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Showing posts with label private enterprise. Show all posts
Showing posts with label private enterprise. Show all posts

Saturday, January 22, 2011

Privatization v. collectivism


Both Social Security and Medicare are collective approaches to social issues.  The opposite of collectivism is privatization. Certainly collectivism is common in socialistic societies, but it is also common in liberal democracies.

Collectivism--An economic system in which the means of production and distribution are owned and controlled by the people collectively

Privatization--The transfer of a company or organization from government to private ownership and control.  

For example, when the Republicans perceived a security problem with underpaid airport security guards, George W. Bush nationalized or collectivized airport security with the Transportation Security Administration (TSA) under Homeland Security.

If Obama has done this, the Republicans would be screaming about socialized airport security!

There have been government services like trash collection than can be privatized, but many services cannot.

The government can best manage the water supply in a community and the power grid. When the electrical system has been privatized, public watch dog groups such as commissions have to be formed to regulate the industry and make sure the electrical rates reflect market conditions.

A private power company is essentially a monopoly that must be regulated. Of course, the GOP would prefer unregulated private monopolies.

The power companies in Florida were recently caught trying to get the private Blackberry pins from state regulators so they could communicate privately with the regulators and bypass the state's Blackberry servers. The servers would archive a record of any messages between regulators and lobbyists. 

Recently, the State of Florida approved 25 per cent increases in power bills to pay for nuclear reactors that need to be built. Of course, as a taxpayer, it is unlikely a citizen's power bill will be cut once these reactors are online.

It is also unlikely that the power company will send a rebate check for financing their new reactors once he work is completed.

The US medical system, which is private system that provides excellent medical services, but at twice the price of the other industrial nations of the world.

Because there are so many private hands in medical care, many general practice physicians will not take private insurance. Insurance companies now write customized policies for each company they sell to. Doctors have to double their staffs to handle the maze of insurance claims.

Almost all doctors, who aren't wingnuts,  prefer the centralized approach of Medicare that pays the doctors and asks questions later if there are any claims issues.

The private insurance companies, on the other hand, take they approach, "How can we avoid paying this claim.

Recently a urologist told the Major, who has Medicare and Tricare for Life as secondary insurance, that all of his doctors would love him (because they get paid).

Initially, privatization may be cheaper, but in the long run it can become more expensive. When the government broke AT&T up, many small telephone companies flourished for a couple of years, but then the winners started buying up the losers.

The Baby Bells or Regional Bells became more powerful and AT&T less so. Wikkpedia notes the status of the Baby Bells today:


DCCC: House GOP Doubles Down On Hurting Seniors with Representative Paul Ryan Giving State of the Union

 House Republicans selected Representative Paul Ryan (R-WI), the author of a controversial budget ‘road map’ to privatize Social Security and voucherize Medicare, to give the Republican rebuttal to the State of the Union Address.

Jesse Ferguson of the Democratic Congressional Campaign Committee said:

Picking Representative Paul Ryan to give the State of the Union rebuttal is a clear sign that House Republicans will move full speed ahead with plans that would have a devastating impact on seniors who are already struggling to get by. 

As if it wasn’t already clear, House Republicans are now doubling down on their disastrous plans to gamble Social Security funds on Wall Street and dismantle Medicare.

Ryan’s ‘Road Map’ would “privatize a substantial portion of Social Security” and “end traditional Medicare and most of Medicaid” [Center for Budget and Policy Priorities, 7/7/10]

Rightardia thinks Ryan's ideas won't even be considered in the Senate. We are still waiting for the rules change in the Senate that blunts the filibuster.

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Friday, December 24, 2010

Sudbury Schools emphasize democracy and individuality



This is a very unstructured and non-traditional approach to education. For some children, it is exactly what is needed instead of the regimented life that has developed in public schools that emphasizes constant evaluation and grades.


Students from preschool through high school age explore the world freely, at their own pace and in their own unique ways. 

They learn to think for themselves, and learn to use Information Age tools to unearth the knowledge they need from multiple sources. 

They develop the ability to make clear logical arguments, and deal with complex ethical issues. Through self-initiated activities, they pick up the basics; as they direct their lives, they take responsibility for outcomes, set priorities, allocate resources, and work with others in a vibrant community. 

The first Sudbury Valley School was founded in 1968.

source: http://www.sudval.org/ and MSNBC

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Thursday, August 26, 2010

Rightardia editorial: Social Security



by Middle Class Warrior

Rightardia has written about Social Security and these are some of the facts and some opinions:

Facts: 
1. Social Security (SS) is fundamentally  a forced savings plan.
2. SS is not subject to the vagaries of the stock market that a privatized plan would be.
3. SS is funded by the FICA tax, the most regressive of federal taxes with the $108,500 cap that has little affect on the most affluent Americans.
4. Because social Security is taxed using a regressive formula, the middle class has borne the brunt of the tax since it inception in the 1930s.
5. SS has little effect on the deficit because it is not funded by federal income tax.  In fact, money has been borrowed by the federal government from the excess payments to the Social Security trust fund. The federal government has to issue a bond when it borrow this money.
6. Both the UK and Chile tried to privatize their SS systems but neither country was successful. UK citizens enjoy retirement benefits half of their US counterparts because of the Margaret Thatcher privatization experiment.

Opinions:
1. Because of the SS cap, it has become a political football when the GOP is in power.
2. The tax will affect the affluent more in the future because the average American makes less than $100,000 per year. These 'have mores" are the GOP base.
3. The simplest way to 'fix' SS would to be to apply it to 100 per cent of every Americans income like the other half of the FICA tax, Medicare. The FICA taxable rate could be lowered for both employees and employers which is 6.5 per cent of income.
4. The Republicans know that the Democrats are planning to reform Social Security in the next session of congress they are calling 'the lame duck session," a term that had only been  applied to the president after a president from the other party is elected.
5. The GOP knows the only solution to keep SS solvent is to either rise the cap or reform the FICA tax. Rightardia thinks the latter is the best approach because it will eliminate the politics that goes on every presidential term in few other country except the US. The billionaires and millionaires need to start anteing up for Social Security, too.  
6. Obama has already stated that SS will not be privatized. Even if the GOP were to take the House in the fall, any privatization bull that would reach Obama's desk would be vetoed. The GOP was unable to privatize SS when the Republicans controlled the congress and the presidency during the Bush terms. Why does the GOP think such a privatization plan can now succeed?
7. The GOP will try to divide the middle calls on this issue by suggesting there will be no Social Security left for younger Americans. They may continue efforts to suggest SS is a deficit issue, but nearly 85 per cent of the deficit was caused by GOP tax cuts and defense spending according to the Nancy Pelosi blog, the Gavel.
8. The Republican end game may be to privatize SS so Wall Street can loot the SS Trust Fund and charge management fees on private SS accounts. 

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Sunday, August 16, 2009

health care Cooperatives are small potatoes

Rightardia comment: Cooperatives appear to small potatoes compared to private enterprise. Most cooperatives that Rightardia is familiar with are agricultural. cooperative were common after World War 2, but have declined in popularity since then.

How Efficient Is Cooperative Business?

One way of measuring the efficiency of a business is by its growth. Cooperatives have been growing steadily in the United States until their membership now embraces several millions. More than 550 marketing and purchasing associations today do business at the rate of more than $1,000,000 a year. About 70 of them have a yearly business volume of over $10,000,000. [Note: most of these businesses would meet the criteria for a small business. ]

Another clue to the efficiency of cooperative business in competition with regular business is the amount returned to members as patronage refunds or accumulated as savings. A nation-wide census showed that almost $40,000,000 was refunded to members or saved for them by farmers’ cooperatives in 1936. It is of interest that cooperative livestock commission associations on the terminal markets have returned to their members over $12,000,000 during the past 20 years, while charging commissions fixed by the Packers and Stockyards Administration.

Another measure of the efficiency of cooperatives is the influence which they have had on distribution costs. It is recognized in recognized circles that margins taken in the distribution of such farm supplies as petroleum, feed, seed, and fertilizer have greatly decreased since cooperatives began to offer competition. Cooperatives have frequently set the pace in reducing merchandising margins.
Your spouse can buy what he or she needs for her table from a modern cooperative market.

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