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2018-08-08 07:00 by Karl Denninger
in Health Reform , 158 references Ignore this thread
Gingrich Is Right
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I rarely agree with Newt, but he's right on this point.

Many in the GOP are hoping this success will help them get re-elected in November. Some consultants I’ve spoken with seem to think it will inoculate Republican candidates against most all Democratic attacks.

They are mostly right, except for one area – health care. 

No doubt, Republicans should be proud of the enormous success of the economy. But the economy won’t reach its full potential and the GOP will not win big in the 2018 elections unless Republicans deal with the cost of health care in America.

There is only one way to do that: Government must enforce 100+ year old existing law that makes illegal the collusive and discriminatory behavior that virtually all health-related businesses engage in.

Meanwhile you have allegedly "free health care for all" politicians lying to constituents and promising health executives they'll "play nice" with their monopolist profit system.

Note that it's not illegal to lobby a politician.  But the fact that you have and do when the discussion includes a debate about price-fixing and bid-rigging, which is what we're talking about in this case, is hard evidence of intentional conduct when it comes to violations of 15 USC Chapter 1 and all of those discussions can and should be subpoenaed and used against said industry as they are not privileged communications.

A lobbyist is not a priest and their conversations didn't take place in a confessional.  Quite the opposite.

There are solutions to these problems; we could start here, for instance, which I have often written about.  Politicians and the media have refused to take this issue up with any sort of honest examination for one simple reason: If you do it the stock market blows up immediately as a huge percentage of the economy (about 20% right now) is "health care", a monstrous number of people are "employed" in do-nothing, never-one-second-of-care positions yet make high wages, and if you put a stop to this theft most of them will lose their jobs.

What's missed is that while the adjustment in the economy to returning health care to 3% of GDP or thereabouts would be brutal for those who are currently abusing the American public it would also be short, would likely be complete within 12-18 months (much like 1920/21) and when finished it would usher in a golden age for America where our business and government costs would drop precipitously, stoking our competitiveness in a way not seen since the end of WWII when everyone else's manufacturing capacity had been laid waste.

Newt's warning is not just about winning elections, however -- although he fails to note that.  It's also about the fact that if this garbage is not stopped it will destroy the federal budget within the next decade and, along with it, civil society.  The CBO has been warning of this for more than 20 years, as have I.

That's a function of math and as a result it has nothing to do with partisan politics.  It is simply a function of whether this nation is going to continue as a going concern at all.

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User Info Gingrich Is Right in forum [Market-Ticker]
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Peoples' Republik of Maryland
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I'm with you all the way, Karl. And I feel your pain/frustration, really I do.

But since when have politicians ever done the right thing? I really don't expect them to start now. It's a big game of musical chairs and only the citizens of this once-great country are going to feel the pain when the inevitable crash comes.

Molon Labe
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so nice of Sir Idiot Newton to notice this all of these years later. let's see when he and his cadre of RHinos were saving the republic during their majority way back when did they not increase the size of government to a staggering degree for the time.

he is "noticing" this now so that when the whole thing goes boom in a few years, he can state that they were warning about it at this time and that evil Obamacrapcare as the ultimate cause. perhaps there is a degree of self-preservation for their party in this action.

self-serving and nothing more.

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