Middle Class Welfare: The Pros and Cons of Employer Sponsored Health Insurance: Sources

What’s Wrong with Employer Sponsored Health Insurance Ed Dolan. 11 6 2018. Niskanen Center. The Real Reason the U.S. Has Employer-Sponsored Health Insurance Aaron E. Carroll. 9 5 2017. New York Times. Column: The health insurance tax exemption makes care more affordable,

Why we can’t build

“America’s system of checks and balances requires unusual and even extraordinary levels of consensus to pass legislation. First, you need the agreement of the House, the Senate, the White House, and, increasingly, the Supreme Court.
More granularly, congressional power is diffused across committees. The Senate has built in a supermajority requirement, known as the filibuster, which effectively raises the threshold for passage from 51 votes to 60 votes.

This raises the question: If the problem is embedded in the structure of the US government, how did the US ever do anything big? The short answer is that for most of our political history, two unusual conditions held. First, the parties were ideologically mixed, which made compromise easier. Second, one party was usually electorally dominant, which gave the party in the minority a reason to compromise: If you can’t win, you may as well deal.

Both those conditions have dissolved. America’s political parties are more ideologically — and demographically — polarized than ever before. We’re also in the most competitive period American politics has ever seen. In a system like that, both sides utilize the system’s bias toward inaction to foil their opponents. You can see this in the rise of the filibuster over time. The rule has been around almost as long as America, but it’s only been deployed as an omnipresent veto in recent decades”

“The result is a system biased toward inaction.”

” This is representative democracy at its worst: A democracy that only represents those who know to show up at meetings most people never hear about, and so ends up handing power to special interests and aggrieved NIMBYs.”

“some of Andreessen’s examples really can’t be blamed on the government, at least not in a traditional sense.

America doesn’t have more ICU beds because hospitals have budgets to balance. You can’t both run a profitable hospital and maintain enough spare capacity for a once-in-a-century pandemic.

Similarly, the companies that make ventilators are private companies. They didn’t make more ventilators because there wasn’t demand for more ventilators. Same goes for surgical masks, eye shields, hospital gowns. Now, you can argue the government should’ve been stockpiling more of this stuff all along — and definitely should have been ramping up production in January and February — but a capitalist logic of efficiency prevails both inside and outside the market.

Take, for instance, the wildly successful Obama administration program to loan money to renewable energy companies that became infamous because one of those companies, Solyndra, was a bust. That program led to a slew of successes (including Tesla) and turned a profit to taxpayers. As Michael Lewis argues at length in his book The Fifth Risk, the problem, if anything, was that it was too cautious — so afraid of a Solyndra-like story that it wasn’t funding sufficiently risky investments. But they proved right to be afraid.

If even the government is forced to turn a constant profit on its programs and to avoid anything that might look like a boondoggle, you can imagine the pressure actual private companies are under.”

Why Iran is still attacking American troops during the pandemic

“So why, in the midst of grappling with an out-of-control pandemic and an economy in free fall, would Tehran devote time and money to fighting the US? The answer, at least in part, is that the Iranian government believes the United States is particularly weak right now, too.
With Washington’s ineptitude on full display in its domestic response to the coronavirus, few people outside of a select group of Iran hawks — which includes Secretary of State Mike Pompeo — have much of an appetite for continued clashes with Iranian proxies in Iraq or incidents with the IRGC in the Persian Gulf right now.

The United States is also a convenient scapegoat and distraction that the Iranian regime regularly uses to deflect attention from its own failures.

Facing growing criticism at home and abroad for their abysmal response to the Covid-19 outbreak, Iranian leaders have tried to shift the blame to the US — particularly the stringent economic sanctions Washington has placed on the country, which Iranian leaders say (not entirely unfairly) are hampering the country’s ability to respond to the pandemic.”

“The US assassination of Qassem Soleimani on January 3, 2020, was intended to not only take Iran’s most capable military figure off the battlefield but also to “reestablish deterrence” — that is, to raise the stakes so that Iranian-backed militias in Iraq would think twice about attacking US forces in the country going forward.

However, a series of recent attacks shows that far from being cowed, these militias appear to have been emboldened. In all likelihood, Iran is only in the nascent stages of responding to the death of Soleimani.”

“The coronavirus pandemic sweeping throughout the world has led the United States to draw down its forces, repositioning soldiers within Iraq and consolidating troops to fewer bases. US special forces soldiers have been withdrawn from some of the world’s most dangerous active conflict zones, leaving local host-nation forces to contend with an array of well-equipped and battle-hardened terrorists, insurgents, and militias.

This has presented Iran with a unique opportunity to expand and consolidate its control in Iraq and push the US entirely out. And the country’s leaders aren’t going to squander their chance.”

” From Tehran, the United States looks at its weakest in years. The country is struggling to formulate a coherent and effective response to Covid-19. The divisions between the United States and its traditional allies are glaring. In terms of US-Iran tensions, US allies in Europe place much of the blame on America, not the Islamic Republic.”

America doesn’t want another Tea Party

“Trump’s approach to the pandemic has been to crow about his administration’s imaginary successes while blaming governors for everything that’s gone wrong.
On Friday, he escalated his message, endorsing the anti-stay-at-home protests cropping up across the country — specifically the protests in battleground states run by Democratic governors.

Moments after Fox News aired a segment on the rallies, Trump tweeted their rally cry against their governors: “LIBERATE.””

“Fox News is trying to convince Americans that there’s a groundswell of opposition to these important measures, attempting to make small rallies look big and fringe attitudes look mainstream.

On air, they’ve displayed images that make the protests seem significant. A first glance at the map below makes it look like a huge number of rallies have already happened, but they haven’t. It’s a double-whammy: The movement looks large and Fox encourages viewers to join.”

” The same images were used in the early days of the Tea Party, when Fox trumped up the rallies, describing them as part of a “revolution” and urging viewers to join.”

“Conservative groups are playing an important part, too. Three pro-gun groups are behind the largest Facebook group encouraging the protests, according to an investigation by the Washington Post.

In Michigan, a group funded by Trump ally Education Secretary Betsy DeVos helped get out the word.

And the same Tea Party groups that were successful a decade ago are eager to join in. “

The successful Asian coronavirus-fighting strategy America refuses to embrace

“If states and cities began to invest in quarantine facilities — like by buying out hotels, which are currently hurting for lack of customers — opening them up on a voluntary basis could do an enormous amount of good. But especially for jurisdictions with smaller caseloads that are eager to “open up,” it’s really worth thinking harder about what the plan is when new cases pop up.
Strict centralized isolation measures would likely ultimately be cheaper and less invasive than ping-ponging in and out of lockdown. It’s what the most successful coronavirus-fighting countries are doing. And since the US has already turned almost every aspect of daily life upside down, it should think about trying a similar strategy, too.”

“the “isolation” part of the strategy is important. If you test people and keep them trapped inside with their families, you’re not accomplishing nearly as much as you would if you actually isolated them.”

Why the US shouldn’t let states go bankrupt

“Senate Majority Leader Mitch McConnell’s suggestion that maybe states and cities should just go bankrupt amid the coronavirus-induced economic crisis they’re facing has not been particularly well-received. A big part of the issue: As the law stands right now, states can’t declare bankruptcy.

But the controversy points to a broader problem states across the country are facing — their costs have skyrocketed and their revenue has plummeted, and unlike the federal government, they can’t run a deficit. They’ve got to balance their budgets so that they take in what they put out. And right now, a lot of states are sounding the alarm that they’re going to need to make deep spending cuts unless the federal government steps in.

New Hampshire Gov. Chris Sununu, for example, warned his state could need to make $500 million in cuts next year. Missouri Gov. Mike Parson estimated he’ll have to cut $700 million and has already put a pause in $227 million in state funding. Los Angeles Mayor Eric Garcetti has said he plans to furlough thousands of city workers.

The problem — at least with most states and cities — isn’t that they’ve managed their finances particularly poorly. It’s that they’re in the midst of an unprecedented crisis.

“States have balanced budget rules to keep them from doing things that are fiscally imprudent. In practice, when we’ve hit recessions that’s led to difficulty,” explained Kim Rueben, director of the state and local finance initiative at the left-leaning Urban Institute. States are able to raise more tax money when the economy is doing well, not when it’s doing poorly, even though that’s often the time when it needs money for things like unemployment and health care most. Many states have rainy day funds to cover downturns — the 50-state total recently hit $75 billion.

“Not all of the states were good, but on average, they had actually put money away to try and handle what is your normal economic cycle,” Rueben said. “What we are entering into right now is not normal in any way, shape, or form.””

“the first state to put in place a balanced budget amendment in its constitution was Rhode Island in 1842, and other states followed. As of 2015, 46 states plus Washington, DC, have some sort of balanced budget requirement, which basically means they can only spend as much revenue as they’re bringing in. How stringent these requirements are varies by state; some experts say the only state that doesn’t have to balance its budget is Vermont”

“The United States has a system where many of the country’s priorities are handled at the state and local level — the local school systems, colleges and universities, infrastructure, prisons and jails, the health care systems. The federal government is supposed to work in partnership with states and cities by design, the idea being that they’re closer to the ground on understanding the needs and wants of their citizens.

“You want the financing of them to be solid,” Leachman said. “It’s in the national interest to make sure that that happens, and it’s another reason why it should be a no-brainer for the federal government to provide the fiscal relief that states and localities need right now.””