Articles Tagged ‘unions’

AP: Labor Unions Ready to Fire on Baucus Bill

Tuesday, October 13th, 2009

The Associated Press confirms what healthcarehorserace.com reported Wednesday: top unions are ready to launch an attack on Sen. Baucus (D-MT) and his health care reform bill that passed out of the Senate Committee on Finance today:

WASHINGTON — A top labor lobbyist says about 30 unions will run a full-page ad in newspapers Wednesday announcing their opposition to the Senate Finance Committee’s health overhaul bill.

 

The ad says that unless the bill brought to the Senate floor makes substantial progress to address the concerns of working men and women, unions will oppose it.

 

The legislative director of the American Federation of State, County and Municipal Employees, Chuck Loveless, says unions are unhappy that the legislation lacks a publicly run insurance plan and would tax insurers that provide expensive coverage.


Sponsors included the AFL-CIO and the Communications Workers of America. The ad will run in The Washington Post, USA Today and Capitol Hill newspapers.

More Big Labor Angst over Obamacare

Friday, October 9th, 2009

It is often portrayed by the Old Media that Big Labor is lining up behind Obamacare with gusto. While many unions are doing just that, the not all unions are so happy with Congress’ current plans. We discussed this last month when we reported that the various propositions to tax so-called Cadillac healthcare plans has gotten some unions nervous.

Now, 157 House Democrats have sent a letter to Speaker Pelosi (D, Calif.) declaring their opposition to taxing high-end healthcare plans. One of those reasons is that many unions have given away pay raises in order to enlarge their benefits packages and such a tax will hit union members hard.

Rep. Joe Courtney, D-Conn., who organized the petition, said the tax would hurt too many middle-class people in addition to the wealthier people it is intended to hit.

“This would have an impact far wider than just the Paris Hiltons of the world,” Courtney told reporters Wednesday.

Leading the charge against these tax plans is the AFL-CIO. As IBD reports:
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Grover Norquist and the Conservatives find their voice on healthcare reform

Monday, August 17th, 2009

HealthcareHorserace.com recently introduced you to Grover Norquist, “the most influential conservative you’ve never heard of“. As a veteran of the first healthcare wars and a Beltway fixture for nearly three decades, Norquist has been at the forefront of the conservative movement and - along with a couple of guys named Gingrich and Rove - has played a major role in rebuilding the conservative brand. He was a co-author of the 1994 Contract with America which ushered in the new age of conservatism in America and ultimately led to the presidency of George W. Bush. Perhaps no issue better illustrates the evolution of the conservative voice better than healthcare reform.

The “Party of No” becomes the Party of Ideas … Again

Norquist will be the first to admit that “no” was a winning strategy when Hillary Clinton attempted to push healthcare reform through 16 years ago.

[Democrats] almost passed “healthcare reform” back in ’93 and ’94. They failed because they made no effort to reach out to Republicans and because the White House didn’t work as well with Congress as they might and because the business community was pretty united in saying “no”. You had individual companies that wanted the government to absorb their “legacy costs” – General Motors, American Airlines, all the unionized companies thought it was a great idea because they thought a government takeover of healthcare would allow them to hand-over or to void their union contracts and have the government run their healthcare for them like Medicare and Medicaid. Eventually, they figured out that [Democrats] were going to exempt gold-plated union contracts, so that didn’t work for the business community.

Things aren’t quite as simple this time around. A failing economy has left business leaders in a defensive posture and union leaders in a position of strength. A series of poorly executed corporate bailouts and a complete lack of fiscal restraint in the White House has set a “money is no object” precedent and left the American people wondering when help will arrive for them. And, perhaps one of the most politically motivated and partisan Congressional leaderships in the history of our country has labeled political dissent as obstructionist and un-American.

One of the things that Obama and some of the Democrats have done is say we have a plan and you have no plan. Well, that was always a lie. They just spent eight years stopping Republican healthcare reforms everyday. That’s what they did for a living. Now, of course, you put many of those reforms together in the DeMint bill and it allows any Republican elected official to say here’s my plan, here are the eight different ideas in it and I’m for this and I’m against their craziness. It’s a big help to have something you’re for – not that the Democrats would vote for it.

Putting Ideas on Paper: The DeMint Healthcare Freedom Plan

Part of beating [a Democrat] bill is to have a clear statement of what reform you want because people have a sense that there are problems – the price keeps going up and the trial lawyers are stealing all the money. We need to point out our bill deals with the bad trial lawyers, their bill doesn’t. Our bill reduces costs, their bill raises costs. Our bill cuts taxes, their bill raises taxes.

Senator Jim DeMint’s Healthcare Freedom Plan lays out a clearly conservative strategy that promises to ”insure more Americans in half the time at no cost.” According to literature posted on the Senator’s website, the right approach to reform is one that:

• Protects the right of Americans to keep their employer-based plan without having to pay additional taxes on those benefits.
• Provides Americans without employer-based coverage with vouchers of $2000 for individuals and $5000 for families to purchase health insurance. The premium for the average private policy sold in the individual market in 2007 was $1,896 for an individual and $4,392 for a family (Source: eHealthInsurance)
• Allows Americans with Health Savings Accounts (HSAs) to use their HSA funds to pay for insurance premiums, encouraging employers to contribute to their employees’ HSAs.
• Creates a nationwide market for health insurance by allowing individuals to purchase health insurance plans in any state.
• Provides block grants to states to develop innovative models that ensure affordable health insurance coverage for Americans with pre-existing health conditions.
• Reduces predatory and frivolous malpractice lawsuits against physicians and hospitals.
• Assures that every health care consumer has access to price information prior to treatment so they can make informed decisions about their care.
• Repeals financial bailouts (TARP) to ensure that the plan does not add to the deficit.

(Taken from a press release announcing DeMint’s Healthcare Freedom Plan.)

If the ‘93-’94 healthcare battle was the first of a protracted war, Norquist - like any good general - has learned from both the victories and defeats of the past.

So, one, you can say [the Democrat proposals are] worse than the present status quo – it will make things worse, not better. And, two, we have something to make things better. Step one is stop the bad stuff. Step two is be there with your reforms when you’ve got the votes to enact them.

If you snapped your fingers and put the Republicans in charge of the House and Senate, we didn’t go into the Republican control of the House and Senate in ’93 and ’94 with an articulated list of reforms that we were for. For instance, The Contract with America I don’t think focused on specific healthcare stuff, like healthcare savings accounts. That’s why fighting the Democrats allows Republicans and conservatives to focus on a series of reforms that we can explain and vote for and explain publicly.

The Debate within the Republican Party: Selective Amputation?!?

Of course, the DeMint Healthcare Freedom Plan isn’t the only Republican healthcare reform proposal on the table. Dr. Tom Coburn was joined by Republican Congressmen and Senators in authoring The Patient’s Choice Act of 2009. Many conservatives - including Norquist - view the Coburn bill as an amalgamation of liberal and conservative ideas on healthcare reform that concedes and aims to water down an eventual Democrat victory.

There are always people who when the other team wants to cut off two of your fingers, want to negotiate to lose one finger. And, so they run around with a lets only cut off one finger argument. That’s an insider’s game; it’s the kind of thing you can sell a Congressman or a Senator. It’s not the kind of thing you can go give a speech to the Chamber of Commerce or a state taxpayer group and say here’s what we’re going to do: we’ll be for small tax increases on all of you - yeah! What?

Politicians are particularly prone to how about if we just cut off one finger and you should appreciate all my work to protect your second finger. If you’re going to run a campaign where you have to get popular support, we need to be the no fingers cut off leaders.

Getting one finger cut off is the prelude to them coming back for the other finger. That’s why the DeMint proposal – which is not a compromise but is a bold, conservative, free-market approach, is so helpful. The guys who say lets cut off one finger instead of two or three, think that’s the only alternative way to do it.

To Norquist’s mind, that difference in philosophy is nothing less than a battle for the hearts and minds of the conservative movement. The “let’s only cut off one finger” camp appears to be led by The Heritage Foundation, which came out in support of the Coburn bill. Norquist’s own Health Care Freedom Coalition, which publicly supports DeMint and his Healthcare Freedom Plan, is out there trying to save your hand.

First of all, in a free society you can never speak with one voice and you wouldn’t want to be able to force it. There have been some efforts by some on the right – and Heritage did this in ’93 and ’94 [and again with the Coburn bill] – where they had an alternative that, in my view, was too much government. And, in their view, they thought if we don’t do this, [the Democrats] pass something worse.

Drawing a Line in the Sand: What it means to be a Republican

Norquist clearly believes that the battle over healthcare reform will determine the future of a Republican party grappling with what it means to be a 21st century American conservative. And, in doing so, he turns to the 20th century political icon who reinvented the Republican Party.

Ronald Reagan came in and said, instead of debating how much we’re going to raise taxes, here’s what we’re going to do: we’re going to cut them. Whoa! That’s a much stronger position. Instead of negotiating to lose slowly we’re going to beat them. Those are game changers.

I think you’re much better off with a common sense radical proposal than with anything that’s a compromise. Compromise is convoluted and difficult to understand because its being drafted between what we have and what somebody else wants, so its more complicated than the status quo, more complicated than the other guys idea and complication is the enemy of people with short attention spans and that’s most people these days. Because, they’re busy. They have lives.

The House doesn’t read the bills, why do you think the American people are going to read and understand these bills? So, I am a strong advocate for going on offense rather than defense. And, being the don’t cut off any fingers – not take one or two and leave the rest for us this week.

This will be a battle to the bloody end and one in which surrender is the ultimate defeat. Defecting to the side of compromise is treason and is punishable by expulsion from the conservative movement. Norquist’s Healthcare Freedom Coalition has already begun to name potential Republican turncoats who - in their words - “are going to make you buy health insurance“, “support price controls“, and “support a guaranteed coverage (guaranteed issue) mandate“.

If the administration passes something and they have a liberal Republican joining them, nobody thinks they’ve done something that wasn’t liberal. The two women from Maine (Senator’s Olympia Snowe and Susan Collins) voted for the stimulus package and everyone hates the stimulus package and everybody thinks it was a crooked, bad thing Obama and the Democrats did. Nobody says oh it’s bipartisan because the two liberals from Maine voted for it. That’s not bipartisan.

And the same thing, anybody who votes for government run healthcare is going to be somebody who kind of by definition isn’t an R[epublican]. It would take 20 Republican votes to make it bipartisan in the Senate. That isn’t happening. So, it won’t be bipartisan even if they pick off some guy and pretend it is.

AFL-CIO NOW Labels American Liberty Alliance, Freedomworks ‘Extremists’

Wednesday, August 5th, 2009

Mike Hall and the rest of the AFL-CIO NOW blog staff  have fallen right in line – as have other far-left internet ‘news’ sites like Daily Kos, Think Progress, and the America Blog  have done – with the latest marching orders sent down from on high at the White House to report any ‘disinformation’ being spread by libertarian/Republican ‘extremists’ – Freedomworks, American Liberty Alliance, and Right Principles – in regards to the president’s health care reform legislation.

Hall’s August 4th article blasting conservative non-profit organizations such as the ALA and Freedomworks bares little resemblance to the truth of actual events. The author can’t even start his article off on the right foot. In his opening paragraph, he trots out the tired ol’ liberal cliché “Bush was selected, not elected,” comparing the ‘mob tactics’ of the anti-health care reform activists to what went on in Florida in 2000.

“Mob rule tactics stopped the Florida vote count during the contested 2000 presidential elections, ultimately turning the presidency over to George W. Bush—a strategy now emulated by the anti-health care reform lobby

Umm … no, Michael, that would have been the Supreme Court of the United States. Without getting into too much detail (Larry Schweikart’s 48 Liberal Lies About American History covers the issue very nicely) and thus diverting attention away from the matter at hand, the SCOTUS decided in a 7-2 decision that ‘selective recounting’ – the precise manner in which Al Gore and the Florida Supreme Court wanted the votes recounted in the heavily Democratic counties of Palm Beach, Miami-Dade, Broward, and Volusia – was unconstitutional. This in turn allowed Florida Secretary of State Katherine Harris to certify Bush as the winner of the state of Florida and thus the victor of the 2000 presidential election.

It seems as though Hall and the Daily Kos, in referring to tea party protestors as ‘extremists’ and ‘crazies’, have chosen to take the same route Rep. Lloyd Doggett did a few days ago, resorting to childish name calling and playing the victim-card rather than engage in intellectual and constructive political dialogue.

Hall claims that the grassroots organization,Right Principles, is ‘anti-government’ and yet if he actually took the time to visit the website and read the organization’s core beliefs (located right on the main home page) then he would know that the accusation is categorically false. The second …

We believe to the fullest extent possible that governmental power should be devolved to the state and local level and that a free society prospers from and depends on the unbridled self-initiative of its people.”

… and the tenth …

“We seek the election of candidates for state and federal office who best reflect these stated core values. We believe that the fight for freedom and liberty is advanced by exposing ineffective or corrupt politicians and leading the charge to remove them from office through the electoral process.”

… of these beliefs make it distinctly clear the organization believes in a form of republican-style government. Just because they believe most of the power should be invested in the state and local governmental agencies rather the centralized federal bureaucracy does not make them ‘anti-government’.

The writer then asserts that these ‘coalition of ‘extremist’ groups’ have a written game plan - of course, he’d be hammering them for being a disorganized rabble if they didn’t - and that the operators of Right Principles have indoctrinated their followers in how to take over a town hall meeting …

“Be disruptive early and often. You need to rock the boat early in the rep’s presentation. Watch for an opportunity to yell out. The goal is to rattle him…stand up and shout out. Look for these opportunities before he even takes questions”

And yet Hall fails to cite a specific source in order to back up this assertion. All he does is simply state in his article that the organizers of the grassroots group, Right Principles, is behind this statement. In quotes, no less. But with no citation pointing to an exact article or document making this declaration and nothing on their website related to this subject, it can just as easily be assumed that Hall is making this up.

Hall then posts a comment by Joe Sudbay of the America Blog describing the tactics of protestors as “thuggery that undermines democratic principles.”  First off, Joe, we do not live in a democracy, but rather a constitutional republic. There is a substantial difference between the two. But that is beside the point. If you really want to know about ‘thuggery’ then why don’t you ask Mike Hall? The union hit men he buddies around with ought to know all about that.

And, finally, let’s wrap things up with an examination of how Mike Hall (and his fellow far-left mouth-pieces) observed specific town hall events/tea party protests …

Hall claims that protestors that attended the town hall meeting with Secretary of Health and Human Services Kathleen Sebelius and political opportunist Senator Arlen Specter held at the National Constitution Center in Philadelphia, Pennsylvania this past Sunday ” shouted and booed loudly enough to drown out remarks from both officials and questions from the audience.” Andrew Monaghan at Panzramic posted YouTube videos of the whole event and they paint an entirely different picture. Andrew has even posted a follow-up video clarifying that these protestors are not being sent out by insurance companies. Amazingly, Hall fails to mention the ACORN and SEIU drones that were in force at the event. Specifically he glosses over how ACORN exploited the amputees, the handicapped, and the disabled to push their agenda.

He cites a Think Progress article which states that “this growing phenomenon is often marked by violence and absurdity,” referring specifically to a rally in Salisbury, Maryland, where an unidentified man was seen hanging Rep. Frank Kratovil in effigy. As Glenn Thrush at Politico and Joe Albero at Salisbury News reported, the event was not officially sanctioned by Americans for Prosperity. A spokeswoman for the organization stated that they “held an event the previous night, where this man passed out flyers asking people to join him the next day at the office for a protest. That is how some AFP members ended up coming, but they were disgusted by his behavior.” Albero confirmed that many who saw the display “immediately walked away and wanted nothing to do with it.”

    Lies, Damn Lies,and Statistics Take 2

    Tuesday, July 7th, 2009

    Today’s eye on the media segment comes from a somewhat out of the way source. The July 3rd edition of the Cape Coral Daily Breeze featured an article by Mckenzie Cassidy entitled “Poll: Affordable Healthcare needed” which in it’s self is nothing all that interesting, I am sure just about every poll in the nation says that. What struck me the most is the byline “Public option gets support”, and where exactly the Cape Coral Daily Breeze is getting their poll from. Turns out the poll they cite is was done by the Flordia chapter of the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO). Which admititdly is like trusting Acorn to fairly count votes in an election.

    I have written previously about polls that were complete trash methodology wise. However, the Cape Coral Daily Breeze seems to omit the good stuff about the poll such as methodology, so it is pretty hard to at first glance to figure out, just how accurate this poll really is, and if it is worth putting any weight behind.

    The only data about the poll that they provide is:

    Of all the people surveyed, 57 percent are members of a union, 64 percent are employed, 20 percent retired and 78 percent are insured.

    However further research calls the validity of this poll into question, as according to the Bureau of Labor Statistics in 2008 union memembers made up only 6.4 percent of the total Flordia workforce, which is quiet a bit less than the percentage of union members polled in the AFL-CIO survey.

    Determining if this is simply a case of a lack of research by a reporter on a deadline or an attempt to hide the inconvient facts that do not support a political agenda, is pretty much impossible. All though it seems to be another case of “Lies, Damn Lies, and Statistics.”

    Data from the BLS

    Reading the Tea Leaves: Are the unions caving on healthcare reform to pass card check?

    Friday, June 26th, 2009

    The symbiotic relationship between Democrats and big labor is a well-established political fact. As go the unions, so go the Democrats. This was perhaps never more obvious than during last year’s presidential primaries where Senators Clinton and Obama fought tooth and nail for union endorsements. So, it’s no surprise that the unions are getting special considerations from Democrats drafting healthcare reform.

    Yesterday, Healthcare Horserace reported that the AFL-CIO had come out in support of the House blueprint on healthcare reform.  Like plans proposed in the Senate, the House plan calls for an employer mandate - a clear nod to the unions and their long-standing efforts to guarantee their members extensive benefit packages from employers. It looks like the Democrats have embraced the “Dance with the one who brought you” maxim after all.

    Of course, union support hasn’t been absolute as the AFL-CIO warned lawmakers against plans to implement a tax on employer-provided benefits as a mechanism for financing reform.

    (A tax on employer-provided health coverage) is an extraordinarily bad idea that would undermine efforts to stabilize the employer-provided health care system. Employers would likely respond by increasing employee cost-sharing to a level at which benefits would become unaffordable for low-wage workers, or by eliminating benefits altogether.

    Taxing health care benefits would not bring down health care costs, either. It would just shift more of those costs onto workers. (Quote attributed to AFL-CIO assistant to the president Gerald Shea.)

    Neither of the aforementioned reactions from big labor are all that surprising. Further extending benefits to workers is a potential boon to union shops and the powerful union lobby has already gotten guarantees from Senate Finance Committee chairman Max Baucus to exempt union members from any taxes levied on employer-provided health benefits.

    Where the union position breaks from logic is on the most controversial proposal coming out of the Democrat camp - the proposed public option insurance plan. The idea of a government-controlled and funded insurance company competing in the open market is so troubling to many that President Obama has gone on the offensive in several formats - including a White House press briefing - to defend it.

    The President himself admits that there are serious risks involved in this endeavor.

    Now, I think that there’s going to be some healthy debates in Congress about the shape that this takes. I think there can be some legitimate concerns on the part of private insurers that if any public plan is simply being subsidized by taxpayers endlessly, that over time they can’t compete with the government just printing money.

    Even if the public option manages to compete “fairly” in the marketplace, the Congressional Budget Office predicts that a public option combined with an employer mandate could result in more than 15 million Americans losing employer provided healthcare and being forced into a public option which would represent a precipitous decline in the quality of care currently afforded to union members.

    So, why then did AFL-CIO executive vice-president Arlene Holt Baker attend a pro-public option rally in Washington, D.C. yesterday? And, what would possess her to say “Healthcare without a quality public plan option to lower costs is totally unacceptable“?

    A single-payer system leaving employers unable to competitively insure their workers seems like a poor bargaining position for the unions - regardless of Democrat promises to exempt union collective bargaining agreements from any mandatory components of healthcare reform. 

    There are some Beltway insiders who believe this move on the part of the unions is a bargaining chip in their efforts to pass the Employee Free Choice Act - known to most as card check. Senator Ted Kennedy’s HELP (Health Education Labor and Pensions) Committee oversees both healthcare reform and the struggling card check. Union leaders are reportedly hedging their bets and believe they will get the best of both worlds. Even with union support, the prospects for a public option don’t look good on Capitol Hill and delivering on card check would cement the power of big labor in America for the foreseeable future.

    Under Sen. Baucus’s Leadership, Unions Would Be Exempt from Taxes

    Tuesday, June 23rd, 2009

    According to a Fox News article, 1 in 8 Americans would have their health care benefits taxed. That is, unless they are unionized. 

    “The tax proposals also likely face strong opposition from some of the President’s and the Democratic party’s key supporters — unions that enjoy more generous health-care benefits won through hard-fought contact negotiations over decades. Apparently anticipating some objections about the possibility of affecting contracts already in place, Baucus has proposed protecting some union benefits by “grandfathering” collective-bargaining agreements existing on January 1, 2013, in his “base plus 10%” and “base plus 20%” options, according to his presentation.”

    Political patronage aside, Sen. Baucus (D-MT) is probably rewarding the unions, such as the SEIU, for their stalwart defense of a public option.

    And while the rest of America fears further taxation to subsidize President Obama’s obscene health care reform plan to socialize insurance, the unions can sit back and relax. After all, they’ve got 17 percent of General Motors, yet another indication that the president is on their side, not that of the American taxpayer. 

     

    President Rejects Tort Reform, Highlights Political Allegiances

    Tuesday, June 16th, 2009

    In an Associated Press piece, Ricardo Alonso-Zaldiver points out that President Obama’s meeting with physicians in the American Medical Association wasn’t the typical tear-filled hysteria that the president is used to witnessing upon his entrance into a room.

    This is because the AMA, like many other medical groups, opposes his plans to nationalize health care through Sen. Ted Kennedy’s (D-MA) bill, “American Health Choices Act.” When confronted about instituting tort reform, ending lawsuit abuse and ultimately resulting in lower health care costs, President Obama refused to side with the doctors, stirring up frustrations and causing those there to boo him.

    “But what could they expect? If Obama announced support for malpractice limits, that would set trial lawyers and unions — major supporters of Democratic candidates — on the attack. Not to mention consumer groups.

    Every other group in the health care debate has a wish list and a top priority. Insurers don’t want competition from the government. Employers don’t want to be told they have to offer medical coverage to their workers. Hospitals want to stave off Medicare cuts. Drug companies want to charge what the market will bear.”

    If one can muddle through the defenses of the AP on behalf of President Obama, there is a pretty important admission here by the mainstream media: Obama owes unions and trial lawyers.

    Yes, health care unions like the SEIU (Service Employees International Union), notorious for their rallies that can turn violent, are owed political favors by Obama.  Unions have contributed 92 percent of their campaign donations to Democrats since 1990. That comes to a grand total of $614 million. Republicans received a meager $53 million since 1990, or $2.94 million annually, as opposed to the Democrats’ $34.1 million a year. The SEIU, by the way, endorses a public option plan.

    And of course, trial lawyers, whose abundance of wealth often stems from “ambulance chasing,” or seeking the maximum pay-out for a medical injury as a result of an accident or medical error. This practice results in the skyrocketing of insurance costs for physicians, who live every day in fear of being sued by a patient. These costs get passed onto the consumers, or other patients, who subsidize frivolous lawsuits. 

    In a 2007 article on law.com, an online version of the Legal Times, the author points out this interesting factoid about then-Democratic candidate Sen. Obama:

     

    “Despite Obama’s silence on trial lawyer issues in the current campaign, he co-sponsored the National Medical Error Disclosure and Compensation Act with Sen. Clinton in 2005. That legislation, which never made it to the full Senate for a vote, would have created a system for doctors and injured patients to negotiate out of court, but it did not include caps on medical malpractice claims.

    ‘Barack was a practicing civil rights attorney and constitutional law professor. This excites trial lawyers,’ says Wagar. ‘[Civil rights are] the reason we’re able to take on [General Motors] and pharmaceutical companies. He speaks to that.”

    What a scary, scary foreshadowing of what was to come for both the automobile and medical industries. And furthermore, according to campaignmoney.com, self-described trial lawyers donated 79 percent of their contributions to Democrats since 1999. 

    At least the Associated Press is being honest. They’re breaking it down into teams:

    TEAM A: President Obama, Liberals, Unions, Trial Lawyers
    TEAM B: Doctors, Insurance Companies, Non-unionized Hospital Employees, Employers,  Pharmaceutical Companies (and I’d like to throw in taxpayers, patients and free enterprise).

    I think we should join in with the AMA and boo President Obama. While he claims he wants to cut down costs, he’s refusing to acknowledge that one of the most obvious causes for high costs of health care is the refusal of the federal government to institute tort reform. And we are all paying the price because of it.

    EPI: “Fine line” between hospital and unemployment line

    Wednesday, June 10th, 2009

    A left-leaning public policy organization, the Economic Policy Institute, discusses the relationships among employer health packages, unions and employers, concluding: “It’s not that American workers no longer want unions,” said Bronfenbrenner. “It’s that they have come to understand that employers have an arsenal of tactics, legal and illegal, that they will use against them.”

    This is not untrue.

    But it displays a common problem among liberal thinkers when it comes to corporations, employees, and the value of regulation and unions. In a market or employment environment where there are few choices of employment within a geographic area or within an industry, employers do tend to take up monopsonistic activity — that is, they tend to act like they can demand or buy the services of employees more strictly according to their needs with less leverage available to an employee.

    In a market with less regulation and greater ease for entry and exit of firms, the creation of firms more easily form with a greater ability to deliver a product or service than existing firms. Naturally, firms which produce a product or service more efficiently or of higher quality than others tends to reward it employees more and often gain a reputation for positive employee relations. It’s often a snowball effect: greater employee relations, happier employees, better products or services.

    Thus, the greatest effort should be put forth to build an environment where the potential for new firms holds in check the behavior of existing firms, particularly, in this instance, firms that offer quality health care coverage. A low tax environment, including a tax environment which incentivizes health care savings accounts (and the like), can help facilitate the creation of new firms. Firms such as those that entrepreneurial individuals like the focus of that article, Angel Warner, seem capable of developing.

    A Brief Summary of How the Health Care Battle Will Play Out

    Monday, June 1st, 2009

    The start of the Obama presidency has been a barn burner.  No matter what side of the aisle you’re on, more thing have happened in less than five months time than we could possible even remember.  But everything has had a similar ring to it.  It’s been big!

    To the President’s credit, some of the standouts have been a $787 Billion dollar stimulus plan (in February), a $3.4 Trillion spending plan (in April), a complete government take over of a major private company in General Motors (in June) to the eventual takeover of an entire industry in health care.  But as the Washington Post said back in April, passing the president’s spending plan set “…the stage for President Obama to pursue the first major overhaul of the nation’s health-care system”.

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