The Chevy Volt – Unjustifiable At Any Cost


I have always wanted to do a Return on Investment (ROI) calculation on the Chevy Volt but was lacking details into the charging power required to replenish the batteries but now that has been provided to me.  See the following quotes from the Chevrolet Volt website (emphasis mine).

“First, the Volt gets an EPA-estimated 35 miles of EV range, and we estimate you can get between 25 – 50 miles of range depending on the three T’s: the outside Temperature, the road Terrain (flat vs. hilly) and your driving Technique. “

“Next, you need to charge that battery. Yes, the Volt has a 16 kWh battery, but what you might not know is only 12.9 kWh is used for charging and driving – this is done to extend battery life. 9.6 kWh is used to propel the car and accessories and 3.3kWh is used in the charging process The average cost of electricity in the U.S. is $.12/kWh, so, take $.12 x 12.9 to get a cost to charge of $1.55, a far cry from the $18.56 to charge that I’ve seen some say online. “

So there are two key parameters that I need to perform an ROI to see if the higher initial cost of the Volt outweighs gas purchases over the typical lifetime of a gas powered car – 1) Average range of the battery life is 35 miles and 2) The Volt requires 12.9 kWh to charge the battery.

In South Carolina, I pay around $0.11/kWh so I’ll make the ROI calculations even more favorable for the Volt and use that cost versus the $0.12/kWh that is on the Chevy website.

The average retail cost of a 2012 Volt is $38,000 and the average cost of a comparable car; say the Volkswagen Jetta is $20,000.  I am using a Jetta because it has a similar body style and because I have owned one since 2003 so I’m very familiar with its gas mileage which happens to be 26 Miles per Gallon (MPG).

Let’s assume that someone works 50 weeks out of the year (5 days a week) and has a one way commute to work of 15 miles.  This will get us under the average 35 mile limit of the Volt before requiring a recharge of the battery and will avoid having to pay electricity charges twice per day (charging it up at work) for longer commutes.

I’ll initially assume gas is $4.00 per gallon but later I’ll do another calculation at a much higher price.

The calculations based on all the above information is shown below and note that I didn’t account for depreciation or inflation in this calculation (simple payback).

The daily cost of operating a Volt is much lower than the daily cost of operating a Jetta ($1.42 vs. $4.62) but due to the extra $18,000 we had to pay for the Volt we’ll have to drive the Volt for over 22 years to get our money back.  Well that sucks!  There is no way the car will last for 22 years but what if we double the daily commute and that would double gas prices for the Jetta and double the electricity costs for the Volt but should reduce the ROI.

As would be expected, the ROI did drop but you’d still have to drive the Volt for over 11 years to recoup the costs.  This is still not likely.

Now let’s see what it would take to recoup our costs in say 5 years (a typical period one owns a car).  Let’s keep the one way commute at 30 miles and then raise the gas price per gallon to get an ROI of 5 years.

Gas prices would have to sky rocket to $7.50 per gallon before a Volt makes financial sense.  It gets worse when you consider depreciation/inflation and this site showed that gas prices must equal $12.50 per gallon before the Volt is competitive.

“And even with rising gasoline prices — topping $4 a gallon in parts of the country — EVs are just not competitive, according to the Lundberg Survey. Gasoline prices would have to rise to $8.53 a gallon to make the Leaf competitive and hit $12.50 for a Volt to be worth it, based on the cost of gasoline versus electricity, fuel efficiency and depreciation, the survey said.”

But what about the Environment?  Leftists like to say that using a Volt reduces the burning of fossil fuels and prevents Global Warming.  Where do you Greenies think the electricity comes from that charges the Volt?  75% comes from fossil fuels (spreadsheet here-do the math).  And do we really have a manmade global warming problem? No.

So even if you over look the fact that the car battery catches on fire, there is still no realistic financial or environmental reason to purchase one of these money pits.   It’s a good thing this catastrophe wasn’t developed and manufactured on tax payer dollars.  Oh wait!

As a thank you for visiting this site and reading this post, here is a great video on the Chevy Volt that will hopefully ease the pain of knowing our tax dollars were poured down a large hole in the ground.

ADDENDUM (27-MAR-12)

There was a request in the comments section for a more detailed analysis and I’m happy to accommodate.  My intentions were to show how one could easily show how a Volt didn’t make economic sense but apparently some Volt lovers couldn’t accept that.  So here’s more detail.

I deducted $7,500 for the tax rebate (which I think should be eliminated and most likely will next year) but I also made another modifications to make it more realistic.  What makes the Volt unique is the fact that it has a 12 gallon gas tank that it uses to recharge the batteries during driving and that 12 gallons can last as long as 375 miles to 640 miles.  You still need to charge it up once a day (at least) but in driving more than 30 miles per day (what most Americans do) you’ll need to use the gas to recharge on the go. 

I’ll use the higher estimate (640 miles per fill up) to present the best case for the Volt.  I’ll also use 60 miles per day for 5 days per week which works out to about 15,000 miles a year which is the average amount driven in the US.

The estimate below is basically the same as the middle one above but deducting for the tax rebate and adding yearly fuel cost to support 23.44 tank fill ups (15,000 / 640) of 12 gallons each at $4.00 per gallon.   It still takes over 10 years to get your ROI.

There is also a great post in Tree Hugger (hardly a Right Wing web site) that states the payback for a Volt when compared to a Camaro is 16.6 years.   So, I think I’m being very generous in my calculations here for the Volt.  It realy is unjustifiable at current costs.

Posted in economics, politics | 112 Comments

Have We Suspended The Rule Of Law?

Unless you’ve been living under a rock the last few weeks, you know about the death of a 17 year old boy named Trayvon Martin in Florida where a neighborhood watchman named George Zimmerman got into an altercation with Mr. Martin, shot him and killed him.  The details are still coming to light and you can see the details here and there will be more developments over the coming days.

Let me state for the record that if Mr. Zimmerman is charged with murder in a court of law then I’ll be the first to volunteer to throw the switch on the electric chair or lock him up in a cell for life.  If you seek out and kill a kid based on his race then you are scum and deserve to be removed from society.  

But we don’t execute people orput a bounty on their head based on rumor or emotional charged anger.  In the United States we have a means of punishing our criminals and people are still innocent until proven guilty.  If we lose that premise then we have lost our country and we are no better than a tyrannical dictatorship.

There is a hashtag on twitter called #TeamDueProcess that has captured many of the death threats on Mr. Zimmerman and I’ll show a few of these below.

 

 

And of course our President has taken the low road and sown seeds of racial division with his recent comments.

“If I had a son, he’d look like Trayvon,” Obama said, underscoring how the issue affected him on a personal, and not just a political or legal, level. “I think [Trayvon’s parents] are right to expect that all of us as Americans are going to take this with the seriousness it deserves, and we are going to get to the bottom of exactly what happened.”

“Obviously, this is a tragedy,” he said. “I can only imagine what these parents are going through, and when I think about this boy, I think about my own kids, and I think every parent in America should be able to understand why it is absolutely imperative that we investigate every aspect of this, and that everybody pulls together — federal, state and local — to figure out exactly how this tragedy happened.”

“I think all of us have to do some soul searching to figure out how does something like this happen,” said Obama. “And that means we examine the laws and the context for what happened, as well as the specifics of the incident.”

I agree with Obama that we should investigate this tragic death and find out the truth but to take the knee jerk reaction that this is a case of race based violence doesn’t help the country deal with this tragedy.  Let’s understand the facts before we rush to judgment.   Like I said, I’ll be the first to grab a pitchfork and torch to persecute this witch but before I join the mob I want to make 100% sure I’m actually going after a witch.

The Florida police need to gather the details and bring Mr. Zimmerman to trial and let our legal system determine his guilt or innocence.  Our legal system is not perfect but I dare you to find a better one and let’s hold off the talk of lynching until we get the facts.  If we abandon this legal system then be aware that the mob might be coming for you tomorrow.  Is that what we want?

Posted in politics | 5 Comments

2012 Elections – Consider the Possibilities

I engaged in a thought experiment regarding the possible outcomes of the 2012 elections and I have determined that conservatives (and America as a whole) will benefit from 75% of the possible scenarios.   

While going through this thought experiment I considered all the permutations with regard to the House of Representatives, Senate and White House and gave each two possible outcomes – Republican or Democratic control.  For the sake of this post I’m going to assume that the House of Representatives will stay firmly in control of Republicans and I don’t think that is debatable except for those who choose to live in an alternate reality like Debbie Wasserman-Schultz.  That leaves four possible outcomes of the 2012 elections and I’ll go over each below.

Republicans take control of the White House and Senate

So let’s assume that Romney (who is probably the Republican nominee) can sway enough independents and moderates so that he beats Obama and Republicans are able to pick up enough Senate seats to replace Harry Reid with Mitch McConnell. 

In this scenario Romney would be able to replace the heads of HHS, EPA, DoJ, FDA and other agencies that are killing America with over regulation and the Senate could then drive Romney to the Right by sending him legislation (Cut, Cap and Balance, Repeal Obamacare and a budget similar to Paul Ryan’s) that will return America to a more fiscally conservative position.  Romney would receive an incredible amount of backlash from the Right if he refused to sign this legislation and even if you ascribe to the harshest characterization of Romney (he is a shape shifter who changes to fit the majority) then you’ll agree that he’ll morph into a conservative to satisfy the Republican majority in the Legislative branch of government.

 There is another long term benefit of this scenario.  As the economy improves through fiscal and economic conservative principles, Americans who have been brain washed by the Main Stream Media and other Leftists will once again see the value of conservative principles with regard to the economy and budget/spending and will start to vote for more conservatives in future elections.  Most Americans are not political pundits and vote with their bank accounts and as the economy is humming and they see the difference between the Obama years and the Romney years, conservatives will gain new converts.

Republicans take control of the White House and Democrats retain control of Senate

In this scenario Harry Reid would never bring legislation up for a vote that conservatives in the House propose (which has been the case for the past 2 years) but there is still hope.  Even if SCOTUS doesn’t deem Obamacare unconstitutional, Romney could still stifle and delay the implementation of this albatross by putting the brakes on the regulation writing in the HHS.

Regulations can be rolled back with new appointments to the various agencies and political pressure could be placed on Reid with both the House and the Executive branch against him. It wouldn’t be ideal but the bleeding could be stopped and Republicans could also spin the “Do Nothing Senate” narrative that could lead to a Senate flip in the mid-term elections.  

Obama is re-elected and Republicans take control of the Senate

With Obama in the White House for four more years and if SCOTUS doesn’t deem the individual mandate of Obamacare unconstitutional then the repeal of it is basically impossible.  But this scenario could also be beneficial to Republicans if they choose to play hard ball.

Imagine if the Republican Congress repeatedly sent bills to the desk of the President only to have them gather cobwebs.  Congress could shut down the government and force Obama’s hand and then talk about the “Do Nothing President” and talk how he is resisting the will of America (who elected Republican majorities in both the House and Senate).  The ire of the American people would then be redirected from Congress to the President and possibly force his hand.

But there is another subtle aspect of this scenario that could lead to long term gains for conservatives.  A Romney defeat in the wake of 3+ years of the most Liberal President in history could spell the end of the “Washington establishment” that produced such a poor field of Republican candidates.  People will start to wake up to the fact that we need to have fiscally and economically proven conservatives in the primary and Republicans should not only rally around them but defend them when the MSM and other Leftists seek to smear them.

I subscribe to the theory that, because of the Leftist brain washing of Americans, it is difficult to elect a strong conservative to the Executive office and that is one of the reasons I have supported Romney in this election.  But if Romney loses, then I’ll concede that this theory is wrong and will fight harder than ever to make sure I don’t make this same mistake in 2016.

Obama is re-elected and Democrats retain control of the Senate

This is the only scenario that I can’t see turning out well for not only conservatives but for America.  This perfect storm would not only mean a reprise of the last 3+ years but could also signal more socialistic tendencies of Obama since he won’t have to worry about campaigning for re-election. 

The worst case scenario is that America is fast tracked on a course that several countries in Europe are on with sky rocketing debt, mushrooming entitlement programs that can’t be funded and riots in the streets.  Americans live in a country where over 90% of tax revenues go to fund Social Security, Welfare, Unemployment Insurance, Medicare and Medicaid and we have to borrow the rest to take care of what the government was originally intended to do (building infrastructure, provide for common defense, etc.).  Why is a majority of Americans not outraged by this?  It’s because the Leftist brainwashing has worked and we now have generations of Americans who are comfortable with European style socialism even though those countries are breaking under the weight of their debt.

This scenario could also rejuvenate the conservative base to demand more from the Republican Party to field more conservative candidates but I fear that 4 more years of Harry Reid and Barack Obama steering our country will be hard to overcome.  We see with Greece that even though the country is failing because of their unsustainable entitlement programs, the Greeks resist austerity and riot in the streets (giving up those handouts is hard to do).  This same scene will be coming to an American city near you if this dreadful election scenario plays out.

Americans must fight for any of the first three scenarios if we have any hopes of turning this country around.  If you are a conservative and so unsatisfied with Mitt Romney that you’ll sit the election out then that is your right but you need to fight like hell to make sure Republicans win back the Senate. 

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Obama – Austere or Drunken Sailor?

UPDATE 22-MAR-12 – Updated chart labels and added graphs using OMB data at the end

There was a recent post at Economists View that noted how Clinton and Obama were very austere Presidents in recent history with regard to Federal spending.  The conclusions and graph (showing increased spending per capita) are shown below:

To compare presidencies, I did the calculation two ways. One starts in the quarter before the president was elected (e.g., 2008Q4), the other starts in the first quarter of the presidency (e.g., 2009Q1). (The ARRA probably had some effect in Q1, but most of the change was simply economic conditions that the incoming president had nothing to do with, so I think I prefer the Q1 to Q1 method). Ranking since Johnson (starting in 1968), and using the first-quarter comparisons, and calculating growth under Obama through 2011Q4, Clinton is the most austere, followed by Obama. The most spendthrift are (1) Nixon-Ford, (2) Reagan, and (3) Bush II.”

From the post, it is not clear how the author calculated the percent growth but I’m assuming that he took the average of each year’s spending growth (versus the previous year) under their term as President.  I believe the author also uses the calendar year (Jan-Dec) to calculate the FY for each president and this differs from the official US government fiscal year of October of the previous year to September of the year numbered.    

I wanted to verify this myself and I used the following site to obtain my data and it should be noted that this data utilizes the actual US government FY (October to September) so this will not be an apples to apples comparison but should be close.  This site included all Federal Government spending per capita and normalized it to 2005 dollars so this provides a fair comparison year to year for each President.

Here is a graph showing the total Federal government spending increase (or decrease) when compared to the previous year.

Here is a graph showing the average of each year’s spending growth during the term of each President starting with Nixon/Ford.

I then performed a calculation to show the average total spending for each year during each President’s term and compared that to the previous president’s average (Nixon/Ford was compared to Johnson).

Here is a graph showing average spending per capita (in constant 2005 dollars) during each President’s tenure.

It should be noted that using the US government FY, TARP is included in the 2009 budget and was passed under Bush II but Obama voted for this legislation so it is fair to attribute this spending to him.  The ARRA (2009 Stimulus which amounted to $787 billion) was also a big component of the 2009 massive increase in spending and this is definitely associated with Obama.

I will agree with the post on Economists View that Clinton (with the aid of a Republican House/Senate) was the most austere but I disagree with Obama being a penny pincher.   Instead, the Community-Organizer-in-Chief is more akin to a drunken sailor on leave (no offense to our fine men and women who serve in our Navy).

Full Disclosure – My raw data is available here–> us fed spending per president

ADDENDUM (22-MAR-12) – I saw some blowback on my twitter feed that the data at usgovernmentspending.com is suspect in how they calculate inflation.  I have to data to either confirm or deny this but have been using this site for a while and find it very good but in fairness I don’t want to ignore other data so I decided to use the website for the Office of Management and Budget (OMB).

There was not much difference and in many ways the graphs are almost identical.  They are provided below:

Full Disclosure – My raw data for the OMB calculations is available here. Copy of hist01z3

Posted in politics | 3 Comments

Liberals Are Getting Desperate

As if the 17 minutes long propaganda video wasn’t enough, now Vice President Joe Biden takes his turn at trying to make Americans forget about the colossal failure of the Obama administration.  

In a Politico article we learn how Biden sees Obama’s approval of the Navy Seal’s plan to take out Osama Bin Laden:

“You can go back 500 years. You cannot find a more audacious plan. Never knowing for certain. We never had more than a 48 percent probability that he was there,” Biden said at a fundraiser in Morris Township, N.J.”

Let’s look at the definition of “audacious”:

au·da·cious

adjective

1. extremely bold or daring; recklessly brave; fearless: an audacious explorer.

2. extremely original; without restriction to prior ideas; highly inventive: an audacious vision of the city’s bright future.

3. recklessly bold in defiance of convention, propriety, law, or the like; insolent; brazen.

4. lively; unrestrained; uninhibited: an audacious interpretation of her role.

I will be the first to congratulate the Navy Seals and our Intelligence community for devising a plan to take this cockroach out so I’ll salute President Obama for authorizing this military action.  But to call this the most audacious plan in military history in the past 500 years is more than a little over the top and can be characterized solely as shilling for Obama.

What about the coordinated attack on Normandy where the US, England and Canada simultaneously attacked 5 beaches (Gold, Utah, Omaha, Juno and Sword)?  I have to think there was a risk there of failure and the planning that went into that assault dwarfs the raid on a house in Pakistan. 

What about the battle of Gettysburg, Guadalcanal, the battle on Inchon, Iowa Jima, El Alamein, Midway, Coral Sea, the Alamo, Bunker Hill and the battle of Trenton?  I’d say all of these and many more were more audacious than the execution of Osama Bin Laden.

Let’s face it, the Liberals are restless.  Obama’s approval ratings are still below 50%, the economic recovery is anemic , Americans are fed up with our spending that has recently caused our nation debt to equal our GDP and pragmatic people are worried about the sword of Damocles hanging over our heads called Obamacare.

The Leftists are desperate and are trying everything they can to sway public opinion but I have faith in the American public to see through these lies and propaganda and reach their own conclusions.  To quote Biden, the elections of 2012 are a big F@%king deal.  

Posted in politics | 2 Comments

My God, It’s Full Of Stars

The title of this post is actually a quote from 2001: A Space Odyssey and comprise Commander Bowman’s final recorded transmission as he approached the massive Monolith located between Jupiter and one of its moons, Io.  The National Aeronautics and Space Administration (NASA) has a website showing videos taken from the International Space Station (ISS) that shows just how space is “full of stars” and this is a link that we should frequent often.

Due to light pollution and our atmosphere, we never get to see the vast amount of stars in the sky like astronauts do and while I’ve seen thousands of hours of real time space coverage from the ISS, I was always upset that they never trained their cameras on the sky itself to let us see what the astronauts see.  My frustration is now over!

I was first tipped off to a series of videos that NASA and the ISS have published showing the star filled sky by Bad Astronomy and then found the link to the whole collection of the NASA videos.

A disclaimer for the videos I have linked to: They are provided courtesy of the Image Science & Analysis Laboratory, NASA Johnson Space Center and can be found at this link – http://eol.jsc.nasa.gov/Videos/CrewEarthObservationsVideos/

There are three links below that you can use to view these videos but keep in mind they are high resolution and will take a while to download. 

Stars over the Southern United States – 25-JAN-2012

Stars over the Eastern United States – 23-JAN-2012

The Milky Way – 23-JAN-2012

Amidst the vast array of stars, there are objects which appear to be non-stellar that will be obvious to individuals even if they are not familiar with the night sky and the most prominent is the Andromeda galaxy.  This is our closest neighboring galaxy at around 2.5 million light years away and I was amazed at how easily we can see it with the camera in space.  On earth we can see the fuzzy nature of the Andromeda galaxy with our naked eyes but only from a true dark sky location (no man-made light pollution, clear sky and a new moon).  Even if you live in a city, you can see details of the galaxy with binoculars or a telescope but I had no idea this galaxy was so easily viewed with the naked eye in space.  Below are two screen captures each taken from the first two videos above and I superimposed a red circle around the Andromeda galaxy.

In the following screen capture you can see the M33 galaxy (3 million light years away and shown with red circle) and a star cluster NGC 752 (located 1,300 light years away and shown with a green circle).  Even though I have a large telescope (10” Newtonian Reflector), these objects are impossible for me to see due to light pollution but these elusive objects are easily seen in these videos.

I consider myself an amateur astronomer and was someone who has been fascinated with the night sky since a child so I know how to navigate through the constellations better than most but even I had trouble picking out the constellations with such a full field of stars that these videos showed!  It is truly magnificent, humbling and inspiring to see how vast our cosmos is when viewed without the filters we experience on Earth.

Posted in astronomy | 3 Comments

The Lies Of Obamacare Exposed

It’s been a bad week for Obamacare and the bad news has come in threes:  1) We have learned that people will not be able to keep their insurance if they like it, 2) Obamacare is going to cost more than Obama said it would and 3) Companies are planning to lay people off and cancel expansion to cover the costs of Obamacare.  Let’s take them one at a time.

Losing Their Insurance

We remember when our Community-Organizer-In-Chief said:

“If somebody has insurance that they like, they should be able to keep that insurance.”

Conservatives knew this was a lie when Obama said it but gullible people bought it and sure enough this albatross called the Affordable Care Act (ACA) was forced through Congress and is now the law of the land. 

Why do I say Obama was lying?  Instead of telling you what conservatives suspected, let’s look at what the Congressional Budget Office (CBO) stated in their report they issued yesterday on the ACA (emphasis mine): 

“CBO and JCT now estimate that, because of the ACA, about 3 million to 5 million fewer people, on net, will obtain coverage through their employer each year from 2019 through 2022 than would have been the case under prior law.4 (That estimate is reflected in CBO’s latest baseline projections.) That projected change in the number of people with employment-based insurance is the net result of several shifts in coverage, which can be illustrated using the estimates for 2019. For that year, CBO and JCT estimate a net decline of 5 million in the number of people obtaining coverage through their employer, as a result of the following changes: 

“About 11 million people who would have had an offer of employment-based coverage under prior law will not have an offer under the ACA. That estimate represents about 7 percent of the roughly 161 million people projected to have employment-based coverage under prior law.5 The businesses that choose not to offer coverage as a result of the ACA will tend to be smaller employers and employers with predominantly lower-wage workers; those workers and their families are more likely to be eligible for Medicaid, CHIP, or subsidies through the health insurance exchanges.”

3 to 5 million people who might like their insurance will one day come to a stark realization that they have been dropped and the only choice is to pay for an individual policy (expensive) or join the government plan (Obamacare).  This is exactly what I knew would happen – Many smaller companies would just drop coverage for their employees versus having to answer to some Health and Human Services (HHS) bureaucrat whose sole purpose is to make sure the company is providing a vaguely defined ‘qualified health plan’ to its employees.   

Go look at the ACA and do a search on ‘qualified health plan’ and it will scare you.  From the ACA, here is the definition:

“SEC. 1301 o42 U.S.C. 18021.. QUALIFIED HEALTH PLAN DEFINED.

(a) QUALIFIED HEALTH PLAN.—In this title:

(1) IN GENERAL.—The term ‘‘qualified health plan’’ means

a health plan that—

(A) has in effect a certification (which may include a

seal or other indication of approval) that such plan meets

the criteria for certification described in section 1311(c)

issued or recognized by each Exchange through which such

plan is offered;

(B) provides the essential health benefits package described

in section 1302(a); and

(C) is offered by a health insurance issuer that—

(i) is licensed and in good standing to offer health

insurance coverage in each State in which such issuer

offers health insurance coverage under this title;

(ii) agrees to offer at least one qualified health

plan in the silver level and at least one plan in the

gold level in each such Exchange;

(iii) agrees to charge the same premium rate for

each qualified health plan of the issuer without regard

to whether the plan is offered through an Exchange or

whether the plan is offered directly from the issuer or

through an agent; and

(iv) complies with the regulations developed by

the Secretary under section 1311(d) and such other requirements

as an applicable Exchange may establish.”

This definition is rather vague and references many other sections of the ACA but I’ll take a look at one of these in a little more detail.  A ‘qualified health plan’ must meet the requirements in section 1311 (c) and here is a portion of this section (emphasis mine and you can stop reading after that if you choose):

“(c) RESPONSIBILITIES OF THE SECRETARY.—

(1) IN GENERAL.—The Secretary shall, by regulation, establish

criteria for the certification of health plans as qualified

health plans. Such criteria shall require that, to be certified,

a plan shall, at a minimum—

(A) meet marketing requirements, and not employ

marketing practices or benefit designs that have the effect

of discouraging the enrollment in such plan by individuals

with significant health needs;

(B) ensure a sufficient choice of providers (in a manner

consistent with applicable network adequacy provisions

under section 2702(c) of the Public Health Service Act),

and provide information to enrollees and prospective enrollees

on the availability of in-network and out-of-network

providers;

(C) include within health insurance plan networks

those essential community providers, where available, that

serve predominately low-income, medically-underserved in-

dividuals, such as health care providers defined in section

340B(a)(4) of the Public Health Service Act and providers

described in section 1927(c)(1)(D)(i)(IV) of the Social Security

Act as set forth by section 221 of Public Law 111–8,

except that nothing in this subparagraph shall be construed

to require any health plan to provide coverage for

any specific medical procedure;

(D)(i) be accredited with respect to local performance

on clinical quality measures such as the Healthcare Effectiveness

Data and Information Set, patient experience ratings

on a standardized Consumer Assessment of

Healthcare Providers and Systems survey, as well as consumer

access, utilization management, quality assurance,

provider credentialing, complaints and appeals, network

adequacy and access, and patient information programs by

any entity recognized by the Secretary for the accreditation

of health insurance issuers or plans (so long as any

such entity has transparent and rigorous methodological

and scoring criteria); or

(ii) receive such accreditation within a period established

by an Exchange for such accreditation that is applicable

to all qualified health plans;

(E) implement a quality improvement strategy described

in subsection (g)(1);

(F) utilize a uniform enrollment form that qualified individuals

and qualified employers may use (either electronically

or on paper) in enrolling in qualified health

plans offered through such Exchange, and that takes into

account criteria that the National Association of Insurance

Commissioners develops and submits to the Secretary;

(G) utilize the standard format established for presenting

health benefits plan options;

(H) provide information to enrollees and prospective

enrollees, and to each Exchange in which the plan is offered,

on any quality measures for health plan performance

endorsed under section 399JJ of the Public Health

Service Act, as applicable; and

(I) report to the Secretary at least annually and in

such manner as the Secretary shall require, pediatric quality

reporting measures consistent with the pediatric quality

reporting measures established under section 1139A of

the Social Security Act. oAs added by section 10203(a).”

So the definition of a ‘qualified health plan’ is basically at the discretion of the Secretary of HHS.  What could go wrong with that?!?!  This places too much power in the hands of one person, expands the role of government in our lives and is one of the main reasons I was against the ACA.  It’s no wonder the CBO predicts companies will be compelled to stop providing insurance plans to their employees so they can avoid this new regulation nightmare.  

Obamacare Is Going To Cost More Than Was Advertised

We remember on 09-SEP-09 our President made this claim about Obamacare:

Now, add it all up, and the plan I’m proposing will cost around $900 billion over 10 years”

According to the CBO report the final cost of Obamacare will be $1.76 trillion over 10 years and that is a difference of $860 billion from what Obama stated in 2009.  This is mere chump change to a Socialist but to the rest of us this is either a gross lie or a failure to fully understand the problem.  It’s probably both and something tells me that the actual costs of Obamacare will be even higher than this recent CBO estimate.  God help us.

Medical Device Companies Cutting Back

We remember that Medical Device companies refused to back the ACA and they were punished by having a 2.3% device excise tax levied on them once Obamacare was finalized.  This amounts to $650 million dollars annually according to a recent study so this is not an insignificant amount of money.

How will these companies compensate for this new tax?  Massdevice show us here:

“Massachusetts medical device executives forecast job losses and budget-cutting for research & development efforts, as the industry nears the launch date of a 2.3% medical device excise tax.”

“Half of the 42 senior executives surveyed in the Bay State said they would slash R&D budgets and 25% said they would cut jobs at home and outsource manufacturing to lower-cost areas.”

“We warned 2 years ago that medical device companies would be forced to deal with this tax by preparing for job cuts and reductions in R&D spending,” MassMEDIC president Tom Sommer said in prepared remarks. “The U.S. leads the world in developing and manufacturing medical products, it doesn’t make sense that on 1 hand the government is promoting exports and manufacturing jobs, while on the other hand it is implementing policies that will cut jobs in this sector and harm its competitive advantage – the development of innovative medical technologies.”

“The MassMEDIC survey isn’t the 1st to issue an ominous forecast for the tax, which Cook Group chairman Stephen Ferguson called “a bad idea that will only get worse with time.”

“Cook blames the tax for its decision to put the kaibosh on plans to build 1 new U.S. factory a year in the U.S.; and orthopedic giants Zimmer Holdings (NYSE:ZMH) and Stryker Corp. (NYSE:SYK) have both announced layoffs directly tied to the expected cost of the revenue tax.”

“A February survey of 180 device industry executives found that more than half planned to increase prices for their products in order to fully or partially offset the effects of the tax, according to Emergo Group.”

It’s been a bad week for Obamacare but it pales in comparison to the pain that all Americans will experience if we don’t repeal this law.  If only we had a time traveler from the future to tell us of the impending doom that awaits us if we don’t repeal and replace this law.  Oh, wait.  We do and they are located here and here.

Posted in Entitlement Programs, healthcare, politics | 8 Comments

Looking Up – Spring 2012

As an amateur astronomer, one of my favorite things to do is introduce others to the wonders of the cosmos and I wrote a post explaining why this is a very worthwhile endeavor.  Astronomy is a hobby that can’t be enjoyed by just reading or looking at pictures but must be exercised by periodically going outside on a clear night and looking up.  To help those who wish to delve into this very noble field, here is a guide for beginners during the spring months of 2012 (March-May).

Before I get to the viewing guide, I need to explain why opposition is such a special term when talking about viewing celestial bodies.  Opposition means that the object we are viewing is at a point in line with the Earth and the Sun and therefore means it is at its closest point during this particular orbit.  Distance is important because the closer the object is the more details we can tease out of it but also, when an object is at this opposition point that means we can go out at midnight and the object will be directly overhead.  The photons of light that are travelling from the object to our eyes passes through our atmosphere at the steepest angle (perpendicular to the atmosphere) and therefore has the least amount of distortion from the atmosphere.  Viewing a planet at opposition during midnight provides the best images of that planet because the planet is close and the interference of the atmosphere is minimized.

Saturn

The most “take your breath away” image I show people in my telescope is Saturn and during the latter spring months this beautiful planet will be in a prime viewing location.  The optimum viewing will be in May when Saturn will be at its closest approach to us this trip around the Sun and will be directly overhead at midnight.   See the star finder picture below to help locate this ringed planet.  

Saturn is in the constellation Virgo and there is a very bright star, Spica, which will be directly below this planet.  Saturn will look like a star with your naked eye but you can tell that its color sets it apart from the normal stellar bodies that make up the night sky.  With binoculars you can see the rings and some of its 5 major moons (Titan, Dione, Enceladus, Tethys and Rhea) and with a moderate sized telescope you can view all the moons and make out details on the planet and the rings. 

Below are 2 photographs I took with my 10” Newtonian Reflector on a Dobsonian mount.  My telescope is manual which means it doesn’t have a drive to track the scope to match the rotation of the Earth so the photos aren’t the best but you can get an idea of what you can see in a telescope.

OK, I forgot to turn the flash off but you get the idea.

Mars

The red planet is in prime viewing locations in the night sky during March and April and the planet reached opposition on 04-MAR-12 but you needed to go out at midnight to take advantage of that.  Later in March and in early April, Mars is overhead at a more reasonable time (10:00 pm on 19-APR-12) and the planet is more easily accessible for those early risers who can’t stay up late.  Below is a picture of the Southern April sky and where the red planet is located.

It is possible to not only make out surface features on Mars during this time but also catch a glimpse of the polar ice caps of mars.  Below is a photograph of Mars taken from amateurs using tracking telescopes and you can view others on this site.

Here is what Mars looks like when using the Hubble Space Telescope but don’t have any illusions that you can see this kind of detail using binoculars or land based telescopes.

Galaxies

During the spring, the Virgo Galaxy Cluster is in the Southern skies and on a clear night with a decent sized telescope you can see dozens of galaxies even in a moderately dark sky location.  With space based telescopes, scientists have viewed over 1,000 galaxies in this cluster that is located about 50 million light years from Earth.  That means the photons of light that are hitting your eyes left the stars of those galaxies 50 million years ago – which was about the time dinosaurs became extinct and long before humans appeared on the scene (2 million years ago).  This is one of the subtle benefits of Astronomy – Your eyes become a time machine where you see the universe as it was many years ago.

Galaxies are one of my favorite objects to look at in the night sky with my telescope.  With each galaxy I look at, I am seeing the photons of light from billions of stars that could have millions of planets orbiting them and thousands of these planets could be in the habitable zone to foster carbon based life.  Someone, on those planets, could be looking through a telescope and catching a glimpse of the Milky Way galaxy and having the same sense of wonder.

Here is a good site showing all the galaxies of the Virgo Cluster and the picture below shows where to look for these galaxies (red ellipse).

Spring is a great time to get outside before the temperatures and humidity make it uncomfortable and the thick atmosphere makes for poor seeing.  Get out and look at many of the planets who share an orbit with our Sun as well as the galaxies that share our Cosmos.

Posted in astronomy | Leave a comment

How Do Liberals Lie To Thee?

Let the Congressional Budget Office (CBO) count the ways

After taking another look at the costs associated with implementing Obamacare, the CBO determined that taxpayers will have to come up with an extra $820 billion over ten years to meet the new price tag of $1.76 trillion.  The Washington Examiner has a great post here.

Wow, who saw this coming?  Oh right, this guy

I think Gomer Pyle (from the Andy Griffith Show) has the perfect words for this news flash and sums up the Conservative reaction – “Surprise, Surprise, Surprise!!!”

Posted in Entitlement Programs, healthcare, Over Regulation, politics | 8 Comments

It’s Time To Leave Afghanistan

Photo from Akhtar Soomro/Reuters

With the latest civilian killings in Afghanistan, I can safely say it is time to pull all US personnel out of this country sooner rather than later.

Details are still rolling in but here is what we do know from the Wall-Street Journal:

“KABUL—A U.S. soldier walked off his base in Afghanistan and opened fire on local villagers Sunday, Afghan and U.S. officials said, killing 16 people in a shooting spree that further complicates American efforts to end its longest foreign war.”

“The soldier, who allegedly gunned down his victims—most of them women and children—about a mile from the U.S. base in the Panjway district of Kandahar province, surrendered and is now in U.S. custody. His identity hasn’t been disclosed.”

OK, this is just awful.  I don’t want to speculate on motives here and I’ll wait for details to be released by the Military but the killing of innocent women and children in cold blood goes beyond any sense of decency in a civilized society.  I have never served in the Military so I can’t speak of the horrors of war but I can’t see any American (Military or Civilian) making excuses for these murders.

 It’s not like the recent relationship with Afghans and the US Military has been described as cordial.  Just a few weeks ago 5 US soldiers burned Korans and this sparked off new levels of protests, violence and fraying of relations between the two parties.  Of course my thoughts and prayers go out to the innocent families who suffered loss but I also offer even more prayers to the US Military in Afghanistan.  Their mission just transitioned from “difficult” to “impossible” and I can only imagine what is going through the minds of each man and women in uniform over there.   

I was quick to join many in criticizing Obama’s rush to apologize for the Koran burnings and my reasons were similar to those expressed in this post from Crockett Lives – Instead of apologizing for America, Obama should apologize to America.  The burning of the Korans could be justified based on the fact that prisoners were using them to pass secret messages back and forth and putting our troops and the mission in danger.  If the Apologizer-in-Chief ever needed to apologize, now is the time but unfortunately, Obama’s apology will fall on deaf ears because the President seems to make these apologies monthly to our enemies and now he is starting to lose what little credibility he had in the international community.

If we leave now the last thing Afghans will remember are the Koran burnings and the killing of innocent women and children and I believe this will embolden the Taliban in that country and create another Osama Bin Laden.  But radical Islam hates America not because of these two isolated events but because of who we are – a free nation that doesn’t follow the teachings of Islam.  That fact alone was the source of all terrorism against us so there is nothing we can do in Afghanistan now that will alter a terrorist’s world view of America.

Here is another quote from the Wall-Street Journal article that characterizes the Taliban’s mood in Afghanistan:

“The Taliban lost no time in condemning the Panjway killings, describing them Sunday as “genocide” that resulted from a U.S. night raid.  ”The so-called American peacekeepers have once again quenched their thirst with the blood of innocent Afghan civilians,” the Taliban said. The insurgents pledged to “avenge every single death inflicted by the savage murderer invaders.”

Our mission in Afghanistan is over.  We killed Bin Laden, weakened the Taliban and helped train the local police/government to run their country.  In light of the events over the past month, it is now abundantly clear that our next step should be 1) offer restitution to the families affected by these murders, 2) bring those who carried out these murders to justice and 3) evacuate all US personnel from Afghanistan as quickly as possible (not leaving anyone behind to become the target of revenge attacks).  Bring them all home now! 

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The Obama/Bell Video – A Shot Across The Bow

According to Liberals in the Main Stream Media (MSM), like Soledad O’Brien, the latest Breitbart video that was shown on the Sean Hannity Show last night is a big nothing burger – nothing to see here, so move along.  Sorry to burst your bubble Ms. O’Brien but you don’t get to make these kinds of decisions anymore.  Conservatives are going to vet Obama and all candidates for office in 2012 and you don’t get to make the decisions about what is news worthy.

You can tell she is scared of what this video will eventually show regarding Obama’s radical past because she tries to mock the video and a Breitbart representative.  Don’t believe me?  Follow this link to see the CNN anchor (and most of her panel) act like middle school kids as they try to diminish the news worthiness of the video.  Pay attention as Ms. O’Brien’s panel tries to mock Breitbart.com Editor-In-chief Joel Pollak and then switches the subject to the MSM’s favorite straw man argument – calling Conservatives racists.  Pitiful!

Is the Video a Big Deal?

The video by itself isn’t the whole story so you have to look at the entire body of work.  The irrefutable facts of the video are simple – We have Obama introducing Dr. Derrick Bell, telling the audience to “open up your hearts and your minds to the words of Professor Derrick Bell” and then embracing him in a hug.  But now we need to find out what kind of person Dr. Bell is because imagine if a video surfaced showing Mitt Romney saying those same words about an openly racist figure (say David Duke) and then hugging him.  Call me crazy but I think CNN would be making a big deal out of that video. 

Who is Dr. Derrick Bell?  Breitbart.com has many stories on their site showing how Professor Derrick Bell was a radical racist and there is a great review from the Boston College Law Review showing the racists views the Critical Race Theory seeks to spread.  Here is Thomas Sowell on the Dennis Miller show giving us his assessment of Derrick Bell.  I’m sure more of these stories will be slowly released by various conservative news sites and we’ll get the full picture of how our sitting President embraced radical racial views and class warfare while in college.  Which won’t surprise conservatives but this type of information might be news to independent and politically middle of the road people.

But the video isn’t a knockout punch and I don’t think it was meant to serve that purpose.  In my opinion this video was meant as a shot across the bow or like an opening salvo in a war to save American Liberties.

#VetThePrez and #War

These are the hashtags on Twitter that have become synonymous with the election battle of 2012.  Conservatives are no longer staying on the defensive but are going on the offensive with regard to the MSM.  It’s been a long time coming and it’s not like we haven’t paid our dues on the defensive side of the football with Gardasil, Rick Perry’s painted rock, Bain Capital, Newt’s Ex-Wives and other assorted darlings of the MSM.  It’s time to pick up the ball and run with it.  The more Conservatives are on offense means the less time the MSM has to dig up trivial points and construct straw man arguments. 

Are you ready?  Do you wonder if this is a worthwhile tactic?  Are you skeptical if it will have any impact?  I’ll just show you a couple examples over the last 24 hours and you can be the judge.

Last night there were more fireworks as Fox News contributor Juan Williams got the message from Michelle Malkin that Leftists don’t get to tell us what subjects are news worthy and which are not.  Watch Mr. Williams’ reaction when Ms. Malkin lit into him at the end.

Watch two Leftist Congresswomen get nervous and refuse to answer questions about why they are inconsistent with their righteous indignation toward those who spew caustic insults at women – They were quick with the vitriol against Rush Limbaugh but strangely silent when Leftists like Bill Maher make equally detestable remarks about women.  These Leftists were being confronted opening in public and asked to explain their obvious double standards and they did not like it!

This is how Conservatives will fight and win the election battle in 2012.  Does this mean we stop reminding people about Obama’s complete failure as a leader over the past 3 years?  Of course it doesn’t.  We still must hammer Leftists on unemployment, over regulation, gas prices, Obamacare, Fast and Furious, Solyndra and the union thug activity of the NLRB.

It’s going to be fun to watch the confused MSM learn they are no longer holding the ball and must instead try to prevent us from crossing the goal line. 

Posted in politics | 1 Comment

Time To Get Behind Romney

With the dust settling on the Republican Primary after Super Tuesday, it is becoming clearer that Mitt Romney will be the Republican nominee and those who want to defeat Barack Obama should start lining up in support of him.

The 2012 elections have immense implications for our country as we hope to turn back the tide of over regulation, Obamacare, massive debt and return the United States back to its founding principles of individual freedom and the Free Market.  We can only do this if Republicans/Conservatives: 1) maintain our majority in the House, 2) gain control of the Senate and 3) win the White house.  In this post I’ll focus on what we need to do to win the Executive office and why that means throwing our support behind Mitt Romney.  

Conservatives, like me, would have loved to see a strong conservative like a Paul Ryan, Marco Rubio or Rand Paul win the Republican presidential nomination but that didn’t happen so we are left with the wisdom of William F. Buckley in determining our candidate that will face Obama in November – We must pick the most conservative candidate who can win.

Remember What We Are Up Against In 2012 

For decades, Liberal policies have poisoned peoples’ thinking and it will take years to reverse it so let’s face it, the brainwashed people won’t be swayed in the coming months to reverse the Liberal propaganda to endorse a strong conservative candidate who speaks of fiscally conservative policies (cutting entitlements such as Welfare, Medicare, Medicaid, Unemployment and Social Security) while simulateously speaking of social issues such as gay marriage, birth control and calling women slutsOver the next 4 years we must demonstrate to America citizens that true fiscally conservative policies are better than liberal Keynesian policies before Americans will vote for true conservative candidates in future elections.

Most of the citizens in America are not political junkies who are in tune with the vagaries of current events and my wife is a prime example.  She is a very intelligent person (a degreed Civil Engineer) but she made a comment to me today that I think speaks to the millions of Americans who reside in the “middle” of the political spectrum.  She stated that Obama will win in November because 1) Unemployment is coming down and 2) Republicans are beating themselves up and looking stupid.  While I tried to counsel her on the real unemployment rate and the failures of the 2009 Stimulus, there is a lot of wisdom in her comments and they come from someone that will pull the Republican lever in November.

The Leftists will always pull the lever for the Democrats so we shouldn’t waste our time on them but those in the middle-left, middle and middle-right are the targets for 2012.  These people get their news from mostly Main Stream Media (MSM) and will form their opinions based on what they here on NBC, CBS, ABC, CNN and MSNBC.  You will not hear fiscally conservative policies described in detail on these 30 minute newscasts so we have to come to grips that the voting public will need to connect with our Republican nominee if we have any hopes of them voting for him and winning the White House in 2012. 

I outlined a typical Facebook conversation I had with center-left friends in this post.   Read it and see if you think Newt Gingrich, Ron Paul or Rich Santorum has a chance of getting this demographic vote in November.

The Case for Romney

I stated my reasons for voting for Mitt Romney in the South Carolina primary several months ago.  Romney has promised to roll back regulation (which includes repealing Obamacare), reign in union thugs, promote an energy policy that makes sense and exercise fiscal conservative responsibility (balancing the federal budget, capping government spending as a percentage of GDP and reforming entitlements). 

Recently, the Obama and Romney tax plans have been compared and you can see from this post that Obama plans to soak the rich (successful) while Romney plans to reduce tax rates for all those who are working and paying taxes (including the middle class).  This should resonate with those in the political middle who work and pay income taxes if we can get this message heard above the propaganda of the MSM.

Obama is scared of Romney and he tipped his hand last fall.  All throughout this primary fight, Obama’s team (led by the blame storming Debbie Wasserman-Schultz) have focused their attacks solely on Romney.  They know he is the biggest threat to their re-election and this is why they spend all of their energy on attacking only Romney.

With a Republican House and Senate to send bills to Romney’s desk, I have no doubt that he’ll sign them and we’ll get America back to its fiscally conservative principles and the Free Market will do what it does best – facilitate growth in the GDP and lower real unemployment.  It’s time to move from vetting our candidate to campaigning against Obama. Let’s go, it’s a war so arm yourselves.

Posted in politics | 8 Comments

The Sandra Fluke Smokescreen

Georgetown University’s position on the issue of birth control is not a well guarded secret and after spending 5 minutes on Google, I found this article which made the very clear point that Georgetown University does not delve into areas of pre-marital sex or birth control.   So I have to ask – If free birth control is so important to Sandra Fluke, why did she not read this before applying to Georgetown Law School?  A few quotes below from the Georgetown Independent link (emphasis mine):

Georgetown, as a Catholic institution, sits in a difficult position of needing both to protect the health of its students and to stay true to its Catholic identity. Many theories about the sexual activity of students abound, both on the Georgetown campus and on college campuses nation-wide. But two facts remains (sic) undeniably true — some students will have sex and some will get sexually transmitted infections.”

Although Georgetown officially prohibits itself from taking action in response to sexual issues, University administrators are allowed to talk about these topics. Health Education workers are allowed to advise students on sexual matters. In addition, the Student Primary Care Clinic tests for and treats both STIs and pregnancy, although it is not allowed to distribute contraceptives or perform abortions.”

The article also states there is a way students can obtain FREE condoms in residence halls through a student-led organization (emphasis mine):

“H*yas for Choice, an unofficial Georgetown student organization sees a need for “more information to be found out and widely known,” according to Board Member and spokesperson Kelsey Beckner, a government and English senior. Beckner has been active in H*yas for Choice since her sophomore year and a Board Member since last year. Although H*yas for Choice cannot receive funding from the University, ChoiceUSA, an organization that supports pro-choice college groups, provides financial assistance and practical advice. H*yas for Choice performs two functions at Georgetown; they promote awareness of abortion issues on campus and distribute free condoms in residence halls.”

So there you have a crystal clear statement of GU’s policy on birth control plus a method for a student to obtain free birth control (in the form of condoms).  Why is Ms. Fluke upset?  And more importantly, why is she surprised at the lack of Georgetown University provided birth control?

Of course this whole Sandra Fluke Kerfuffle is not about sex or birth control and there are two good posts here and here that speak to my take on this latest Leftist smokescreen.  It’s also obvious from this post that Ms. Fluke knew what she was doing and just wanted to pick a fight.

For me, this isn’t about sex, birth control or calling someone a ‘slut’ – It’s about the Obama administration assaulting the long held tradition of the separation of Church and State and I don’t think it will stop there. 

Because of the Obamacare mandate that requires companies provide insurance that covers birth control (“free” to the employee), this means the Federal Government can start requiring companies to provide other benefits that the Federal Government deems necessary – Free gym memberships, a treadmill in every home, Weight Watchers memberships, George Foreman grills, I can go on and on.  We know who will pay for all these free goodies – The companies (when they cover a portion of the new insurance premiums) and the employees (who will also see their insurance premiums go up). 

Just another example of our Federal government interfering with individual liberties – How’s that Hope and Change working out for you? 

Posted in politics | 5 Comments

Romney Tax Plan Helps The Middle Class

There was a recent article in the Washington post that compared the Romney tax plan to the Obama tax plan and while the article was written to show how Obama’s plan is better from a Liberal worldview (punishing the successful with higher taxes), the graph on this post actually shows how the Romney plan helps the middle class.

Here is the graph showing how tax rates for each income demographic will change under each plan.

Under Romney’s tax plan, notice that all Americans who comprise the ‘middle class’ (those who comprise 20% to 80% of income in the US) will see a tax rate reduction but Obama’s plan doesn’t help that demographic.  Obama’s plan only serves to raise taxes on the top 10% of Americans and does nothing for the middle class.

This is what the elections in 2012 are all about.  Do we want to re-elect those who are only interested in punishing the successful or do we want to elect those who are interested in reducing the size of government and giving tax breaks for all the hard working Americans?

Posted in economics, politics | 4 Comments

A Conservative Supernova

The Blogosphere was very active today about the untimely and unfortunate passing of Andrew Breitbart.  I didn’t know Mr. Breitbart and only recently became involved in the Conservative movement on Twitter/Blog sites and started my own blog in September 2009.  But as I became more familiar with the “Who’s Who” of Conservative social media, I realized Mr. Breitbart’s influence was immense.

Earlier today, Erick Erickson at Red State wrote a great piece entitled “A Supernova Now Dark” which talked about the passing of Mr. Breitbart.  In that post, Mr. Erickson compared Mr. Breitbart to a supernova because of the energy he exuded:

“This brilliant ball of energy has gone dark. My and our shared prayers are for his family, friends, and colleagues who will miss his friendship, leadership, and no doubt as I have more than once received, his 3 o’clock in the morning (Eastern Time) phone calls from the Los Angeles Freeway on his way home to his wife and kids that abruptly end when he gets pulled over by the police for using his cell phone while driving. But you never had to worry. He’d call and wake you back up around 4:30 to apologize for having called so late. I speak from personal experience.”

“God bless you, Andrew.”

This was a great post but I wonder if Mr. Erickson picked up on another way the supernova analogy could be used.  Let me explain what I mean but first here is a crash course on how stars are born and how they die from a previous post of mine on the Astronomy topic:

The Crab Nebula which contains the remnants of a supernova explosion that happened over 1,000 years ago.

“The Universe (as we know it) started around 15 billion years ago with the Big Bang. This is no longer a wild theory but accepted science once the Cosmic Microwave Background was discovered. Matter condensed to form stars and through fusion, the matter was converted to Hydrogen, Helium and the rest of the elements on the periodic table. Stars go through a life cycle – they are born when they reach sufficient mass that causes them to ‘turn on’ and start fusion, they continue to burn and fuse elements deep inside their cores and then die in various ways which disperses the elements to the rest of the Cosmos. This life cycle is called Stellar Evolution and provides the explanation of life on Earth because after several generations, stars eventually fuse Carbon, Nitrogen and Oxygen which are the building blocks of life as we know it. Most likely, our Sun is at least a 2nd generation star, formed from the remnants of several 1st generation stars’ death. The dust cloud of our star’s birth contained the Carbon, Nitrogen and Oxygen that enabled life to form on Earth.”

We can view Mr. Breitbart’s life like a massive supernova explosion which dispersed the seeds of Conservatism to the rest of the Cosmos and eventually met up with other elements of Conservative thought from such heavyweights as William F. Buckley, Thomas Sowell and George Will.  Those elements combined in various, immeasurable areas to create other Conservative bloggers, journalists and politicians that are active today. 

I, for one, am a byproduct of those previous giants whose shoulders I am now standing and while I’m no critically acclaimed politico, I am doing what I can in the small arena I occupy to spread the Conservative message and I hope you do the same!

I like to think that the combination of two recent events: Obama’s recent appalling attempted shakedown of a private sector group (the Koch brothers) and the untimely passing of Mr. Breitbart will re-energize the Conservative base and align us at this most critical time.  The Liberal assault on American values is at an all time high so let’s pick up the sword of Mr. Breitbart and all do our part to continue the fight even if most of us only contain a small portion of the energy that he demonstrated every day.

Posted in politics | 6 Comments

Global Temperature and CO2 Update – March 2012

About 6 months ago I provided an update on the state of global temperature anomalies as well as the CO2 concentration in the atmosphere and I think it’s time to do another one.  You’ll see that the Anthropogenic Global Warming (AGW) hypothesis, which states global temperatures will rise with increasing atmospheric CO2 concentration, falls apart by a simple graphing of the data.

As a reminder, here is how I obtain the data:

“I look at two [2] well respected data sets to obtain the global temperature anomalies: The University of Alabama Huntsville (UAH) and the Climate Research Unit (CRU). The atmospheric CO2 data is obtained from NOAA website but uses the data from Mauna Loa which has been measuring CO2 concentrations (ppm) in the atmosphere since 1958.”

The graph for atmospheric CO2 concentration, measured in parts per million (ppm), is shown below.

Here are the graphs of global temperature anomalies for CRU and UAH.

Now let’s graph those same two data sets but just include temperatures since 1998.

Looks pretty flat to me over the past 13+ years and this isn’t due to a reduction in atmospheric CO2 concentration which continues its steady march upwards. 

At the risk of belaboring the point – If the AGW hypothesis is correct then we should be able to see a positive linear trend (correlation) when we graph atmospheric CO2 concentration on the x-axis and global temperature anomaly on the y-axis.  The graph using the CRU data is shown below.

Something breaks down when atmospheric CO2 concentration hits around the 370 ppm point and we see that increased atmospheric CO2 concentration didn’t increase global temperatures. 

So there is not much change in the graphs since the last time I posted them and in actuality, the temperature anomalies are on a downward trend for the last few years. 

Couple this inconvenient data with the recent hacking activity of climate scientist Peter Gleick and the recent desperate and out-of-touch-with-reality headline; you can see that it is tough being an AGW cult leader trying to peddle your propaganda to the public.   

Posted in Climate Change | 14 Comments

Federalist Paper #10 – Addressing Factions

 

In Ecclesiastes chapter 1, verse 9 it is written:

“What has been will be again, what has been done will be done again; There is nothing new under the sun. “

That bible verse came back to me when I recently read the Federalist Paper #10.  This paper, written by James Madison in 1787, discusses how the Union is a safeguard against domestic factions and insurrections and I’ll show how the wisdom put forth to pen and paper over 200 years ago still has value today.

Madison states that when a faction arises, there are two ways to address it: remove it or control its effects.  The first part of the paper deals with the folly in trying to remove it and the later portion of the paper deals with controlling its effects. 

Removing a faction can only be done by two methods: removing Liberty (taking a totalitarian stance to remove a peoples’ right to voice their opinion) or having everyone accept the faction thereby making the faction point of view the majority point of view.  In a free society it is impossible to remove Liberty so this method should be dismissed and even in countries that don’t have Liberty, this method of removing factions has shown throughout history to be ineffective.  People, by nature, gravitate to freedom and eventually the totalitarian methods will fail to suppress the free thinkers.  Likewise, having a large, free country becoming devoid of differing opinions is impossible because of our human nature.  Differing opinions is the norm in a free society so it is foolish to think all of the citizens will be of like minds on all issues.  From the Federalist Paper:

“The second expedient is as impracticable as the first would be unwise. As long as the reason of man continues fallible, and he is at liberty to exercise it, different opinions will be formed. As long as the connection subsists between his reason and his self-love, his opinions and his passions will have a reciprocal influence on each other; and the former will be objects to which the latter will attach themselves. The diversity in the faculties of men, from which the rights of property originate, is not less an insuperable obstacle to a uniformity of interests. The protection of these faculties is the first object of government. From the protection of different and unequal faculties of acquiring property, the possession of different degrees and kinds of property immediately results; and from the influence of these on the sentiments and views of the respective proprietors, ensues a division of the society into different interests and parties.”

If we can’t remove the faction, which is something we would not want to do in a free society, then the only other option is to control its effects and this is stated so well in the paper:

“The inference to which we are brought is, that the causes of faction cannot be removed, and that relief is only to be sought in the means of controlling its effects.”

Madison spends some time showing that a Republic is better equipped to handle factions that a direct Democracy and this is very important.  In a direct Democracy, it will be easy to get mired in the minutia because every faction will have to be heard and there will be too much noise to allow for reasoned debate and voting on the issues that really matter.  A Republic, where representatives of large areas make the laws, will filter out the noise and distill the minor factions out of the public debate because the representative will have a finite amount of time and will choose to focus on the issues that are important to the majority of the people they represent.  The Republic also elects what Madison calls “fit characters” that are reasoned and more appropriate to debate the issues than the entire populous of the country.  It is debatable if we have “fit characters” elected now but that is for another discussion.

Madison then describes how the Republic can control the effects of a faction (emphasis mine):

“By what means is this object attainable? Evidently by one of two only. Either the existence of the same passion or interest in a majority at the same time must be prevented, or the majority, having such coexistent passion or interest, must be rendered, by their number and local situation, unable to concert and carry into effect schemes of oppression. If the impulse and the opportunity be suffered to coincide, we well know that neither moral nor religious motives can be relied on as an adequate control. They are not found to be such on the injustice and violence of individuals, and lose their efficacy in proportion to the number combined together, that is, in proportion as their efficacy becomes needful. “

The most obvious way to control the effects of a faction is when the interests of the faction reside solely with the minority and then the majority can prevent these dangerous interests from becoming law.  This is the second means that the Republic can control the effects of a faction but I want to focus on the first means that is highlighted in bold text above.

If the faction interests reside in the majority, then the representatives of the majority must be wise enough to suppress those notions for the betterment of the Union and this is a key point and something that is relevant today.  During the recent past, Republicans in Name Only (RINO’s) and Democrats have not prevented the dangerous interests of a majority which I characterize as relating to increased government spending and expanded entitlement programs.  Madison assumed that ‘fit characters’ would rise above the disastrous faction interests even when a majority of the country wanted them but this has not been the case in the past few decades.  A significant percentage of the population might like government handouts in exchange for not working but “fit characters” should’ve realized that fostering a Republic where 90% of federal income tax revenues go to pay for Social Security, Welfare, Medicare, Medicaid and Unemployment Insurance is dangerous to the Republic and should have rejected legislation that supports this scheme of oppression.

In America’s history, when such dangerous interests such as slavery or segregation were present in the a large percentage of the population, the “‘fit characters” didn’t do the right thing in passing legislation to prevent these atrocities.  In more recent times, the RINO’s and Democrats didn’t resist the interests of many Americans to move to a more socialistic lifestyle with increased government entitlements and passage of a socialized health care system called Obamacare.  With Slavery and Segregation, it took a while to get it right but in the end we eventually came to the correct position and it is my hope that the Republic will eventually get things right and reverse our socialistic tendencies by reducing entitlement programs, government over regulation and our national debt.  I still have faith in America and the rise of the Tea Party and electing candidates that resist these dangerous interests validates my faith that America will return to its Free Market roots.

Demands for more government handouts and increased entitlements are coming from a larger percentage of our population and I would call this a dangerous faction that is intent on fundamentally transforming our Union.  Occupy Wall Street, the fight in Wisconsin over the ‘right’ for employee public service unions to collective bargain and the Income inequality meme are all evidence of factions that seek to destroy the American way of life and put us on a path that Greece is on right now.  Madison is right that the Republic can only control these dangerous factions if the “fit characters” rise up to the calling of their office and pass legislation that negates these dangerous doctrines of the Left.

In closing, I leave you with the second to last paragraph from this Federalist Paper and this is why I say there is nothing new under the Sun (my emphasis in bold):

“The influence of factious leaders may kindle a flame within their particular States, but will be unable to spread a general conflagration through the other States. A religious sect may degenerate into a political faction in a part of the Confederacy; but the variety of sects dispersed over the entire face of it must secure the national councils against any danger from that source. A rage for paper money, for an abolition of debts, for an equal division of property, or for any other improper or wicked project, will be less apt to pervade the whole body of the Union than a particular member of it; in the same proportion as such a malady is more likely to taint a particular county or district, than an entire State.”

Let’s hope that “the whole body of the Union” rises up and stops this dangerous and ignorant transition from Capitalism to Socialism.

Posted in politics | 3 Comments

Another Cautionary Tale Regarding Obamacare

The United States is about to make a huge mistake that will have such far reaching consequences that it will take years, if not decades, to undo the damage.  In case you are wondering, the mistake has a name and it’s called Obamacare. 

I have written before that we have all the evidence we need to show us what a terrible mistake Obamacare will be and the information is hiding in plain sight.  First we see the massive problems that are evident in the UK’s National Health System and now we see another demonstration of the horrors of Socialized Healthcare from Canada.

In a post at The Montreal Gazette we learn that cardiologists are under investigation for accepting bribes from patients so they can bypass the queue and receive medical treatment sooner rather than later.  Here are a few excerpts from the Montreal Gazette article:

“Two Montreal cardiologists are facing disciplinary charges over allegations of medical kickbacks, the Montreal Gazette has learned.

“The Quebec College of Physicians has concluded a 14-month investigation after the Gazette reported doctors at several Montreal hospitals routinely accepted bribes from patients to fast-track services to publicly funded health care.

Patients told the Gazette they regularly give envelopes stuffed with cash for preferential treatment and for obstetricians to show up for deliveries.

Patients confessed to slipping $100 bills under the pillow before going into the operating room and making up to $10,000 in under-the-table payments at doctors’ offices.

Some complained of surgeons demanding nearly $1,000 for “administrative fees” while simultaneously billing the RAMQ, the health insurance board.

While top health officials initially called it a marginal affair and a rare situation at a few facilities, doctors and patients called it “an open secret.”

And don’t think this is an isolated case because when healthcare is ‘free’ the lines get longer and people who need critical care have to wait.  This is further evidenced by more of the Montreal Gazette article:

“Gaetan Barrette, president of the Federation des medecins specialists du Quebec, said his organization deplores the practice and will not come to the defence (sic) of specialists facing sanctions linked to under-the-table payments.

“It’s completely unacceptable,” Barrette said. “You know why there are only two names? Because patients don’t talk. Patients should not be silent.”

After the Gazette stories were published, the College pleaded with the public to volunteer information. College secretary Yves Robert said the practice would never be eradicated unless patients came forward with complaints and testimony.

But patients are reluctant to rat out their doctors on queue-jumping or extra payments for fear of losing both their physician and their gateway into the medical system.”

Why do we refuse to acknowledge these warning signs?  Moving to a Socialized Health Care System like Obamacare will only ensure that only the very rich, who can afford bribes, can receive the fastest and highest quality healthcare.  Is this really what we want?  Is this an improvement of what we have now?

There is no free lunch, especially with healthcare.

 


Posted in healthcare, politics | 11 Comments

Liberal Motivations

More times than not, complex economic issues reduce down to motivations.  It doesn’t matter whether you are talking about consumers or producers – It is important to understand the motivations of both if you hope to understand the market and propose solutions to problems.  If you fail to accurately understand the motivations that drive the Market then any solutions you propose is akin to throwing darts while blindfolded.

The economic questions of motivation are infinite.  Why would a consumer buy an iPad instead of a Kindle Fire?  Why would a consumer shop at Target versus Wal-Mart?  Why would Netflix change their product offering and pricing strategy?  Why would a US company choose to manufacture its products outside the US?

This last question is the one I’ll explore in this post and show how Obama’s recent Tax Plan that he introduced on 22-FEB-12 can best be described as a 3rd grader who walks into a Quantum Physics convention, listens to the conversations for a while then grabs the microphone and starts lecturing the crowd.

Moving a manufacturing operation to a country like China is no trivial matter and the rewards for this decision would have to be huge for a company to do it.  The motivations for the a company doing this distills down to mainly increased profits so let’s explore some of the reasons a company would move its manufacturing outside the US.

Sometimes a company can save distribution costs (which will increase profits) by manufacturing the products in the country that will be a large market for your product and this is a reason many companies choose to move additional facilities to locations outside the US.  Sometimes a country will also make a stipulation that you must have a manufacturing presence in the country before they will allow you to sell the product there and in the case of a large market like China, a company will have to concede.  But the two main reasons to move manufacturing outside the US is to take advantage of cheaper labor and lower corporate taxes.

Cheaper Labor

I have shown in a previous post that lower labor rates outside the US should be utilized by companies to take advantage of the global market to make their products that don’t require a highly technical workforce.  The textile industry in the US is a prime example of this and these jobs have mostly left America and won’t be coming back so we should stop pining for them.   Here are a few quotes from my previous post on this topic.

“I am a proponent of the Knowledge Based Economy and I’d rather have the US involved in the higher paying manufacturing jobs such as product development, engineering, purchasing, finance and management. It makes smart business sense to let Mexico, China and India be involved in the labor intensive (and sometimes dangerous) work of manufacturing products that lend themselves to mass production. I’m also a proponent of the Free Market and since the Information Age has shrunk the size of the world as it relates to supply chains, it makes better business sense to have the high tech, high paying jobs in the US and the low tech, low paying jobs in countries that need them and price their labor accordingly.”

“But here is the rub. Moving to a Knowledge Based Economy demands a workforce that is highly skilled and those employees are required to have more education than a high school diploma provides. Americans need to recognize this now, better yet we should have recognized it 10 years ago, or we will be left behind. China, Mexico and India are not going away and there is no way to put the genie back in the bottle. America needs to set a priority on producing a highly skilled workforce which means more graduates from technical schools and traditional 4-year colleges.”

 Labor Unions contributed to this exodus of manufacturing jobs and some Liberals think that strengthening unions will keep the jobs here but they are trying to put a genie back into a bottle and that never works.  That ship has sailed, the US is now competing in a global economy and we have to realize that.  The shift in manufacturing jobs from the Midwest (high percentage of labor unions) to Right to Work states also validates this reality that labor unions have provided motivation for companies to relocate manufacturing to lower cost labor markets.  Other than continuing to reduce the Union influence that provides motivations for companies to move jobs outside the US, there is really nothing else that can be done to prevent this off shoring of jobs.  Companies have responded with improved efficiencies, automated manufacturing and increased the technical expertise of their employees to compete on a global scale and more of this is needed but we will not return to the glory days when 33% of all jobs in the US were in the manufacturing sector.

Corporate Taxes

Now we get to an area where the federal government can make changes to alter companies’ motivations and keep more jobs in the US.  American companies fall prey to the 2nd highest corporate tax rate in the world (39.54% for combined state and federal) and you don’t need a PhD in Economics to realize that a company can make more profit paying zero percent corporate taxes (which is the case in most countries) versus 35% (which is the current federal corporate tax rate).  You are a fool if you don’t realize that this is a powerful motivation to move manufacturing jobs outside the US!

The GOP candidates realized this last year and that is why we saw serious tax reform proposals from all of them.  It started with Herman Cain and his 9-9-9 plan (corporate tax rates at 9%), then Rick Perry which (corporate tax rates at 20%), then Ron Paul (corporate tax rates at 15%), Gingrich (corporate tax rates at 12.5%), Santorum (corporate tax rates at 17.5%) and Romney (corporate tax rates at 25%) who all promised to drastically lower corporate tax rates, eliminate loop holes and keep the tax rates flat.

Now, after over 3 years as President, Obama has come to the party and wants to lower corporate tax rates to 28% but in traditional Liberal fashion, the details were fuzzy.  Obama’s plan eliminated loopholes (but didn’t detail those) and included a new tax on profits for items manufactured outside US (but didn’t detail what those would be either). 

Jim Pethokoukis wrote a great analysis of the Obama plan but let me expand on that from the perspective of someone who actually works in manufacturing for a Fortune 500 company.

Liberal Motivations

Obama’s corporate tax reform plan gives us another peak into the Liberal Worldview and how they wish to solve problems.  US companies are motivated to move manufacturing outside the US because of the extremely high federal corporate tax rates and when conservatives see this problem they recommend ‘carrots’ to companies by lowering the federal tax rates dramatically that will provide motivation to keep jobs in the US but when liberals see this problem they bring out ‘sticks’ to punish companies for manufacturing products outside the US. 

It’s a subtle difference but an important one.  Conservatives would like to reduce the federal government’s role in providing motivations to US companies where they build their manufacturing sites.  With lower corporate taxes, they’ll move (or retain) more jobs in the US which will increase federal tax revenue from workers who pay income tax and keep profits equal to or greater than we see now.  The Laffer Curve predicts higher tax revenues from lower tax rates and a WSJ editorial analyzing a couple of the GOP candidates’ tax plans reminded us of that.

“After the Reagan reform of 1986 that reduced tax rates to 28% from 50%, tax revenues rose by 36% from 1986 to 1990.”

Liberals want to increase the federal government payrolls (it will take teams of people to police these foreign manufacturing sites to make sure they pay their ‘fair share’) and punish companies for manufacturing outside the US.  Liberals are like a carpenter who only has a hammer – all problems look like a nail.  Liberal solutions to all problems involve more government oversight and increased regulation.

This different approach to solving economic problems is very telling and should not escape the voter come November.  Do you vote for motivations that originate from increased government policing or do you vote for motivations that originate from the Free Market?

Posted in economics, politics | Leave a comment

No Education Required

 

I don’t understand this but maybe, in some weird parallel universe, the Equal Employment Opportunity Commission (EEOC) thought they could make it easier for people to get jobs.  Recently they issued an informal discussion letter that said companies can’t “screen out” job applicants who don’t have a High School diploma (even though the job requirements might list a High School diploma as a requirement).   

 

Yes, we live in strange times in the United States.  The key paragraph from the letter is pasted below and you’ll see the acronym “ADA” which is shorthand for the Americans with Disability Act:

 

“Thus, if an employer adopts a high school diploma requirement for a job, and that requirement “screens out” an individual who is unable to graduate because of a learning disability that meets the ADA’s definition of “disability,” the employer may not apply the standard unless it can demonstrate that the diploma requirement is job related and consistent with business necessity. The employer will not be able to make this showing, for example, if the functions in question can easily be performed by someone who does not have a diploma.”

 

It appears that the EEOC is trying to address the rare scenario where all the following are true:

 

1)      An individual, who doesn’t have a High School diploma, is excluded from a job because of the High School diploma job requirement.

 

2)      The individual couldn’t graduate from High School because of a disability recognized by the ADA.

 

3)      The individual has the skill set, aptitude and experience to perform the job.

 

The EEOC letter provides an “out” for companies if the job really does require a certain education (and not just a piece of paper) and the company can wave this new rule if they “can demonstrate that the diploma requirement is job related and consistent with business necessity.” 

 

But are we ready to fight those legal battles for every job description in the United States that requires a High School Diploma?

 

You can see where this is going.  Lawyers all over the country will be busy on this and forcing companies to provide evidence why a high school diploma is needed to operate a CNC machine, sell merchandise or work on a manufacturing floor.  What about the Military?  Will they be forced to take individuals who don’t have a High School diploma?

 

Companies will spend countless hours engaged in non value-added pursuits fighting these lawsuits or working to prevent these lawsuits that will all be based on this seemingly innocent EEOC letter.  Can you imagine the Army, Navy, Air Force and Marines having to justify why every job that exists in these branches of service requires a High School diploma? 

 

Does it stop here?  Will people be able to become doctors, lawyers, accountants and engineers without having college degrees in those respective majors?

 

Imagine the possibilities – Barry drank too much alcohol in college (alcoholism is considered a disability under the ADA) so that prevented him from finishing Medical School but he’s seen lots of shows on TV so he deserves to get the Cardiothoracic Surgeon position.  He’ll need the hospital to provide his Malpractice Insurance and it might be a little higher than the hospital is accustomed to.   Or you can fight his lawyers in court, your call.

 

Will this further speed up our race to the bottom with regard to education levels in the United States?  Where is the motivation to stay in school and earn your diploma and learn the very basic educational tools that come along with that hard work? 

 

And if a High School diploma isn’t needed, can we abolish the Department of Education now?

 

When will this business killing over regulation stop?  Hopefully on 20-JAN-2013!

 

Posted in education, Over Regulation, politics | 1 Comment