Health Care Will Be a New Entitlement : And the only private source left for financing of these reforms is pension funds.
By PAUL CRAIG ROBERTS Sept. 26, 1993 12 AM PT - Share via
The first central fact of President Clinton’s health-care proposal is that it comprises a massive new entitlement program with no visible signs of financing at a time of swollen budget deficits.
This is true even if we pretend, along with Clinton, that bureaucratizing health care will reduce paperwork and generate huge savings. There is no way to transfer these savings from where they might occur--for example, lower insurance premiums or hospital administrative costs--to where they are needed, such as to pay the cost of government health subsidies to small businesses and low-income workers and coverage for the unemployed.
The second central fact is that once the plan passes, there will be no going back. The institutions of health-care delivery would be fundamentally altered. Moreover, some people would have coverage for the first time, and that coverage will be as permanent as food stamps and rent subsidies.
The third central fact is that when the reality of the enormous cost of the new entitlement becomes clear, financing will have to be immediately found or the budget deficit will explode. There is only one source of private wealth left that could be tapped to pay for the health entitlement: private pension funds.
If Clinton’s health proposal becomes law, it will mean the end of the tax deductibility of pension contributions and the tax deferral of pension fund earnings. Americans should understand that the cost of Clinton’s health plan is a substantial reduction in their pension-fund assets and retirement income.
Despite the centrality of these three facts, I predict that they will play no role in the debate over Clinton’s plan.
The Republicans in their typical “me too, but less” fashion have a plan of their own--and no way of financing it either.
The public has been conditioned by a media barrage to believe, in Clinton’s words, that “this health-care system of ours is badly broken and it is time to fix it.” The endless stories that pull at the heartstrings about the plight of the uninsured have contributed to an emotional atmosphere in which any change is considered an improvement. Clinton expressed this non-think perfectly when he said “our purpose in this dynamic age must be to change.”
Some economists will point out the employment costs of sticking businesses with more mandates, but these complaints will be addressed with subsidies.
Thoughtful health-care experts will note that Clinton’s plan to give “every American a health-care security card that will guarantee a comprehensive package of benefits over the course of an entire lifetime roughly comparable to the benefit packages offered by most Fortune 500 companies” will lead either to a great increase in health-care spending or to a reduction in quality.
Since the next President will have his own new program for which he will need funding, the most likely outcome will be a reduction in quality in the form of waiting lists, less diagnostic testing and, as writer P. J. O’Rourke puts it, an increase in dying. But these concerns will be swept under the rug in the enthusiasm to do something about the health-care “crisis” or countered by arguments that currently the poor die disproportionately, an inequity that must be redressed.
Having pointed out pitfalls, what positive suggestions can be made?
First, be suspicious of an Administration and a political party that raised marginal income tax rates 30% in the name of deficit reduction and then follows up with a massive new entitlement without financing. Be especially suspicious of a plan that adds $72 billion in a new Medicare prescription-drug plan and $80 billion for a new long-term care program and simultaneously claims Medicare cuts of $238 billion.
If such vast inefficiencies exist in Medicare (plus the $47 billion in other federal programs), why did Clinton hurt job growth by raising income taxes? Why not cut the inefficient programs before raising taxes?
This brings me to my positive proposal. Let Clinton first secure the savings from his reforms of Medicare and other government programs. With these in hand, begin extending coverage to those in need. And put an end to the abusive malpractice claims that force doctors to practice the expensive defensive medicine that Clinton confuses with “greed.” This would be an honest start and, with the experience under our belt, we could go on from there. This way, we wouldn’t have to sacrifice our pensions for health care.
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Badenoch blasts 'moaning' female Labour MPs over Burnham jobs 'quota'
Kemi Badenoch has told Labour women to earn a job in Andy Burnham's Cabinet instead of demanding they are handed jobs because of their gender.
The Tory leader lashed out today amid reports that female MPs are demanding the de-facto new prime minister introduce a 50:50 gender split 'quota' in his government.
Amid reports that former foreign secretary David Miliband is being lined up to return to the role, possibly with his brother Ed as Chancellor, one female minister also complained that Burnham could not have 'more Milibands than women' in the top posts.
But in a scathing article in the Times today Mrs Badenoch told them to 'stop moaning' and get chosen on merit instead of retreating into 'more of the failed identity politics that is holding back our country'.
'There are many, many reasons why you shouldn't have any Milibands in the cabinet,' she said.
'But complaining that the boys haven't given them the right jobs or that the boys are taking all the jobs, just shows that Labour's women still don't get it.'
The idea of quotas was also attacked by Baroness Jacqui Smith, Labour's Skills Minister.
Asked by Times Radio if Mr Burnham should reserve jobs for women, she said: 'No, I think what Andy Burnham should be doing is building the very best team around him to change this country.'
A letter written by the Women's Parliamentary Labour Party has called on Mr Burnham to ensure a 50:50 split between men and women in government jobs
Amid reports that former foreign secretary David Miliband (above, right, in 2010) is being lined up to return to the role, possibly with his brother Ed as Chancellor, one female minister complained that Burnham could not have 'more Milibands than women' in the top posts
But Mrs Badenoch told them to pipe down and get chosen on merit instead of retreating into 'more of the failed identity politics that is holding back our country'
A letter written by the Women's Parliamentary Labour Party and seen by the BBC has called on Mr Burnham to ensure a 50:50 split between men and women in government jobs after he succeeds Sir Keir Starmer.
'We are asking you to demonstrate this change from day one and address the toxicity and misogyny within our own party and government,' it said.
Labour has never had a female leader, while the Conservatives have had three, and Mrs Badenoch urged the government to follow its meritocratic example.
'If you run a meritocracy, then you do not have to worry about jobs for the boys,' she wrote.
'Every woman who is a Conservative MP, every woman who has ever won the leadership, has had to fight to get where she is.
'By contrast, Labour women are demanding guarantees from Burnham. But the truth is he doesn't have to give any guarantees.
'If none of Labour's women are prepared to get their hands dirty and challenge him for the leadership, their demands are toothless.'
'In fact, it's quite revealing that the women's parliamentary Labour Party has written to Burnham asking him to commit himself to at least 50 per cent female ministers.
'This has nothing to do with meritocracy. It is yet more of the failed identity politics that is holding back our country.'
Venezuela Fury and Noah Price subsidising their life by livestreaming
Venezuela Fury and her husband Noah Price look to be making their own way in the world by raking it in from their lucrative social media accounts.
The influencer daughter of Tyson and Paris Fury, 16, has become an internet sensation after tying the knot with her husband Noah, 19, earlier this year.
Since getting married and moving in together the couple have been earning thousands of pounds a month, livestreaming their life as newlyweds in their static caravan in the East Riding of Yorkshire.
And fans can't get enough of their regular life updates on TikTok and Kick, which have proved to be very profitable for the pair.
They look to be supporting themselves after Noah denied that he was given £5million by Venezuela's family as a wedding gift.
Despite his wife's huge family wealth, an estimated combined £160 million, Noah recently told his Kick followers that he 'pays for everything' for the couple.
Making light of the claims about Venezuela's millionaire financial status, Noah said: 'I actually pay for everything unfortunately. You'd expect the millionaire to pay for it wouldn't you.'
Venezuela Fury and Noah Price are earning thousands livestreaming their caravan life - after her new groom insisted he pays all the bills and denied he had £5m handout from her dad
The influencer daughter of Tyson and Paris Fury , 16, has become an internet sensation after tying the knot with her husband Noah, 19, earlier this year
Venezuela then asked their fans: 'Do you think I am a millionaire?'
Noah joked: 'She isn't a secret millionaire guys', before she broke into song and sang: 'But I live like a millionaire!'
But it seems according to estimated calculations from their social media work, Noah and Venezuela can more than afford to support themselves.
Noah has been livestreaming on platforms such as Kick and TikTok, where viewers can send paid gifts or donations.
He was previously encouraging viewers to send gifts on his honeymoon during livestreams, suggesting this is one revenue stream.
Both Noah and Venezuela have built substantial followings on Instagram and TikTok. They can potentially earn money through sponsored posts, brand collaborations, affiliate links and creator payouts.
Kick allows its creators to take home 95 per cent of the £4.99 subscription cost that fans pay.
Streamers keep 100 per cent of direct tips and donations, minus minor standard payment processing fees.
It is unclear how many subscribers Noah currently has because this information is hidden, but he does have 7,200 followers which is publicly viewable.
An industry insider has suggested Noah is making around £400 per video on TikTok, while Venezuela is likely to make £2,000 due to her following count of 1.3 million.
An industry insider has suggested Noah is making around £400 per video on TikTok, while Venezuela is likely to make £2,000 due to her following count of 1.3 million
In one video on their honeymoon, Noah asked his followers if they'd give them some more gifts now that they were married.
In a TikTok live viewed by 20,000 he said: 'Keep liking our videos people, keep sending gifts.'
After saying thank you to several of his followers he joked they should stick around on the livestream and 'watch Venezuela punch me in the mouth'.
The other half of the honeymooning couple said: 'I am, honestly!'
Noah previously confirmed that the pair don't share their finances after they were asked whether they have a shared bank account.
'She earns her money, I earn mine,' said Noah, as Venezuela joked: 'Yeah, what you gonna do about it.'
Noah went on to debunk the rumour that Tyson gave him £5million when he tied the knot with his daughter as he insisted: 'No Tyson did not give me £5million'.
Meanwhile Venezuela is being eyed up by executives for a fly on the wall TV series.
Noah went on to debunk the rumour that Tyson gave him £5million when he tied the knot with his daughter as he insisted: 'No Tyson did not give me £5million'
Boasting 1.3 million TikTok followers, Venezuela is already entertaining fans with her honest musings and candid moments, from cooking to kitting out her and Noah's static caravan home.
And following the success of the Netflix series At Home With The Furys, it is no wonder bosses are wanting to draw on the Fury popularity.
A TV insider said: 'The couple are not A-list celebrities but everyone has become obsessed with their love story.
'People are genuinely intrigued by them. Whether it’s the fact they have married so young, Venezuela’s famous family or their gypsy lifestyle, they have the ‘X factor'.
'Several TV executives think a proper fly-on-the-wall series following their lives as newlyweds in the gypsy community would be fascinating,' they told The Sun.
It is thought Netflix would be likely to produce the series due to their already established relationship with the Furys.
Venezuela's representatives told The Daily Mail: 'We have many offers on the table regarding Venezuela which we are discussing.'
