Health Care Reform

    I've written in the past about the city of Duluth, MN.  They had recently hired an actuarial accountant to assess the future budget needs for the city.  The city was concerned that health care costs were spiraling out of control due to the generous packages offered to the unionized work force.  How generous?  Well, city employees were given nearly free universal coverage.  AND, free coverage was also given to every city employee's child until they reached the age of 26!
    The report from the actuarial came back.  Unless drastic changes were made to the benefits package, the city would be spending EVERY dime of revenue on health insurance premiums only.  There wouldn't be any funds available for incidental things like SALARIES, Capital improvements, facilities, supplies, etc.  Of course, Duluth had to take dramatic steps to avoid the disaster.
    Why do I bring this up?

    Well, a key provision of President Obama's latest proposal is to provide free health care coverage for every working American's child until they reach the age of 26!   See anything similar here? 

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Arnold Schwarzenegger predicts Tea Party Demise.
    The Governator suggests that the Tea Party movement will likely fade in the near future.  Maybe the Tea Party recruiting efforts aren't that strong at the Kennedy compound, but last nights event here in Effingham certainly disproves Arnold's predictions.

    John Perles (a Republican Reporter Team Member) had recently read that President Bill Clinton and James Carville are planning on attacking the Tea Party leadership structure, in an effort to undermine the effort.  In response, national tea party leaders are taking a slice from the 1960 film, "Spartacus", in which Spartacus and his legion of soldiers have been captured.   Their captor is unable to determine which soldier is Spartacus among the thousands of prisoners.   And so he offers to release all the soldiers if they will just turn over Spartacus.  In response, Spartacus (played by Kirk Douglas) stands to correctly identify himself as Spartacus.  Then, slowly, each soldier stands and declares, "I AM SPARTACUS", thus defeating their captors intent.

    Tea Parties around the country have conducted events to film individuals stating "I am the Tea Party leader".  The videos will be uploaded to YouTube and presented on various tea party sites.  Well, John Perles put together an event last night, here in Effingham.  With only 24 hours notice, he sent out an email, asking area residents to participate.  More than 50 people showed up to declared themselves the Tea Party Leader.  It was a festive event, and a tribute to the fact that the California Governor is likely wrong.

    Interestingly, and to the dismay of Democratic leaders, the groups of Tea Party participants that I have witnessed are not angry, but rather, they are very very determined.  They are not going away anytime soon.

If you go to apply for a new job today, it's very likely that you'll be required to submit to a drug test.  Drug testing has become standard practice among employers to prevent bigger problems down the road.

Major sports leagues also use drug testing to screen for both performance enhancing drugs and other illegal substances being used by players.

Now come Joe and Sally (I've changed their names, but they live here in Central Illinois).  This 30-something couple are enjoying the good life.  By working the system, they live in government housing, enjoying monthly food stamps, free health care, and a $1,600/month welfare check.  Life is good.  So good, in fact, Joe and Sally are also able to enjoy a fairly active recreational drug habit!  

That's right!  The responsible citizen, who wants to work (and pay taxes) is enduring a drug screening test, so that he/she has the privilege of paying for Joe and Sally to access those same taxes while enjoying their illegal lifestyle.  

Brian Millville, downstate IL tea party organizer, was on a recent debate panel among politicians, when he asked, "Should we require random drug testing among those citizens who are receiving government aid?"  From those at the event, I'm told, the politicians were doing everything they could to exit the stage. 

I think it's a legitimate idea.  From Joe and Sally, it is apparent that we can no longer ask for some level of responsibility.  It's time we started demanding it.

Until then, Joe and Sally are really appreciating your support!

The state of Illinois recently enacted a law that makes it illegal to text (on a cell phone) while driving.

Brian Millville is alerting his readers that one Illinois legislator wants to ban cell phone conversations (while driving), as well.

        He points out that at one time, radios were considered too dangerous for cars, too.

Read his article.  As always, it's excellent. 

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(Via Jason W.)
    Today, the CEO of Toyota is being compelled to testify before Congress over his car company's recent quality issues.

    Can members of Congress actually have a hearing on Toyota?  
    In the business world, conflicts of interest are a touchpoint for ethical violations.
    
    How can members of Congress, that now oversee General Motors, not have a conflict of interest in holding hearings on Toyota?
    
    What would you think if a member of congress had an interest in a company, and brought a competitor to the house chamber to chastize them for safety violations, clearly benefiting his own interests.  It's the same thing here.

I've been with some visitors from Spain for the past several days.  Ironically, one visitor was the son of an orthopedic surgeon from Madrid.  Spain, of course, has socialized medicine. 

The visitors commented that Spain's health care is atrocious, but has improved dramatically.  Up until recently, most surgeries required a wait of several months, up to a year.  But now, the average wait time is only 30 days!  They seemed pleased with this.

I asked how the government was able to increase accessibility and they responded, "Well, the surgeons are now having to work 12 hour days."  The family of the surgeon is wanting their father to retire, as he is 65 years old.  They are convinced that the seventh surgery he performs each day, is not as good as the first!

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Obamacare version 2.0 has now been introduced.  Here's the easy test of how good the program is:

                    Does the new plan apply to Congressional members?

Um, the answer to that question would be "NO".

I don't think American voters need to know too much more to realize this one should also be rejected.

The Economy is getting tough.  How would you like to work for the following organization:

    1. The entity is so late on paying bills that some suppliers are refusing to do business with it.
    2. The entity has so many past due accounts that other suppliers will only work on a COD basis.
    3. When the firm offers work up for bids, many former suppliers are refusing to bid.  For those bids that are received, submissions are priced 30% higher, than a year ago, to compensate for the late payments.
    4. Hotels, that used to provide rooms for the firms employees, through a "voucher system" are now refusing rooms to them, unless they pay with cash or a credit card.

   Which business is so poorly run that they have to pay 30% more because of their poor business practices?

                                              The state of Illinois 

    The above stories were related to me from a supply company, a large retail establishment and hotel operators as evidence of the sorry condition that is the State of Illinois.

    And yet, Governor Pat Quinn is telling Illinois shareholders (voters) that he should remain on the job for another four years.  It is outrageous that because of his party's policies, we (as voters) are now paying 30% more for items, than what we are paying as consumers, simply because the state has mismanaged their affairs so badly.

    If Illinois were a business and you were a shareholder, would you rehire this CEO for another 4 years?  Of course not!

    By comparison, I have a friend whose business lost more than 1/2 of their revenue from 2008 to 2009.  This is a multi-million dollar manufacturing firm!   A diligent business owner, he got tough on expenses and overhead.  Because of his responsible approach he was able to keep the doors opened and even remained profitable (although much less so) in 2009. 
 
    I'd say it's time for a new CEO at the helm of the entity we know as the State of Illinois.    

Climate zealots have pointed to nearly every unique weather pattern in the last 20 years as evidence of global warming. 

Even the recent record snowfall in the Mid Atlantic region is being proffered as proof of man-made global climate change.  This week, I heard a CNN host (with no climate credentials) opining how the snowfall in the east was caused by climate change, as the Great Lakes, normally frozen, are warmer than normal and thus are putting more moisture into the atmosphere.

Great theory.  But of course, it's not proven out by the facts. 

The CNN commentator must be frustrated when she reads headlines like this:  Lake Erie frozen over for first time in 14 years. 

But, alas, they aren't interested in debating the facts, or the Climategate scandal that's being fully covered in the European press.  Rather, the zealots continue to cling to a belief system in which they've invested too much to ever concede defeat.

Last weeks item on Chicago unions, brought this email from a company that has a union workforce in Chicago:

Due to the contract we are living under in Chicago, I am forced to layoff another tech this week.  If I need a man for three hours I have to pay for four and if they work four hours and one minute I get the opportunity to pay for eight hours.  Nothing like being in business and having your hands tied behind your back.  Due to jobs in our market and how they were able to be scheduled this past week we burned through over 25 hours that we could not charge to anyone.  We will correct this problem with a come to Jesus meeting this week or we will start using more sub-contractors to eliminate this problem.  I can assure we will not be trapped in this situation for long. 

"Won't be trapped in this situation for long" - I think alot of people are starting to feel this way.

The Obama administration is desperate for banks to start lending again.  The only problem is that banks, because of their recent loan writeoffs, are challenged with having sufficient capital. 

In particular, the FDIC, which oversees (and shuts down) banks, is requiring banks to increase their capital levels to 10% - 12%.  (7-8 used to be the norm).  Banks can increase their capital by selling stock to new shareholders, which many are trying to do.

Ah, but just as banks are going out trying to raise capital by selling stock, Obama announces that, in his new budget, the tax on dividends will be raised from 15% to as high at 35%. 

While many might applaud the taxation of dividends as a "wealth tax", in fact, the prospect for a higher dividend tax makes buying bank stocks that much less attractive for investors.  

And if the banks can't sell the stock, they can't raise their capital - which means lending won't free up anytime soon.    

Unfortunately, Obama and his minions are not connecting the dots. 


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Bayh's announcement -

    
Yesterday's news was filled with the retirement of Indiana Senator Evan Bayh.  The two-term Democratic Senator, has more than $12 million in his campaign coffers and is leading in the polls.  Speculation is rampant on why he departed. 

    Evan Bayh was the moderate leader of the Democratic Party.  His departure, I believe, has consequences well beyond the loss of a single senate seat for the Democrats.  

    The Democratic party is built on a wide coalition of interests - from the far left liberals to the Reagan Democrats.  When moderate Democrats became concerned about the left tilting leadership of Nancy Pelosi, there was always the calm beaming presence of Senator Bayh to remind moderate Democrats that they were represented by the party.  But no longer.

    Who is that moderate voice to keep Reagan Democrats in the fold.  Who, in the Democratic caucus, offers confirmation that the party has not completely gone to the left?  

    With Bayh's departure and the looming 2010 election, the Democrats need to find that answer.......and fast.

(Kudo's to my sister-in-law, Laura, for this suggestion.)

Do you remember the book from the Oprah Book Club entitled, "A Million Little Pieces"?

 

The book was an autobiographical portrait of the author's efforts to overcome various substance addictions. As a national best seller, it was celebrated for its raw stories of tragedy and triumph.  Oprah gave the author, James Frey, national acclaim when she named him to her "book club".  The only problem was the book was pretty much a work of fiction.  The author had made up nearly everything in the story. 

Oprah was outraged.  Author Frey appeared on her show.  It was one of the few times that a couch has been used for a crucifixion. 

What's little known though is that the author and his publisher were actually sued, in a class action lawsuit, over the book.  Under terms of the settlement, author and publisher were required to refund the purchase price of the book to consumers up to a total of $2.35 million. 

Where am I going with this?

In 2006, a documentary film was foisted upon the American people.  More than $40 million in tickets were sold for the documentary.  It's now been discovered that the "factual" piece was based on exaggeration and outright fraud.  Just like the book "A Million Little Pieces", the film, "An Inconvenient Truth" was a fiction. 

Al Gore's film about global warming was filled with innuendos that had little basis in fact.  Further most of the statistical information has now been debunked. 

Using the "Millions Little Pieces" lawsuit as the road map, it sure looks like the hucksters behind an "Inconvenient Truth" should also be sued, and refunds remitted to people who were defrauded. 

Many political pundits are discussing the historical similarity between 1994 and 2010.  But it's also a reminder, of just when Republicans took their eye off the ball.

In 94', as you may recall, the Clintons were stymied in their effort to create the largest of government bureaucracies in the form of Hillarycare.

Through the Contract with America, Americans were rallied to fiscal conservatism in our government.  President Clinton, who was counseled that the 94' election would not be "that bad", was stunned by the incredible mandate he was handed.  Americans did support a more responsible government.  His quick move to the center, helped secure his re-election two years later.  

In early 95', with their new majorities in place, Republicans were quick to enact many fiscally responsible measures which helped restrain the growth of government.  But in late 95' a budget impasse resulted in the temporary shut down of government for several days. It was then that the Republicans blinked.   

Clinton, and a compliant news media (Fox News wouldn't be created for another year) crucified the Republicans for shutting down government.  Each night the network news, unchallenged by competing news channels or the internet, were able to provide wrenching stories on the impact of the shutdown.  The Republicans blinked. 

They capitulated to Clinton's demands.  It was the turning point for his return to popularity.  Unfortunately, Republicans abandoned those fiscally conservative principals that got them elected.  Even through the Bush years, Republicans kept the check book open.

But times have changed.  Today, information is available through so many more channels, allowing for a better dissemination of information and mobilization.  It's amazing to realize that the Tea Party movement was started one year ago this month!  

As the Tea Party movement begins its second year, I think they remain a critical factor in reminding politicians and voters that the demand for accountability and fiscal restraint is what a majority of Americans want.  

The Republicans might have blinked in 1995, but in 2010, the Tea Party movement is doing everything to insure that  Americans keep their eyes wide open.