I know to skeptics my last post about how I see the college loan program potentially morphing into another heavy handed political/central planning tool might think I sound like a paranoid conspiracy theorist - but is it really hard to make the leap based on what is already being reported about the new Health Care law?
From the WSJ -
Proponents of the new health-care law say it does attempt to address the physician shortage. The law offers sweeteners to encourage more people to enter medical professions, and a 10% Medicare pay boost for primary-care doctors.
Read the full article here -
Medical Schools Can't Keep Up
As Ranks of Insured Expand, Nation Faces Shortage of 150,000 Doctors in 15 Years
Tuesday, April 13, 2010
Friday, April 9, 2010
Nuclear Posture Review Distraction and The College Loan Takeover
The news cycle lately has been all about the Obama Administration's Nuclear Posture Review and everyone on the Right (and I can't believe how hard Republicans are falling for this) and Left are all atwitter with what this means to the US, our allies, etc. In my humble opinion this is all a diversion or a way to change the subject from an unpopular Health Care Bill, negative jobs report and what I think is the most underreported and analyzed piece of this Health Care Boondoggle - The Government takeover of the Student Loan Program. More on this later.
Nuclear Posture Review
I'm pretty sure this is a policy that does not require Congressional approval and is not binding - kind of like a college research paper. This change - from the Administrations point of view puts us in a better position of moral authority to deal with rogue nuclear states and wannabes. They believe that it projects integrity and to those countries who beleive in the rule of law and treaties, etc. it may - but to those that do not (those rogue nuclear wannabes - yeah I'm talking to you North Korea and Iran) - it projects weakness. Let's be honest here, in the Kabuki theater that is international relations Obama and his regime have already been projecting weakness - so this is no real change. Now they're doing a research paper and projecting more weakness - so what? I just don't get why everyone is spending so much time on this.
College Loan Takeover = BOHICA
Buried in the Health Care Reform Act is a provision for the Federal Government to take over the College Loan industry and it stinks to high heaven.
Here's an interesting economic argument against this program I found while researching this boondoggle.
Nevermind the Federal Government's track record when it comes to lending standards (Fannie Mae and Freddie Mac anyone?), efficiency and responsiveness and aside from the fact that The Federal Government has no business or Constitutional Authority to take over this industry, it's not hard for me to imagine an administration (like our current one) that is so enamored with central planning, control and political correctness that it uses this program to provide incentives (offer better loans, rates, etc.) for people to go into certain fields or to certain schools. Uncle Fed decides we have a teacher shortage (or we need more members of the NEA or state teacher's unions) - OK we'll offer a 2% discount in the interest rate on student loans. More doctors, nurses, 2% for you and 2% for you! Police, Firemen, Lawyers (and members of the ABA)? Check, check and double check! Public Administration and Art? Hell yeah! Business, Finance, Economics? Not so much... You wanna go to UC Berkley, Harvard, Wisconsin-Madison? Great! Hillsdale, Liberty, Bob Jones? Not so much... I can even see offering certain repayment terms including x number of years of "public service" being credited towards repayment of student loans. Perhaps they could even target certain fields for certain states, cities, districts, etc. - wherever the data says we need it. Don't get me wrong, I could envision a more conservative administration using this bureaucracy similarly though not with as heavy a hand.
Bottom line - with our elected officials insatiable thirst for buying votes and constituencies with current and future tax receipts by way of ever expanding benefits and beneficiaries there is no way I can conceive that this will not end up being another bloated bureaucracy and underfunded entitlement program. This is will end up like Medicare and Social Security before it - a bankrupt government run Ponzi Scheme that's "too big to fail." BOHICA
Nuclear Posture Review
I'm pretty sure this is a policy that does not require Congressional approval and is not binding - kind of like a college research paper. This change - from the Administrations point of view puts us in a better position of moral authority to deal with rogue nuclear states and wannabes. They believe that it projects integrity and to those countries who beleive in the rule of law and treaties, etc. it may - but to those that do not (those rogue nuclear wannabes - yeah I'm talking to you North Korea and Iran) - it projects weakness. Let's be honest here, in the Kabuki theater that is international relations Obama and his regime have already been projecting weakness - so this is no real change. Now they're doing a research paper and projecting more weakness - so what? I just don't get why everyone is spending so much time on this.
College Loan Takeover = BOHICA
Buried in the Health Care Reform Act is a provision for the Federal Government to take over the College Loan industry and it stinks to high heaven.
Here's an interesting economic argument against this program I found while researching this boondoggle.
Nevermind the Federal Government's track record when it comes to lending standards (Fannie Mae and Freddie Mac anyone?), efficiency and responsiveness and aside from the fact that The Federal Government has no business or Constitutional Authority to take over this industry, it's not hard for me to imagine an administration (like our current one) that is so enamored with central planning, control and political correctness that it uses this program to provide incentives (offer better loans, rates, etc.) for people to go into certain fields or to certain schools. Uncle Fed decides we have a teacher shortage (or we need more members of the NEA or state teacher's unions) - OK we'll offer a 2% discount in the interest rate on student loans. More doctors, nurses, 2% for you and 2% for you! Police, Firemen, Lawyers (and members of the ABA)? Check, check and double check! Public Administration and Art? Hell yeah! Business, Finance, Economics? Not so much... You wanna go to UC Berkley, Harvard, Wisconsin-Madison? Great! Hillsdale, Liberty, Bob Jones? Not so much... I can even see offering certain repayment terms including x number of years of "public service" being credited towards repayment of student loans. Perhaps they could even target certain fields for certain states, cities, districts, etc. - wherever the data says we need it. Don't get me wrong, I could envision a more conservative administration using this bureaucracy similarly though not with as heavy a hand.
Bottom line - with our elected officials insatiable thirst for buying votes and constituencies with current and future tax receipts by way of ever expanding benefits and beneficiaries there is no way I can conceive that this will not end up being another bloated bureaucracy and underfunded entitlement program. This is will end up like Medicare and Social Security before it - a bankrupt government run Ponzi Scheme that's "too big to fail." BOHICA
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