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Archive for November 25th, 2013|Daily archive page

‘Dont dare call the health law redistribution’

In Uncategorized on November 25, 2013 at 9:59 PM

‘Dont dare call the health law redistribution’

New York Times
By John Harwood

BCN NOTE: This apple didn’t fall far from the tree! My lil cousin John Harwood tells it like it is. He, like me has recognized this as a redistribution of wealth for a while now. Obama is predicting everyone can win and we all get to pay for it. Not! We have been sold a package that has many questions. This law, this tax is redistributing wealth from rich to poor, men to women, poor to less than poor. Pay attention folks! We are being forced to sign up for things we do not want! 

This redistribution of wealth is and will affect you on a daily basis. You are feeling the pinch, you are paying for the change you desired. Please read the article below by the New York Times and John Harwood!

“A commitment to economic justice necessarily implies a commitment to the redistribution of economic resources, so that the poor and the dispossessed are more fully included in the economic system,” Ms. Blank, a noted poverty researcher, wrote in 1992. With advisers wary of airing those views in a nomination fight, Mr. Obama passed over Ms. Blank, then a top Commerce Department official and now the chancellor of the University of Wisconsin. Instead he chose Alan Krueger, a Princeton economist.

“Redistribution is a loaded word that conjures up all sorts of unfairness in people’s minds,” said William M. Daley, who was Mr. Obama’s chief of staff at the time. Republicans wield it “as a hammer” against Democrats, he said, adding, “It’s a word that, in the political world, you just don’t use.”

These days the word is particularly toxic at the White House, where it has been hidden away to make the Affordable Care Act more palatable to the public and less a target for Republicans, who have long accused Democrats of seeking “socialized medicine.” But the redistribution of wealth has always been a central feature of the law and lies at the heart of the insurance market disruptions driving political attacks this fall.

“Americans want a fair and fixed insurance market,” said Jonathan Gruber, a health economist at the Massachusetts Institute of Technology who advised Mr. Obama’s team as it designed the law. “You cannot have that without some redistribution away from a small number of people.”

Mr. Obama’s advisers set out to pass the law in 2009 fully aware that fears among middle-class voters sank President Bill Clinton’s health initiative 16 years earlier. So they designed the legislation to minimize the number of people likely to be hurt.

Instead of a sweeping change to a government-run “single-payer” system favored by Democratic liberals, members of the administration sought to preserve the existing system of employer-provided health insurance while covering the uninsured through the expansion of Medicaid and changes to the individual insurance market.

They also added benefits available to any family, such as the ability of children up to age 26 to remain on their parents’ health plans.

But throughout the process, they knew that some level of redistributing wealth — creating losers as well as winners — was inescapable.

They were nonetheless acutely aware of how explosive the word could be. When Mr. Obama ran for president in 2008, Republicans tried to wound him by accusing him of waging “class warfare” to achieve wealth redistribution. That fall, the Republican presidential nominee, Senator John McCain, derided Mr. Obama as the “redistributor in chief” as he seized on Mr. Obama’s comments to an Ohio man later known as “Joe the Plumber” that he wanted to “spread the wealth around.”

Mr. Obama survived that episode and other instances when Republicans deployed old recordings of him using the word “redistribution” as evidence that he was a closet socialist. But Mr. Obama had learned a lesson.

After he took office, he cast his goal of rolling back President George W. Bush’s tax cuts for higher earners not as economic redistribution, but as the restoration of top-end rates from the Clinton years.

The Affordable Care Act was a similar semantic sidestep. The law targeted high earners, too, by raising their Medicare taxes enough to reduce their after-tax incomes by nearly 2 percent, according to the nonpartisan Tax Policy Center. That revenue helped finance coverage for those currently without insurance, who tend to have lower incomes and who in many cases will receive government subsidies to make their premiums cheaper.

And yet for those nervous about potential changes, the president promised stability. “If you like your current insurance, you will keep your current insurance,” Mr. Obama said the day he signed the legislation in March 2010, a promise he made repeatedly as the Oct. 1 opening day of the online health insurance marketplaces approached.

Hiding in plain sight behind that pledge — visible to health policy experts but not the general public — was the redistribution required to extend health coverage to those who had been either locked out or priced out of the market.

Now some of that redistribution has come clearly into view.

The law, for example, banned rate discrimination against women, which insurance companies called “gender rating” to account for their higher health costs. But that raised the relative burden borne by men. The law also limited how much more insurers can charge older Americans, who use more health care over all. But that raised the relative burden on younger people.

And the law required insurers to offer coverage to Americans with pre-existing conditions, which eased costs for less healthy people but raised prices for others who had been charged lower rates because of their good health.

“The A.C.A. is very much about redistribution, whether or not its advocates acknowledge that this is the case,” wrote Reihan Salam on the website of the conservative National Review.

Having obscured much of that vulnerability before, Mr. Obama has responded to recent political heat by apologizing — and expanding the scope of his discredited “you can keep it” promise.

Mr. Gruber of M.I.T. called redistribution a convenient tool for Republican opponents who would fight the law anyway.

In the end, America’s political culture may have made it unrealistic to expect a smooth public reception for the law, no matter how cleverly the White House modulated Mr. Obama’s language or shaped his policy to minimize the number of losers.

“The reality is, any big thing you take on, any big change, is hard to accomplish,” said David Axelrod, the president’s longtime strategist. In America, he said, “we’ve created a sense that everyone can expect to win — nobody has to sacrifice.”

At the same time, Mr. Axelrod argued that widening income inequality has, to some Americans at least, changed the meaning of redistribution. “The whole redistribution argument has shifted in the country because there’s a sense that a lot of redistribution has been to the top and not the bottom,” Mr. Axelrod said.

Still, the word is hardly a favorite of the president these days. The last time Mr. Obama used it in public, according to Federal News Service transcripts, was 18 months ago during his re-election campaign in Elyria, Ohio.

“Understand this is not a redistribution argument,” the president told his audience then. “This is not about taking from rich people to give to poor people. This is about us together making investments in our country so everybody’s got a fair shot.”

Other articles by John Harwood!

TN US Senator Bob Corker OK’s Obama’s Fed Chair nominee despite reservations

In Uncategorized on November 25, 2013 at 9:02 AM

TN US Senator Bob Corker OK’s Obama’s Fed Chair nominee despite reservations



U.S. Senator Bob Corker, R-Tenn., a member of the Senate Banking, Housing and Urban Affairs Committee, recently announced he will support Dr. Janet Yellen’s nomination to chair the Federal Reserve.

Whether its voting with Obama and the Democrats 63 percent of the time, a round of golf with the president or supporting Obamas nomination for Fed Chair, the Dems and Obama can count on Tennessee Senator Bob Corker to reach across the aisle and secure a crucial vote or nomination for supposedly the opposite side of the aisle.

This latest scoff by Corker comes as no surprise to many of his constituency in Tennessee.
Although having major reservations about her abilities to lead the fed, Corker threw his support behind her at the behest of Obama anyway.

About the nomination Corker said this, “I would prefer to see someone who held a more modest view regarding the limits of monetary policy on our economy, and I have been clear about that.” 

“After she was nominated, I met with Janet Yellen on the topic of monetary policy, listened intently to her responses during the hearing, and met with her again this week to discuss financial regulation.”
“As a result of these conversations, I do believe she will bring a more transparent approach to Fed decisions and guDidance.”
He went on to say and this should concern all as to his ability to discern subject matter along party lines,“I am concerned that she lacks experience in systemic financial regulation, and I hope she will work hard to overcome this deficit and not just rely on others on the Fed board for this expertise. In a similar vein, as an academic, she is isolated from market dynamics, so I hope she will develop a cadre of practitioners who have the savvy that she lacks in order to help advise her in the event of another crisis.”
“In the end, I do believe she has the qualifications necessary to be the Fed chairman and plan to support her nomination.”

Essentially what he just said was he does not think she has the experience needed to do it, hopes she learns great on the job skills and  surrounds her self with a fine group of mentors. 

Bob Corker, this is no way to lead. We are in one of the most crucial financial times of our country. Our finances are in ruins and he is going to stretch out his hand to an inferior nominee just to appease the Commander in Chief, in exchange for a possible nod for a key position somewhere in Obamas cabinet in the  near future.

Bob Corker said he ” doubts she can handle the subject of systemic risk!” This is no skill set that Corker should ignore or turn his head just to support the prez.

As I understand it, systemic risk refers to the risk or probability of breakdowns in an entire system, as opposed to breakdowns in individual parts or components, and is evidenced by comovements (correlation) among most or all the parts. (Kaufman and Scott 2003, 371)

Did you get that definition? “Systemic risk refers to the risk or probability of breakdowns in an entire system.

Seems it’s time for Corker to jump down off Obamas lap and run with his party or at the very least vote with his own findings and conclusions.

We can no longer afford to ignore the truth for DC Politics. It’s high time we elect a statesman that can run a state like he should and get his self interests out of DC and away from the liberal elite.

Understanding systemic risk!

Thanks to the Nashville Post for their recorded comments from Corker.

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