NPR had an interesting segment on the difficulties that many families have paying for cancer treatments. The piece points out that even middle-income families with good insurance may still face co-payments of tens of thousands of dollars a year.
One item not mentioned in this piece is that the reason the prices of new cancer drugs is high is that the government grants companies patent monopolies. This is done as a way to finance research. In almost all cases these drugs would be available for less than a thousand dollars for a year’s treatment if the drugs were sold in a free market.
While it is necessary to pay for research, there are more modern and efficient mechanisms than patent monopolies (see chapter 5 of Rigged).
NPR had an interesting segment on the difficulties that many families have paying for cancer treatments. The piece points out that even middle-income families with good insurance may still face co-payments of tens of thousands of dollars a year.
One item not mentioned in this piece is that the reason the prices of new cancer drugs is high is that the government grants companies patent monopolies. This is done as a way to finance research. In almost all cases these drugs would be available for less than a thousand dollars for a year’s treatment if the drugs were sold in a free market.
While it is necessary to pay for research, there are more modern and efficient mechanisms than patent monopolies (see chapter 5 of Rigged).
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On vacation until Thursday, March 16th. Remember, don’t believe anything you read in the paper until then.
On vacation until Thursday, March 16th. Remember, don’t believe anything you read in the paper until then.
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In an article on the main features of the Republican replacement for Obamacare, the Post told readers:
“At the same time, the shift to take income into account could create a potentially difficult ripple effect for Republicans, who regard a reduction in the federal government’s role in health care as a central reason to abandon the sprawling 2010 health care law (emphasis added).”
This comment is in reference to the decision to phase out the heath care tax credit for couples with incomes over $150,000.
While it is possible that the opposition to this phase out is due to Republicans who somehow see this as excessive federal government involvement in health care, it could also be due to the fact that Republicans just want to give more money to rich people. Fortunately, the Post’s mind reading reporters can tell us the true motive.
In an article on the main features of the Republican replacement for Obamacare, the Post told readers:
“At the same time, the shift to take income into account could create a potentially difficult ripple effect for Republicans, who regard a reduction in the federal government’s role in health care as a central reason to abandon the sprawling 2010 health care law (emphasis added).”
This comment is in reference to the decision to phase out the heath care tax credit for couples with incomes over $150,000.
While it is possible that the opposition to this phase out is due to Republicans who somehow see this as excessive federal government involvement in health care, it could also be due to the fact that Republicans just want to give more money to rich people. Fortunately, the Post’s mind reading reporters can tell us the true motive.
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In recognition of the wrongs done by slavery, but not subsequent legal and actual discrimination, NYT columnist Ross Douthat proposes making a one time payment of $10,000 to every person who trace their ancestry to someone who was enslaved. This payment would be in exchange for ending affirmative action in education, employment, or any other area. The idea seems to be that after the descendants of slaves get their check, we’re all good.
For anyone interested on how this measures up in the scheme of things, currently the median income for a white household is $71,300. The median income for an black household is $43,300. Since this is for an adjusted household of three people, Douthat’s $10,000 per person payment will put the median black household slightly above the median income for white households, in the year they get it.
In subsequent years, they will get nothing to offset the discrimination they experience in schools, hiring, getting mortgages, and even selling baseball cards on eBay. Apparently, Douthat thinks that his one time payment of $10K (only to those with direct ancestors who were enslaved) would make things right. My guess is that this deal wouldn’t look too good to people who are better at arithmetic than Mr. Douthat.
In recognition of the wrongs done by slavery, but not subsequent legal and actual discrimination, NYT columnist Ross Douthat proposes making a one time payment of $10,000 to every person who trace their ancestry to someone who was enslaved. This payment would be in exchange for ending affirmative action in education, employment, or any other area. The idea seems to be that after the descendants of slaves get their check, we’re all good.
For anyone interested on how this measures up in the scheme of things, currently the median income for a white household is $71,300. The median income for an black household is $43,300. Since this is for an adjusted household of three people, Douthat’s $10,000 per person payment will put the median black household slightly above the median income for white households, in the year they get it.
In subsequent years, they will get nothing to offset the discrimination they experience in schools, hiring, getting mortgages, and even selling baseball cards on eBay. Apparently, Douthat thinks that his one time payment of $10K (only to those with direct ancestors who were enslaved) would make things right. My guess is that this deal wouldn’t look too good to people who are better at arithmetic than Mr. Douthat.
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Robert Samuelson devoted his column this week to the issue of government regulation. He refers to an estimate from the industry-funded Competitive Enterprise Institute that “the costs of complying with federal rules and regulations totaled nearly $1.9 trillion in 2015, equal to about half the federal budget ($3.7 trillion in 2015).” It is important to understand the nature of this estimate.
Suppose that I have been in the habit of dumping my sewage on my neighbor’s lawn. Now imagine the government puts in place a regulation prohibiting me from doing this so that I have to install a sewage system to dispose of my sewage in a more proper manner. The Competitive Enterprise Institute estimate would count the cost of my sewage system as a cost of regulation.
This is of course not a cost to the economy, it is just a situation where they forced me to stop imposing costs on my neighbors. This is how one can get a figure like $1.9 trillion a year as the cost of regulation.
Anyone seriously looking at regulations would want to know their net cost. Many regulations, such as bans on smoking, which have led to huge reductions in incidents of cancer, bans on leaded gas, which led to large reductions in crime in addition to the direct health benefits, and the 1990 Clean Air Act, have had enormous economic benefits. Honest people would be sure to mention this fact in discussing the impact of regulation.
Robert Samuelson devoted his column this week to the issue of government regulation. He refers to an estimate from the industry-funded Competitive Enterprise Institute that “the costs of complying with federal rules and regulations totaled nearly $1.9 trillion in 2015, equal to about half the federal budget ($3.7 trillion in 2015).” It is important to understand the nature of this estimate.
Suppose that I have been in the habit of dumping my sewage on my neighbor’s lawn. Now imagine the government puts in place a regulation prohibiting me from doing this so that I have to install a sewage system to dispose of my sewage in a more proper manner. The Competitive Enterprise Institute estimate would count the cost of my sewage system as a cost of regulation.
This is of course not a cost to the economy, it is just a situation where they forced me to stop imposing costs on my neighbors. This is how one can get a figure like $1.9 trillion a year as the cost of regulation.
Anyone seriously looking at regulations would want to know their net cost. Many regulations, such as bans on smoking, which have led to huge reductions in incidents of cancer, bans on leaded gas, which led to large reductions in crime in addition to the direct health benefits, and the 1990 Clean Air Act, have had enormous economic benefits. Honest people would be sure to mention this fact in discussing the impact of regulation.
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Donald Trump’s business empire appears to be an infinite cesspool of corruption, with his unethical practices continuing into his presidency. Given such a target rich environment for real news stories, it is difficult to see why the NYT would devote space and resources to pursuing a major non-story. The paper apparently thinks that it is some sort of scandal that Trump accepted energy efficiency tax credits for some of his buildings, since he opposes the tax credits and is committed to eliminating them.
Sorry, that makes zero sense. People take advantage all the time of provisions in the tax code they think are wrong. Why shouldn’t they?
Warren Buffett has famously complained that it is ridiculous that he can pay a lower tax rate than his secretary, based on the fact that most of his income is taxed at the 20 percent capital gains rate rather than the 25 percent marginal tax rate on ordinary income that his secretary is presumably paying. In spite of making this complaint, Mr. Buffett still opts to take advantage of the lower rate on capital gains.
Like many other economists, I think the mortgage interest deduction in its current form is terrible policy. Nonetheless, we all (or the homeowners among us) use the mortgage interest deduction on our taxes.
It’s difficult to see any hypocrisy in following the rules as written, even if one thinks the rules should be changed. This is just a lazy piece on the NYT’s part, it should be spending its time reporting real scandals. There is no shortage in this category in the Trump administration.
Donald Trump’s business empire appears to be an infinite cesspool of corruption, with his unethical practices continuing into his presidency. Given such a target rich environment for real news stories, it is difficult to see why the NYT would devote space and resources to pursuing a major non-story. The paper apparently thinks that it is some sort of scandal that Trump accepted energy efficiency tax credits for some of his buildings, since he opposes the tax credits and is committed to eliminating them.
Sorry, that makes zero sense. People take advantage all the time of provisions in the tax code they think are wrong. Why shouldn’t they?
Warren Buffett has famously complained that it is ridiculous that he can pay a lower tax rate than his secretary, based on the fact that most of his income is taxed at the 20 percent capital gains rate rather than the 25 percent marginal tax rate on ordinary income that his secretary is presumably paying. In spite of making this complaint, Mr. Buffett still opts to take advantage of the lower rate on capital gains.
Like many other economists, I think the mortgage interest deduction in its current form is terrible policy. Nonetheless, we all (or the homeowners among us) use the mortgage interest deduction on our taxes.
It’s difficult to see any hypocrisy in following the rules as written, even if one thinks the rules should be changed. This is just a lazy piece on the NYT’s part, it should be spending its time reporting real scandals. There is no shortage in this category in the Trump administration.
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The Washington Post must think that U.S. trade policy is really awful. Why else would they continually lie to their readers and claim that the cause of the sharp job loss in manufacturing in recent years was automation?
For fans of data rather than myths, the basic story is that manufacturing has been declining as a share of total employment since 1970. However there was relatively little change in the number of jobs until the trade deficit exploded in the last decade. Here’s the graph.
Manufacturing Employment
Source: Bureau of Labor Statistics.
And, there was no great uptick in productivity coinciding with the plunge in employment at the start of the last decade. It would be nice if the Washington Post could discuss trade honestly. This sort of reporting gives fuel to the Donald Trumps of the world.
In this context, it is probably worth once again mentioning that the Washington Post still refuses to correct its pro-NAFTA editorial in which it made the absurd claim that Mexico’s GDP quadrupled from 1987 to 2007. The actual figure was 83 percent, according to the International Monetary Fund.
The Washington Post must think that U.S. trade policy is really awful. Why else would they continually lie to their readers and claim that the cause of the sharp job loss in manufacturing in recent years was automation?
For fans of data rather than myths, the basic story is that manufacturing has been declining as a share of total employment since 1970. However there was relatively little change in the number of jobs until the trade deficit exploded in the last decade. Here’s the graph.
Manufacturing Employment
Source: Bureau of Labor Statistics.
And, there was no great uptick in productivity coinciding with the plunge in employment at the start of the last decade. It would be nice if the Washington Post could discuss trade honestly. This sort of reporting gives fuel to the Donald Trumps of the world.
In this context, it is probably worth once again mentioning that the Washington Post still refuses to correct its pro-NAFTA editorial in which it made the absurd claim that Mexico’s GDP quadrupled from 1987 to 2007. The actual figure was 83 percent, according to the International Monetary Fund.
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