Thursday, November 05, 2009

Truth in Something

One of the most aggravating aspects of the different economic schools of thought lies in the fact your primary positions are sometimes challenged. Such is the content of this piece from David Beckworth. I cannot truly evaluate the first Graph without an overlay on Government Spending in the same Period (including federal, State, and Local); this to ascertain that the Spending came from the Private consumer, and not the Government. My thinking holds that Private Spending has actually moderated since 1970, except for the insanity of Home purchasing of the last Boom. The later destruction has caused sharp reduction of Spending by the Private consumer, all in order to return their equity to a firmer foundation. I would also enjoy having an overlay of central banking expansion of the Money Supply during the same interval, thinking that the central banks kept the Inflation rate constant, so that member banks remained profitable. I believe that it was Government policies which have caused this Inflation, and refuses to allow it to be vented. This refusal to allow the worth of the Dollar to rise brings most of the Problems We now face.

I do not think the Boehner amendment to H.R. 3962 will provide greater injury than aid, but the CBO makes a relatively good case for it. The basic trouble comes in that the amendment assists the piecemeal retention of private health insurers, where the health care Problem needs a universal application. One of the great elements which need be addressed is the complexity of health insurance, and its separate offerings; no individual Subscriber to such insurance has any notion of exactly what they are protected against. I would like to see federal law which dictates a simple base policy which has two guaranteed medical consultations paid per year, and with a $10,000 limit of payment liability per year. Premium rates would be set up for these policies, and individuals would be allowed to purchase any number of such policies; Employer polices would be allowed to purchase 5 of these polices per individual. Any individual would be granted access to such policies without restriction, and all medical procedures would be covered; with reduction of medical coverage allowed only for cosmetic surgeries. The entire structure of health care coverage would be amended to eliminate Government responsibility for health care to the point of Government-ordered minimum health care by garnishment of Wages, when and if individuals do not pay for Government-sponsored medical service like Emergency Room care. The primary element of my program would be throwing responsibility back upon the individual, but within a context that the individual can understand what is achieved.

I am getting somewhat tired of listening to the threats to Business caused by taxation. A short history study: All economic Booms are incited by Consumers (mostly Labor) feeling like they can afford to spend a bit more; all economic Recessions are caused by excessive Profits charged over the long-term by Business. Almost all economists would assert that is too rude a Statement, though true. I do not know exactly when Business taxes got such an evil onus in American society, nor why they receive such labeling as a Job killer. Business taxation might forestall new Job Hires, but reduces current Job Rolls at only about a twelfth of the speed as a economic downturn. There is even some thought that effective Business taxes could curb the excesses of the Booms, and cushion the effects of the Recessions; but what do I know? lgl

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