Category: economics

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The $1,200 Hockey Stick

“Total bill: $42,156.50, covering emergency surgery, scans, laboratory testing, and three hours in a recovery room. His insurer has said it will pay him about $8,184 (7,260.40 in Swiss francs), which is double the procedure’s price in Switzerland. This left him to cover the remaining roughly $34,000.” NPR

Presidential Candidate Tim Scott says America has the greatest healthcare system in the world. Yet this same procedure would cost about 1/7th the price in Switzerland, which is not exactly a backwater. Wait– no, it’s 1/10th (the insurance company voluntarily paid double). This is Switzerland- not Thailand or the Philippines (not that there’s anything deficient about health care in those countries).

If you took anything produced in some other country and gave an American company 10 times what it cost in that country and said see if you can produce one that’s better, well, heck, yeah, I think they probably could. They could certainly equal it. So if an American company could produce, say, a hockey stick for $1,200, I guess they could say it was the greatest hockey stick in the world and they might be right. If you want hockey sticks to cost $1,200.

Does that make the American company “the greatest”? I would argue that if it cost that much to make a hockey stick when everyone else knows how to make one for 1/10 the cost, they might be the worst.

And I’ll bet those sticks would break just as quickly as the $120 Canadian sticks. In terms of health care results, that is demonstrably true (life expectancy in the U.S. is lower than most other developed countries, including Canada).

The most depressing part of the story is the long list of itemized charges on this guy’s bill. It’s like this giant mechanical octopus with 100 arms wrapping itself around you and sucking as much blood out of you as it can. You’ll live, but those suction cup marks will be around for a long time.

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Wide, Wide Awake

I keep hearing, about the banking defaults, that regulators were “asleep at the wheel”, and that’s why it happened. After hearing about Barney Frank’s role in dismembering his own regulatory legislation it has become clear that the authorities were not “asleep” at the wheel. They were actually wide, wide awake.

Frank, who helped craft the legislation imposing tighter regulations on banks after the 2008-09 crisis, was hired by– guess who– “Signature Bank” for two years for $2 million. In that role, he lobbied congress to emasculate his own “Dodds – Frank” package of regulations, which enabled Signature Bank to more than double in size with little regulatory oversight. A Republican congress passed the reforms and Trump signed it.

Nobody was asleep. They were wide, wide awake.

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Oh My God! We’re Getting More Anxious

Ross Douthat of the New York Times— the token conservative commentator on the opinion page– accepts the results of a study by the Centers for Disease Control and Prevention that show that teenagers today– especially–omygawd! girls– are more anxious, more depressed, and more unhappy than ever before.

By “social liberalism” I don’t mean the progressivism that took off in the Trump era — antiracism and diversity-equity-inclusion and #MeToo. I mean the more individualistic liberalism that emerged in the 1960s and experienced a second takeoff across the first decade of the 2000s. Its defining features were rapid secularization (the decline of Christian identification accelerated from the 1990s onward) and increasing social and sexual permissiveness — extending beyond support for same-sex marriage to beliefs about premarital sex, divorce, out-of-wedlock childbearing, marijuana use and more.

And it’s all because of the liberals!  Douthat doesn’t think gun violence should depress anyone, or the cut-throat competitive nature of the U.S. economy, or the fear of being bankrupted by medical expenses, or the fact that a sexual predator and psychopath was elected president in 2016.  Oh no.  It’s the widespread availability of sex, gay or hetero, as a woman or a man or neither, and, of course, drug use.  Have we heard this before?

I have two points.  First of all, we hear about these studies all the time– and I mean ALL the time.  Sociologists and social scientists just love asking teenagers if they are happy.  Now, imagine for a moment you are a teenager.  And life is not great, but it’s not all bad either.  You’re kind of getting through it.  You have some hopes and dreams and know you might have to work hard to achieve them.  You have friends.  Then someone comes along and asks you if you are happy or depressed or anxious.  They ask you again an hour later.  They ask you again the next day, and the next, and the next.  You read articles in the New York Times or see pieces on CNN that tell you that a big problem today is that teenagers are not very happy.  You start to wonder.  Maybe I am unhappy.  Maybe I’m depressed.

I don’t deny that it might be true.  What I question is the assumption that these numbers represent a net change from previous eras, like the 1940’s, the 1950’s, and 1960’s.   How would we know?  It’s a great question to thoughtfully ask yourself: how would we know?

Nobody studied issues like this in the same comprehensive, systematic way in the 1950’s as we do now.  We didn’t have the internet, obviously, or social media, and even television and radio was completely different than they are today.  We didn’t have as many books or magazines or records or films.  We didn’t have as many family photographs or recordings, let alone video.  We had numerous wars around the world, and the U.S. itself was embroiled in Korea, and about to get embroiled in Viet Nam.

We had a lot of obvious racism, whites only schools, whites only restaurants and drinking fountains.  We had a lot of drunk driving and date-rape, both of which now are severely punished, but were not back then.  In fact, the consensus on rape seemed to be to not report it at all.  We had a lot of teen pregnancy, “shotgun” weddings, and groping and petting.  We had a society that blindly worshipped the military and the police.  (It is no coincidence that Douthat, a conservative, would harken back to an era of such “stellar” values even if he doesn’t make explicit those particular values).

I suspect that a big part of our perception of the 1950’s has been shaped by unrealistic media portrayals, most emblematically, in “Happy Days” and the movie “American Graffiti”.   Have a look at “The Last Picture Show”, “Diner”, “Rebel Without a Cause”, or “Badlands” for a corrective.

Secondly, Douthat clearly implies that enthusiastic membership in a church is a viable corrective.  If only we had a study that showed that teenagers who are active members of churches are happier, less depressed and less anxious,  and happier, than those who are not.   We have no such study.

What studies we do have that compare church-going folk with non-church-going folk seems to show that we are all largely the same, holy or profane, saved or damned.  We all indulge in porn.  We all cheat and lie.  (But only one side votes for Trump and loves guns and only one side believes you may have been born to the wrong gender and the world is warming.)

Even for Douthat, this column is unusually contrived in his desperation to find some way to blame liberals and progressives for the sad state of America.   Like all conservatives, he knows that his side, the side of regressive, low tax, deregulated economies, benefits by promoting a sense that we are on the brink of catastrophe.  Nothing new.  We’ve been on this brink according to the Douthats of the world since Elvis first gyrated his hips.

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Deficit Attention Disorder

Let’s see: to reduce the deficit, you have to increase tax revenue or cut spending. To cut spending, you have slash funding for programs that might be popular. Voters won’t like that. That’s why so many Republicans who claim that the deficit is a serious problem, when interviewed on the subject, refuse to say what they would cut. Coincidentally, while Trump was running up the deficit and Republicans had control of the House and the Senate, they didn’t cut any programs; they actually increased military spending and cut taxes thereby increasing the deficit significantly. (Since the last balanced budget in 2000, the Republicans have run up $12 trillion in new deficit while the Democrats have racked up $13 trillion.) Now that a Democrat is in the White House, they are popping up everywhere declaring that the deficit sky is falling. Again, when asked where they would cut, they conspicuously refuse to answer.

Most economists do not think the deficit is a serious problem, but refusing to raise the debt ceiling– in essence, refusing to pay the bills that are due for mandated programs approved by Congress– would be a very, very serious problem.

It appears to be slightly hypocritical to complain about the deficit now when not a single Republican voted against the Trump programs that dramatically increased the debt.

That took longer to read than a CNN screen crawl. You see the problem? You see why some people want to talk all day and all night about secret documents and Hunter Biden’s laptop instead.

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Permission to Vent

Did you know that in the 1960’s, while all of the mainstream media devoted their sports sections to professional baseball, football, basketball, stockcar racing, and hockey, the sport that attracted the most actual fans– in person, in stadiums– was…. ready for it?  Demolition derbies.

In politics, the whacky far right is the demolition derby of ideologies.  Until recently, relegated to the back pages of history.

In spite of all the think-pieces about polarization in American politics, I really think the issue comes down to something much simpler.

Firstly, there has not been a massive change in attitudes or beliefs over the past 70 or 80 years.  A large segment of the U.S. population has always held stupid ideas about culture, education, leadership, the military, and the police.  And, of course, race.  They love guns, hate affirmative action, can’t bear the thought of giving up their massive V-8 powered pick-up trucks, fear black people even if they don’t see themselves as racist (and some aren’t), and hate the idea of foreigners coming into the country and taking away their jobs while they themselves are unwilling to work hard for long hours to get ahead and there is a labour shortage in most areas of the country.  They believe that good manufacturing jobs have been shipped over-seas even though 85% of them were lost to automation.  They believe Republicans when they say they intend to reduce the deficit even though, when in office, they never have and never will.  They seem to think that cutting taxes on the rich will benefit them, because, fuck it, some day I might win the lottery.

Until recently, people with toxic beliefs about society have intuited that they shouldn’t openly express those views because the consensus among politicians, the media, and other leaders is that those views are, in fact, untrue, toxic, and counter-productive, and ignorant.

They always believe crime is on the increase.  Always.   Try to explain to them that if crime was always increasing it would eventually reach 100%, so there must be times when it is actually decreasing (in fact, the crime rate is up only in year-over-year statistics.  Over a longer period of time, it is down, by a clear margin).

They think that somehow making the bail system rational increases crime: no study has shown this.  Not one.

Newt Gingrich came along, and Alex Jones, and Rush Limbaugh, and then Donald Trump, and they all publicly expressed massive approval of these toxic beliefs.  The internet broke the consensus among major media outlets to not give play to ill-founded, idiotic conspiracy theories.  Now every ignorant, ill-informed jack-ass in the country can search online to find that the cause of the wild-fires in California is Jewish space lasers or sun spots.

Try to explain to these people that international trade agreements, on the whole, benefit them.  (Essentially, the lower cost of imported goods frees capital within the local market to pay for more goods, services, and other items which you otherwise could not afford.  Free trade is a net benefit to the average American worker and consumer.  Tariffs take money out of your pocket and give it to the government which in turn subsidizes corporations to the benefit of wealthy shareholders.)

People haven’t changed.  They are just louder and more outspoken and more than happy to enlighten you as to their brilliant insights into the nature of reality and the truth about Biden and the international child porn conspiracy and Hollywood’s Jewish cabal and they way young school-children in small towns all across Iowa are being provided with litter boxes so they can “identify” as a transgender kitten.

Perhaps the most bizarre characteristic of these people is their close identification with Christianity.  Do any of them actually read the Bible?  Do they really see something in Jesus reflected in Donald Trump and Tucker Carlson and Sean Hannity?  Do they really think God blesses them as they storm the capitol building and threaten to hang Mike Pence?

 

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Google is Getting Useless

Google made their name as an efficient search engine delivering streamlined results quickly and effectively. Is it just me or has Google the search engine become mostly useless nowadays. Too many paid results, and even more bad results– pages that might have a word or two of your search string but are otherwise irrelevant. I used to feel confident I would find a few useful results in the first few pages. Lately, I’ve actually– gulp– resorted to Bing, occasionally. And sometimes I just actually give up. I don’t have time to go through a hundred pages to find the one that actually helps me.

As IBM discovered when the Department of Justice was investigating them for monopolistic practices (way back in the 1960’s), too much information is as useless as no information.

In fairness, it’s not just Google’s fault.

Oh yes, it is.  By mastering the competition for profiting by manipulating search results, Google is king of turd island, the exemplar, the model for all that has made the Internet a fucking monstrous garbage heap of  excrement.  Facebook is a close second.

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The $4K Concert Ticket

“Regardless of the commentary about a modest number of tickets costing $1,000 or more, our true average ticket price has been in the mid-$200 range,” he continued. “I believe that in today’s environment, that is a fair price to see someone universally regarded as among the very greatest artists of his generation.”  NY Times

I never find it not weird that people will pay astronomical sums to sit squeezed into a sports stadium to see Paul McCartney, the Eagles, Bruce Springsteen,  Elton John, the Rolling Stones, and others, mainly for songs they created 40 or 50 years ago (which recent McCartney song did you really want to hear?).

Full disclosure: I recently went to see Bruce Cockburn at the Centre in the Square in Kitchener.  But he performed solo, just him and his voice and acoustic guitars, and he didn’t cheat.  And it was my wife who really wanted to see him.

Years ago, we paid a wee little amount to see Nellie McKay in Toronto at the legendary  El Mocambo. We were right up at the front of the stage, and we got to chat with her afterwards (I still have my autographed CD). She was at the stage of her career where she was producing the songs that people would today be paying $4,000 to hear, had she not opted out of the plastic-ware star-making music machinery because of creative differences with her publisher.

It was a fabulous concert experience, amazing songs, engaging… so much better than sitting in row 9,999 a thousand feet away from the stage to watch someone who, to be generous, is somewhat past his prime. Sometimes, as with the Beach Boys, the REAL keyboard player is in the shadows behind the drummer. Sometimes the real drummer is behind the drummer. Very often, the performance is autotuned, “live”. Very, very often additional instrumentation has been pre-recorded and added in– even vocals.

At least I rather expect that Springsteen won’t be autotuned. But then again, the logic seems to be “if everyone else is doing it” (and they are)…

If you like live concert experiences, I heartily recommend looking for an up-and-coming performer playing smaller, intimate venues.

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For What it’s Worth

Though a large majority of Americans thought it was right and good and natural for the government to pay off the families of victims of the 9/11 attacks, it was not. This was a completely original application of government resources that had never been done before, and it was at the behest of the airline industry which convinced the government– and the makers of this movie– that the nation would suffer immense economic harm if existing law was permitted to prevail and the airlines were sued, like they should have been in a capitalist free enterprise economy.

Have the airlines ever sued somebody?  Have any of the executives or large shareholders of the airlines ever sued somebody?  Did they think, before 9/11, that unlimited jury awards in tort cases might be a bad idea (actually, Republicans generally do)?  Why were gun manufacturers specifically exempted from tort law in 2005?   (As the link clarifies, gun makers could still be liable for “defects” in their product, if a product designed to kill and maim people can ever be said to have defects– does it not kill and maim?  Take it back to the store!)

Remember all that blather you heard about government hand-outs leading to toxic dependency? Yeah, that’s only for immigrants and black people.  In a capitalist system, as we claim to have, and as we say justifies letting poor people fend for themselves instead of helping them, the courts provide a system by which a good citizen can address compensation for deficiencies in a product or service that causes personal loss and suffering.

So the U.S. government broke all of it’s own rules and principles and decided that it would pay off the families of victims so the airlines could continue to pay off its shareholders and executives.

Next problem: how to decide who gets what?

We are the government: we have trillions. Line up and put your hands out everyone. And remember, repeat after me, “it’s not about the money”. Let’s work on the euphemisms for it: to bring closure; to ensure dignity; to make sure this never happens again; to bless the children and the kittens and the apple pie.

Meet Ken Feinberg, who, you should know, has been repeatedly hired (subsequent to 9/11) by large, powerful corporations like BP and Boeing to handle massive claims distributions after great big disasters. (Most recently, he has managed the 737 Max victim fund). Feinberg is asked by John Ashcroft to be the master of the compensation fund for victims of 9/11 and to the credit of “Worth” he is shown to be, at first, pretty clueless about managing the delicate feelings of the victim’s families.  (Except that he does refuse a salary– but then, we know how that works: somewhere down the road he will receive another appointment, maybe to a board or government post, that does pay, very, very well).  But the film does want it both ways: the families cannot be seen to be a mob of greedy materialists salivating at huge financial rewards. It’s not about the money, right? But it is always about the money and even the supposedly “pure” Donato family that sneers at the idea of taking compensation eventually joins the suit. Possibly the gravest hypocrisy in the U.S. right now is this absolute bullshit that people get away with when suing someone for a grievous loss. It is always about the money. “Worth” is far more honest than I expected about that, and presents some interesting dialogue about how the “worth” of a human life is determined. Should a janitor’s family get the same payout as a rich executive? (The initial plan, which rightly offended so many of the litigants, said: the CEO should get more since more potential earnings were lost.) And what about the children of a fireman by a woman with whom he was having a secret affair? Even more delicate: the gay partner of one man who lived in Virginia which did not allow for gay spouses. “Worth” is above average in it’s handling of these subjects, and relatively self-effacing– for a time– about Feinberg himself. Perhaps that is because it was critical to present him credibly while soft-pedalling the fact that this was all, all, really about sparing the airlines’ shareholders from shouldering the cost of their liability for 9/11, and for allowing juries to award scads and scads of millions of dollars for “pain and suffering” to family members who can cry on cue on the stand during a trial. We are also shielded from detailed discussion about the percentage of a settlement sucked up by the lawyers in cases like this.  The most depressing thing about this entire episode is how the government continues to resist any serious discussion about compensating the families of victims of slavery, or racial violence, in any form whatsoever. I’m not saying there is no argument against it– there is. I’m just noting how obvious the difference is between these two constituencies, and how quickly we can disregard and make exceptions to policy whenever we feel like it.

Astonishingly, Feinberg’s entry in Wikipedia contains no personal information about the man.  That is wondrous, for someone who was pivotal to some of the biggest and most controversial disasters in recent memory.

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Pre-School

According to a study in Tennessee, children from poor backgrounds offered a pre-school program (for 4-year olds) did worse in several important categories by Grade 6.

This is not supposed to be true.  It is counter to other studies which generally showed that children do better — they graduate high school and have fewer disciplinary issues– if they have an extra year of school at about age 4.  For as long as I can remember, that has been the accepted wisdom on pre-school.  But this study flatly contradicts those assumptions.

If it survives further analysis and assessment, it will have to be taken into account regardless of the politics of government-funding for pre-school.

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Just so You Know

While the American National women’s soccer team is suing for equal pay and bragging about their victories over other women and just how smackingly clever and talented they are, let’s just keep one minor corrective in mind:  the Australian National Women’s Team once challenged a team of 15-year-old boys.

They were easily, effortlessly, crushed 7-0.

The Americans are probably a bit better than the Australians but not by much.

So yes, you American women often beat other national women’s teams, but not nearly as many people care about your performance as much as you do, and you don’t play on the same grand scale as the men do, and no, you don’t deserve the same pay, not remotely, not by any standard that usually applies in the world of professional sports.  You can’t go into Italy or Brazil or even Iceland and play their national women’s team in front of 60,000 fans.

Anyone who watched your game right after, say, a men’s game of France vs. Spain, would know the truth.  In terms of skill and speed and power, you aren’t even close.  Not even close.

So who did you ask for more money?  From the fans, who would pay to see you?  From the owners of the club teams that run the league that you play in?  From the sponsors who pay for advertising during the games?  From the makers of sporting apparel and bling who dress you and market you?  But then you would have to prove that you actually generate the same income-driving passion as the men.  You don’t.  You too would lose to a bunch of 15-year-old boys if you played them.

So you went to the government.  That’s right.  Give us more money or we’ll cancel you.