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Redistributing a “Progressively” Smaller Pie

03 Thursday Jul 2014

Posted by Nuetzel in Uncategorized

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bailout, Casey Mulligan, Disincentives, Redistribution, Welfare State

Dilbert Layoffs

“A Recovery Stymied By Redistribution” contains excerpts from a recent speech by Casey Mulligan of the University of Chicago. It’s about the destructive power of bad incentives, and it reeks of common sense. It’s long been recognized that efforts to soften economic blows can have damaging incentive effects. Today, those well-intentioned efforts have been expanded beyond the point at which they become counterproductive, and the negative effects are being compounded by new programs that can act as taxes on work effort.

I’ve witnessed some of the phenomena Mulligan describes first-hand. There is no question that some people can be tempted to accept benefits in exchange for a less than vigorous job-search effort, sometimes for no search effort at all, and sometimes fraudulently when they already have gainful employment. Mulligan quotes a job recruiter who, during the recession, “ran into a hurdle he hadn’t seen before. People would apply for jobs not with the intention of accepting it, but to demonstrate to the unemployment office that they were looking for work.” Mulligan also describes ways in which employers have seen reductions in their incentives to retain marginal workers.

Some programs are better than others at minimizing disincentives created by assistance. But here is what Ben Franklin thought:

I am for doing good to the poor, but I differ in opinion of the means. I think the best way of doing good to the poor, is not making them easy in poverty, but leading or driving them out of it. In my youth I traveled much, and I observed in different countries, that the more public provisions were made for the poor, the less they provided for themselves, and of course became poorer. And, on the contrary, the less was done for them, the more they did for themselves, and became richer.

— On the Price of Corn and Management of the Poor, November 1766

Damaging disincentives are also created by efforts to ease economic blows to businesses. Corporate bailouts, for example, create perverse, one-sided “win-can’t lose” sets of outcomes, leading to taxpayer subsidies and excessive risk-taking.

 

Time For OTC Contraceptives

02 Wednesday Jul 2014

Posted by Nuetzel in Uncategorized

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Contraceptives, Hobby Lobby, Obamacare, OTC, Prescription Drugs, Small Government, Vox

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Here are seven reasons birth control pills shouldn’t require a prescription, offered by Adrianna McIntyre in Vox. There is much concern over “access” to contraceptives in the wake of the Hobby Lobby decision. While any new concern is largely misplaced, the biggest impediments to access might well be the prescription status of these drugs and their cost. Making contraceptives available over-the-counter would do a great deal to reduce these problems while leaving everyone else with a clear conscience. In fact, it would greatly improve access for the uninsured, a group which will remain large despite the best intentions of Obamacare supporters. As the Vox article notes, physicians support the move to make contraceptives available OTC, and it is highly feasible politically, though support will be contingent on certain safeguards, such as restrictions on sales to minors. Otherwise, it is a classic “small government” solution.

Abortifacients and Hobby Lobby

01 Tuesday Jul 2014

Posted by Nuetzel in Uncategorized

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Abortifacients, ACA, Contraception Mandate, Corporate Form, Hobby Lobby, Obamacare, Supreme Court

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Some are apparently too lazy, propagandized or ignorant to understand the facts underlying the Supreme Court’s Hobby Lobby decision. But not too lazy to re-tweet or re-post unreliable information.

Here is what the decision means:

1) The decision was narrower than the sloppy memes and some media reports would have you believe. Of the 20 different contraceptives approved for use by the FDA, only four are affected by the decision. Hobby Lobby offers the other 16 through its employee health plan, and it will continue to offer them. The four it is no longer required to offer through its plan are so-called abortifacients, which destroy an already fertilized egg. The ruling does not imply that Hobby Lobby can avoid covering other “mandated benefits” under Obamacare, including the other 16 contraceptives. (In my view, however, the entire coverage mandate should be struck down as well, keeping employer-provided health care benefits a private contactual matter. The specifics of the mandate were not part of the ACA legislation. They were promulgated by bureaucrats at HHS for whom overreach has no meaning.)

2) In general, when individuals decide to associate or act under a corporate form, the corporation assumes the rights they possess as individuals. Human action taken under the corporate form does not involve a diminution of individual rights. Yet the left acts as if people have no rights when acting under the corporate form. Incorrect. Speech, religion — all rights that are granted to individuals under the Constitution are guaranteed to them whether they act as a corporate association or not.

3) The decision in Hobby Lobby applies only to closely-held corporations, the shares of which are not publicly traded. These are not the “faceless corporations” of popular infamy, but are often family-owned companies, associations of partners, or professional practices. Publicly-traded corporations are not affected by the ruling. Only privately-held corporations with more than 50 employees (under the original provisions of the ACA) are affected.

4) The decision does NOT interfere with womens’ rights to obtain most contraceptives. It means that the government cannot force Hobby Lobby to pay for abortifacients, and female employees have an unrestricted right to pay for abortifacients out of their own pockets. They are employed, after all. In addition, the ruling has nothing to do with coverage of abortion procedures that might be necessary when a mother’s life is at risk.

5) The government is not restricted, except as a possible matter of politics, from offering all women free access to abortifacients. It has not offered to do so, however. Therefore, under the 1993 Religious Freedom Restoration Act (RFRA), signed by President Clinton, the Court held that the government cannot impose any burden on private parties (including individuals organized as closely-held corporations) in violation of their religious beliefs if there is a less burdensome alternative available. The RFRA’s importance to the Hobby Lobby ruling is discussed here.

6) Some have accused Hobby Lobby’s owners of hypocrisy, since they sell goods imported from China, where abortion is often coerced by the state. And that might be hypocritical, but the only possible relevance to the case would be if the purchase of Chinese goods reflected on the sincerity of their religious beliefs. That is a litmus test that few would sanction. A beauty of private markets is that they tend to be impersonal, allowing individuals of different cultural practices and beliefs to trade peacefully with one another if they so desire. That has no bearing on the type of labor contract that Hobby Lobby may offer its own employees. In any case, the ruling applies more broadly than to Christian importers of Chinese goods.

Aside

Just Insurance? Or Unjust Insurance?

29 Sunday Jun 2014

Posted by Nuetzel in Uncategorized

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ACA, adverse selection, central planning, Obamacare, Risk Ratings

Ambulance

Voices from the left keep insisting that universal coverage and a single, all-inclusive risk pool is “just insurance,” and that anyone standing in opposition just “doesn’t understand insurance.” The argument is usually extended to the idea that all individuals must receive and pay for a comprehensive set of benefits, going far beyond any reasonable notion of catastrophic coverage. Proponents of this view advocate an extreme form of socialized health coverage that eliminates private choice and traditional risk-rating.

In a free society, individuals cannot be coerced into cross-subsidizing activities that might violate their religious convictions. It is hoped that this will be affirmed by the Supreme Court’s Hobby Lobby decision, likely to be issued this Monday.

Likewise, in a free society, individuals should not be forced to cross-subsidize private choices made by others. Preserving the right of individuals to purchase the benefits and coverage levels of their choice at reasonable premia (e.g., catastrophic care only or “wellness” features, no pregnancy coverage for senior citizens, risk-based pricing) is crucial. Providing care for high-risk individuals with pre-existing conditions need not involve a dismantling of the private health insurance market.

Of course, Obamacare has fallen short of the socialist “ideal,” either before or after all of the exceptions, delays, and waivers made by the administration and HHS. Its design, nevertheless, has had a destructive impact on the private insurance market, and the program is straining under the effort to provide high-risk coverage. In “Obamacare’s Prognosis Grows Dimmer,” Lanhee Chen discusses how adverse selection is playing out on the Obamacare exchanges. Based on the evidence available thus far, the exchanges appear to be laden with a high percentage of sick individuals. This is likely to lead to more premium shock for enrollees as we head into the mid-term elections.

A path toward providing effective coverage for pre-existing conditions is discussed in this article. It asserts that a solution hinges on the ability for individuals to make seamless transitions between employer-provided coverage and individual coverage, even with pre-existing conditions. Since that ability must apply nationwide, the authors also assert that there must be a role for federal funding of the high-risk pool of individuals making the transition to the individual market.

I’m Conjuring Some Damages For You To Pay

27 Friday Jun 2014

Posted by Nuetzel in Uncategorized

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AGW, Climate Change, Cotton Mather, Reparations, Slavery

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Demands for climate change reparations are nothing new on an international level, but the essay at the link notes a fascinating comparison of these demands to calls for slavery reparations. Of course, given the weak evidence that climate warming is actually underway, and if so, that it is indeed man-made, and given the extremely poor track-record of models predicting global warming, the assertion of “moral equivalence of slavery and climate change” is ridiculous on its face.

Slavery and its damages are historical facts. Anthropomorphic global warming (AGW) remains speculative, let alone any presumed damages. The author amusingly notes:

It is as provocative today to express doubt in AGW as it would have been to argue with Cotton Mather about relying on spectral evidence. As Mather said, “Never use but one grain of patience with any man that shall go to impose upon me a Denial of Devils, or of Witches.”

Beyond measurement issues, the two demands for reparations share another practical weakness: the difficulty of apportioning the cost. If real, can or should such damages be generalized at the national level? Furthermore, actual payments for past damages are a political non-starter, whether for slavery reparations in the U.S. or climate reparations to the third world promulgated in Copenhagen. In both cases, there is some recognition that it is better politics to adopt forward-looking remedies. That is not to say these remedies are constitutionally legitimate or economically sound, however.

Land of the Lock-Up

26 Thursday Jun 2014

Posted by Nuetzel in Uncategorized

≈ 1 Comment

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Incarceration rates, Prisons, Reason Magazine, War on Drugs

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This chart may astound you. It shows that the U.S. and most individual states lead the rest of the world in terms of incarceration rates. At 0.7% of the population, the U.S. is ahead of all other countries, including Cuba, Russia, and other nations to which we’d otherwise not wish to compare ourselves. Again, most individual states finish ahead of all other nations, well ahead. States at the top of the list have incarceration rates 2-3 times higher than Cuba, the next highest country. According to this article, “The United States has about 5% of the world’s population yet it accounts for about 25% of the world’s prisoners.” The failed war on drugs in the U.S. is one obvious factor behind our large prison population. Land of the free? 

Reason Magazine has a special issue, linked here, on the topic of mass incarceration.

Government: Let’s All Fail Together

25 Wednesday Jun 2014

Posted by Nuetzel in Uncategorized

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Bureaucracy, Collective Action, Glenn Reynolds, Government Failure, Minister of Silly Walks, VA Scandal

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Government failure is a topic that crops up so very often. Glenn Reynolds’ column today focuses on the problems with collective action, and he is right on target. “Many of the things government does, we don’t choose. Many of the things we choose, government doesn’t do. And whatever gets done, we’re not the ones doing it. And those who are doing it often interpret their mandates selfishly.” Reynolds uses the VA scandal as a sad case in point. The high performance ratings and bonus payments given to VA executives as the scandal festered around them is particularly galling.

“Whether the sign out front says ‘Department of Veterans Affairs’ or ‘Ministry of Silly Walks,’ … the strongest priority of most bureaucracies is the welfare of the bureaucracy and the bureaucrats it employs, not whatever the bureaucracy is actually supposed to be doing. That’s worth remembering, whenever someone says they’ve found something else that we should ‘choose to do together.'”

Aside

The IRS Mission As Ideological Enforcer

25 Wednesday Jun 2014

Posted by Nuetzel in Uncategorized

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Federal Records Act, First Amendment, IRS Targeting, Lois Lerner, Obstruction of Justice

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The use of government to silence critics is an extremely dangerous abuse of power. Was the IRS acting as an instrument of the Obama reelection campaign when it targeted conservative organizations? The blatant cover-up apparently underway at the IRS is worthy of a special prosecutor. The statistical likelihood that the computer hard drives of Lois Lerner and six other high-level IRS staffers, all at the nexus of communications about the suspicious activities, all crashed is just about nil. How high might the scandal go? One of those staffers is Nicole Flax, who was a frequent visitor to the White House as the scandal unfolded. Somehow, Jay Carney and Barack Obama are certain the there wasn’t a “smidgeon of corruption” in the targeting incident. First, Obama insisted that the whole thing was caused by “a couple of ‘Dilberts’ at the Cincinnati IRS office.” Ah, the little people. Of course, we learned that was not true even before Lois Lerner took the Fifth to avoid incrimination.

The latest Congressional hearings on the targeting scandal have featured an intransigent IRS Commissioner seemingly intent on reinforcing the impression of an “arrogant and lawless IRS.” His answers to questions about the hard drive crashes and their ultimate disposal, his earlier promises to provide all of Lois Lerner’s emails, the failure to back-up the information on the hard drives, and the delays in informing Congress about the crashes were unsatisfactory. Today, the House Oversight Committee heard testimony from the National Archivist that the IRS has violated the Federal Records Act. There is undoubtedly more to come.

Wash Those Feel-Good Pesticides Off Your Damn Organics

24 Tuesday Jun 2014

Posted by Nuetzel in Uncategorized

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Food Labeling, Natural Pesticides, Organic Food Myths, Organic Food Safety

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The Biggest Myth About Organic Farming is that so-called organics are grown without the use of pesticides. You better wash those pricey pods. Organics are often treated heavily because “natural” pesticides are less effective, to say nothing of the other natural pathogens to be found on organics. There are other myths, of course. At a very basic level, I have a hard time accepting some organic labels as representing anything real, as when “organically grown” coconuts are at issue. And of course, like gamblers who’ll never admit they lost money last weekend, many organic food devotees insist, remarkably, that organics are no more costly than non-organics. It doesn’t take much research on one’s own to realize that’s just not true. 

Are Rapists Entitled To Due Process?

20 Friday Jun 2014

Posted by Nuetzel in Uncategorized

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Campus, Due Process, George Will, Hook-Up Culture, Sexual Assault

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Of course they are! Under our legal system, any accused individual has the right to due process under the law. Unfortunately, accusations of rape or sexual assault on campus are now being adjudicated by boards of discipline under vague definitions and loose evidentiary standards. The mere claim of an alleged victim is sometimes treated as sufficient evidence to obtain a verdict, which could include the loss of scholarship funds or expulsion. Ideally, any allegation of this kind serious enough to be a crime should be referred immediately to law enforcement authorities. Punitive action by the school under these circumstances, without high standards of evidence, should be deferred until the allegations are resolved through the courts.

Rape is a horrid crime. Far less horrid is this: get drunk, hook-up, awaken with strong regret, allege sexual assault. But while this doesn’t approach the horror of rape, weak allegations of this kind are not as uncommon as they should be. George Will’s recent column on campus sexual assault raised ire in some circles primarily because of one sentence: “Colleges and universities …are learning that when they say campus victimizations are ubiquitous … and that when they make victimhood a coveted status that confers privileges, victims proliferate.” HuffPo reacted to Will’s column with this damning piece. Today, the St. Louis Post-Dispatch announced that it is replacing Will’s twice-a-week column with one written by Michael Gerson, thus far the only major daily newspaper to cancel Will’s column.

Will’s use of the phrase “coveted status” was possibly an ill-fated attempt to connect the ease with which a false accusation can be affirmed by a campus kangaroo court and the achievement of credibility within radical feminist circles. He’d have done better to say that on campus, females may have a privileged status if only because males they may accuse of sexual assault are likely to be denied due process. Privileged? Probably just a one-shot deal. David Bernstein covers some related nuances regarding privilege on campus.

Professor Michael Jacobson discusses Will’s column and some of the legal implications of new “definitions” of sexual assault, due process and victimhood being propagated. Christopher Paslay has some pointed comments about the left’s distorted views on certain aspects of the debate.

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OnlyFinance.net

TLC Cholesterol

Nintil

To estimate, compare, distinguish, discuss, and trace to its principal sources everything

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DCWhispers.com

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A Commonwealth immigrant's perspective on the UK's public arena.

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The world's most viewed site on global warming and climate change

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Defending Life, Liberty and the Pursuit of Happiness

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In advanced civilizations the period loosely called Alexandrian is usually associated with flexible morals, perfunctory religion, populist standards and cosmopolitan tastes, feminism, exotic cults, and the rapid turnover of high and low fads---in short, a falling away (which is all that decadence means) from the strictness of traditional rules, embodied in character and inforced from within. -- Jacques Barzun

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