A Socialized Christmas

Dec 15, 2010 | Economy, Taxes

By Dr. Harold Pease

I do not usually write satire but here is a scary proposition that could come true as witnessed by other extreme laws recently passed.  The country is now 13½  trillion dollars in debt and it is incorrectly believed, by the less informed—mostly socialists—that the only way to solve this problem is to increase taxes.

Congress recently discovered how unfair Christmas really is as some get more presents than others.  To correct this injustice a 1,500 page law called the Christmas Equalization Act is working it’s way through judiciary committees in both the House and Senate and will be on the floor of both houses very soon.  Members are not likely to read it, as on other long-winded laws, but they are likely to pass a conceptual document instead from which lawyers spin the actual words—now an all too common practice.

Under the new law, to begin next year, shoppers buying for loved-ones are required to identify receivers at check out for each gift and it’s amount. Retail stores are to then fill out form13,208, The Affidavit of Christmas Gifts, passing that information to the IRS for national list tabulation.

The total allotment per Christmas per person is 20 gifts.  Totals exceeding this number in intervals of 10 will be assessed a gradual value added tax up to 70% of the value of the gifts in excess.  This amount will be given to those suffering from Christmas Depravation Syndrome, recently discovered by psychologists to inhibit the development of ambition and drive.  Overall value is also taxed if exceeding a total of $200 beginning at 25% and at $50.00 increments ending at 100% for any total exceeding $400.00 dollars.  This information is submitted on The Affidavit of Excess Christmas Value (Form 13,209).  If you have problems following these formulas so do the lawyers who made them up but it does help ensure full employment for them for decades to come sorting it out.

Those applying for benefits could do so in the same place and same way they get food stamps or any other benefits. One idea receiving strong support is to turn it over instead to ACORN or some other reputable organization already in existence.

The more likely option, however, is to create a whole new department, as the necessary monitoring would require at least 15,000 new federal agents to oversee.  It certainly would create much needed employment, which would stimulate the economy.  Recipients, however, would have to fill out another simple10 page form called the Underprivileged Christmas Affidavit (Form 13,210) which also allows participants to identify favorite gifts. Recipients would not be limited to 20 gifts as it is certain that they have been “gift deprived” for some time, nor would they have a total value limit placed upon them for the same reason.

The excess taxes are thought to be sufficient for funding the under-gifted, but critics are skeptical about it’s ability to fund the 15,000 federal agents as well.  Some say that gift givers will lower the number to the 20 gifts thus avoiding the excess tax altogether, leaving the taxpayer to fund both the “under gifted” and the agents thus, increasing the national debt.  Proponents say that such is just uncompassionate right-wing extremist talk.

Other legislation on the table is to tax excessive tree length, Christmas decorations, and turkey size.  There are so many injustices to alleviate.   Some few have even suggested making the holiday illegal.  Lawmakers hope to expand the legislation to Hanukkah next year for the same reasons.

Merry Christmas, my liberty loving friends.

Dr. Harold Pease is an expert on the United States Constitution. He has dedicated his career to studying the writings of the Founding Fathers and applying that knowledge to current events. He has taught history and political science from this perspective for over 25 years at Taft College.

A Government-Made Recession

Sep 8, 2010 | Economy

By Dr. Harold Pease

By mid 2008 almost everybody knew that we were in deep financial trouble. But the forces that brought it about actually began decades ago with The Community Reinvestment Act in 1977. This legislation “forced lending institutions to grant mortgages to people whose income, credit histories, and net worth would previously have disqualified them from getting such loans.”

An old adage suggests that in getting a loan from a bank the recipient must first prove that he does not need one by listing his assets.  The bank uses this list to retrieve all or a portion of what is owed should the recipient default on the loan. The less invested or potentially lost the easier it is for the recipient to walk or default.  Such is long standing wisdom and favors the more industrious individuals, as it should.  What this means in real life is that high crime or impoverished areas of town do not attract investors as readily.

Socialists (share the wealth advocates) saw a race connection, thus injustice, when it was realized that “only 72 percent of minority applicants were approved for mortgages, versus 89 percent of white applicants.”   Moral outrage followed which was resolved by legislation ”forcing lending institutions to loan money to people they would otherwise not lend to and in places where they would otherwise not put their money” (“Government Bailout,” The New American, Sept. 29, 2008, pp.11-15).  This forced banks “to engage in far-riskier lending practices or receive a failing CRA (Community Reinvestment Act) grade.  To avoid an ‘F’ from the CRA, which could jeopardize their viability, the banks were pressured to direct hundreds of billions of dollars in high-risk mortgages to inner-city and low-income neighborhoods.  Moreover, under CRA pressure, banks would ‘hire’ radical, non-profit groups like ACORN to find them customers.”

Banks too benefited as the government organizations Fannie Mae and Freddie Mac would buy these poor-quality loans, now referred to as “sub-prime” loans and take them off the banks’ books (Human Events, Oct. 13, 2008, p 8).  It seemed good for everyone.  I watched in horror as “kids” with little or no credit purchased homes well above their means and home prices doubled in a  “fake-value” bubble.  There seemed no consequence for risky behavior.

Please note: these faulty loans were brought about by government intervention and regulation, not the free market.

If a person has not repaid previous loans what is the probability that he will repay a new loan?  Should exceptions be made for individuals who are non-white?  Race should have nothing to do with lending.  But banks insisted on giving loans anyway to meet new government race-based quotas.  Politicians were loved because they had helped some live beyond their means with zero down loans.  Key politicians received healthy contributions from the two government entities that kept them from exercising sufficient scrutiny over the process.

When the defaults inevitably began, investors purchasing the Fannie Mae and Freddie Mac “sub-prime” bundles quickly became leery of them and stock in these two government entities plummeted in late 2008.  Congress responded with The American Housing Rescue and Foreclosure Prevention Act of 2008 which raised the federal debt limit to $800 billion.  The two organizations were considered to be too big to fail.  Unfortunately the housing bailout did not restore confidence and property values continued plummeting at somewhere near the foreclosure rate, plus the national debt skyrocketed.

Now getting a loan for everyone is very difficult.  Old businesses are retracting (laying off) to survive. Regular businesses cannot expand (hire) without growth capital.  New businesses cannot be created without someone’s risk capital.  Those able to risk will not do so until the storm passes and the storm is going to be with us for a while.  Thanks, Congress. You flunked Economics 101.

Dr. Harold Pease is an expert on the United States Constitution. He has dedicated his career to studying the writings of the Founding Fathers and applying that knowledge to current events. He has taught history and political science from this perspective for over 25 years at Taft College.

How To Cut the State or Federal Bureaucracy Before It is Too Late

Aug 3, 2010 | Economy, Taxes

By Dr. Harold Pease

The bureaucracy is out of control, enlarging itself at every turn.  “The Blob” comes to mind; an enemy absorbing and devouring people, ever enlarging itself as it does.

Congress either creates the bureaucracy or allows the President to do so because it does most of their law-making work for them (all of this is done without proper constitutional authority, of course).  A recent example is the 2700 page National Healthcare Bill that created 159 separate organizations to manage it, each capable of hundreds of additional rules and regulations.  Conveniently, the bureaucracy also leaves them with an “enemy” of their own making to “combat.” Constituents love “bureaucracy bashing.”

Seemingly there is no way to stop the bureaucracy’s growth. Soon the growth, like cancer, must be fed.  In this case, it is fed by taxes.  While this is obvious to everyone else, it is seldom so to the enlarging bureaucracy whose new adherents become ever more vocal with a vested interest in its defense, sustainment, and again enlargement.

Obviously any plan to succeed in reducing their size and consumption must have their full support.  In other words, Goliath must agree to undertake one serious diet, or it will never happen.

Some thirty years ago such a plan by F. F. McClatchie came across my desk that I have modified slightly. What follows is that plan, and I invite public comment.  It is simple.

One, immediately freeze all state or federal hiring of new employees.  There will be resistance, but not enough to stop this step because “their” job is secure.

Two, lay off 10% of all existing employees each year, selecting those to be laid off by lottery.  This ensures that the layoffs will be “fair,” that is, the bureaucrats can’t play with the deck.  That way, those who are part of the fat are not in charge of cutting the fat. This step will meet serious resistance, so it must be accompanied by the next step.

Three, continue to pay the laid-off bureaucrats at their wages as of the layoff date.  This would ensure their full cooperation.  In fact, their full-time vacations would no doubt thrill them.  This would save billions of dollars, since they would no longer occupy office space or waste paper, to say nothing of working mischief.  They could no longer interfere with business, saving countless billions for productive uses.  Almost no one would reject this offer. However, it can’t go on forever, as it is immoral to pay someone for doing nothing.

Four, reduce each laid-off employee’s paycheck by 10% per year. This would ensure that sooner or later they would seek productive employment.  They may choose to bank the new salary or vacation a year or two before returning to full employment in the private sector.  In the meantime, they will spend the money on hobbies, travel, etc., and keep the economy roaring along with no additional tax burden and no requirement for a big bureaucracy to administer welfare.

Fifth, continue this process until the government is operating efficiently at approximately 1/10th the current payroll or less.  The few who might reject the program could continue as part of the 1/10th that remain.

The nation is close to bankruptcy. California leads a pack of states following closely behind, all with the same problem.  We desperately need a solution that works.  Do you think this would work?  Again, I invite public comment.

Dr. Harold Pease is an expert on the United States Constitution. He has dedicated his career to studying the writings of the Founding Fathers and applying that knowledge to current events. He has taught history and political science from this perspective for over 25 years at Taft College.

“Make Mine Freedom” vs “The Story of Stuff”

Apr 20, 2010 | Economy

By Katie Pease

Too bad they don’t show cartoons like this in school now. Compare this cartoon, which celebrates the free market system and applauds America for her contributions to the world with the one below that our children are shown in school today.

Then:

“Make Mine Freedom” (1948)

Below is “The Story of Stuff”, which vilifies our system and makes Americans out to be consuming monsters. It is filled with errors and blatant lies. To see a well-made debunking of the video below, check out “Story of Stuff, The Critique” on YouTube. Ask you kids if they have seen this at school.  If they have, it’s time to have a talk with them and possibly with your school administration.

Now:

“The Story of Stuff” (2007)

Talking to our children about political philosophy is as important now as talking to them about drugs and sex education. If we leave it to the schools, they will be indoctrinated by liberalism. Take the egg out, turn on the burner, and bring out the pan. Show them the egg and say “This is your brain.” Then fry the egg and tell them “This is your brain on liberalism. Any questions?”  It’s time to teach them before they are exposed to this kind of propaganda. And if it’s too late for that, arm them with the skills to spot the lies when they hear them. Our freedom and theirs depends on it.

Good News! Thousands of New Government Jobs Are Coming!

Apr 15, 2010 | Economy

By Katie Pease

Tired? Poor? Homeless and tempest-tossed? Well have I got a deal for you! Lady Liberty has lifted her beacon beside the golden door and is ready to place at your feet everything you will ever need. After all, ask not what you can do for your country, but what your country can do for you. The United Nanny States of America have created so many new government jobs in the new health care reform bill that there should be enough jobs to go around for everyone. There is a committee and commission for just about anything you can imagine now. Take your pick! For the low price of your freedom and at the expense of our American financial system, you too can have a fulfilling government job.

An anonymous someone has sifted through the health care bill and put together a list of all of these commissions and committees. It’s hard to imagine someone could have the time to do so, but then about 9.7% of us seem to have a lot of time on our hands these days (actually more like 22% of us, according to this article in the NY Post).

Don’t believe these committees and commissions are legit? Read them for yourself in the health care bill. I dare you to read the whole thing without going blind. H.R. 3590


Committees and Commissions Created in Health Care Bill

1. Grant program for consumer assistance offices (Section 1002, p. 37)

2. Grant program for states to monitor premium increases (Section 1003,p. 42)

3. Committee to review administrative simplification standards (Section 1104, p. 71)

4. Demonstration program for state wellness programs (Section 1201, p. 93)

5. Grant program to establish state Exchanges (Section 1311(a), p. 130)

6. State American Health Benefit Exchanges (Section 1311(b), p. 131)

7. Exchange grants to establish consumer navigator programs (Section 1311(i), p. 150)

8. Grant program for state cooperatives (Section 1322, p. 169)

9. Advisory board for state cooperatives (Section 1322(b)(3), p. 173)

10. Private purchasing council for state cooperatives (Section 1322(d), p. 177)

11. State basic health plan programs (Section 1331, p. 201)

12. State-based reinsurance program (Section 1341, p. 226)

13. Program of risk corridors for individual and small group markets (Section 1342, p. 233)

14. Program to determine eligibility for Exchange participation (Section 1411, p. 267)

15. Program for advance determination of tax credit eligibility (Section 1412, p. 288)

16. Grant program to implement health IT enrollment standards (Section 1561, p. 370)

17. Federal Coordinated Health Care Office for dual eligible beneficiaries (Section 2602, p. 512)

18. Medicaid quality measurement program (Section 2701, p. 518)

19. Medicaid health home program for people with chronic conditions, andgrants for planning same (Section 2703, p. 524)

20. Medicaid demonstration project to evaluate bundled payments (Section 2704, p. 532)

21. Medicaid demonstration project for global payment system (Section 2705, p. 536)

22. Medicaid demonstration project for accountable care organizations (Section 2706, p. 538)

23. Medicaid demonstration project for emergency psychiatric care (Section 2707, p. 540)

24. Grant program for delivery of services to individuals with postpartum depression (Section 2952(b), p. 591)

25. State allotments for grants to promote personal responsibility education programs (Section 2953, p. 596)

26. Medicare value-based purchasing program (Section 3001(a), p. 613)

27. Medicare value-based purchasing demonstration program for critical access hospitals (Section 3001(b), p. 637)

28. Medicare value-based purchasing program for skilled nursing facilities (Section 3006(a), p. 666)

29. Medicare value-based purchasing program for home health agencies (Section 3006(b), p. 668)

30. Interagency Working Group on Health Care Quality (Section 3012, p. 688)

31. Grant program to develop health care quality measures (Section 3013, p. 693)

32. Center for Medicare and Medicaid Innovation (Section 3021, p. 712)

33. Medicare shared savings program (Section 3022, p. 728)

34. Medicare pilot program on payment bundling (Section 3023, p. 739)

35. Independence at home medical practice demonstration program (Section 3024, p. 752)

36. Program for use of patient safety organizations to reduce hospital readmission rates (Section 3025(b), p. 775)

37. Community-based care transitions program (Section 3026, p. 776)

38. Demonstration project for payment of complex diagnostic laboratory tests (Section 3113, p. 800)

39. Medicare hospice concurrent care demonstration project (Section 3140, p. 850)

40. Independent Payment Advisory Board (Section 3403, p. 982)

41. Consumer Advisory Council for Independent Payment Advisory Board (Section 3403, p. 1027)

42. Grant program for technical assistance to providers implementing health quality practices (Section 3501, p. 1043)

43. Grant program to establish interdisciplinary health teams (Section 3502, p. 1048)

44. Grant program to implement medication therapy management (Section 3503, p. 1055)

45. Grant program to support emergency care pilot programs (Section 3504, p. 1061)

46. Grant program to promote universal access to trauma services (Section 3505(b), p. 1081)

47. Grant program to develop and promote shared decision-making aids (Section 3506, p. 1088)

48. Grant program to support implementation of shared decision-making (Section 3506, p. 1091)

49. Grant program to integrate quality improvement in clinical education (Section 3508, p. 1095)

50. Health and Human Services Coordinating Committee on Women’s Health (Section 3509(a), p. 1098)

51. Centers for Disease Control Office of Women’s Health (Section 3509(b), p. 1102)

52. Agency for Healthcare Research and Quality Office of Women’s Health (Section 3509(e), p. 1105)

53. Health Resources and Services Administration Office of Women’s Health (Section 3509(f), p. 1106)

54. Food and Drug Administration Office of Women’s Health (Section 3509(g), p. 1109)

55. National Prevention, Health Promotion, and Public Health Council (Section 4001, p. 1114)

56. Advisory Group on Prevention, Health Promotion, and Integrative and Public Health (Section 4001(f), p. 1117)

57. Prevention and Public Health Fund (Section 4002, p. 1121)

58. Community Preventive Services Task Force (Section 4003(b), p. 1126)

59. Grant program to support school-based health centers (Section 4101, p. 1135)

60. Grant program to promote research-based dental caries disease management (Section 4102, p. 1147)

61. Grant program for States to prevent chronic disease in Medicaid beneficiaries (Section 4108, p. 1174)

62. Community transformation grants (Section 4201, p. 1182)

63. Grant program to provide public health interventions (Section 4202, p. 1188)

64. Demonstration program of grants to improve child immunization rates (Section 4204(b), p. 1200)

65. Pilot program for risk-factor assessments provided through community health centers (Section 4206, p. 1215)

66. Grant program to increase epidemiology and laboratory capacity (Section 4304, p. 1233)

67. Interagency Pain Research Coordinating Committee (Section 4305, p. 1238)

68. National Health Care Workforce Commission (Section 5101, p. 1256)

69. Grant program to plan health care workforce development activities (Section 5102(c), p. 1275)

70. Grant program to implement health care workforce development activities (Section 5102(d), p. 1279)

71. Pediatric specialty loan repayment program (Section 5203, p. 1295)

72. Public Health Workforce Loan Repayment Program (Section 5204, p. 1300)

73. Allied Health Loan Forgiveness Program (Section 5205, p. 1305)

74. Grant program to provide mid-career training for health professionals (Section 5206, p. 1307)

75. Grant program to fund nurse-managed health clinics (Section 5208, p. 1310)

76. Grant program to support primary care training programs (Section 5301, p. 1315)

77. Grant program to fund training for direct care workers (Section 5302, p. 1322)

78. Grant program to develop dental training programs (Section 5303, p. 1325)

79. Demonstration program to increase access to dental health care in underserved communities (Section 5304, p. 1331)

80. Grant program to promote geriatric education centers (Section 5305, p. 1334)

81. Grant program to promote health professionals entering geriatrics (Section 5305, p. 1339)

82. Grant program to promote training in mental and behavioral health (Section 5306, p. 1344)

83. Grant program to promote nurse retention programs (Section 5309, p. 1354)

84. Student loan forgiveness for nursing school faculty (Section 5311(b), p. 1360)

85. Grant program to promote positive health behaviors and outcomes (Section 5313, p. 1364)

86. Public Health Sciences Track for medical students (Section 5315, p. 1372)

87. Primary Care Extension Program to educate providers (Section 5405, p. 1404)

88. Grant program for demonstration projects to address health workforce shortage needs (Section 5507, p. 1442)

89. Grant program for demonstration projects to develop training programs for home health aides (Section 5507, p. 1447)

90. Grant program to establish new primary care residency programs (Section 5508(a), p. 1458)

91. Program of payments to teaching health centers that sponsor medical residency training (Section 5508(c), p. 1462)

92. Graduate nurse education demonstration program (Section 5509, p. 1472)

93. Grant program to establish demonstration projects for community-based mental health settings (Section 5604, p. 1486)

94. Commission on Key National Indicators (Section 5605, p. 1489)

95. Quality assurance and performance improvement program for skilled nursing facilities (Section 6102, p. 1554)

96. Special focus facility program for skilled nursing facilities (Section 6103(a)(3), p. 1561)

97. Special focus facility program for nursing facilities (Section 6103(b)(3), p. 1568)

98. National independent monitor pilot program for skilled nursing facilities and nursing facilities (Section 6112, p. 1589)

99. Demonstration projects for nursing facilities involved in the culture change movement (Section 6114, p. 1597)

100. Patient-Centered Outcomes Research Institute (Section 6301, p. 1619)

101. Standing methodology committee for Patient-Centered Outcomes Research Institute (Section 6301, p. 1629)

102. Board of Governors for Patient-Centered Outcomes Research Institute (Section 6301, p. 1638)

103. Patient-Centered Outcomes Research Trust Fund (Section 6301(e), p. 1656)

104. Elder Justice Coordinating Council (Section 6703, p. 1773)

105. Advisory Board on Elder Abuse, Neglect, and Exploitation (Section 6703, p. 1776)

106. Grant program to create elder abuse forensic centers (Section 6703, p. 1783)

107. Grant program to promote continuing education for long-term care staffers (Section 6703, p. 1787)

108. Grant program to improve management practices and training (Section 6703, p. 1788)

109. Grant program to subsidize costs of electronic health records (Section 6703, p. 1791)

110. Grant program to promote adult protective services (Section 6703, p. 1796)

111. Grant program to conduct elder abuse detection and prevention (Section 6703, p. 1798)

112. Grant program to support long-term care ombudsmen (Section 6703, p. 1800)

113. National Training Institute for long-term care surveyors (Section 6703, p. 1806)

114. Grant program to fund State surveys of long-term care residences (Section 6703, p. 1809)

115. CLASS Independence Fund (Section 8002, p. 1926)

116. CLASS Independence Fund Board of Trustees (Section 8002, p. 1927)

117. CLASS Independence Advisory Council (Section 8002, p. 1931)

118. Personal Care Attendants Workforce Advisory Panel (Section 8002(c), p. 1938)

119. Multi-state health plans offered by Office of Personnel Management (Section 10104(p), p. 2086)

120. Advisory board for multi-state health plans (Section 10104(p), p. 2094)

121. Pregnancy Assistance Fund (Section 10212, p. 2164)

122. Value-based purchasing program for ambulatory surgical centers (Section 10301, p. 2176)

123. Demonstration project for payment adjustments to home health services (Section 10315, p. 2200)

124. Pilot program for care of individuals in environmental emergency declaration areas (Section 10323, p. 2223)

125. Grant program to screen at-risk individuals for environmental health conditions (Section 10323(b), p. 2231)

126. Pilot programs to implement value-based purchasing (Section 10326, p. 2242)

127. Grant program to support community-based collaborative care networks (Section 10333, p. 2265)

128. Centers for Disease Control Office of Minority Health (Section 10334, p. 2272)

129. Health Resources and Services Administration Office of Minority Health (Section 10334, p. 2272)

130. Substance Abuse and Mental Health Services Administration Office of Minority Health (Section 10334, p. 2272)

131. Agency for Healthcare Research and Quality Office of Minority Health (Section 10334, p. 2272)

132. Food and Drug Administration Office of Minority Health (Section 10334, p. 2272)

133. Centers for Medicare and Medicaid Services Office of Minority Health (Section 10334, p. 2272)

134. Grant program to promote small business wellness programs (Section 10408, p. 2285)

135. Cures Acceleration Network (Section 10409, p. 2289)

136. Cures Acceleration Network Review Board (Section 10409, p. 2291)

137. Grant program for Cures Acceleration Network (Section 10409, p. 2297)

138. Grant program to promote centers of excellence for depression (Section 10410, p. 2304)

139. Advisory committee for young women’s breast health awareness education campaign (Section 10413, p. 2322)

140. Grant program to provide assistance to provide information to young women with breast cancer (Section 10413, p. 2326)

141. Interagency Access to Health Care in Alaska Task Force (Section 10501, p. 2329)

142. Grant program to train nurse practitioners as primary care providers (Section 10501(e), p. 2332)

143. Grant program for community-based diabetes prevention (Section 10501(g), p. 2337)

144. Grant program for providers who treat a high percentage of medically underserved populations (Section 10501(k), p. 2343)

145. Grant program to recruit students to practice in underserved communities (Section 10501(l), p. 2344)

146. Community Health Center Fund (Section 10503, p. 2355)

147. Demonstration project to provide access to health care for the uninsured at reduced fees (Section 10504, p. 2357)

148. Demonstration program to explore alternatives to tort litigation (Section 10607, p. 2369)

149. Indian Health demonstration program for chronic shortages of health professionals (S. 1790, Section 112, p. 24)*

150. Office of Indian Men’s Health (S. 1790, Section 136, p. 71)*

151. Indian Country modular component facilities demonstration program (S. 1790, Section 146, p. 108)*

152. Indian mobile health stations demonstration program (S. 1790, Section 147, p. 111)*

153. Office of Direct Service Tribes (S. 1790, Section 172, p. 151)*

154. Indian Health Service mental health technician training program (S. 1790, Section 181, p. 173)*

155. Indian Health Service program for treatment of child sexual abuse victims (S. 1790, Section 181, p. 192)*

156. Indian Health Service program for treatment of domestic violence and sexual abuse (S. 1790, Section 181, p. 194)*

157. Indian youth telemental health demonstration project (S. 1790, Section 181, p. 204)*

158. Indian youth life skills demonstration project (S. 1790, Section 181, p. 220)*

159. Indian Health Service Director of HIV/AIDS Prevention and Treatment (S. 1790, Section 199B, p. 258)*


*Section 10221, page 2173 of H.R. 3590 deems that S. 1790 shall be deemed

as passed with certain amendments.