Friday, August 24, 2012

Hamilton's Revenge I

I like Alexander Hamilton. He is the true founder of the "Business Wing" of our Democratic Republican republic. During his necessarily brief honeymoon with James Madison, the two wrote the majority of the Federalist Papers and outlined the concepts behind and goals of the American Revolution and its constitution. It was their endeavor that solidified our republic as a republic and the quality of that output is why we still have the same constitution, essentially, that they authored.

Their honeymoon was brief because they represented different ideals, different constituencies, and different visions of government. None of these visions were perfect. To "perfect" our government requires that all of us inheritors of those people recognize this. Each founder offered an incomplete piece of a whole. Like blind men describing a giant tesseract of a beast it is up to us to complete this vision. They offer visions, and clear guidance, but were not saints. They don't speak for God. Our Constitution has to be treated like a living document or it will break into pieces.

June 18th, 1787 http://www.law.umkc.edu/faculty/projects/ftrials/burr/HamiltonBio.htm

Nobody illustrates that point better than Alexander Hamilton. He was the friend of James Madison, but ended his life as a bitter enemy of the Jefferson Administration in general, James Madison to a degree, and Aaron Burr Specifically. Indeed there is an entire society of people who champion Aaron Burr and see him as the intellectual founder of Wall Street, our shadow economic elite, and all that is wrong with America. They note that Alexander Hamilton was an Anglophile, openly admired British Economic Royalism, and despised democracy. And they'll gleefuly share this quote:

http://aaronburrsociety.org/aaron_burr_society_home.html

“All communities divide themselves into the few and the many. The first are the rich and well-born, the other the mass of the people. The voice of the people has been said to be the voice of God; and however generally this maxim has been quoted and believed, it is not true in fact. The people are turbulent and changing, they seldom judge or determine right. Give therefore to the first class a distinct permanent share in the government… Can a democratic assembly who annually revolve in the mass of the people be supposed steadily to pursue public good? Nothing but a permanent body can check the imprudence of democracy…”

From: Howard Zinn "People’s History of the United States" (at Amazon) online: http://www.historyisaweapon.com/zinnapeopleshistory.html

http://aaronburrsociety.org/aaron_burr_society_home.html

I don't see that extreme. But the counterpoint is that Hamilton and Madison represent two very different views of Democracy. Madison did indeed champion Democratic Republicanism (at least for Whites), and that therefore anyone claiming the "founding fathers" were uniformly in agreement on a single set of theocratic authorities setting up a single vision for our Governance (Our Constitution) and agreeing on anything -- is genuinely either absurd or dishonest.

The other point is that those who talk about "original intent" that way (as if it were something fixed in time) miss the point. The "original intent" of a law was often deliberately high level so that the implementation could change over time. Where it is specific there is usually a reason, and that reason, unless modified by later laws and understanding should be preserved. But it is not a dead hand. The Constitution was meant to be a "living document" in the sense of a high level charter whose implementation could change over time.

And indeed we can speculate endlessly. If Jefferson, Franklin, and others saw reporters and the press as a "fourth estate," there is every reason to believe that by founding Wall Street, creating our first National Bank, and creating the New York Stock Exchange; Hamilton was founding a "fifth estate" that would eventually come to have more power than the other estates combined.

Indeed I'm see our current financial meltdown, and the previous ones that were all caused by the same financial elites, and their fraudulent schemes (compare "Bucket Shops" to modern derivatives) for parting honest Americans from their savings -- as all part of a piece. I'm labeling that piece "the revenge of Alexander Hamilton."

At the same time Alexander Hamilton was right about a lot of things. His prescription of mild protective tariffs, stable currency, and modest debt works when applied intelligently. On the other hand I think his promotion of economic elites, joint stock companies, and fractional banking has been at best a mixed blessing and at worst a curse.

I'm not with the Aaron Burr Society folks who see it as a massive conspiracy. For one thing it is quite open how these folks part the rest of us with our wealth; so its hardly a secret. And for another, these kinds of things rarely involve secret "conspiracies" so much as herd behavior and insider economic politics.

On the other hand the following points are true. You really should listen to this report:

"The best way to rob a bank is to own it."

You Tube: The Best Way to Rob a Bank is to own it -- Bill Black

"Bernie Maddow was a piker."

http://aaronburrsociety.org/Bibliography.html

continued, part II:
http://holtesthoughts.blogspot.com/2012/08/hamiltons-revenge-ii.html
Originally posted at Fraught with Peril
http://fraughtwithperil.com/cholte/2010/05/10/the-revenge-of-alexander-hamilton/
http://fraughtwithperil.com/cholte/2010/05/11/revenge-of-alexander-hamilton-part-ii/

Hamilton's Revenge II

This continues my discussion of Alexander Hamilton and the authorship of the constitution. As noted in the previous post, he was a Republican, but also a man who was an Anglo-phile and admitted that he preferred the British form of Government. This shouldn't be surprising. American Republicanism was partly a reaction to the extreme Parliamentarianism that was in turn a reaction to the "Glorious Revolution" which defenestrated the Stuart Kings and replaced them first with a Royal Line from the Netherlands, and then with an obscure German Family. The Revolutionaries also concentrated power in Judicial and Parliamentarian hands; and had trouble conceiving of the notion that English people outside the Home Country would want "representation" in Parliament eventually. As a warrior Hamilton fought the British, as an able warrior he understood them.

Madison Notes:

..."In his private opinion he had no scruple in declaring, supported as he was by the opinions of so many of the wise & good, that the British Govt. was the best in the world: and that he doubted much whether any thing short of it would do in America."

I can put myself in his shoes. As a man who understood the British Government and openly admired its constitution, he was steeped in British Common law and its tradition of Representation, preservation of rights, and order. Compared to the other countries in Europe it was the best government of the time.

"He hoped Gentlemen of different opinions would bear with him in this, and begged them to recollect the change of opinion on this subject which had taken place and was still going on. It was once thought that the power of Cong[res]s. was amply sufficient to secure the end of their institution. The error was now seen by every one."

Hamilton understood an important principle of reality: One should never throw out the baby with the bathwater. There are gems in the British system; Common law, the concept of rights, the principle of "constitutionality" which predates our written constitution, and the principles that no man is above the law and that all men should be subject to "ordinary courts" rather than special treatment -- when charged with a crime:

"...The members most tenacious of republicanism, he observed, were as loud as any in declaiming ag[ain]st. the vices of democracy. This progress of the public mind led him to anticipate the time, when others as well as himself would join in the praise bestowed by Mr. Neckar on the British Constitution, namely, that it is the only Govt. in the world "which unites public strength with individual security."

Few of the leaders of his time were out and out Democratic Republicans. Madison argued for that, but even he was afraid of "faction" and the power of demagogues and mob rule. But Hamilton also admired monarchy. And that is a different animal.

-"In every community where industry is encouraged, there will be a division of it into the few & the many. Hence separate interests will arise. There will be debtors & creditors &c. Give all power to the many, they will oppress the few. Give all power to the few, they will oppress the many. Both therefore ought to have [FN6] power, that each may defend itself ag[ain]st. the other."

This sounds remarkably like Madison's argument in Federalist 10 except that Madison comes around to the side of Representative Democracy as the least evil of all available systems. But here is where he diverges from James Madison and Thomas Jefferson:

To the want of this check we owe our paper money, installment laws &c. To the proper adjustment of it the British owe the excellence of their Constitution. Their house of Lords is a most noble institution. Having nothing to hope for by a change, and a sufficient interest by means of their property, in being faithful to the national interest, they form a permanent barrier ag[ain]st. every pernicious innovation, whether attempted on the part of the Crown or of the Commons."

Of course this assumes that the wealthy people in the house of commons are genuinely neutral and disinterested. Hamilton is admiring economic royalty here and assumes that all "pernicious innovation(s)" will come from the commons. His Point Of View is entirely that of an economic royalist. Indeed by the time he participated in the Constitutional Convention he was already turning his attention towards commerce and banks and played an indirect role in founding the Bank of New York.

"No temporary Senate will have firmness eno'[ugh] to answer the purpose. The Senate [of Maryland] which seems to be so much appealed to, has not yet been sufficiently tried. Had the people been unanimous & eager, in the late appeal to them on the subject of a paper emission they would would have yielded to the torrent."

For Hamilton a stable banking system, a system that favors the accumulation of wealth, and as little Democracy as he could get away with was his goal. Never mind that the kinds of banks he was founding would be a leading source of **instability**

"Their acquiescing in such an appeal is a proof of it. -Gentlemen differ in their opinions concerning the necessary checks, from the different estimates they form of the human passions. They suppose seven years a sufficient period to give the senate an adequate firmness, from not duly considering the amazing violence & turbulence of the democratic spirit. When a great object of Govt. is pursued, which seizes the popular passions, they spread like wild fire, and become irresistable.

Madison here is summarizing Hamilton's arguments;

"He appealed to the gentlemen from the N. England States whether experience had not there verified the remark."
To Hamilton, like Burke, the common folks involving themselves in politics was a horror that could only lead to violence and turbulence. From this speech it is pretty obvious that Hamilton, whatever lip service he might have given the commons, or democracy, was no democrat:

"-As to the Executive, it seemed to be admitted that no good one could be established on Republican principles. Was not this giving up the merits of the question: for can there be a good Govt. without a good Executive. The English model was the only good one on this subject.

To Hamilton there were no examples of successful Republican executives. His feelings went to promoting royalism in the executive area as well. Indeed, he doesn't sound that different from any of his well to do contemporaries. In many Latin American Countries the "executive" quickly became an unstable succession of dictators. His heart pined for the stability of hereditary monarchy:

The Hereditary interest of the King was so interwoven with that of the Nation, and his personal emoluments so great, that he was placed above the danger of being corrupted from abroad-and at the same time was both sufficiently independent and sufficiently controuled, to answer the purpose of the institution at home. one of the weak sides of Republics was their being liable to foreign influence & corruption. Men of little character, acquiring great power become easily the tools of intermedling Nei[gh]bours.

Of course the reality is not so cut and dried. There are instances of Kings being corrupted from abroad (The Polish Kings come to mind), and there are many examples of Kings being pure tyrants simply because placing the roles of Judge, Jury and Executioner in the same top down organization and/or person invites tyranny. As to "men of little character" we see that set of traits scattered from top to down in every country and community. Hamilton only need have looked objectively at the then occupant of the English Throne, who was totally unsuited for it.

But the main point is that, an analysis of this speech, recorded by his friend Madison (there are other even less flattering versions of the same speech), demonstrates that the two main authors of the constitution had widely divergent beliefs about the value of Democratic Republicanism. Hamilton is the true founder of Undemocratic Republicanism, while we can yet give credit to Madison for founding the principles of our republic.

A secondary point is that, nevertheless, it was important to represent Hamilton's view in the founding of the country. His intrinsic fear of paper money, demagogues, and mob actions, is one that most of us ought to fear as well. Aaron Burr was a demagogue and a populist, and it is no accident that he's also the one who killed Hamilton and in the process destroyed his own political career.

This is a reprint of a post originally at Fraught With Peril The first part of this series is here:
http://holtesthoughts.blogspot.com/2012/08/hamiltons-revenge-i.html

Monday, August 20, 2012

John Locke on The Virtues of liberty

As a society forgets it's requirements and it's virtues, it becomes ugly. Viciousness comes from the word vicious, which shares a common root with the word vice. A societies vices are the distorted mirror image, or shadow, of it's virtues. When we talk about wanting liberty, that is a virtuous thing. But the opposite of liberty is the attribute of oppression. Liberty is to be able to move freely, do what one pleases with only natural constraints, and to live one's life and pursue happiness.

The opposite of being able to move freely is to be oppressed, restrained. Complete oppression is slavery, when one isn't even able to own one's self. One is never, in this world, completely free; nor is one completely restrained until death. While in the material world every human being is both free and constrained to a degree.

6. "But though this be a state of liberty, yet it is not a state of license; though man in that state have an uncontrollable liberty to dispose of his person or possessions, yet he has not liberty to destroy himself, or so much as any creature in his possession, but where some nobler use than its bare preservation calls for it. The state of Nature has a law of Nature to govern it, which obliges every one, and reason, which is that law, teaches all mankind who will but consult it, that being all equal and independent, no one ought to harm another in his life, health, liberty or possessions; for men being all the workmanship of one omnipotent and infinitely wise Maker; all the servants of one sovereign Master, sent into the world by His order and about His business; they are His property, whose workmanship they are made to last during His, not one another’s pleasure."

Liberty and oppression are not absolutes, they aren't binary. To the degree that one has access to and control of the properties a person needs to be free to pursue happiness and achieve one's life's work and needs, one has liberty. To the extent these attributes are denied, one is not free. That is why imprisonment and slavery are the ultimate in oppression. Our own liberty should not impinge on others. As John Locke Says:

"6...Every one as he is bound to preserve himself, and not to quit his station wilfully, so by the like reason, when his own preservation comes not in competition, ought he as much as he can to preserve the rest of mankind, and not unless it be to do justice on an offender, take away or impair the life, or what tends to the preservation of the life, the liberty, health, limb, or goods of another."

Liberty is also associated with power. It requires power to pursue happiness, control properties, use tools and achieve one's goals. Powerlessness is associated with slavery. Rule is the exercise of power. To be truly free one must have power over one's own life. That is why self-rule is self-empowerment. At the same time a state of war starts when someone tries to utilize his power to take away the liberty of another. John Locke says;

17.."he who attempts to get another man into his absolute power does thereby put himself into a state of war with him;...He that in the state of Nature would take away the freedom that belongs to any one in that state must necessarily be supposed to have a design to take away everything else, that freedom being the foundation of all the rest; as he that in the state of society would take away the freedom"

Ironically just the act of recognizing where one is powerful and where one has no power is the first step in getting self rule. Even a prisoner who can rule his or her own mind cannot be completely shackled. Some of the greatest works of freedom were written in Jail. The virtue of liberty is that it starts inward and emanates outward. Liberty is not anarchism. John Locke said of liberty:

21...."The liberty of man in society is to be under no other legislative power but that established by consent in the commonwealth, nor under the dominion of any will, or restraint of any law, but what that legislative shall enact according to the trust put in it. Freedom, then, is not what Sir Robert Filmer tells us: “A liberty for every one to do what he lists, to live as he pleases, and not to be tied by any laws”; but freedom of men under government is to have a standing rule to live by, common to every one of that society, and made by the legislative power erected in it. A liberty to follow my own will in all things where that rule prescribes not, not to be subject to the inconstant, uncertain, unknown, arbitrary will of another man, as freedom of nature is to be under no other restraint but the law of Nature."

The virtue of liberty is to be free within the boundaries of one's own swimlanes, one's own life, with rules everyone can understand. Libertarians get this wrong, and anarchists get this very wrong.

John Locke continues:

"57....For in all the states of created beings, capable of laws, where there is no law there is no freedom. For liberty is to be free from restraint and violence from others, which cannot be where there is no law; and is not, as we are told, “a liberty for every man to do what he lists.” For who could be free, when every other man’s humour might domineer over him? But a liberty to dispose and order freely as he lists his person, actions, possessions, and his whole property within the allowance of those laws under which he is, and therein not to be subject to the arbitrary will of another, but freely follow his own"

He says this in the context of a parent:

63. "The freedom then of man, and liberty of acting according to his own will, is grounded on his having reason, which is able to instruct him in that law he is to govern himself by, and make him know how far he is left to the freedom of his own will. To turn him loose to an unrestrained liberty, before he has reason to guide him, is not the allowing him the privilege of his nature to be free, but to thrust him out amongst brutes, and abandon him to a state as wretched and as much beneath that of a man as theirs."
Notes:
"9. “Human laws are measures in respect of men whose actions they must direct, howbeit such measures they are as have also their higher rules to be measured by, which rules are two—the law of God and the law of Nature; so that laws human must be made according to the general laws of Nature, and without contradiction to any positive law of Scripture, otherwise they are ill made.” Hooker, Eccl. Pol. iii. 9. “To constrain men to anything inconvenient doth seem unreasonable.” Ibid. i. 10."

Friday, August 17, 2012

Attributes of a Virtuous Commonwealth

Introduction to the idea that government should focus on the "common wealth."

You can probably read a law textbook talking about concepts like commonwealth. But they are going to look at the subject legally. For example there is a Commonwealth established by the countries of the Pacific that created a charter that lists principles starting with:

"The Commonwealth of Nations is a voluntary association of independent sovereign states, each responsible for its own policies, consulting and co-operating in the common interests of their peoples and in the promotion of international understanding and world peace."

Thursday, August 16, 2012

The Concept of Commonwealth as antidote to Tyranny

The Concept of Commonwealth

The concept of commonwealth comes from a term that John Locke used to translate a Roman Term that had a slightly different meaning. John Locke seems to have invented the term because in his "Twin Treatises" he writes:

"133. By “commonwealth” I must be understood all along to mean not a democracy, or any form of government, but any independent community which the Latins signified by the word civitas, to which the word which best answers in our language is “commonwealth,” and most properly expresses such a society of men which “community” does not (for there may be subordinate communities in a government), and “city” much less. And therefore, to avoid ambiguity, I crave leave to use the word “commonwealth” in that sense, in which sense I find the word used by King James himself, which I think to be its genuine signification, which, if anybody dislike, I consent with him to change it for a better"

Wikipedia translates Civitas thus:

"the Latin term civitas (plural civitates), according to Cicero in the time of the late Roman Republic, was the social body of the cives, or citizens, united by law (concilium coetusque hominum jure sociati). It is the law that binds them together, giving them responsibilities (munera) on the one hand and rights of citizenship on the other. The agreement (concilium) has a life of its own, creating a res publica or "public entity" (synonymous with civitas), into which individuals are born or accepted, and from which they die or are ejected. The civitas is not just the collective body of all the citizens, it is the contract binding them all together, because of which each is a civis"
http://en.wikipedia.org/wiki/Civitas taken 8/16/2012

John Locke was playing a deep game there. And it is a joy to read his Treatise on Government because if one reads it in context one can see what masterful arguments he is giving, and how subversive they still are. When I was researching this paper I went to the Cato Institute and read up on John Locke there -- and they recommended ignoring the body of his work and concentrating on the beginning and the end of the treatise. But the treatise is a work of definition like an encyclopedia, a work of refutation, of exquisite exegesis, and of a wonderfully human and "common" logic.

And by choosing the word "commonwealth" to translate "civitas" John Locke was performing a valuable service for the world, for the world civitas implies merely cities, and civilization, but the word commonwealth says something about why people come together. And so he was saying something about the "state of civilization" in contrast to the "state of nature" and was talking to the aristocrats of his time who were advancing an idea of civilization and liberty that was akin to the Social Darwinian arguments of our time.

The concept of social contract derives from the Latin understanding of the concept of a republic united by law. It wasn't invented by Enlightenment philosophers but represents an ancient idea of social contract or "concilium" where a social body gives people both rights and responsibilities with respect to one another. I never found the expression "social contract" anywhere in his book. What I found was an explicit and implicit reference to basic principles of civility, common sense, and affection for common law, common people, and the notion that a civilization exists for the sake of the people and the common good. Hence with this simple expedient of translation John Locke was redefining a term and enriching it. Since his time others have parsed his expressions and tried to limit the meaning of commonwealth to the most parsed and constrained definition of civitas they can, but in the Two Treatises he was making the case for commonwealth as an antidote to Tyranny.

John Locke does this by attacking the strawman arguments of Sir Robert Filmer in his Patriarcha. But he's doing more than that. Filmer was dead when John Locke was a man. John Locke states his reasons in his opening lines, he found it's arguments false and misleading:

"confess myself mightily surprised that in a book, which was to provide chains for all mankind, I should find nothing but a rope of sand;"

He found Filmer's work a wonderful punching bag on which to hang his theories. Filmer wasn't much different from most libertarians or righties of our day, who "flatter the princes" into thinking that they rule by divine right. They also teach and practice a deluded, perverse and mistaken notion of liberty, which Locke refutes in this wonderful passage:

"The liberty of man in society is to be under no other legislative power but that established by consent in the commonwealth, nor under the dominion of any will, or restraint of any law, but what that legislative shall enact according to the trust put in it."

The property of this world is in common among us all, and entrusted to those who possess it as a trust. It is a trust given to mankind and all forms of rule, official-hood, or other officer elevations are in the context of this notion of Trust. And he continues:

"Freedom, then, is not what Sir Robert Filmer tells us: “A liberty for every one to do what he lists, to live as he pleases, and not to be tied by any laws”; but freedom of men under government is to have a standing rule to live by, common to every one of that society, and made by the legislative power erected in it. A liberty to follow my own will in all things where that rule prescribes not, not to be subject to the inconstant, uncertain, unknown, arbitrary will of another man, as freedom of nature is to be under no other restraint but the law of Nature."

Thus Locke's commonwealth is a civilized place where people live within their own property and use the commons for the common wealth and the common good as well as their own wealth. For Locke Freedom is to live within a civilized world where there is consensus, and common sense. For John Locke God didn't create monarchy or aristocracy, or even a right of the Church over all the world, but rather:

The Commons are a Common Trust.

  1. That by this grant, Gen. i. 28, God gave no immediate power to Adam over men, over his children, over those of his own species; and so he was not made ruler, or monarch, by this charter.
  2. That by this grant God gave him not private dominion over the inferior creatures, but right in common with all mankind; so neither was he monarch upon the account of the property here given him.

That concept of trust is how he put limits on the power of kings and executives, officers and judges, legislators and all others who exercise power. And he elucidates this with a wonderful exegesis drawing from the Book of Samuel and the story of how Samuel gained and lost the Kingship of Israel. Starting with how Samuel became king:

"those who liked one another so well as to join into society cannot but be supposed to have some acquaintance and friendship together, and some trust one in another, they could not but have greater apprehensions of others than of one another; and, therefore, their first care and thought cannot but be supposed to be, how to secure themselves against foreign force. It was natural for them to put themselves under a frame of government which might best serve to that end, and choose the wisest and bravest man to conduct them in their wars and lead them out against their enemies, and in this chiefly be their ruler."

And something similar he describes as happening when Samuel made Saul King of Israel.

"As if the only business of a king had been to lead out their armies and fight in their defence; and, accordingly, at his inauguration, pouring a vial of oil upon him, declares to Saul that “the Lord had anointed him to be captain over his inheritance” (ch. 10. 1)."

A captain leads by the trust of his army and is there because he is the most excellent and accomplished strategist and warrior the commonwealth can find. John Locke makes the case that Saul won his position because he won the trust of both Israel and God, but he notes that these two trusts are synonymous.

"And therefore those who, after Saul being solemnly chosen and saluted king by the tribes at Mispah, were unwilling to have him their king, make no other objection but this, “How shall this man save us?” (ch. 10. 27), as if they should have said: “This man is unfit to be our king, not having skill and conduct enough in war to be able to defend us.” And when God resolved to transfer the government to David, it is in these words: “But now thy kingdom shall not continue: the Lord hath sought Him a man after His own heart, and the Lord hath commanded him to be captain over His people” (ch. 13. 14.)."

So a King, or executive has the duty to 'save' the people he is entrusted to lead. And trust is necessary for all other offices. And in the Republican scheme of government the ultimate trust resides with the legislature and then with the people:

149. "Though in a constituted commonwealth standing upon its own basis and acting according to its own nature—that is, acting for the preservation of the community, there can be but one supreme power, which is the legislative, to which all the rest are and must be subordinate, yet the legislative being only a fiduciary power to act for certain ends, there remains still in the people a supreme power to remove or alter the legislative, when they find the legislative act contrary to the trust reposed in them. For all power given with trust for the attaining an end being limited by that end, whenever that end is manifestly neglected or opposed, the trust must necessarily be forfeited, and the power devolve into the hands of those that gave it, who may place it anew where they shall think best for their safety and security...."

In a commonwealth the people have the right to cashier or remove any of their officers when they violate their trust. And John locke, in saying these things was stating revolutionary things. Things that the Whig party he helped establish would later try to distance itself from. John locke however, refutes people like Edmund Burke who denied that people should even have the right to cashier misbehaving officers. But I'll get to that later.

The concept of Commonwealth, when coupled with concepts like trust, rule of law and the right of the people to remove officers, are revolutionary concepts and concepts that should be the basis of creating communities that function well. The concept of Commonwealth, by establishing these principles stands as an antidote to even the potential for tyranny, of "Private Separate Advantage", in a government where the governors and officers, rich and powerful, see themselves as entitled to violate the trust the people put in them.

Wednesday, August 15, 2012

Definitions related to Democratic Republicanism

Res Publicus — Concern of the People

A Republic is a State that is governed, at least in theory, for the benefit of the whole People of that State. A state that is not governed that way is a Tyranny:

Bad Government is also tyrannical government and undemocratic government. This is a constitutional problem. It is not always a problem with laws being "unconstitutional" in the sense of not according with our wonderful national constitution. Rather, it is often a problem of bad design, of poorly constituted government. Such bad government is a result of not applying basic principles of good government to the design of government from top to bottom.

Saturday, August 11, 2012

Ryan and Republican Policies

Paul Ryan was selected as Romney's running mate yesterday, and he and Romney make quite a team. Both are adamant about looking out for the wealthiest members of our society -- at the expense of the rest of us. Romney is running for President on a platform of cutting social services, laissez faire in business, doubling the defense department and starting wars in Iran and maybe with long time business partners like China.

And of course Ryan and his buddies are engaging in the same idea rustling, rebranding, and newspeak that they've been using since they created the Tea Party to "distract and divide" people, while abusively projecting their policies on progressives. His medicare plan would:

"Under Ryan’s plan, the government would help seniors buy health insurance — rather than receive coverage straight from Medicare, as they do now".Read more: http://www.politico.com/news/stories/0812/79584.html#ixzz23HYysLIP "

And what that means is more overhead charges for the insurance companies, and eventually vouchers that will dispossess seniors of even minimal coverage.

Ryan's votes for the Bush Policies helped create our Great Recession (Depression really) and to impoverish millions of people. And those policies will enrich the already wealthy, destroy the middle class, and eff the poor.

Think Progress article states;

1. Ryan breaks up the large market clout of Medicare and pushes seniors into less efficient private insurers. As Rick Foster, Medicare’s chief actuary, admitted during a recent House Budget Committee hearing, since traditional Medicare is far better at advancing delivery system reforms, securing lower reimbursement rates with health care providers, and operating under minimal administrative overhead, transferring Medicare beneficiaries from free-for-service Medicare into the private health market would not contain overall health care spending. It would only shift costs.
2. Seniors who enroll in traditional Medicare will likely pay more for their benefits. That’s because under Ryan’s budget, private plans will be able to cherry-pick the healthiest beneficiaries from traditional Medicare and leave sicker applicants to the government. The budget states that enrollees would be “guaranteed a plan that is at least the value of the traditional fee-for-service Medicare option,” but private insurers could still attract a healthier population by simply ratcheting down services that sicker beneficiaries rely on (like chemotherapy) and building up coverage for healthier applicants (like preventive services). Should they succeed, traditional Medicare costs will skyrocket, forcing even more seniors out of the government program. Seniors who are priced out of traditional coverage over time would enroll in private plans and receive care through more restricted provider networks relative to what they currently enjoy (where nearly all hospitals, doctors, nursing homes participate). Ryan pledges that “CMS would also conduct an annual risk review audit of all insurance plans participating in the Medicare Exchange,” but as the experience with Medicare Advantage demonstrates, existing tools are still insufficient to address cherry picking.
3. The “premium support” credits won’t keep up with health care costs. Fortunately, the vouchers seniors will receive are no longer indexed to inflation. They instead rely on actual average bids in any given geographic area and would do a better job of keeping up with health care costs every year than the original Ryan proposal. But seniors in high cost Medicare areas could still experience a cost-shift and would be responsible for the difference between the amount of the premium credit and the actual cost of the policy.

I'm glad they selected Ryan, he epitomizes the heartless and short sighted policies that are destroying our democracy. He's an Ayn Rand believer and an elitist, whose idea of Liberty is the tyranny of business, the wealthy, and authoritarian (Taliban) style religion.

Further reading:

http://thinkprogress.org/health/2012/03/20/448008/three-reasons-why-the-medicare-reforms-in-ryans-new-path-to-prosperity-still-set-us-on-the-wrong-track/