Monday, June 29, 2009

Debunking Arguments Against the Necessity and Efficacy of the Government Health Plan

Before we get to the actual substantive arguments, I'd like to call attention to an often-used tactic, in this case by the shameless Diane Feinstein, who opined today that criticism from the left on healthcare "doesn't move me one whit" and who also has taken campaign contributions from the healthcare industry (though in fairness not nearly as much as some of her democratic colleagues in Congress. Feinstein said on CNN, “I don’t know that [Obama] has the votes right now. I think there’s a lot of concern in the Democratic caucus.” And that controlling costs of the new system is a “difficult subject.”

The idea is to convince us that the ship has already sailed, that though a a majority of Americans support the option of a public plan (and an even larger majority of her democratic constituents), the effort has already failed. You see this tactic used all the time. In the primaries, the Clintons tried to convince people that Obama would never win enough white male votes to get elected, so Hillary was the only option. Yes, we know you want Obama, but he's already lost. No use pining for what you can't have... So, here's Feinstein trying to portray the situation as something that's already failed because then there's nothing she could or should do about it. Ordinarily I'd do my job, but the task before me is impossible, or in any case, highly improbable, so you see, there's no point in getting upset about it. Of course, the left (and not merely the left), are upset about it. So Feinstein has a choice - either acknowledge the clearly-expressed will of her constituents, or like Ayatollah Khameni, declare the protesters insignificant. One wonders how disconnected a public servant is from her central mission when the public will is something to be dismissed.

But I digress - as the point of this post was to debunk bad arguments against the public health option. So above - we can't have a government option because it's too hard to pass is false. That's a determination to be made after the fact, not as an excuse for inaction beforehand. Everyone has challenges at work. This is your job, Senator Feinstein. Shut up and do it. Or as a friend of mine likes to say: "I don't want to hear about the pain - just show me the baby."

Second, the argument that the government can't run anything as competently as private for-profit industry. This is also patently false. Medicare's administrative costs amount to three percent of its budget - private insurance's more than 27 percent. Moreover, private insurers need to make a profit, the government just needs to break even. Our system of for profit insurance has resulted in the 37th best care in the world at the highest cost. Almost every country ahead of us, including the very top ones on the list, have some form of socialized care that costs less than ours and has far better outcomes.

Third, if we socialize healthcare, we'll become socialist. False. Our police and fire departments are socialized; so is our criminal justice system and our water supply. That doesn't mean you can't hire a security guard or buy bottled water. It does mean that many of our essential services are run by the government. Health care is an essential service.

Fourth, the free market is more efficient at setting prices for care than the government. This is false for two reasons (1) because one who needs an essential medical treatment isn't in a good position to bargain for a good price; and (2) because in many cases one lacks the expertise to determine whether a particular medical procedure is necessary. If the buyer has no choice but to buy no matter the cost, the market cannot possibly be efficient. And if the buyer lacks a proper basis to make an informed purchase, he's put in the position of trusting the seller to decide whether and how much he should buy. How anyone could possibly think such a system would be anything but disastrous to the American consumer is mind boggling. Health care is not like the latest electronic device where you are perfectly free to buy it or not buy it based on your financial situation and your personal priorities. You can also pretty easily grasp the pros and cons of owning that device on your own. In cases like that, the free market works perfectly well. Not so with healthcare.

Fifth, if the government's running health care, it'll put private health insurers out business. Might be true, might be false. Who cares? If it puts them out of business, then it proves the point that the government plan was a better deal. If it doesn't put them out of business, then it's false. Either way, it's not a serious objection. In fact, it's actually the point of the public plan - either to demonstrate the raw deal we're getting or to force the private insurers to come up with a fair one.

Sixth, turning insurance over to government and cutting costs will stifle innovation, e.g,, life-saving medical devices and drugs. Maybe, maybe not. Some of the biggest "innovations," e.g,, cholesterol lowering drugs, make a ton of money for the pharmaceutical companies, but do not significantly reduce the risk of heart disease. When profit is the chief motive for medical researchers, then they will do what most reliably yields a profit. Marketing drugs as life saving based on what they can do (lower cholesterol) is easier than to make drugs that actually save lives. Real innovation in any field is difficult. You can't just throw a billion dollars at Jerry Bruckheimer and expect him to make art with it. What you usually get is product, commerce. Something that can be marketed and sold. While it's not impossible for creative breakthroughs to happen while chasing the money (Fyodor Dostoevsky wrote many of his novels to pay off his gambling debts), it's the exception rather than the rule, and it's unclear that researchers motivated by smaller profits and something as pathetic as the good of mankind would fare worse.

Seventh, we can't afford it. This is the stupidest argument of all. First off, the current for profit system is what no one can seem to afford, least of all the federal government for which it's the biggest long-term liability. Second, if people don't get care, and remain sick, they'll continue to fill emergency rooms, costing more money than if they received timely treatment. Third, chronically sick people are unproductive in the workforce and drain otherwise productive family members who need to speed time caring for them. The cost in GDP of having substandard care for a substantial number of American workers must also be taken into account.

Never mind that treating the sick - rather than squeezing every last penny out of them and their families - is also the right thing to do.


Thursday, June 25, 2009

Who Socialized the Water Supply?

How are Arrowhead and Poland Spring expected to compete?

Obama is a Conservative


When you get past the social issues that go in and out of favor with different parties (abortion being legal is actually an example of limited government and was not always anathema to conservatives) and consider conservatism as a posture toward governing, Obama is more conservative than his predecessor.

For starters, Obama believes in incremental rather than radical change. Even though he believes that single payer government run healthcare is how we'd do it if we started from scratch, he's going to work within our current system because he's sensitive to the impact dismantling the healthcare industry, however corrupt and incompetent, would have on the economy.

Even though the banks and the car companies were inept and reckless, he opted to bail them out because he did not want radical disturbances to ripple through the economy. On Iran, he showed restraint in not siding with one presidential candidate over another, but merely condemned the violence against peaceful protesters. In other words, he didn't not meddle or involve the United States in a conflict that on this occasion had nothing to do with us.

It would seem that being conservative (in its most positive sense) is to be humble and restrained. You are rightfully wary of radical change because you can't possibly know the outcome (unlike the neocons who arrogantly and wrongly assumed things would go smoothly after they invaded Iraq and dismantled its army). You act only out of necessity (as when the financial system nearly collapsed), but not out of choice. You regulate financial markets to ensure they serve their function - to grease the wheels of commerce, and so they don't devolve into casinos that produce short-term revenue but ultimately destroy long-term wealth creation.

Changing the health care system is also a move of necessity with long-term costs threatening to destroy our fiscal outlook and already bankrupting millions of citizens. Moreover, our outcomes are among the worst in the civilized world and our costs are the highest. To do so without starting from scratch is the conservative way to go about it.

There are times I wish he were far more radical and willing to take the hammer to the crooks in health insurance, banking and other corrupt industries that have stolen from the public for decades. I'd like to see him prosecute the Bush administration for torture and take on the corn lobby that helps poison our food supply. But if Obama were that guy, he would probably not have been elected president. And even though a more radical approach that emphasized instant justice would be more satisfying, its side effects and potential backlash are impossible to know.

Monday, June 8, 2009

If You Kill the Government Health Care Option I Will Make it My Mission in Life to Run You Out of Government

Let me start by saying my health care plan sucks. It's a joke. For example, I need to have ankle surgery, but it doesn't cover rehab. Of course, anyone who has surgery needs rehab, but it's not covered. Moreover, the surgeon recommended trying rehab first, which I did, but stopped when I found out it wasn't covered.

The reason I have such a terrible plan is twofold: (1) It's cheap, and (2) I didn't have a better choice. Let me explain. For five years, I saw a doctor in his late 70s as my primary care physician. He was a decent man who genuinely cared about his patients, but in retrospect, I believe he was getting slightly senile. (He retired a couple years ago). I believe this doctor (in retrospect) was a bit panicky about certain harmless symptoms I had and wanted to put me on statins and other harmful medications I didn't need, which I refused. Except that when I went to change to a more comprehensive plan, they downgraded my status to Tier 4, based largely on that doctor's diagnoses. I appealed and lost, and so I had the choice of paying $500 a month for myself (I was 36 at the time with no known health problems other than torn ligaments in my ankle), or $79 dollars for a terrible plan (Tier 1 price). I chose the former, as I didn't want to give up my tier 1 status.

Now that I have a few other health problems, thyroid, adrenal glands, pre-diabetes, and still the chronically sprained ankle for which I am going to shell out $6000 in out of pocket costs for the surgery, I realize how meager the scope of my coverage is.

While there are many factors as to why health insurance is a joke in this country (from drug company lobbyists, to our poisonous food supply to the lack of preventative care), there's little doubt that the bloated infrastructure and big CEO paychecks of health insurance companies are a major one. If one is sick, one needs someone with knowledge (a doctor or nurse) and the best materials/medicine/technology for treatment. The costs of those two things are unavoidable. Throw in the rent for the doctor's office, the salary of the receptionists - that's all fine.

But why the fuck are we paying the salaries of the incompetent health care customer service, their office overhead, their marketing and advertising costs, their adjusters, their lawyers, their lobbyists, their management, including their wealthy CEOs? How did this slippery middleman weasel and connive his way into a huge piece of our paychecks in an area we have but no choice in?

It is quite easy to find doctors online. One does not need Blue Shield of California to provide a directory of doctors these days - one merely needs a bank of sorts, a pooler of risk that charges a very small vig for administration and processing.

That is why we need a government option - one that simply costs some taxpayer money and the only function of which is to pool risk, so that those with financially catastrophic problems are covered.

And if one wants still to keep his piece of shit private insurance, that's fine - keep it and continue as you were. Being foolish in your financial choices should always remain legal. But let's see how well these useless and outdated middlemen fare when they are no longer the only choice we really have. We will see the costs of insurance go down dramatically.

But the spineless "Blue Dog" democrats are now opposing the government option saying they will only support it if and after insurers fail to meet a particular set of goals. In other words, they will delay any real reform until after the insurance companies - the same ones under whom health costs have skyrocketed - get another chance to meet some benchmarks, which no doubt they are currently lobbying to set low. Only then should we consider giving people another option these "Blue Dog" dems argue.

Sorry, the time for those companies to provide a solution for us was in the last 15 years, and they have not. They had their chance, and the state and cost of health care have gotten substantially more expensive, more complex and arcane and flat-out worse. No one fucking likes our health care system. Not the patients, not the doctors and certainly not anyone with an eye on our long-term fiscal situation. It's over.

So you cowardly, unprincipled piece of shit representatives who have taken so much money from the health care industry

Jason Altmire: $405,279

Michael Arcuri: $103,547

Joe Baca: $159,250

Marion Berry: $536,917

Sanford Bishop: $356,496

Leonard Boswell: $304,680

Chris Carney: $167,664

Ben Chandler: $223,300

Jim Cooper: $894,414

Jane Harman: $292,694

Stephanie Herseth Sandlin: $323,924

Tim Holden: $386,278

Frank Kratovil: $86,556

Mike Ross: $833,670

Loretta Sanchez: $183,162

Adam Schiff: $380,708

Zach Space: $144,125

Charlie Wilson: $138,724

Mike Thompson: $631, 532 (His take from the health care industry, was second only to beer/wine/liquor business, which gave him $1,009,370)

if you stand in the way of an alternative to the status quo, I will make it my fucking mission in life to be absolutely sure you are removed from office and never work anywhere ever again until you repent and do something useful rather than destroy the well being of the very people whom you purport to represent.

And by the way, the next phase of health care reform will be to go after the drug company-funded studies that skew the results and help them sell billions of dollars worth of useless and often harmful drugs. There needs to be a truly independent board that puts the kibosh on that deeply corrupt and harmful practice. And finally, it needs to be made illegal - to the point of sanctions and the threat of losing one's medical license - for doctors to accept lunches and paid trips by these drug companies. Every doctor should take the time at least a few times a year to read up independently on new developments in his or her field (just like everyone does at every other job) and not rely on for profit salespeople to tell them what the latest and greatest medicines they're selling are while bribing them with gifts, meals and travel. It's a fucking disgrace that a person whose job it is to help other people heal from illnesses would ever be involved in that kind of transparently obvious corruption. But far from being the exception this is now the norm - as even doctors on the Harvard Medical School faculty are being paid to turn their students into pushers of product.

The bottom line, our current medical establishment is by and large as morally bankrupt and grossly incompetent as we recently discovered our financial one to be. The reason for the corruption is the same - that greed and short-term profit have caused systemic blindness to the facts and a callous indifference to the damage it does to the citizen that lives with it. While the financial sector, with a massive assist from the banking lobby which corrupted government, first created a great disparity in wealth between the rich and poor, then destroyed the pensions, home equity and the job security of millions while saddling everyone with a massive debt, the health care lobby is destroying what little we have left while giving us inferior and unaffordable treatment, resulting in avoidable illness and death. It, too, is our greatest long-term fiscal liability.

So getting a government option is mandatory now. And if you people on this list - you who purport to represent us - stand in the way, I will personally see to it that you're finished in government and that your reputation is permanently and irrevocably destroyed

Thursday, May 21, 2009

Good Summary of the Obama-Cheney Debate

Ann Telnaes hits the nail on the head in the Washington Post.

America's Detoxification Requires Patience and Perseverance

I want to begin by saying I'm an enormous fan of Glenn Greenwald and that I wish everyone in Washington would read his blog. I cannot imagine someone doing a better job of speaking truth to power and calling out the sycophantic public relations people that pose as journalists in our mainstream media.

That said, I disagree with him that Obama is transforming "right-wing dogma into... bipartisan consensus" by permitting military commissions, failing to release photos and keeping detainees deemed dangerous locked up for the time being.

There are a couple issues here:

(1) If there is a sound basis for deeming a detainee dangerous, but because the Bush admin tortured him or otherwise didn't gather enough evidence of an actual crime, e.g., let's assume he was picked up on the battlefield in Afghanistan, surrendered, but during his stay in Guantanamo has vowed jihad on the US thousands of times, then what other choice does Obama have? If we try him, there's no way to convict, and if we release him, the man will immediately resume his aggression toward the US. I suppose Greenwald would have us try the man, and upon acquittal, deport him back to Afghanistan or elsewhere where he'd join up with the Taliban and fight our soldiers or plot against the US. I suppose this happens all the time in our civilian law enforcement when they have to release a suspect they're pretty sure is guilty because they don't have enough evidence to hold him. Except what would happen that suspect kept saying he would kill the sons and daughters of the police officers if they let him go? Would they still release him in that case? And should they?

(2) It's dangerous to detoxify too quickly or radically - the process of cleaning up the Bush admin mess (and our country's resultant disease) must be gradual.

Here's an analogy: if you have mercury poisoning (as I do), you have to chelate (take chemicals that bind to mercury and carry it out of the body). But if you take too big a dose, you will get much sicker because your body can't handle the mobilization of so much mercury at once. So you start off with very small doses, and carry bits of it out gradually - and your body, while still sick, can tolerate that amount of mobilization. As some of the mercury is removed, you can start to up your dose as you're less sick and more able to tolerate larger mobilizations without debilitating side effects. Finally, you're able to tolerate high doses of the chelator and clean out the rest.

So it's not just a cost-benefit analysis - is it worth unjustly imprisoning people to avoid unpleasant political consequences (Greenwald's framing of how Obama sees it), but you can actually jeopardize the whole chelation program by overdoing it too quickly. We were a very poisoned country, and our media and many elected pols (and a large number of misinformed citizens) can't handle a massive mobilization just yet. But as the body politic grows healthier, the tolerance will go up, eventually culminating in justice. But you have to be very careful not to push too fast, and Obama understands this because he's been "chelating" in communities for years and knows how to calibrate the pace of change and overcome resistance.

Greenwald's not so much interested in that because it's not his job to be. It's his job to keep the pressure on the administration to bring the country in line with the constitution. And to that extent he's correct to push for our ultimate and complete detoxification. Those who would argue that we should just move forward without accountability are like ill-informed doctors who think any suffering from mercury mobilization is too much for the fragile patient, i.e, that the patient is far too sick to chelate and should just treat his symptoms going forward. However, this will lead to all kinds of chronic degenerative diseases, so it is imperative to suffer a tolerable amount of discomfort and chelate at low doses immediately.

So the sick body-politic must tread a middle ground between too rapidly exposing itself to all of its existing toxins at once and not moving forward with Greenwald's ultimate goal - to realign the nation with the rule of law and the constitution.

Tuesday, April 14, 2009

CIA's Weak Arguments Against Interrogation Memo Disclosure

Curious Wall Street Journal article on the CIA interrogation memo release debate.

Among the CIA's arguments to withhold the memos:

Intelligence officials also believe that making the techniques public would give al Qaeda a propaganda tool just as the administration is stepping up its fight against the terrorist group in Afghanistan and Pakistan.

If they tortured, then it's not a *propaganda* tool for al Qaeda, it's actually based in fact. Propaganda implies they're making up falsehoods about us. And since everyone believes that torture took place - otherwise why not release the memos - then the CIA is essentially admitting it was abetting al Qaeda recruiters through its misguided policy.

That's why they also argue:

But top CIA officials and some in the White House argue that disclosing such secrets will undermine the agency's credibility with foreign intelligence services.

Yes, it already has. But you can't embarrass and harm the interests of your country, then argue when called to account that doing so would embarrass and harm the country's interests.

You shouldn't be able to use a crisis of your own creation to excuse yourself from justice.

It is strikingly similar to what the banks did, though isn't it - they lobbied for changes in the law to make bad practices legal, damaged our economic security and claimed we had to spare them their natural reckoning because of the crisis they created.

The difference is that we know what banking laws and regulations were stripped. What agreed-upon protections and international safeguards were stripped by the CIA?

Saturday, March 14, 2009

Terrible Washington Post Column

In a piece entitled Obama's New Tack: Blaming Bush the writer Scott Wilson passes along the GOP talking point that Obama's statement of the obvious - that he inherited a fiscal disaster - somehow violates his pledge to move beyond recriminations.

Let's leave aside that a key Republican talking point is to try preposterously to pin our financial problems on Obama rather than Bush, and Obama is merely responding to that. In other words, that he's merely responding to lies. The more pertinent point that the column totally misses is that Obama is merely stating a fact when he says he inherited this disaster. To say that Bernie Madoff swindled people out of their money and caused many to have personal financial disasters is also a fact and not the type of recrimination that Obama pledged to avoid.

Obama pledged to move beyond recriminations based on political philosophy - matters of *opinion*. We should not be recriminating the other side merely for disagreeing with us. That was the point. Not to stop pointing out facts, misdeeds, mismanagement and crimes. That Wilson completely misses this distinction is incompetent at best and corrupt at worst. Or maybe it's the other way around.

Friday, February 27, 2009

Sunday, February 22, 2009

Best Award Speech Ever





Too bad this would never happen at the Oscars.

One Benefit of the Financial Crisis

A couple years ago, at the height of the market, some new companies entered into my industry (the fantasy sports industry). They were funded by investment (I think venture capital money), and they spent a whole bunch of it hiring people and marketing themselves. They made a nice splash at the conventions because they'd sponsor events and they'd spend money on advertising with other companies. Sure, they had a business plan of sorts, but not a realistic one given the amount of people they hired and the amount of money they were burning through.

Having seen a number of these outfits come and go, it occurred to me that in a good economy, one where there's plenty of extra money lying around, all it really all it takes is someone who is good at pitching investors to create these pseudo businesses. They raise money, throw it around, act like big shots, spend their way into a modicum of market share, then, if the economy's still good, ask for more money; if it isn't, they fold.

One beneficial side effect of a bad market is the elimination of these kinds of entities. It might seem like an industry is losing jobs or productivity, but it's not. I wonder how much of the loss in GDP in a recession is really just the elimination of this kind of bogus activity.

Why the Bailout Doesn't Matter

I was getting worked up earlier about the idea that we're bailing out these incompetent scumbag bankers, auto company managers and delinquent home owners, but now I realize that it's much ado about nothing.

No money is coming out of my pocket presently, and the inflation created by the bailouts is not going to be a problem any time soon. So the real issue is that we, the taxpayers, are going to owe all of this on the back end. Just as Wall Street had its pyramid scheme which wound up with homeowners and banks holding the bag while the execs drained out all the money, we're just adding another layer to the pyramid with the taxpayers taking over for the banks. No problem, when we're asked to pay, we'll just do what the banks did - throw up our hands and say we're unable. At that point, there won't be anyone left to borrow from, and so the government and the world order will simply collapse. Which is what would probably happen now if we didn't give our money to the banks.

So we're buying a little extra time, pretending we can actually guarantee all that debt. Might as well enjoy it while it lasts. Because after the collapse - who the hell knows?

Thursday, February 19, 2009

Talk Radio Viruses

I just caught most of Right America: Feeling Wronged, and what struck me most was that the people were repeating talking points they had obviously heard somewhere - most likely on the radio. But not just repeating, but doing so with genuine emotion attached, and believing what they were saying as if it were the most obvious truth.

And it got me thinking that Rush Limbaugh, Sean Hannity and the rest were able to infiltrate these people's beliefs by mimicking their thought patterns, speaking to their common fears and grievances, articulating actual feelings they have, then once hooked, steering them to a particular narrative, e.g., Obama's a socialist.

It's like a virus that tricks your immune system by mimicking it. Limbaugh will mimic the listeners' thought patterns, and once their attention and trust is hijacked use whatever normal skeptical and critical faculties they have against those speaking the truth. So if you say to one of his believers - actually, Obama's a capitalist and his tax plan just differs in terms of what bracket pays what, their skepticism, i.e., their immune system against falsehood, will immediately kick in and dismiss it. Instead of the healthy skepticism fighting bullshit, it's been subverted to fight the truth.

I don't know the long-term consequences of having 10s of millions of people with inverted critical faculties - in the near term it was Bush/Cheney/Rumsfeld/Alberto Gonzalez, etc. - but I doubt they're good.

Friday, February 6, 2009

Kellogg Drops Michael Phelps

Kellogg, the maker of Pop Tarts, Frosted Flakes and a hundred other high-fructose corn-syrup snacks and pseudo foods marketed to children amidst an epidemic of childhood obesity and diabetes and out of control national health care costs, is dropping Phelps? If the executives at Kellog were as good at their jobs as Phelps is at his, every child in America would be obese, and not just the one third that's the case today.

Thursday, February 5, 2009

Saving the Newspaper Business

In the New York Times Opinion section today, there's an article discussing the possibility of micropayments as a source of revenue for newspapers.

Essentially, you'd pay a penny for an article or a nickel for an hour of access to a web site, or something like that, and over time that $30 per month you'd spend would fund that paper's journalistic endeavors. But who's got an extra $30 or $50 or $100 a month to pay for that stuff these days? Not enough people to support all but niche subscription sites.

The key to making the micropayment work is to get the payment from the ISP, not the user. Think about it: Cable companies pay millions of dollars to their content providers like ESPN or the Discovery Channel so that they have those channels to to offer subscribers. Why would we be paying both our ISP AND for the content we can get by getting online?

Since our shortsighted and stupid ISPs would never do this (remember, these were the greedy morons who wanted to charge extra for optimal web surfing speeds), what needs to happen is this:

Google realizes that its quest to organize all the world's information is compromised by a lack of quality investigative reporting and journalism. It also realizes that the current ISPs are greedy and shortsighted. So it commissions (with the blessing of the Obama administration) a nationwide network of high speed wireless service *for free*. At this point, everyone paying $30-$60 per month for high speed access now has extra money to be charged a micropayment calculated by Google.

If you scroll down in the Times article above, you'll see that the primary objection to micropayments is that the user will have to go through the trouble to decide whether a given article or link is worth two cents. That wouldn't be an issue if Google added it up for you and sent you the bill - likely $20-$25 per month, less than you're currently paying for access. Google would also sell far more ads and would be hugely profitable. (In the interest of avoiding a Google monopoly, perhaps another company (Microsoft or someone else could offer wireless access in many areas as well).

Problem solved - Newpapers get their revenue, users still pay the same or less for high speed access, and Google/Microsoft/Yahoo get their cut for administrating it and also by selling ads.

The big loses are the telecom companies, no longer charging us for use of their "pipes".

But they had it coming.

Can the Problem of Executive Pay Be Reduced to a Logical Fallacy?

It's well known that executive pay has gone up dramatically relative to the wages of ordinary workers the last 20-30 years, but that in and of itself doesn't mean our current system is wrong. It might be politically problematic, and it might seem unfair, but that's a separate question from whether those executives, particularly the CEOs, deserve their comparatively enormous salaries based on value and merit.

It seems the most basic argument in favor of CEOs receiving outsized paychecks is the "but for" one. But for my being here, the company wouldn't have made x billion dollars in profits. If the last CEO were here, it would have made y billion. So I should get a significant share in x-y billion dollars.

First off, it's hard to know for sure what the former CEO would have done, or more pertinently, an average CEO. But assuming the current CEO were correct, and the company made $8 billion instead of $4 billion that year, shouldn't he be entitled to a bonus of some percentage of the $4 billion extra, say 5 percent? If that were the case, he'd be making an extra $200 million.

Assuming for a moment that the company's profits were sustainable, and the CEO's efforts helped foster long-term growth and not merely growth on paper to boost the annual numbers, I'd still argue that the CEO likely does not deserve such a large cut even if the average CEO would have only produced $4 billion in profits.

That's because the CEO is merely a "but for" cause of the company's enhanced earnings, and not by any means the sole or even primary cause. The company was obviously poised to post phenomenal earnings given proper leadership, and the CEO provided that leadership. But had the company not been amenable to such improved growth, the CEO wouldn't have been able to make the difference.

To use a sports analogy - some teams will win a title only if you hire a great coach. And some won't no matter who is coaching. That a great coach takes a capable team to the title doesn't mean the coach is solely responsible. He is a but for cause. Accordingly, while the coach deserves credit and higher pay than a mediocre one, the team he inherited must also be taken into account.

The idea that a particular executive is worth whatever they have to pay him because without him the company would be doing far worse is a false one. The executive would also be doing far worse without a company amenable to such tremendous growth.

Tuesday, November 11, 2008

I'm Getting Fucked

There's been a lot of talk about bailing out homeowners so they can stay in their homes and bailing out the auto industry so they can keep people employed and bailing out Wall Street so it won't collapse the economy. (Turns out some of that bailout money is going toward bonuses). But what about the renter who in the face of a huge housing bubble acted responsibly and didn't buy something he could only afford if prices went up indefinitely, and instead put his money into the stock market? Not only did I miss out on the housing bubble, but I'm also missing out on the bailout. In the meantime, I lost 60 percent of my net worth when the burst housing bubble killed the stock market! Where's my bailout? Oh, bailing me out isn't important because I was responsible and will still buy goods and keep the economy going even if I don't see a dime of it.

This really is socialism when car companies produce shitty cars that are bad for the environment, and we bail them out. When bankers take irresponsible risks and we bail them out. But citizens who paid their taxes and their bills and acted conservatively with their money - we're getting fucked. It's a transfer from the responsible to the greedy and the needy without our consent.

Thursday, November 6, 2008

Get Michael Pollan a Cabinet Post

Of all the problems facing us today, the destruction of our food supply by corporations and government lobbyists is probably the easiest to fix and one that might have the broadest consequences. As Michael Pollan has written about in his book In Defense of Food, the modern food industry has run roughshod over our eating traditions, and the results have been catastrophic. We're so worried about making health care universal and/or affordable, but we would need only a fraction of it if we just ate properly. But we don't eat properly because our food system is designed for quantity, addiction and profit rather than quality, health and taste. Pollan refers to numerous studies done on the Western diet's affect on people from native populations who had almost zero incidence of heart disease, cancer and diabetes before adopting it. They found that as soon as people adopted our eating habits, they got our diseases.

What's worse, our medical industry works hand in hand with the food industry, creating treatment for symptoms, but rarely addressing the underlying problem. So people take statins for the heart disease they have because they eat processed grains that flood them with too many Omega-6 fatty acids and inflame their systems. Instead of getting off the fake food and eating more organic fruits, vegetables and grass-fed meat, people continue with the Western diet and pay into the health care system. The medical profession has a vested interest in keeping us coming back for more treatment, and the drug companies lavish our doctors with unethical perks to persuade them to prescribe their products.

The good news is that it's an fairly easy solution - educate people to eat properly (not as per the AMA's faulty recommendations - they were part of the war on fats, and actually encouraged transfat consumption over natural products like butter), and watch the need for and cost of health care diminish to a fraction of what it is currently. The main obstacle to educating people on their health is that there's tremendous profit in having us eat processed foods. After all, you can patent the formula to Coca Cola, but you can't patent organic peaches. And growing organic takes more effort, and is harder to do on a large scale. But it's important not only because pesticides are harmful, but also because anything that artificially kills pests and diseases breeds produce that didn't have to develop the defenses itself. And many of the antioxidants that product against cancer and lower the risk of heart disease develop in plants to defend against bacteria themselves.

So there is an enormous vested interest in keeping us buying food from a box and also in using harmful chemicals that deprive us of essential nutrients. To that end, there are companies who commission studies designed to show that pesticides aren't harmful, and who hire lobbyists who make sure the laws on what can be sprayed on food and what can be run off into the environment are lax.

But if the population became truly educated about what they ate, they could vote with their dollars at farmer's markets and collectives - they could grow extra food in their back yards, they could swear off the fast food, and the food from a box. Moreover, they could make it known to their representatives that they want the food (and drug) companies to be held to high standards, and bloggers could call out the worst offenders and disseminate information to the public at large.

But just as President-elect Obama encouraged people to get involved in his campaign by creating a movement for change and setting up the infrastructure, he could also speed up this process of education about health vastly by enlisting his support, encouragement and network. With two foreign wars, a massive financial crises and huge entitlement liabilities, this might seem like a low priority, but it's not. It would solve the health care problem within a couple years by cutting the cost enormously. It would also have an enormously beneficial effect on the work force - people would be energetic healthy and productive - and it would be hugely beneficial to the environment. And there would not need to be a major outlay of cash.

Now that we're only beginning to understand fully the ways in which Wall Street and other corporate interests gambled with our pensions and retirement accounts to rack up huge profits before needing a bailout, it's important to go further and realize that the food and drug industry are doing the same in matters of nutrition and health.

So get Michael Pollan a cabinet post - (or at least a meeting) with our new president.

Thursday, July 3, 2008

Obama's Strategy on FISA

Was debating with a friend about Obama's support of FISA - I think no big deal, he thinks it undermines Obama's credibility entirely.

But then I started thinking about why Obama would support FISA since he had to know it would get MoveOn and their ilk up in arms. And then it dawned on me that's precisely WHY he did it. What better way to appeal to the center and center-right than to say: "The far right AND far left are both angry with me." In other words, it's not about FISA or telecom immunity at all. It's about sacrificing a relatively small issue to generate the backlash from the left he needs. It's like microfracture surgery - the doctor scrapes the bone to cause bleeding and create scar tissue to cushion the joint. He's scraping the left just enough to cushion his reception with a significant portion of the electorate outside his base.

It's not his centrist stance on FISA that will win him votes. It's that he doesn't look quite so beholden to the left.

I think that's a good rebuttal to all the pundits who try to argue that supporting the FISA compromise and tacking to the center substantively won't help. No it won't, but their overheated criticism surely will!

When given the choice between believing that Obama is tone deaf and doesn't realize what's obvious to the left-wing pundits, or believing that this black man with a Muslim name who is the frontrunner for president of the United States is playing the game at a more subtle level than they can even fathom, I'll go with the latter. These people are like financial pundits slagging Warren Buffett's stock picks. If Obama weren't the smartest guy in the game, we wouldn't even know who he was.

Sunday, June 15, 2008

Send In The Lorax

Because the California Bar Exam is only weeks away, I don't have time to do a proper post.  But I did want to take a minute to note the disgusting irony of the Bush administration declaring polar bears a threatened species as a result of global warming, and only a month later issuing what are in essence grants of immunity to oil companies searching for oil and gas off northwestern Alaska. 

In addition to the obvious link between oil/gas and global warming, the regulations provide five years of legal protections for the named companies if Pacific walruses or the 'threatened' polar bears are harmed by the companies drilling or pipeline activities.  

Guess declaring a species to be threatened doesn't imply we want the threats to cease.