Monthly Archives: July 2013

It Is Not Good News That Obamacare Will Create Lots of Jobs to Steer People Through the System

That many in the press would assume it is typical of the way the economy  is reported upon.  If it ‘creates jobs’ it’s good.  Global warming if it requires building more flood control measures will be a good thing by this reasoning.  This assumes that labor is not a scare thing that we should find ways to put into it highest value use, not just generate random emplyment.

“Which way is up?” reporting makes a big-time appearance in this Washington Post article telling us that Obamacare will create a boom in jobs since workers will have to be hired to steer people through the system. The article reports:

“About 7,000 to 9,000 new customer service agents will be needed to man phones and Web chats for the marketplace, called an exchange, the federal government will run for more than half of the states, a spokesman for the Centers for Medicare and Medicaid Services said. Additional agents will be needed for exchanges run by the states themselves.”

The next paragraph raises the stakes to:

“Altogether, tens of thousands of people could be hired over the next several years to set up and support the online marketplaces, according to some estimates.”

Okay, let’s make it three tens of thousands (a.k.a. 30,000). If we continue to create jobs at the rate of 170,000 a month (an assumption, not a forecast), then we will create 6.1 million jobs. This means that our 30,000 Obamacare jobs will be a bit less than 0.5 percent of net job creation over this period. That’s a plus, but not exactly a boom.

More importantly, the jobs needed to steer people through the system are a waste from the standpoint of the economy as a whole. In an efficient system people can figure out how to get their health care without needing a consultant to guide them through a complex process. The fact that Obamacare may require people for this task means that it is adding waste to the health care system.

In a recession, anything that employs people can be seen as positive since otherwise they would sit home doing nothing. However if we envision at some point that we will be back to something resembling full employment, it would be much better to have a health care system that did not require tens of thousands of workers to explain insurance options to people. 

It Is Not Good News That Obamacare Will Create Lots of Jobs to Steer People Through the System
Sat, 27 Jul 2013 12:56:25 GMT

The great inflation of the 1960s

 

No, I don’t mean price inflation.  Rather this will be a sort of stream of consciousness on the explosive change of the 1960s.  I’m using “inflation” in the cosmological sense—when things suddenly change really fast, and then slow again.  To take one trivial example; is there any doubt that the speed and complexity of change in the pop music sector accelerated sharply after 1963, and then slowed again in the 1970s and 1980s?  (Maybe there is, and I’m just a deluded boomer.)

Patrick Sullivan sent me the following amazing video from 1965.  (I still can’t get the hang of “embed.”)

Since I’m a right-winger, and thus racist by definition, it took me about 4 or 5 minutes to realize how absurd this video really is.  Yes, that’s exactly how I remember Michigan when I visited all-white areas in 1965, but Detroit was already more than 1/3 black by that time.  The fact that blacks were totally ignored in the video surely tells us something about what went wrong.  And the speed of the change was breathtaking.  The Detroit race riots (among the worst in American history) occurred just two years later.  By the early 1970s Detroit was rapidly becoming a bad joke.  And I mean “bad joke” literally, people would make jokes about Detroit with strong racist implications.  And yet it’s hard to say how important the riots were.  The demographic changes occurred both before and after, and the 1992 race riot in LA doesn’t seem to have impacted that city’s development.

The great America boom of 1961-69 also saw an explosion in violent crime, as rising prosperity and sharply falling poverty rates had exactly the opposite effect from what liberals predicted.  That played no small part in the rise of conservatism in the late 1970s.  The Economist reports (in an excellent story) that crime rates are now plunging all over the world, despite the lousy economy in recent years.

No matter how old I get, I still think of “before and after” in terms of the late 1960s.  Attitudes toward race, women’s rights, sex, formality in clothing, politics, film, music, etc., all changed very fast.

In the 1970s I was greatly influenced by a book on China by Simon Leys, called Chinese Shadows.  I learned that things can be very different from how they seem, or how they are perceived by most experts.  Leys was ostracized in academia, where most China experts had a positive view of Mao.  Of course that doesn’t tell us which conventional wisdom will be wrong today, and in which way.  Is the superficial prosperity of Shanghai just a glittering facade, about to collapse like Detroit in the late 1960s?  Or is the conventional wisdom (in the blogosphere) that China is a bubble wrong?  Might China successfully become a developed country?

Time will tell, but the Detroit video is a reminder that change can come very fast, and in very surprising directions.

PS.  Conservatives are at their best when they are on the fringes, attacking liberal orthodoxy.  Leys was a very nuanced and subtle writer.  Unfortunately conservatives get sloppy and overconfident when they gain the upper hand.  In 40 years we’ve gone from Simon Leys to Fox News.

PPS.  This piece in the NYRoB makes a very persuasive claim that 1979 was the key turning point.  Perhaps that was the year that the explosive change of the 1960s led to a backlash.

Not merely did the experts not have the faintest clue about the series of turning points that were in store. In most cases, they would have struggled to identify who would be the leading actors in those turns. How could they? Only five years before 1979, Deng Xiaoping was in disgrace and living in a tractor repair shop, on the run from the rampaging Red Guards. The Ayatollah Khomeini was in exile in Iraq, soon to be shunted on to the Paris suburb of Neauphle-le-Château. In Britain, Margaret Thatcher was a rookie education minister, familiar to the public only as Thatcher the Milk Snatcher for having deprived younger pupils of free school milk. She had been promoted to the Cabinet mostly because she was a woman; the prime minister, Edward Heath, despised her as a garrulous nuisance. Karol Józef Wojtyła was archbishop of Cracow. The chances of his becoming the first non-Italian pope since Adrian VI in 1522 seemed slim. . . .

What had taken hold at a deeper level was the idea that we were living through “late capitalism.” It is remarkable how many economic classics of the 1930s and 1940s had predicted a short shelf life for capitalism as we knew it. Although no longer a Trotskyist by then, James Burnham in The Managerial Revolution opined that “the capitalist organization of society has entered its final years.” John Maynard Keynes predicted “the euthanasia of the rentier” and the disappearance of shareholder capital. Joseph Schumpeter predicted that, faced with the increasing hostility of the legislative and administrative environment, entrepreneurs and capitalists would eventually cease to function.

With the ground so thoroughly prepared, it is not surprising that the claim that the Soviet system would soon bury ours should find such a receptive audience. Nor was the admiration for the achievements of a state-led economy confined to the Communist world. The admiration extended to the shah’s Iran as well as to Honecker’s East Germany.

There was, besides, an unconsciously patronizing assumption that, while Westerners might be inclined to “possessive individualism,” most people in the second and third worlds were more collectively minded. The Chinese were thought to be especially well adapted to real socialism, and there was much fascination with the progress of Mao’s great experiments, as shown by the success of William Hinton’s book Fanshen and David Hare’s play drawn from it. The go-getting behavior of the overseas Chinese seemed to have escaped notice.

In retrospect, what is so startling is the breakneck speed with which the mainland Chinese took to the market once Deng let them off the leash. As Caryl writes, only two years after Mao’s death Deng became supreme leader and was telling his confidant Yu Guangyuan that “we must work in the spirit of Meiji Japan and Peter the Great.” In no time at all, 98 percent of peasant holdings had in effect gone over to private operation. Throughout the 1980s China’s economy grew by nearly 10 percent a year. Today the percentage of economic assets in private hands in China is higher than in some European countries. With all China’s internal repression (on which it now spends more than it does on external defense), this was a genuine leap forward such as the world has seldom seen.

By contrast, the belief that the free market might still have something to offer stagnant economies was rather slower to take off in some Western countries. In Britain, the conventional belief remained that the nationalized industries were simply too entrenched to be disturbed. The constitutional expert Sir Ivor Jennings had pronounced that the labor unions were now an inviolable part of the British Constitution. Nor was it thought practicable any longer to run a modern economy without some sort of state supervision of prices and incomes. Reform of all these things might be desirable, but it was “politically impossible.”

Almost nothing that Margaret Thatcher advocated to the contrary was novel; many of her arguments had been anticipated by Conservative spokesmen opposing the 1945 Labour government. “During her first prime ministerial campaign,” Caryl writes, “she was known to cite the Australians, the New Zealanders, and the Scandinavians who had already started comparable reforms in their own countries.” What was fresh was her zest, her optimism, and her sense of possibility. She was fortunate at coming in just at the moment when almost everyone felt that the nation had run out of road.

Read the whole thing.

PPPS.  Speaking of 1979, this video is a great example of Robin Hanson’s recent claim that in the modern world it’s the singer and not the song.  And when did that change in music occur?  In 1965 . . . how does it feeeeelll . . .

The great inflation of the 1960s
ssumner
Sun, 28 Jul 2013 21:36:57 GMT

Yes, the Status of Health in the U.S. Is a Disaster. Why Do You Ask?

 

Screenshot 7 20 13 10 28 AM

Brendan Saloner:

U.S. Health Disadvantage is Not Inevitable: The United States fares worse than virtually every other rich country across a broad set of outcomes–babies in the United States are more likely to die at birth; teenagers are more likely to have unintended pregnancies, to be the victims of homicide, and to die in a car accident; and adults are more likely to experience diabetes, hypertension, heart disease, drug overdoses, and HIV….

With poor health outcomes spanning so many different domains (communicable, chronic, etc.) and age groups, it is not surprising that there is not a single causal factor that completely accounts for the disadvantage of the United States–it’s not just a lack of universal health care, greater economic inequality, higher child poverty, differences in lifestyle factors, racial diversity, a more libertarian culture, or weaker public health regulations–it’s probably a little bit of all of these things. It is notable for instance, that Americans are relatively disadvantaged even when considering non-minority whites with upper incomes and better education.

Should we despair? “American health disadvantage: it’s everything” is not a particularly good bumper sticker slogan, nor an apt slogan for a political campaign…. American health disadvantage is not inevitable and it’s not excusable. There are other roads that the United States could have taken over the last thirty years that would have led to very different outcomes, and there are still opportunities to get back onto a healthier path.

Yes, the Status of Health in the U.S. Is a Disaster. Why Do You Ask?
J. Bradford DeLong
Sat, 20 Jul 2013 17:31:17 GMT

Recognize this Guy?

To:

I received this disturbing e-mail before the verdict. Would anything do a better job of showing that African Americans really do all look alike to conservative whites. How else could anyone think that picture is Trayvon Martin, or that he was 17 years old.

Even with the trial going on we’re still not getting the whole picture from the media. I was wondering why they kept showing the old picture when I knew there must be current ones.. I guess I got my answer.

Subject: Recognize this Guy?

Recognize this Guy?

Recognize this guy?

Do you know who this is?

It is Little Trayvon Martin…! At 17 yrs of age.

Don’t know how much coverage this story has had in your area, but, if it has, here’s a new look at it!

For those of us who thought we were well informed and weren’t…..quite the realty check.

That old adage applies here: “there are two sides to every story.” We don’t always get the truth from the media. One of my favorite rants – the liberal controlled media, television news, newspapers, magazines, radio; all continue to show 12 year old Trayvon; NOT 17 year old Trayvon.

They continue to show the 5 year old picture BECAUSE it helps to cement in your mind the cute, little, hoodie-wearing youngster who was stalked by this monster
.
In reality “little Trayvon” at the time of his death stood almost 6’2″ tall and weighed 175 muscular pounds. He had numerous run ins with authorities (both at school and local police), had been stopped and almost arrested two days before his death for smacking a bus driver in the face, because the driver refused to let him ride for free. He was released because the driver was told not to press charges by the bus company and to continue on his route.

When “little Trayvon” was suspended at school it was not only because he tried to bring a little marijuana in with him, he was in possession of wedding rings and other jewelry, watches, etc. that he said he “found” along with a large screwdriver while on the way to school that day. The jewelry was turned over to the Police by the school.

I am not trying to say this kid deserved to die. I am saying the media in the USA is controlled by liberals who twist and distort what you see and hear in order for you to see things their way.

>Not a single paper has printed RECENT photos of this kid, because it would not keep your interest in this case.

Not a single paper will admit that this kid was a marijuana dealer.
>His friends on Facebook all say he had the “best plants”. Not a single paper will show you any of his recent photos where he shows off a mouthful of gold teeth and all of his tattoos.

Not a single newspaper will tell the news like it really is….and NOT how they want you to think it is…

President King Obama looked at the FIVE year old photo the media chose to show the Nation and said, “If I had a son…he would look like Trayvon..” So from that comment should I assume you did not bother to look for the facts in this shooting..or should I assume you want a son who is a 17 year old drug dealing, gold teethed, tattooed thug whose name on one of his facebook profiles was “Wild Nigga” who ‘finds” jewelry and burglary tools on the way to school?

A fair and impartial news media in the USA ? One that does not follow the liberal agenda? Is NOT looking to further divide this already fractured Nation?

I didn’t compose this. I’m only passing it on.

Never trust the news media for anything.

Trayvon at 12 yrs of age.