This one isn’t an uplifter but it is a sober assessment which deserves attention. Sobriety is a valuable thing, especially when dodging icebergs.
Reality is a funny thing. Good wishes and even piles of money can’t hold it back forever. This is a good general rule for just about every government program.
Socialism has a half life. Once honest to goodness socialism is instituted it is only a matter of time before the system implodes on itself. The primary factor in the speed of collapse is the amount of fat within an economy before massive state intervention and redistributionist policies. If the disease of socialism, hard core socialism, think the USSR, Cuba, North Korea, and even places like Venezuela, really takes hold, if the state assumes pretty much every aspect of the economy,
This is good to see from TIME. We’ve (along with others) made this point for years and it is such a waste. We subsidize unhealthy food, which benefits Big Ag – mostly corporate farming, which is then disseminated into the grocery buying public which is often subsidized through various means including food stamps, then when people get diabetes (and other diseases) after a lifetime of eating subsidized unhealthy food we subsidize their healthcare and disability payments. It’s a multilayered bologna sandwich of public policy dysfunction.
There is a whole group of folks in Washington and to a lesser extent outposts afield, and it is mostly Dems, who think that just because they hold “enlightened” attitudes about business that means they can engage in whatever cronyism they want. (Republicans do crony capitalism in slightly different ways and with less affectation in my experience than Democrats, though they are plenty prone just to be clear.)The Great Green Rush (of your tax dollars) during the beginning of Obama’s presidency is a good example of this.
This is a big problem people. Businesses are increasingly getting addicted to the government extracted money which comes from you and me. (And from our children and their children’s children.) Good to see even the folks at Harvard getting hip to this. Now if we could just reduce the key to crony capitalism, the thing which insulates these businesses from competition and which costs consumers billions, crony government. (And really there is no other kind.)
Indeed Obamacare is a massive, colossal vehicle for crony capitalism. We have maintained this from the very beginning of the program. It is full of sweetheart deals, exceptions for politically powerful groups, and most importantly nice fat revenue streams to the health care monolith. It should always be remembered that pharma and the insurance industry wrote big parts of Obamacare. It’s how the Dems bought off industry to squeeze in a highly partisan, hyper-partisan, piece of legislation.
The man who founded the religion which gave crony capitalism a degree of respectability for too long. J.M. Keynes.
We absolutely agree. As we have said in the past the effort is laudable and we will continue to watch it. And it appears that the folks at The Economist are heading in the right direction. The most recent edition is much better than the initial effort for instance. Our hope is that this trend will continue.
In another life I was a property and casualty insurance underwriter. I would assess risk and figure out if premiums for a given area were enough or too much. Was the company too exposed to hurricane damage? What about earthquakes? Balancing risk with premium was the name of the game.
Given my background I have never understood how Obamacare was going to “work.” Obamacare seemed (and is) an adverse selection machine. The sick are more likely to sign up and the healthy have shied from the program for any number of reasons.
It’s good to be a favored contractor in Washington DC. Usually not so good for the taxpayer though.
Many people see the federal government as not reflecting their views at all. Some see the unending expansion of the state into every nook and cranny of life, and the gaming of the government by powerful corporate and political interests, as a real threat. Indeed that our massive government is encroaching on the things many Americans hold particularly dear, independence, for some – faith, economic liberty, liberty generally, privacy, and so on.
Shocking that such a simple system is failing so badly.
Obamacare has been collapsing for a while. Actually pretty much since it started. A bunch of the state co-ops are dead. More are readying themselves for the grave. And now even the crony partners are starting to abandon the scheme. Indeed repeal may not even be necessary. Ironically the Obamacare experiment may long stand as a testament to one of pro-market economist FA Hayek’s key insights, The Pretense of Knowledge.