Tag Archives: U.S. politics

@RealObamaCareForecast

The Congressional Budget Office has a new forecast of the fate of Obama care over the next 10 years. And the verdict is…the system is not in a death spiral. Premiums are forecast to rise faster than inflation, which is bad, and the number of people without insurance is forecast to rise slightly, which is bad unless you believe for some reason that these people are not entitled to the same human rights you are entitled to, for whatever reason, but that system is “stable”, i.e. not in a “death spiral”

The paragraph below caught my eye for a couple reasons. First, Obama care is only 10% of all government health care expenditures. Medicare is also only about 10%, which is amazing and I suspect almost everyone has the wrong idea about that. Medicaid and the Children’s Health Insurance Program are a whopping 40%.  Subsidies for corporate health insurance are the remaining 40%.

Net federal subsidies for insured people in 2018 will total $685 billion.
That amount is projected to reach $1.2 trillion in 2028. Medicaid and the
Children’s Health Insurance Program account for about 40 percent of that
total, as do subsidies in the form of tax benefits for work-related insurance.
Medicare accounts for about 10 percent, as do subsidies for coverage
obtained through the marketplaces established by the Affordable Care Act
or through the Basic Health Program.

So what surprises me is that we are covering the elderly pretty thoroughly and pretty cost-effectively, while coverage for the poor seems to be both inadequate and extremely cost inefficient. And certainly, the system of hidden tax subsidies for corporate workers is grossly inefficient. So why does the public put up with all this? First, old people love to complain but at the end of the day they are reasonably well taken care of at a reasonable price. Upper-middle-class professional workers receive high quality care and don’t realize how heavily-subsidized and cost-inefficient that care is. These two groups make up a lot of the swing voters. The majority of those swing voters have bought into the decades of neo-fascist propaganda that the poor are undeserving for one reason or another, and therefore their sense of natural human empathy is damped down. and the poor themselves are not politically mobilized. Big business in general might be just as happy for government to take the responsibility for health coverage off their shoulders, but they are not really disadvantaged financially by the present system so they don’t fight it. The big exception of course is the insurance/finance industry which benefits directly from the inefficiencies of the current system, and certainly is politically mobilized.

“delusions of merit”

This long article describes how people who have made it tend to have have “delusions of merit“. In other words, they believe they have earned their place in society through effort or self-discipline, that those less fortunate have not made the effort or do not have the self-discipline, and therefore they feel no moral obligation to help those beneath them. The problem is, we are not talking about a vast middle class refusing to help a small underclass here. We are talking about a small minority failing to feel compassion for the vast majority of fellow people.

happy financial crisis anniversary

Happy 10-year anniversary to the 2008 financial crisis! The Week has a short summary of what caused it.

The bursting of the U.S. housing bubble triggered a chain reaction that nearly brought down the global financial system. Between 1997 and 2006, a combination of low interest rates, relaxed lending regulations, and government policies designed to encourage home buying fueled a housing boom that saw the average price for a U.S. home increase by 124 percent. Amid the speculative frenzy, financial institutions issued hundreds of billions of dollars in questionable loans to so-called subprime borrowers with poor credit histories. Borrowers’ ability to repay didn’t matter to lenders, because they were able to get subprime mortgages off their books by repackaging them into wildly complex derivative financial instruments like mortgage-backed securities and collateralized debt obligations. Corporate and institutional investors gobbled up these offerings, which not only offered attractive returns but also received high safety ratings from the major credit-rating agencies. In 2007 and 2008, the inevitable wave of foreclosures finally arrived — exposing the entire financial system to catastrophic losses…

The worst financial panic since the Great Depression. Already dangerously over-leveraged from years of risky bets, banks were unable to absorb the huge losses. The first big domino to fall was the investment bank Bear Stearns, which collapsed in March 2008. Later, Lehman Brothers filed for the largest bankruptcy in U.S. history, and the government bailed out insurance giant AIG, which had sold enormous amounts of credit default swaps insuring the bad investments. As panic spread, lending and investment screeched to a halt, and the country was plunged into the worst financial crisis since the stock market collapse of 1929…

The U.S. government took extraordinary measures to prevent a full-scale economic collapse. Under President George W. Bush, Congress approved a $700 billion bailout purchasing toxic assets to restore confidence in the market; under President Barack Obama, it authorized a $787 billion stimulus package to stimulate spending in the private sector. But massive damage had already been done. The economy slipped into a deep recession. The Dow Jones industrial average and the S&P 500 lost more than half their value. Unemployment peaked at roughly 10 percent by October 2009.

They say the system is safer now because of Dodd-Frank. Well, Dodd-Frank is under savage attack by our current administration, so I would not be too confident the system is safe. The article also explains that even though the economy has come back on average, Americans of average income and below are still feeling the effects and may never fully recover to where they would have been without the crisis.

March 2018 in Review

Most frightening stories:

Most hopeful stories:

  • One large sprawling city could be roughly the economic equivalent of several small high-density cities. This could potentially be good news for the planet if you choose in favor of the latter, and preserve the spaces in between as some combination of natural land and farm land.
  • The problems with free parking, and solutions to the problems, are well known. This could potentially be good news if anything were to be actually done about it. Self-parking cars could be really fantastic for cities.
  • The coal industry continues to collapse, and even the other fossil fuels are saying they are a bunch of whining losers. And yes, I consider this positive. I hope there aren’t too many old ladies whose pensions depend on coal at this point.

Most interesting stories, that were not particularly frightening or hopeful, or perhaps were a mixture of both:

beating the war drum

This article from The Intercept explains how the U.S. government and media often fail to examine the motives of foreign leaders, and this is one reason we keep making mistakes that lead to war.

That power is called cognitive empathy, and it’s not what you might think. It doesn’t involve feeling people’s pain or even caring about their welfare. Emotional empathy is the kind of empathy that accomplishes those things. Cognitive empathy — sometimes called perspective taking — is a matter of seeing someone’s point of view: understanding how they’re processing information, how the world looks to them. Sounds unexceptional, I know — like the kind of thing you do every day. But there are at least two reasons cognitive empathy deserves more attention than it gets.

First, because the failure to exercise it lies behind two of the most dangerous kinds of misperceptions in international affairs: misreading a nation’s military moves as offensive when the nation itself considers them defensive, and viewing some national leaders as crazy or fanatical when in fact they’ll respond predictably to incentives if you understand their goals.

The second reason cognitive empathy deserves more attention is that, however simple it sounds, it can be hard to exercise. Somewhat like emotional empathy, cognitive empathy can shut down or open up depending on your relationship to the person in question — friend, rival, enemy, kin — and how you’re feeling about them at the moment.

It is important to understand that the leaders of these countries are often terrified of the United States. Iran, North Korea, and to some extent China are almost certainly afraid of the United States. The Soviet leadership was terrified of the U.S. in the 1980s, a fact we didn’t appreciate fully until after the fact.

Understanding this doesn’t mean the United States can’t compete and defend itself against threats. It could help us finds ways to reduce tensions that ultimately lead to a safer world for everyone.

“all criminal roads led to Trump Tower”

  • Here is the New Yorker article on the Steele dossier. Basically, it exposes the largely successful Republican attempts to discredit Steele as pure propaganda. The truth is that Steele is an ex-British civil servant with no ties to U.S. politics, who runs a private investigation agency specializing in the Russian government. Apparently, it is common for politicians to hire private investigators through law firms in a sort of double blind arrangement, where neither the politician nor the investigator knows who has been hired or who is paying the bills. That is what happened in this case. First an anti-Trump Republican hired a law firm which hired a U.S. private investigator who hired Steele, and later the DNC and Hillary Clinton campaign took over paying the bills. The Clinton campaign never knew they were paying Steele, and Steele never knew who was paying him. The information he dug up was shocking, basically that Trump and his associates have extensive ties to Russian government and organized crime figures, and they are at least in a position to be blackmailed if they are not actual Russian intelligence assets. Steele took this information to the FBI, who started and supposedly are continuing a serious counterintelligence investigation. So the information in the dossier appears to be credible, and both the FBI and Robert Mueller special counsel investigation have it and are following up. So if Trump is a Russian spy, he is going to get nailed.

The article is long, but keep plugging through it and you come to the fascinating story of multiple investigations Steele has been instrumental in, including the one that brought down FIFA. And those investigations, which are completely disparate, keep leading back to Trump Tower.

Steele might have been expected to move on once his investigation of the bidding was concluded. But he had discovered that the corruption at fifa was global, and he felt that it should be addressed. The only organization that could handle an investigation of such scope, he felt, was the F.B.I. In 2011, Steele contacted an American agent he’d met who headed the Bureau’s division for serious crimes in Eurasia. Steele introduced him to his sources, who proved essential to the ensuing investigation. In 2015, the Justice Department indicted fourteen people in connection with a hundred and fifty million dollars in bribes and kickbacks. One of them was Chuck Blazer, a top fifa official who had embezzled a fortune from the organization and became an informant for the F.B.I. Blazer had an eighteen-thousand-dollar-per-month apartment in Trump Tower, a few floors down from Trump’s residence.

Nobody had alleged that Trump knew of any fifa crimes, but Steele soon came across Trump Tower again. Several years ago, the F.B.I. hired Steele to help crack an international gambling and money-laundering ring purportedly run by a suspected Russian organized-crime figure named Alimzhan Tokhtakhounov. The syndicate was based in an apartment in Trump Tower. Eventually, federal officials indicted more than thirty co-conspirators for financial crimes. Tokhtakhounov, though, eluded arrest, becoming a fugitive. Interpol issued a “red notice” calling for his arrest. But, in the fall of 2013, he showed up at the Miss Universe contest in Moscow—and sat near the pageant’s owner, Donald Trump.

“It was as if all criminal roads led to Trump Tower,” Steele told friends.

So there you have it. It appears Trump is an international criminal mastermind, a Professor Moriarty, except that Professor Moriarty never got himself elected Queen.

2017 in Review

Most frightening stories of 2017:

  • January: The U.S. government may be “planning to roll back or dilute many of the provisions of Dodd-Frank, particularly those that protect consumers from toxic financial products and those that impose restrictions on banks”.
  • February: The Doomsday Clock was moved to 2.5 minutes to midnight. The worst it has ever been was 2 minutes to midnight in the early 1980s. In related news, the idea of a U.S.-China war is looking a bit more plausible. The U.S. military may be considering sending ground troops to Syria.
  • March: La Paz, Bolivia, is in a serious crisis caused by loss of its glacier-fed water supply. At the same time we are losing glaciers and snowpack in important food-growing regions, the global groundwater situation is also looking bleak. And for those of us trying to do our little part for water conservation, investing in a residential graywater system can take around 15 years to break even at current costs and water rates.
  • April: The U.S. health care market is screwed up seemingly beyond repair. Why can’t we have nice things? Oh right, because our politicians represent big business, not voters. Also, we have forgotten the difference between a dialog and an argument.
  • May: We hit 410 ppm at Mauna Loa.
  • June: The Onion shared this uncharacteristically unfunny observation: “MYTH: There is nothing mankind can do to prevent climate change. FACT: There is nothing mankind will do to prevent climate change”. It’s not funny because it’s probably true.
  • July: Long term food security in Asia could be a problem.
  • August: The U.S. construction industry has had negligible productivity gains in the past 40 years.
  • September: During the Vietnam War the United States dropped approximately twice as many tons of bombs in Southeast Asia as the Allied forces combined used against both Germany and Japan in World War II. After the Cold War finally ended, Mikhail Gorbachev made some good suggestions for how to achieve a lasting peace. They were ignored. We may be witnessing the decline of the American Empire as a result.
  • October: It is possible that a catastrophic loss of insects is occurring and that it may lead to ecological collapse. Also, there is new evidence that pollution is harming human health and even the global economy more than previously thought.
  • November: I thought about war and peace in November. Well, mostly war. War is frightening. The United States of America appears to be flailing about militarily all over the world guided by no foreign policy. Big wars of the past have sometimes been started by overconfident leaders thinking they could get a quick military victory, only to find themselves bogged down in something much larger and more intractable than they imagined. But enemies are good to have – the Nazis understood that a scared population will believe what you tell them.
  • December: A lot of people would probably agree that the United States government is becoming increasingly dysfunctional, but I don’t think many would question the long-term stability of our form of government itself. Maybe we should start to do that. The Consumer Financial Protection Bureau has been doing a decent job of protecting consumers and reducing the risk of another financial crisis. The person in charge of it now was put there specifically to ruin it. Something similar may be about to happen at the Census Bureau. A U.S. Constitutional Convention is actually a possibility, and might threaten the stability of the nation.

Most hopeful stories of 2017:

Most interesting stories that weren’t particularly frightening or hopeful, or perhaps were a mixture of both:

  • January: Apple, Google, and Facebook may destroy the telecom industry.
  • February: The idea of growing human organs inside a pig, or even a viable human-pig hybrid, is getting very close. Tiny brains can also be grown on a microchip. Bringing back extinct animals is also getting very close.
  • March: Bill Gates has proposed a “robot tax”. The basic idea is that if and when automation starts to increase productivity, you could tax the increase in profits and use the money to help any workers displaced by the automation. In related somewhat boring economic news, there are a variety of theories as to why a raise in the minimum wage does not appear to cause unemployment as classical economic theory would predict.
  • April: I finished reading Rainbow’s End, a fantastic Vernor Vinge novel about augmented reality in the near future, among other things.
  • May: The sex robots are here.
  • June: “Fleur de lawn” is a mix of perennial rye, hard fescue, micro clover, yarrow, Achillea millefolium, sweet alyssum, Lobularia maritima, baby blue eyes, Nemophila menziesi, English daisy, Bellis perennis, and O’Connor’s strawberry clover, Trifolium fragiferum.
  • July: Ecologists have some new ideas for measuring resilience of ecosystems. Technologists have some wild ideas to have robots directly counteract the effects of humans on ecosystems. I like ideas – how do I get a (well-compensated) job where I can just sit around and think up ideas?
  • August: Elon Musk has thrown his energy into deep tunneling technology.
  • September: I learned that the OECD Science, Technology and Innovation Outlook named “ten key emerging technology trends”: The Internet of Things, Big data analytics, Artificial intelligence, Neurotechnologies, Nano/microsatellites, Nanomaterials, Additive manufacturing / 3D printing, Advanced energy storage technologies, Synthetic biology, Blockchain
  • October: Even if autonomous trucks are not ready for tricky urban situations, they could be autonomous on the highway with a small number of remote-control drivers guiding a large number of tricks through tricky urban maneuvers, not unlike the way ports or trainyards are run now. There is also new thinking on how to transition highways gradually through a mix of human and computer-controlled vehicles, and eventually to full computer control. New research shows that even a small number of autonomous vehicles mixed in with human drivers will be safer for everyone. While some reports predict autonomous taxis will be available in the 2020s, Google says that number is more like 2017.
  • November: It’s possible that the kind of ideal planned economy envisioned by early Soviet economists (which never came to pass) could be realized with the computing power and algorithms just beginning to be available now.
  • December: Microsoft is trying to one-up Google Scholar, which is good for researchers. More computing firepower is being focused on making sense of all the scientific papers out there.

I’ll keep this on the short side. Here are a few trends I see:

Risk of War. I think I said about a year ago that if we could through the next four years without a world war or nuclear detonation, we will be doing well. Well, one year down and three to go. That’s the bright side. The dark side is that it is time to acknowledge there is a regional war going on in the Middle East. It could escalate, it could go nuclear, and it could result in military confrontation between the United States and Russia. Likewise, the situation in North Korea could turn into a regional conflict, could go nuclear, and could lead to military confrontation between the United States and China.

Decline…and Fall? A question on my mind is whether the United States is a nation in decline, and I think the surprisingly obvious answer is yes. The more important question is whether it is a temporary dip, or the beginning of a decline and fall.

Risk of Financial Crisis. The risk of another serious financial crisis is even scarier that war in some ways, at least a limited, non-nuclear war. Surprisingly, the economic effects can be more severe, more widespread and longer lasting. We are seeing the continued weakening of regulations attempting to limit systemic risk-taking for short-term gain. Without a pickup in long-term productivity growth and with the demographic and ecological headwinds that we face, another crisis equal to or worse than the 2007 one could be the one that we don’t recover from.

Ecological Collapse? The story about vanishing insects was eye-opening to me. Could global ecosystems go into a freefall? Could populous regions of the world face a catastrophic food shortage? It is hard to imagine these things coming to a head in the near term, but the world needs to take these risks seriously since the consequences would be so great.

Technology. With everything else going on, technology just marches forward, of course. One technology I find particularly interesting is new approaches to research that mine and attempt to synthesize large bodies of scientific research.

Can the human species implement good ideas? Solutions exist. I would love to end on a positive note, but at the moment I find myself questioning whether our particular species of hairless ape can implement them.

But – how’s this for ending on a positive note – like I said at the beginning, the one thing about 2017 that definitely didn’t suck was that we didn’t get blown up!