The political fight is on a personal level

On November 18, 2013 President Obama[1] was disappointed about the non-election of three nominations to the D.C. Circuit Court of Appeal, obviously the second highest Court in the Country. Even the favorable voices of Chief Justice John Roberts and the Judicial Conference of the United States, who are convinced to fill these vacancies, the elections have been blocked by Senate Republicans.

President Obama comments additionally that four of his five nominations have been obstructed while six nominations of his predecessor have been confirmed. It be his constitutional duty to nominate qualified personalities to a fully-functioning judiciary, he wrote.

What is the statement of Norm Ornstein from the American Enterprise Institute? „If Obama is for it, we’re against it even it’s good for the country.”[2] That is the reason of the actual gridlock the political battle has been transformed to a personal matter. Political arguments do not convince anymore, everything is personal and used on a personal level.

Yesterday Loretta Lynch has been confirmed as Attorney General of the U.S. – after a long period of ... in the U.S. Senate.

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[1] The White House, Office of the Press Secretary, November 18, 2013

[2] Tamara Lytle, “What’s Wrong with Washington,” AARP Bulletin, December 2011, 16-18.

The United States - A Socialist Country?

Introducing “Obamacare”, the mandatory health care insurance in the U.S., is often mentioned by the issue if that means that a socialized medical care is invented. About this point there are large uncertainties.

“Obamacare” respects the liberal principle that the Government is setting the framework and is defining minimal standards. “Obamacare” requires that everyone has to have a healthcare insurance. And the insurance contracts have to fulfill minimal levels of services. The performers are private organizations and participants. The Health Insurance Companies are offering their services and work with their participants like hospitals, medical doctors, medical laboratories and pharmacies. They settle up the services done by private authorities. Health Insurance Companies, hospitals, medical doctors, medical laboratories and pharmacies are active as private businesses. 

In a system of socialized medicine all medical services would be processed by government related companies and authorities like in Canada, Great Britain and Norway. In these cases every activity is done by the government, beginning with the insurance, all medical services, stay in hospitals and purchasing of medicine.

With “Obamacare” in the U.S. the benefits of a health insurance contract is stipulated. All other market participants like medical doctors or private companies (insurer, hospitals, pharmacies) are private businesses. 

Health Care System

The introduction of the new health care policies should have offered the targeted people choices by means of computer-aided market platforms. The federal government’s programming of these market platforms was disastrous. Valuable time for new applications was taken up with corrections and patchwork repairs presumably strengthening the predominant rejection of mandatory health care throughout the country. Federal government regulations are met with suspicion and treated with utmost skepticism. The introduction of Obamacare is no exception.

It is interesting that the new mandatory insurance is aimed at about 15% of the population, i.e., more than 80% of residents have health care and know about its benefits. Yet, a majority rejects Obamacare.

Whoever is covered by a health care plan pays a predetermined price for visits to the doctor or hospital negotiated with the insurance company. A special report by Steven Brill shows that especially middle class patients without insurance coverage pay for the horrendous cost of their treatment, thereby depleting their savings often earmarked for retirement.[1] As all residents must have health care insurance by 2014, negotiated prices will have to be paid in full or partially by the health insurers. 

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[1] Steven Brill, Bitter Pill, Why Medical Bills Are Killing Us, Special Report in Time Magazine, March 4, 2013

The Budget Problem

Why are America’s budget problems out of control?

The American Congress has re-elections every two years and thus its composition changes every two years. A new Congress is eager to approve new laws which are fueled by the 12'000 active lobbyist in Washington, DC, working towards their own goals and their own interests. Once a law is passed offering benefits or tax credits for a certain cause or product e.g. subsidizing cotton or energy; that federal expenditure remains in force moving forward until Congress cancels the law. Unfortunately, such cancellations of subsidies do not happen but more are added every year. Expenses go up every year almost unnoticed.

Income is reduced because of the constant effort to lower taxes. Profits from large companies enlarged from loopholes and exceptions created in their favor through lobbying. Small and medium size companies bear the burden.  Did you know that between 2008 and 2010, up to 30 large corporations spent more money on Lobbying in Washington than they paid in income taxes?[1]

An increase in subsidies and a decrease in tax income create a gap and build a structural deficit. Cyclical changes influence the deficit like heavy waves however they do not solve the problem to reduce the deficit.

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[1] Zaid Jilani, “Between 2008 And 2010, 30 Big Corporations Spent More Lobbying Washington Than They Paid In Income Taxes,” Think Progress Economy, December 7, 2011