Apparently Forcing Everybody to Buy Insurance Doesn’t Make Prices Go Down

I have some shocking news for you. Even though the Affordable Care Act (ACA) was passed with the promise that forcing everybody to buy insurance would reduce prices the prices have — you might want to sit down because this is going to be shocking — gone up:

Insured Americans are having to shell out more and more for healthcare, particularly, hospital visits, researchers report this week in the journal JAMA Internal Medicine. From 2009 and 2013—before the biggest provisions of the Affordable Care Act took effect in 2014—people with individual or employer-sponsored health insurances saw a 37 percent rise in out-of-pockets costs for a hospital stay. Average bills jumped from $738 to $1,013. That’s about a 6.5 percent increase each year. However, overall healthcare spending rose just 2.9 percent each year during that time-frame and premiums—the cost to buy insurance—rose by around 5.1 percent annually.

“Every year, people freak out about how high premiums have gotten and how they continue to grow exponentially, but [out-of-pocket costs are] actually growing even faster,” Emily Adrion, first author of the study and a researcher at the Center for Healthcare Outcomes and Policy at the University of Michigan, told Bloomberg.

What could possible be going on here? How can involving more government not fix a problem? The reason is actually quite simple. When you’re required to do business with somebody they have little motivation to provide you a quality service or keep your costs low. This is especially true in a market that is heavily protected against new competitors. The health insurance market, through regulatory protections, is hard for any new competitor to enter unless they’re in possession of billions of dollars. Because of that the already established insurance companies feel safe keeping their prices high so long as the other established companies also keep their prices high.

The Glories of Central Planning

Socialists often criticize the market for allowing people to starve. They often say it’s unfair that somebody with surplus food is allowed to keep it while others starve to death. They also lambast the idea of property rights because the concept allows a person with a surplus of food to defend it against a starving thief. These are valid criticisms, mind you. But they also ignore an important fact. Markets and private property rights may allow some people to starve but you really need a centrally planned economy if you want to starve everybody:

The fight for food has begun in Venezuela. On any day, in cities across this increasingly desperate nation, crowds form to sack supermarkets. Protesters take to the streets to decry the skyrocketing prices and dwindling supplies of basic goods. The wealthy improvise, some shopping online for food that arrives from Miami. Middle-class families make do with less: coffee without milk, sardines instead of beef, two daily meals instead of three. The poor are stripping mangoes off the trees and struggling to survive.

Venezuela is an epitome of centrally planned economics. Much of the market has been “nationalized” (a fancy word for stolen by the State) and the Venezuelan government dictates a great deal regarding production and prices. Like the Soviet Union, Venezuela’s economy has collapsed and now people are starving.

In what must seem a twist of irony to proponents of central planning, there is hope for salvation. When the economy of the Soviet Union collapsed the thing that saved countless lives was the black market:

Everyday survival here requires of everyone – from childhood to old age – a street savvy that makes life in the inner cities of the West seem innocent by comparison. Many older Soviet people say the situation is much like it was after World War II. Survival is a degraded art form requiring such skills as knowing under which bridge the black-market gasoline dealers operate on Tuesdays and what sort of Western chocolates to give a schoolteacher on a state holiday so that a child can get decent treatment in the coming semester.

Anatoli Golovkov, the resident expert on economics at Ogonyok magazine, said, “There is nothing to buy through ordinary channels, but you can get anything you need if you are willing to play the game and pay big money. The whole process makes all of us cynical about the law and ourselves. It degrades us. But what’s the choice?

“For example, say I have guests coming, and I need a cut of meat, a couple of bottles of booze and a carton of good cigarettes. There’s really just one option. With a fistful of money, you go to one of the city markets. The state-run stalls are nearly empty. But you explain what you need to someone. He nods, and never saying a word, he writes down a price on a slip of paper and says, `Come back in an hour.’ When you come back, the package is all wrapped up in a copy of Pravda and off you go.”

When central planning begins starving everybody the market is there to save lives. It happened in the Soviet Union and it’s happening in Venezuela:

But in Maracaibo, the black market is an actual place. The contrabando, as sellers call it, sits on tables out in the open.

The odd part, to an American, is that this contrabando is available every day at Aisle 3 in my local Safeway: flour, rice, coffee, Tylenol. I went in with fixer/translator Yesman Utrera and photographer Jorge Galindo, on a specific mission: to find infant formula for our driver’s baby. By the time we found two cans to compare prices, both were sold.

The very thing that socialists accuse of starving people is the only thing that keeps people fed when socialism starts to starve them.

There are no perfect solutions. Every solution has pros and cons. The cons of the market and private property rights is that some people do indeed starve. But that is far less of a con in my book than the con socialism, which means everybody starves when the State can no longer keep the centrally planned economy propped up. When a centrally planned economy begins the collapse a major pro of the market comes into play: the incentive of personal gain spurs market actors to provide the goods people desperately need. Many will point out the high prices of dealing with these black market actors as a con of the market but they fail to understand that the high prices exist because the risks are so high. When a centrally planned economy begins to collapse it’s not unusual for the State to blame the very thing keeping people alive: the black market. In the hopes of keeping the economy propped up just a little bit longer the State sends agents to hunt, assault, kidnap, and/or kill black market actors. So the high prices aren’t the fault of the black market actors but the State that is trying to maintain its control over the ashes of the civilization it burned.

You Can’t Own Property, Man

Pop quiz time. Can you own property in Minneapolis? The answer is no. You can rent property in Minneapolis but that rental is subject to paying property taxes and utilizing the land in a manner that is expressly approved by the city council. If that last part sounds a bit strange it’s because you down own a surface parking lot. You see, the city council of Minneapolis has a dream. In that dream Minneapolis looked like Mega City I from Judge Dredd. Surface parking lots can’t pack in a million people so they’re on the list of properties to be axed.

So far the city council has been playing a cautious game but that looks like it may change:

It was a routine briefing of a Minneapolis City Council committee on a seemingly unrelated topic, but it offered the chance to rouse a long-simmering issue in Minneapolis:

What can the city do to rid itself of the acres of surface parking lots in and around downtown?

While development activity has seen many of those lots disappear, many remain — too many, according to Council Members Lisa Goodman and Jacob Frey, who used the May 11 briefing to press city assessor Patrick Todd to do something about it.

Like what? Goodman thinks the city should use state requirements that require property be assessed on its “highest and best use” — and not on its current use — to incentivize owners to either develop the land or sell to someone who will.

Because parking is scarce in Minneapolis a person can make pretty decent money with a surface parking lot. That really bothers certain council members such as Lisa Goodman. It bothers her so much that she wants to change the rules to make them unprofitable. That rule change is a simple one. Instead of assessing a parking lot as a parking lot for property tax purposes she wants to assess them as if they were being used for her vision of their best use. Since her vision is high density apartment complexes the assessment would jack up the property taxes to, she hopes, a level the owners can’t sustain. In fact she flat out says that they must not be paying enough taxes:

“If they’re making enough money by selling parking downtown,” she said, “then they’re not being taxed high enough, and they’re certainly not being taxed high enough for a potential Class A office use.”

Do you know what those surface parking lots were taxed enough for? Funding a study to decide on how best to destroy them:

In 2013, amid planning for the new Vikings Stadium, the group HR&A Advisors conducted a $40,000 study of ways to reduce the number of surface lots in Minneapolis. Several council ordinances have sought to force beautification of parking lots, something that could have also increased the costs associated with operating them. And a bill introduced by state Sen. Scott Dibble, DFL-Minneapolis, would allow Minneapolis and St. Paul to impose a per-stall fee on parking, with revenue going to public plazas, transit lines, bike facilities and pedestrian improvements.

This is another reason you should avoid paying whatever taxes you can. When you pay taxes they are often used to fund your destruction.

What we have here are central planners run amuck. Consumers have already spoken and they want surface parking lots. How can I say this since there hasn’t been any kind of vote? Unlike voting, the market actually indicates what consumers want. Because there are enough consumers paying to use these surface parking lots to make them profitable we know for a fact that those lots are in demand with consumers. Goodman doesn’t like them and instead of offering to buy those lots herself she’s using tax dollars to fund studies to determine the best way to destroy them… in a manner that requires the denizens of Minneapolis pay for it.

In the end I predict that the city council will get its way because it will just keep cranking up the taxes until it bleeds surface lot owners dry. Then those lots will sit empty because if developers really wanted those lots they’d have already bought them.

You Have to Appreciate His Honesty

The Republican and Democratic parties seem to disagree on many things but they can agree on one thing: they both hate Muslims. But the Republican Party is far more overt about its hatred. Still, like most racists, the party usually tries to keeps its hatred tucked under a burqa thin veil of justifications that aren’t related to religion or race.

Every now and then one of the Republicans slips off of his leash and blatantly states their views on Islam. Funny enough, that view almost always reflects how the Nazis views the Jews:

An Oklahoma lawmaker personally propagated an article over the weekend calling for a “final solution” regarding “radical Islam,” arguing that the 1,400-year-old faith is not a religion and should not be protected under the first amendment of the Constitution.

On Sunday, Oklahoma State Rep. Pat Ownbey re-published an article to his Facebook page entitled “Radical Islam – The Final Solution.” The article was originally published on the personal blog of Paul R. Hollrah, an Oklahoman who touts himself as a “retired government relations executive,” but Ownbey appears to have copy-pasted the piece and reposted it in its entirety, citing Hollrah.

[…]

“And since the 95% of Muslims who are described as either ‘moderate’ or ‘un-radicalized’ appear unwilling to play an active role in keeping their radicalized brethren in check, we have no long term alternative but to quarantine them… prohibiting them from residing anywhere within the civilized nations of the Earth,” he writes.

The Nazis felt that the Jews had to be quarantined as well. That’s not even a case of Godwin’s Law, that’s historical fact. Likewise, they called their plan the final solution.

A lot of people argue that the State is necessary to defend against bigotry such as racism, religious prejudice, and sexism. While that sounds good on paper the reality is that the State is usually the biggest enabler of persecution. It was, after all, the United States government that legally required citizens and individual states to help capture and return escaped slaves. It was the United States government that rounded up people of Japanese decent and put them in concentration camps. passed and enforced by state and municipal governments. In other words, the worst forms of bigotry are created and enforced by the State. Without an apparatus as big and as powerful as the government of Nazi Germany, the Holocaust would not have been possible. That’s why it’s far scarier when members of the State talk about persecuting people than when individuals do. It’s also why defending against bigotry doesn’t require the State but the abolition of the State.

How Do You Get on The Terrorist Watch Lists? Be in the Wrong Place When an Officer Needs to Fill a Quota.

With all the talk about prevent terrorists from buying guns I think it’s time we sat down and asked what a terrorist, in this context, means. When people say they want to prevent terrorists from buying guns what they really mean is that they want to prevent people on the terrorist watch lists from buying guns. But being on the terrorist watch lists doesn’t mean you’re a terrorist. In fact, over 40 percent of the names on the lists aren’t affiliate with any known terrorist organization.

So what lands somebody on the lists if they’re not affiliated with any known terrorist organization? One way is to be in the wrong place when an officer needs to fill a quota:

You could be on a secret government database or watch list for simply taking a picture on an airplane. Some federal air marshals say they’re reporting your actions to meet a quota, even though some top officials deny it.

The air marshals, whose identities are being concealed, told 7NEWS that they’re required to submit at least one report a month. If they don’t, there’s no raise, no bonus, no awards and no special assignments.

This is the problem with secret lists that have secret criteria. Anything can potentially land you on the lists. Since they’re secret you don’t even know you’re on one. Furthermore, if you do find out you’re on one there’s no way of getting off of it.

This is the problem with using lists that involve no due process to punish people. Under the laws the gun control advocates are fighting for you could lose your right to purchase a gun just because you were sitting near an air marshal when they needed to fulfill a monthly quota.

The Democrats Want to Prohibit Muslims from Owning Firearms

Yesterday the Democrats had a little sit-in. They were trying to prevent any politicking from happening until the Republicans agree to vote for a gun control bill. Let me start off by saying that preventing politicking from happening is a noble thing. I think the Democrats were being a shining example for their fellow politicians. More politicians should sit around and do nothing. The longer they sit and do nothing the longer they’re not voting on measures and the longer the people can enjoy relief from the tyranny of law makers.

But it behooves us to look at their motives. Many Democrats cheered their fellow politicians on. They believed this sit-in is noble because of what the Democratic politicians were trying to achieve. However, what they were trying to achieve was to prohibit Muslims from owing firearms:

While sit-in participants are also advocating for expanded background checks and an assault weapons ban, their primary call to action is for a vote on a measure that would ban gun sales to people listed on a federal government watchlist – a move clearly designed more for its political potency than for its effectiveness.

And the government’s consolidated terrorist watchlist is notoriously unreliable. It has ensnared countless innocent Americans, including disabled war veterans and members of Congress. Nearly half of the people on these watch lists were designated as having “no recognized terrorist group affiliation,” according to documents obtained by The Intercept in 2014.

What little we do know about the terrorist watch lists, thanks to a handful of leaks, is that over 40 percent of the names on them aren’t affiliated with any known terrorist organizations and that many of the names sound Muslim. There’s nothing noble about trying to block people of a specific religion from buying firearms. In fact, not to go all Godwin (since this is an accurate historical example), that’s exactly what the Nazis did to the Jews.

People criticize the Republicans for persecuting Muslims and rightly so. But the Democrats seem to get a pass even though they’re working towards the same ends. They’re two sides of the same fascist coin.

The Black Market Prevails

When people think black markets the image of drug deals shooting it out over gang wars often comes to mind. But the black market is far more than that. Like the white market, the black market is composed of both savory and unsavory sorts. How many people have paid somebody in cash so both parties could avoid the additional burden of taxes? Don’t answer that because such activity is illegal. But anybody who has done that has also participated in the black market.

As the burdens of operating in the white market continue to grow so does the black market. For example, a recent article points out that Canada’s black market is thriving:

Canada’s underground economy is still thriving, according to a new report from Statistics Canada, in spite of efforts to cut down on the number of transactions that “escape measurement because of their hidden, illegal or informal nature.”

The value of Canada’s underground economy in 2013 totalled $45.6 billion, or about 2.4 per cent of the country’s gross domestic product.

That’s pretty much exactly where the numbers were in 2012, give or take a few billion dollars, and where they’ve been hovering since 2002.

Agorism, unlike political action, works as a strategy for weakening the State because it relies on activities people do already. While the State can increase its efforts to stop unapproved transactions it is still an organization of a few people trying to outwit the entirety of humanity. Needless to say, the odds of the State effectively thwarting the black market are approximately zero. And as the State increases the burden of operating in the white market, those people it is attempting to extort will use their creativity to find ways of avoiding those burdens by moving their activities into the black market.

John Brennan is an Idiot

You probably read the title of this post and wondered what Brennan did this time to piss me off. Truthfully he didn’t really piss me off this time. What he did was make a public statement that really requires being an idiot to make.

Everything old is new again. As before, the United States government is busy debating whether or not mandatory backdoors should be included in civilian encryption. Security experts have pointed out that this is a stupid idea. Crypto-anarchists have pointed out that such a law would be meaningless because the Internet has enabled global communications so finding foreign encryption algorithms that don’t include a United States backdoor would be trivial. Hoping to refute the crypto-anarchists, John Brennan made this statement:

Brennan said this was needed to counter the ability of terrorists to coordinate their actions using encrypted communications. The director denied that forcing American companies to backdoor their security systems would cause any commercial problems.

“US companies dominate the international market as far as encryption technologies that are available through these various apps, and I think we will continue to dominate them,” Brennan said.

“So although you are right that there’s the theoretical ability of foreign companies to have those encryption capabilities available to others, I do believe that this country and its private sector are integral to addressing these issues.”

Theoretical ability? Let’s have a short discussion about the Advanced Encryption Standard (AES). AES is one of the most prolific encryption standards in use today. Most full disk encryption tools, many Transport Layer Security (TLS) connections, and a load of other security tools rely on AES. Hell, many devices even include hardware acceleration for AES because it’s so heavily used. AES was originally a competition held by the National Institute of Standards and Technology (NIST) to find a modern encryption standard. In the end an algorithm called Rijndael won. Rijndael was created by Joan Daemen and Vincent Rijmen. If those two names sound foreign it’s because they are. Joan and Vincent are Belgians. So one of the most common encryption algorithms in use today, an algorithm chosen by an agency of the United States government no less, was created by two foreigners. I’d say foreign encryption tools are a bit beyond theoretical at this point.

Adding insult to injury, let’s discuss Theo de Raadt. Theo, for those who don’t know, is the creator and lead developer of both OpenBSD and OpenSSH. OpenBSD is an operating system known for being security and OpenSSH is probably the most common secure remote connection tool on the planet. Both of them are developed in Canada:

It’s perhaps easy to forget, but the cryptographic landscape was quite different in 1999. A lot has changed since then. Cryptographic software was available, but not always widespread, in part due to US export controls. International users either had to smuggle it out printed on dead trees, or reimplement everything, or settle for the 40 bit limited edition of their favorite software. Many operating systems originated in the US, so it was difficult to integrate cryptography top to bottom because there needed a way to build the export version without it. OpenBSD had the advantage of originating in Canada, without such concerns. The goto public key algorithm of choice, RSA, was encumbered by a patent for commercial use. The primary symmetric algorithm was still DES. You could use blowfish, of course, but it wasn’t officially blessed as a standard.

Again, the availability of foreign encryption tools is more than theoretical. I would think the director of the Central Intelligence Agency (CIA), which is supposedly tasked with spying on foreign countries, would be very aware of that. But the CIA has a long history of failure so it being unaware of very real encryption tools originating in foreign countries isn’t really that surprising.

The State’s War Against the Homeless Continues

Who can those with nothing turn to for help? Many people will say the government and they would be wrong. The State hates the homeless because they have nothing to steal. Therefore it wants them to go away. While outright murdering homeless individuals would be frowned upon, making the lives of homeless individuals so miserable that they migrate elsewhere and become somebody else’s problem is perfectly acceptable to the general public.

San Diego, hoping to make the lives of homeless individuals within its borders more miserable, has installed large rocks under many roadways to prevent homeless individuals from sleeping there:

In late April, after jagged rocks were installed along a freeway underpass to drive out homeless encampments, a city spokesman told reporters the project was at the request of residents of Sherman Heights, a working-class neighborhood just east of the 5 Freeway, who felt unsafe walking down Imperial Avenue.

Turns out, it had more to do with San Diego’s upcoming time in the spotlight as the host of baseball’s All Star Game at Petco Park on July 12.

Sherman Heights is never mentioned in more than 700 pages of email documents about the rocks, obtained under the California Public Records Act

[…]

Casey included the rocks in a checklist of work to be done before the All-Star Game. Emails also show that initial plans called for rocks along the base of a wall at Tailgate Park, between 12th and 14th streets and outside the New Central Library — which overlooks the ballpark — to keep away homeless people.

[…]

In a later email, Casey emphasized that the rocks needed to be of different heights so that no one could put down a plank of wood to try to sleep.

Those homeless people are such an eyesore and they’ll make the city look bad come baseball season so we need to make their lives miserable in the hopes that they’ll go somewhere else. How the State treats the homeless may be the single most illustrative example of how the State “fixes” problems. It never actually works to address the problems it’s “fixing”, it just sweeps them under the rug and tells people everything has been taken care of.

The State is a Kleptomaniac

Nobody’s coming for your guns!

How many times have you heard that over the last week? I must have heard it a few dozen times. It’s the go-to response to any gun control loving statist. It’s also bullshit as is any statement that is based on the premise that the State won’t steal something.

Consider all of the things the State has stolen from people. If you’re working in the white market the State is stealing a percentage of every hour you work in the form of Social Security, income tax, and other assorted taxes. Long ago the State stole everybody’s property. You aren’t allowed to own your home, you’re only allowed to rent it. If you stop paying rent property taxes, the State evicts you. With the exception of a few states, the State is trying to steal your fucking plants cannabis and every state is trying to steal your heroin, cocaine, acid, and other chemicals it has decided you don’t need. What about non-recreational drugs? The State has taken a lot of those as well or locked them behind permission slips prescriptions. For Christ’s sake, the State has stolen your fucking candy. And your guns? If you meet one of the ever growing list of criteria, including being arbitrarily labeled a felon, the State tries to take your guns.

So, yes, the State is coming for your guns. In fact, it’s coming for everything you have. Theft is compulsive behavior for the State. It’s a kleptomaniac. Anybody who claims it isn’t coming for something is a fool.