Tag Archives: Democrats

Democrats Desire for Regulation Increases Inequality

Yes, you read the title of this blog correctly but you wont accept the point. It so happens that one small data point represents a major contributing factor to inequality. Since WWII the availability of affordable housing has declined. First both left and right drove increase affordable housing. It was good for the wider population as it led to a wider base on which the American Dream was driven. However, the plan backfired.

Over time more and more lower income families took up the opportunity and more and more subsidies were driven into the market. This even led to aspects of the financial crisis that sits at the root of our current economic malaise. But the key is that an effective level of affordable housing around the US supports the need of workers to move to where there was work. This is one of the factors that drove growth and even productivity. That is, until the late 1980s. Since then productivity has been slowing, and it turns out, the stock of affordable housing. At the same time, Americans move less, and the baby boomers have started to retire.

But the odd part is not that left and right supported the goal, it is the left that have fought against themselves. In the US print edition of the WSJ on Sept 30-Oct 1, there is an Opinion piece title, “Why Housing is Unaffordable in California“. This article nicely captures the facts that democrats, in control of Californian legislature, have passed land regulation that limits how land can be used. This has contributed to continuing and driving land prices up and at the same time pricing lower paid workers out of the region. Yet at the same time the state legislature encourages its population to bass bonds to fund new affordable housing plans. It is thus fighting against itself. The rich are getting richer and the poorer are unable to get a hold on the work that would help them close the inequality gap.

Why don’t our politicians stop being politicians and get out of the way of real decision makers that work together and in the same direction?

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Trump One Step Closer to Quitting

Reference:

I believe Donald Trump will quit the Presidency of the United States. I forecasted Trump would win (see April 2016: Trump Will Eat Clinton Alive), and in that article last Spring I suggested that he would quit. He will quit due to the inability for politicians in Washington to be rational and negotiate. He will quit with acrimony and bolshiness. About the only thing that will prevent this situation from taking place is tax reform.

Let me first state that I think that Obamacare was the wrong tool for the job. It was a rushed, Ill-focused, partisan and socialist effort to undermine the best parts of America. Its namesake and his supporters suggested that the Affordible Care Act (ACA) it helps those that need most help (the uninsured), and it does (in some way) but at a system-wide cost that is unacceptable and unaffordable.

The free market is anything but that; regulation is like a strangling vine; prices remain untouched and high; big pharmaceutical remains unfettered; patient outcomes remain anathema to healthcare. This country continues to spend ever more on healthcare, more than any other developed nation per capita, and yet our outcomes and their improvement reman poor and lacking, even on a good day. Obamacare was the wrong tool for the job.

The bad news is the Republican approach to Obamacare has split its own party. Worse, the repeal and replacement was in their reach. Yet last week the chance for correction was thrown out.  

There were even votes against the Republican policy from folks like Ron Paul who didn’t want the ‘Obamacare Lite’ but who wanted a full repeal. So he withheld his support. The Freedom Caucus, apparent fiscal hawks, had a chance to budget-fence Medicaid, yet they withdrew support in the mad hope of a perfect policy sometime in the future.  

This is madness. This is political suicide. The Democrats have been handed a free ticket and Trump must be mad. This is Washington at its worst. There will likely never be a perfect policy or time enough to develop it.

Now the movement shifts to tax reform. If an overhaul is not executed Trump will feel like quitting and he may yet do so. The Republicans need to realize that they have a rare opportunity but only if they unite. If they play party politics and splinter again, change will not be forthcoming. The Democrats, not in power of any sort, will be in power in all but name.

Obama won on the promise of change and socialists alike all rammed through their left-leaning, redistributive, anti-business and anti-free market policies. We are slowly bleeding to death now under the weight of ignorance and self feeling. Our polices cannot be paid for without printing money since we are all too happy to free-ride the masses and garrote the rest. The rest who are free and employed folks who work for a living, who want to improve their lot with their own blood, sweat and tears, not from hand-outs from Uncle Sam.

Trump also won on an argument for change. Alas the Republicans have forgotten how to govern.