back-door mandate for them to continue providing health insurance to workers long after those workers have left. PricewaterhouseCoopers says the ten-year cost of this provision would be up to $65 billion just for those workers currently eligible for COBRA (the current program through which people can participate in ex-employers’ health plans). The estimated costs would be even higher if many more workers retire early, as they likely will if they know they can continue their employment-based coverage indefinitely.

Just before the election, Barack Obama made fifteen references to “pie” in 100 seconds of a speech—all about dividing up that yummy pie of the American economy. His audience laughed and chanted, “Pie! Pie!” to show how hungry they were. In one fell swoop Obama gave away the rapacity of socialism. In his first weeks of his presidency the world has seen how hungry he really is.

Mr. Obama doesn’t look like he has an eating problem, but he is hungry, voraciously hungry. ...

Socialism is rapaciously greedy—that’s what endless envy warfare comes down to. The Left likes to preen itself with the word ‘progressive,’ when it is actually the most regressive political strategy in history. The key political move is to seek out the most rapacious people—not hungry for food but power—and use them to mobilize an attack on the productive sector, the milk cows of society. It is the most primitive political strategy ever. It goes back to the Romans and long before. Karl Marx merely reinvented a very old and decrepit wheel.

That is why everything is grist for the mill of Obama Marxism. Old-time Marxism just pitted the poor against the rich—a compelling sympathy play in the 19th century, with grinding poverty, industrial workers living in little better than slavery, and peasant farmers in Europe who were all but slaves, as in Czarist Russia. Then decades of capitalist vitality provided the goods and services for an unprecedented spread of wealth, so that today Joe the Plumber is an instinctive conservative. Industrial workers became prosperous.

So the Left needed a new underclass. That is why the Boomer Left had to find new victim groups—women who could be made to envy men, blacks to envy whites, homosexuals to envy heterosexuals, the young against their parents, each ethnic group against the other. The New Marxism plays off any victim group against any perceived winner.

Health-care resources are not unlimited in any country, even rich ones like Canada and the U.S., and must be rationed either by price or time. When individuals bear no direct responsibility for paying for their care, as in Canada, that care is rationed by waiting.

Canadians often wait months or even years for necessary care. For some, the status quo has become so dire that they have turned to the courts for recourse. Several cases currently before provincial courts provide studies in what Americans could expect from government-run health insurance.

In Ontario, Lindsay McCreith was suffering from headaches and seizures yet faced a four and a half month wait for an MRI scan in January of 2006. Deciding that the wait was untenable, Mr. McCreith did what a lot of Canadians do: He went south, and paid for an MRI scan across the border in Buffalo. The MRI revealed a malignant brain tumor.

Ontario’s government system still refused to provide timely treatment, offering instead a months-long wait for surgery. In the end, Mr. McCreith returned to Buffalo and paid for surgery that may have saved his life. He’s challenging Ontario’s government-run monopoly health-insurance system, claiming it violates the right to life and security of the person guaranteed by the Canadian Charter of Rights and Freedoms.

Shona Holmes, another Ontario court challenger, endured a similarly harrowing struggle. In March of 2005, Ms. Holmes began losing her vision and experienced headaches, anxiety attacks, extreme fatigue and weight gain. Despite an MRI scan showing a brain tumor, Ms. Holmes was told she would have to wait months to see a specialist. In June, her vision deteriorating rapidly, Ms. Holmes went to the Mayo Clinic in Arizona, where she found that immediate surgery was required to prevent permanent vision loss and potentially death. Again, the government system in Ontario required more appointments and more tests along with more wait times. Ms. Holmes returned to the Mayo Clinic and paid for her surgery.

On the other side of the country in Alberta, Bill Murray waited in pain for more than a year to see a specialist for his arthritic hip. The specialist recommended a “Birmingham” hip resurfacing surgery (a state-of-the-art procedure that gives better results than basic hip replacement) as the best medical option. But government bureaucrats determined that Mr. Murray, who was 57, was “too old” to enjoy the benefits of this procedure and said no. In the end, he was also denied the opportunity to pay for the procedure himself in Alberta. He’s heading to court claiming a violation of Charter rights as well.

These constitutional challenges, along with one launched in British Columbia last month, share a common goal: to win Canadians the freedom to spend their own money to protect themselves from the inadequacies of the government health-insurance system.

Buried deep inside the massive spending orgy that Democrats jammed through the House this week lie five words that could drastically undo two decades of welfare reforms.

The very heart of the widely applauded Welfare Reform Act of 1996 is a cap on the amount of federal cash that can be sent to states each year for welfare payments.

But, thanks to the simple phrase slipped into the legislation, the new “stimulus” bill abolishes the limits on the amount of federal money for the so-called Emergency Fund, which ships welfare cash to states.

“Out of any money in the Treasury of the United States not otherwise appropriated, there are appropriated such sums as are necessary for payment to the Emergency Fund,” Democrats wrote in Section 2101 on Page 354 of the $819 billion bill. In other words, the only limit on welfare payments would be the Treasury itself.

“This re-establishes the welfare state and creates dependency all over the place,” said one startled budget analyst after reading the line.

In addition to reopening the floodgates of dependency on federal welfare programs, the change once again deepens the dependency of state governments on the federal government.

The Wall Street Journal quotes the democrat White House Chief of Staff’s dictum in explaining what the democrat’s so-called stimulus package is all about.

Democrats in Congress are certainly taking his advice to heart. The 647-page, $825 billion House legislation is being sold as an economic “stimulus,” but now that Democrats have finally released the details we understand Rahm’s point much better. This is a political wonder that manages to spend money on just about every pent-up Democratic proposal of the last 40 years.

We’ve looked it over, and even we can’t quite believe it. There’s $1 billion for Amtrak, the federal railroad that hasn’t turned a profit in 40 years; $2 billion for child-care subsidies; $50 million for that great engine of job creation, the National Endowment for the Arts; $400 million for global-warming research and another $2.4 billion for carbon-capture demonstration projects. There’s even $650 million on top of the billions already doled out to pay for digital TV conversion coupons.

Read the whole thing. You and your children and your grandchildren will be paying for it.

Previously, I announced that I would use a ten-point grading scale, which means that 90% of 100 is an “A,” 80% is a “B,” 70% is a “C,” and 60% is enough for a passing grade of “D.” I also announced that I will refrain from using a “plus/minus” system – even though the faculty handbook gives me that option.

The new policy I am announcing today is that those who score above 90 on the first exam will have points deducted and given to students at the bottom of the grade distribution. For example, if a student gets a 99, I will then deduct nine points and give them to the person with the lowest grade. If a person scores 95 I will then deduct five points and give them to the person with the second lowest grade. If someone scores 93 I will then deduct three points and give them to the next lowest person. And so on.

My point, rather obviously, is that any points above 90 are really not needed since you have an “A” regardless of whether you score 90 or 99. Nor am I convinced that you need to “save” those points for a rainy day. Those who are failing, however, need the points – not unlike the failing banks and automakers that need money to avoid the danger of bankruptcy. ...

But I don’t think there’s anything confusing about our pending social responsibilities. Whether we are talking about income or grades it does not matter how much or what percentage we are giving. The question is and should always be “Can we give more?

Stephen Dinan reports at the Washington Times:

Until last week, Carol M. Browner, President-elect Barack Obama’s pick as global warming czar, was listed as one of 14 leaders of a socialist group’s Commission for a Sustainable World Society, which calls for “global governance” and says rich countries must shrink their economies to address climate change.

By Thursday, Mrs. Browner’s name and biography had been removed from Socialist International’s Web page, though a photo of her speaking June 30 to the group’s congress in Greece was still available.

Socialist International (motto: Progressive Politics For a Fairer World – DZ), an umbrella group for many of the world’s social democratic political parties such as Britain’s Labor Party, says it supports socialism and is harshly critical of U.S. policies.

Walter Olson dropped me an email two days mentioning this, and observing that the Obama team must be worried about how this is going to play in Dubuque since they got Socialist International to pull her name.

As Norman Markowitz in Political Affairs, a journal of “Marxist thought,” puts it: “After the Labor Party established the National Health Service after World War II, supposedly conservative workers and low-income people under religious and other influences who tended to support the Conservatives were much more likely to vote for the Labor Party when health care, social welfare, education and pro-working class policies were enacted by labor-supported governments.”

Passing Obamacare would be like performing exactly the opposite function of turning people into investors. Whereas the Investor Class is more conservative than the rest of America, creating the Obamacare Class would pull America to the left. Michael Cannon of the Cato Institute, who first found that wonderful Markowitz quote, puts it succinctly in a recent blog post: “Blocking Obama’s health plan is key to the GOP’s survival.”

Children are selfish. Not because they are unkind (though many are) but because they believe in cost-free transfers. They do not understand that providing the toys and other amusements they demand imposes a cost on their parents. Children live in a fantastical world where Barbie dolls and trips to the zoo can be delivered without depriving their parents of something they might have enjoyed, such as a bottle of wine or a few extra hours off work.

Learning that cost-free transfers are impossible is an important part of growing up, and parents usually make sure it happens quickly. Most of us learn that there is no such thing as a free lunch long before we have ever picked up a bill.

Except when it comes to public policy. Encouraged by politicians, many adults indulge the infantile fantasy that the Government can bestow gifts on us while imposing costs on no one.

Read the whole thing.