November 11, 2013

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Charles Krauthammer writes on rhetoric trumped by reality.

The Obamacare Web site doesn’t work. Hundreds of thousands of insured Americans are seeing their plans summarily terminated. Millions more face the same prospect next year. Confronted with a crisis of governance, how does President Obama respond?

He campaigns.

I’ve got one more campaign in me,” he told grass-roots supporters Monday — a series of speeches and rallies, explains the New York Times, “to make sure his signature health care law works.”

Campaigning to make something work? How does that work? Presidential sweet-talk persuades the nonfunctional Web portal to function?

This odd belief that rhetoric trumps reality leads to strange scenes. Like the ShamWow pitch, Obama’s nationally televised address trying to resell Obamacare. Don’t worry about the Web site, he said. I’ll get it fixed. And besides, there are alternatives, such as an 800 number he promptly gave out. Twice. …

… This rather bizarre belief in the unlimited power of the speech arises from Obama’s biography. Isn’t that how he rose? Words. It’s not as if he built a company, an enterprise, an institution. He built one thing — his own persona. By persuasion. One great speech in 2004 propels him to the presidential level. More great speeches and he wins the White House.

But then comes governance. A speech in Cairo, utterly crushed by the Arab Spring. Talk of a Russian reset, repeatedly thrown back at him by a contemptuous Russian dictator. Fifty-four speeches to get health care enacted — only to see it now imperiled by the reality of its ruinous rollout and broken promises.

I’m not surprised that Obama tells untruths. He’s surely not the only politician to do so. I’m just surprised that he chooses to tell such obvious ones — ones that will inevitably be found out.

Who will tell Obama that lies so transparent render rhetoric not just useless but ridiculous?

 

 

Joel Kotkin explains how healthcare reform makes life more difficult for the self-employed.

Obamacare’s first set of victims was predictable: the self-employed and owners of small businesses. Since the bungled launch of the health insurance enrollment system, hundreds of thousands of self-insured people have either had their policies revoked or may find themselves in that situation in the coming months. More than 10 million self-insured people, many of them self-employed, could meet a similar fate.

Unlike large companies or labor unions, which have sought to delay or duck implementing the Affordable Care Act, what could be called the yeoman class lacks the political might to make much of a dent in Washington policies. Indeed, in the Obama era, with its emphasis on top-down solutions and Chicago-style brokering, Americans who work for themselves probably are more marginalized today than at any time in recent memory.

Virtually every major initiative of this administration – from taxation and regulation to monetary policy and Obamacare – has been promulgated with little concern for the self-employed. Many feel themselves subject to an apparent attempt to transfer middle class incomes to the poor just as ever more wealth concentrates in the “1 percent.” Not surprisingly, 60 percent of business owners surveyed by Gallup expressed opposition to the administration.

The divide between the yeoman and the political community marks a major departure from the norms of American history. After all, people came to America in large part to secure “a piece of the pie,” whether through owning a small business or a farm, goals often unattainable in Europe. Thomas Jefferson, notes historian Kenneth Jackson, “dreamed of the U.S. as a nation of small yeoman farmers who would own their own land and cultivate it.” …

 

 

George Will has more on the foolishness of cash for clunkers.

… Most of the 677,842 sales were simply taken from the near future. That many older vehicles were traded in — and, as required by law, destroyed. Gayer and Parker accept as reasonable an estimate that the cost per job created by the program was $1.4 million. Although the vouchers did not come close to covering the cost of the new cars, voucher recipients seem not to have reduced their other consumption. This, say Gayer and Parker, suggests that participants in the program “were not liquidity constrained,” which is a delicate way of saying “there was no change in other consumption patterns,” which is a polite way of saying that “cash for clunkers” merely caused people to purchase vehicles “slightly earlier than otherwise would have occurred.”

Because the program was not means-tested, it had only a slight distributional effect of the sort progressives favor: Voucher recipients had lower incomes than others who bought new cars in 2009. Against this, however, must be weighed the fact that the mandated destruction of so many used vehicles probably caused prices for such vehicles to be higher than they otherwise would have been, meaning a redistribution of wealth adverse to low-income consumers.

As for environmental benefits from Cash for Clunkers, the reduction of gasoline consumption was small and “the cost per ton of carbon dioxide reduced by [the program] far exceeds the estimated social cost of carbon.” But it was — herewith very faint praise — more cost-effective than the subsidy for electric vehicles or the tax credit for ethanol. …

 

 

Stop treating old people like they are babies says Robert Samuelson.

Two analysts at the Federal Reserve Bank of St. Louis have produced an important study that should (but probably won’t) alter the climate for Washington’s stalemated budget debate. The study demolishes the widespread notion that older Americans need exceptional protection against spending cuts because they’re poorer and more vulnerable than everyone else. Coupled with the elderly’s voting power, this perception has intimidated both parties and put Social Security and Medicare, which dominate federal spending, off-limits to any serious discussion or change.

It has long been obvious that the 65-and-over population doesn’t fit the Depression-era stereotype of being uniformly poor, sickly and helpless. Like under-65 Americans, those 65 and over are diverse. Some are poor, sickly and dependent. Many more are financially comfortable (or rich), in reasonably good health and more self-reliant than not. With life expectancy of 19 years at age 65, most face many years of government-subsidized retirement. The stereotype survives because it’s politically useful. It protects those subsidies. It discourages us from asking: Are they all desirable or deserved? For whom? At what age?

No one wants to be against Grandma, who — as portrayed in the media — is kindly, often suffering from some condition, usually financially precarious and somehow needy. But projecting this sympathetic portrait onto the entire 65-plus population is an exercise in make-believe and, frequently, political propaganda. The St. Louis Fed study refutes the stereotype. Examining different age groups, it found that since the financial crisis, incomes have risen for the elderly while they’ve dropped for the young and middle-aged. …

 

 

Andy Malcolm with late night humor.

Leno: President Obama didn’t know we spied on allies. He didn’t know about the ObamaCare problems. Now he says he doesn’t know how ‘Breaking Bad’ ended.

Letterman: Obama says the ObamaCare website has glitches. If a J. Crew pants order comes in the wrong color, that’s a glitch. ObamaCare is a Carnival Cruise.

Fallon: Syrian hackers targeted President Obama’s Twitter and Facebook accounts. Weird because Obama then hired them to fix the ObamaCare site.

Leno: As every year, hospitals all over the U.S. are X-raying children’s Halloween candy. Unfortunately, thanks to ObamaCare, now there’s a $1,000 co-pay.

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