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.
It is gratifying to see crony capitalism getting the attention it is in the GOP debates. Every major Republican candidate has weighed in on the issue, one way or another. Ms. Fiorina rightly sees the crony nature of Obamacare, and made an issue of it last night. The ACA was indeed written by the insurance and pharmaceutical industries. It’s the only reason, ultimately, Obamacare became law.
Welcome to economic reality.
This guy and his friends never actually signed up. (They couldn’t afford to.)
In another life I was an insurance underwriter. I used to look at risks and then make sure my company had the right prices for the risks my company was insuring. I have never understood how Obamacare was supposed to “work.” It makes no sense in terms of insurance. The risks are too vast. The goals far too ambitious. It’s basically a giant (increasingly failed) experiment paid for by taxpayers designed (poorly) to address problems in the healthcare system which were originally created by government intervention in healthcare.
Don’t freak out. Marx is hardly the solution and the author of this excellent article understands this. Indeed the author understands quite a lot. I was unfamiliar with Dr. Dworkin who is obviously a very interesting thinker with a highly developed sense of crony capitalism, what it is, and what is driving it.
This is not to say we agree with him on all points. We don’t. But even still, a very well done and thought provoking article.
Gee, usually things which are this complicated work like a charm. Please note that the amount of graft (legal and otherwise) is commensurate with the complexity of a government program. There are probably thousands of revenue streams for cronies of various sorts in Obamacare.
There are people who honestly believe that markets are some sort of human construct, that supply and demand aren’t as simple as water flowing downhill. These people have done great damage to our economy and our society over the years.
We wouldn’t put it past him. Indeed you can bet that long time “friends” like Boeing are leaning pretty hard on The Tanned One to make sure the Export-Import Bank, Boeing’s Bank, the taxpayer underwritten boondoggle for a few massive corporations, is revived from the grave for instance. The people who want Ex-Im gone are the same people who wanted Boehner gone. As such watch Boehner do the wrong thing here, either for old “friends,” out of spite,
Who will win?
We just ran a review by Charles Murray of someone else’s book so we figured we’d run a review of Murray’s recent book too.
Cronies are all over. But some of the worst reside in the belly of Leviathan, the federal bureaucracy. This bureaucracy perpetuates itself without reason often and inserts its tentacles into every nook and cranny of life. (Typically extracting wealth from the real economy in the process.) The beast is slowly strangling the spirit (and the economy) of America.
Obamacare, like all giant government programs, is already full of waste and “good enough for government work” thinking. But the insurance companies are reaping massive new profits.
Hey, it’s only your tax dollars.
The Pentagon has no idea where a significant amount of your tax money money goes. It seems to spin off into some crony black hole. Same it seems for Obamacare, not that this should surprise anyone. Really the Pentagon, Health and Human Services it’s all of government which doesn’t seem to operate by the normal rules of accounting and with any basic respect for the taxpayer.
Now, though the Feds lose, think about that for a second,
Obamacare is a giant jack. And no, single payer is not the solution. That is the last thing we need. Single payer is an excuse for all sorts of other cronyism. Not to mention that socializing healthcare in the 21st Century is just a backward idea. We should be opening up healthcare not centralizing it.
Good news! So do the insurance companies!
As one reader commented a few days ago, “It just doesn’t stop.”
Indeed it doesn’t. This is the culture of Washington. The big cash-in carrot is why many people go into government these days. In the warren of Washington regulation there are caches of dollars along the way. If you know where to look for them.
A tour (or multiple tours) in high level bureaucracy provides one with a nice map of potential taxpayer funded riches.