Posts Tagged ‘ObamaCare’

Texas vs. California Update for October 19, 2016

Wednesday, October 19th, 2016

Time for another Texas vs. California update! Included here are several links from City Journal’s special “Texas Rising” issue.

  • Texas cities continue to kick ass economically:

    Texas’s spectacular growth is largely a story of its cities—especially of Austin, Dallas–Fort Worth, Houston, and San Antonio. These Big Four metropolitan areas, arranged in a layout known as the “Texas Triangle,” contain two-thirds of the state’s population and an even higher share of its jobs. Nationally, the four metros, which combined make up less than 6 percent of the American population, posted job growth equivalent to 30 percent of the United States’ total since the financial crash in 2007. Within Texas, they’ve accounted for almost 80 percent of the state’s population growth since 2000 and over 75 percent of its job growth. Meantime, a third of Texas counties, mostly rural, have actually been losing population.

    Texas is sometimes described as the new California, an apt parallel in terms of the states’ respective urban geographies. Neither state is dominated by a single large city; each has four urban areas of more than 1 million people, with two of these among the largest regions in the United States. In both states, these major regions are demographically and economically distinct.

    But unlike California, whose cities have refocused on elite priorities at the expense of middle-class occupations, Texas offers a complete spectrum of economic activities in its metros. Another key difference is that Texas cities have mostly embraced pro-development policies that have kept them affordable by allowing housing supply to expand with population, while California’s housing prices blasted into the stratosphere due to severe development restrictions. Texas cities also benefit from favorable state policies, such as the absence of a state income tax and a reasonable regulatory and litigation environment. These factors make Texas cities today what California’s used to be: places to go in search of the American dream.

  • More on how Texas cities are growing:

    Though some east/west coastal cities—notably, San Francisco—have enjoyed vigorous growth of late, none has been nearly as proficient in creating jobs in the new millennium as Texas’s four leading metros. Overall, Dallas–Fort Worth and Houston have emerged as the nation’s fastest-expanding big-city economies. Between 2000 and 2015, Dallas–Fort Worth boosted its net job numbers by 22.7 percent, and Houston expanded them by an even better 31.2 percent. Smaller Austin (38.2 percent job-base increase) and once-sleepy San Antonio (31.4 percent) have done just as well. New York, by way of comparison, increased its number of jobs in those years by just 10 percent, Los Angeles by 6.5 percent, and San Francisco by 5.2 percent, while Chicago actually lost net employment. And the Texas jobs are not just low-wage employment. Middle-class positions—those paying between 80 percent and 200 percent of the national median wage—have expanded 39 percent in Austin, 26 percent in Houston, and 21 percent in Dallas since 2001. These percentages far outpace the rate of middle-class job creation in San Francisco (6 percent), New York and Los Angeles (little progress), and Chicago (down 3 percent) over the same period.


    Among 52 American metropolitan areas with more than 1 million residents, San Antonio had the largest gain in its share of middle- and upper-income households—that is, the percentage of households in the lower-income category in the city actually dropped—from 2000 to 2014. Houston ranked sixth, Austin 13th, and Dallas–Fort Worth 25th in the Pew survey.


    In 2015, unemployment among Texas’s Hispanic population reached just 4.9 percent, the lowest for Latinos in the country—California’s rate tops 7 percent—and below the national average of 5.3 percent.

    Texas Latinos show an entrepreneurial streak. In a recent survey of the 150 best cities for Latino business owners, Texas accounted for 17 of the top 50 locations; Boston, New York, L.A., and San Francisco were all in the bottom third of the ranking. In a census measurement, San Antonio and Houston boasted far larger shares of Latino-owned firms than did heavily Hispanic L.A.

    In Texas, Hispanics are becoming homeowners, a traditional means of entering the middle class. In New York, barely a quarter of Latino households own their own homes, while in Los Angeles, 38 percent do. In Houston, by contrast, 52 percent of Hispanic households own homes, and in San Antonio, it’s 57 percent—matching the Latino homeownership rate for Texas as a whole. That’s well above the 46 percent national rate for Hispanics—and above the rate for all California households. (The same encouraging pattern exists for Texas’s African-Americans.)

    California and Texas, the nation’s most populous states, are often compared. Both have large Latino populations, for instance, but make no mistake: Texas’s, especially in large urban areas, is doing much better, and not just economically. Texas public schools could certainly be improved, but according to the 2015 National Assessment of Educational Progress—a high-quality assessment—Texas fourth- and eighth-graders scored equal to or better than California kids, including Hispanics, in math and reading. In Texas, the educational gap between Hispanics and white non-Hispanics was equal to or lower than it was in California in all cases.

    Though California, with 12 percent of the American population, has more than 35 percent of the nation’s Temporary Assistance for Needy Families welfare caseload—with Latinos constituting nearly half the adult rolls in the state—Texas, with under 9 percent of the country’s population, has less than 1 percent of the national welfare caseload. Further, according to the 2014 American Community Survey, Texas Hispanics had a significantly lower rate of out-of-wedlock births and a higher marriage rate than California Hispanics.

    In California, Latino politics increasingly revolves around ethnic identity and lobbying for government subsidies and benefits. In Texas, the goal is upward mobility through work. “There is more of an accommodationist spirit here,” says Rodrigo Saenz, an expert on Latino demographics and politics at the University of Texas at San Antonio, where the student body is 50 percent Hispanic. It’s obvious which model best encourages economic opportunity.

  • Chuck DeVore explains how SB1234, a bill that establishes the California Secure Choice Retirement Savings Trust, a state-run retirement fund for 7.5 million Californians, is actually a mechanism for forcing taxpayers to bail out public pensions:

    Per section 100004 (c) of the new law: Moneys in the program fund may be invested or reinvested by the treasurer or may be invested in whole or in part under contract with the Board of Administration of the Public Employees’ Retirement System or private money managers, or both, as determined by the board. What is the California Public Employees’ Retirement System or CalPERS for short? It’s America’s largest public pension fund with some 1.8 million current and retired government employees.

    But, as with many public retirement systems around the nation, CalPERS is grossly underfunded. Including the California teacher retirement system and smaller local government systems, the unfunded liability for future retirement payouts is about $991 billion, according to the Stanford Institute for Economic Policy Research’s Pension Tracker run by Joe Nation, Ph.D., a former Democratic member of the California State Assembly.

    Since cash is amazingly fungible in government hands, dragooning some 7.5 million Californians into a retirement system that supports 1.8 million state government workers by levying what amounts to a 3 percent payroll tax is going to go a long way towards ensuring CalPERS’ short-term solvency while, perhaps more importantly, building public support for bailing out CalPERS’ looming trillion-dollar shortfall.

    7.5 million Californians will be made to care about CalPERS fiscal health.

    (Hat tip: Pension Tsunami.)

  • California wants to offer ObamaCare to illegal aliens. (Hat tip: Director Blue.)
  • Governor Bush’s education reforms were a lot more successful than President Bush’s. “Educational outcomes overall have continued to improve in Texas.” A long article that points out the need for more reform.
  • Meanwhile, California’s teacher’s unions are trying to destroy charter schools.
  • “The Redding Police Department’s net personnel costs in fiscal 2007-08 were $21 million for 173 employees; in fiscal 2015-16 the costs were $22 million for 131 total employees. In fiscal 2015-16, the Redding Police Department is paying $47,500 per employee more than in fiscal 2007-08. The increase is to pay its unfunded pension liability.” (Hat tip: Pension Tsunami.)
  • San Jose voters to vote on compromise pension reform that rolls back real pension reform passed four years ago. (Hat tip: Pension Tsunami.)
  • “Former [Orange County] Public Works administrator and convicted felon Carlos Bustamante, who served jail time this year for his sex crimes against county workers, lost a chunk of his pension benefits Monday after he was stripped of credit for the years he worked while committing the crimes.” But he’ll still get a pension. Also: “The board’s decision also means Bustamante is owed the nearly $56,000 he paid into the system during the 2 1/2 years he was committing crimes – meaning he’ll be refunded nearly $32,000 but will collect lower pension payments moving forward.” (Hat tip: Pension Tsunami.)
  • Los Angeles is suffering from a housing shortage. So naturally there’s a ballot initiative to make housing construction more expensive through requiring union kickbacks.
  • Here’s a long piece in City Journal by’s Jon Cassidy. It’s a very balanced assessment of both the strengths and weaknesses of Texas’ governmental structure.

    The good news is that the benefits of the Texas model, overseen by its part-time legislature, are impossible to ignore. From 2000 to 2014, Texas created some 2.5 million nonfarm jobs, more than a quarter of the U.S. total for the period. In 2015, amid free-falling oil prices, Texas still managed to finish third among states in job growth, thanks to booming health care, education, professional services, manufacturing, hospitality, warehousing, and light industrial sectors. Construction is doing well, too. Wondrously cheap housing and pro-growth land-use policies draw people and business to the state. None of this diversification was centrally planned. It’s the product of an economy that’s wide open to foreign trade and immigration. Immigration has boosted native Texans’ income by an aggregate $3.4 billion to $6.6 billion a year. Income inequality is up, too—but that’s just another way of saying that high-paying jobs are growing fastest.

    To a large degree, the Texas model has worked because the Austin governing establishment is penned in, limited in the damage that it can inflict by a state constitution that not only keeps lawmakers from enacting new laws for one out of every two years but also severely restricts taxation and imposes budget caps. Texas has no state income tax, and instituting one would require voter approval. The legislature makes do with a sales tax, a handful of excise taxes, and an onerous gross-receipts tax that penalizes high-volume businesses. The Texas state government simply never has the money for bold new expansions of government. So it stays small, just as the original Texans wanted it. It’s not perfect and never will be, but the state is flourishing.

    (Hat tip: Pension Tsunami.)

  • Texas state government has done a good job controlling debt. Local governments? Not so much. (Hat tip: Pension Tsunami.)
  • Police are under fire in Sacramento and Los Angeles.
  • The high speed rail project is uniting Californians! In opposition to it:

    The rest of the story is the astonishingly widespread political opposition to the train by California voters these days, even though 53 percent of them approved the idea when it was on the state ballot in the November 2008 election. The opposition spans ideological left and right and demographic rich, poor, and middle-class: from wealthy Silicon Valley technocrats horrified that the ultra-fast rail lines, with overpasses only every 10 miles or so, would wreck their leafy, bicycle-friendly upscale-suburban neighborhoods, to Latino-majority working-class towns in Southern California’s San Fernando Valley that would be split in half by the train corridors, to equestrians in the San Gabriel Mountain foothills who would see their horse trails destroyed and environmentalists concerned about wetlands destruction in Northern California and threats to wildlife and endangered plant species in Southern California’s Angeles National Forest, through which several of the proposed train routes would plow.

  • Hat tip for the above to Amy Alkon, who also notes:

    The analyzed per mile rate would make a one-way SF to LA ticket cost about $190.5 Therefore, if the CHSRA’s assumed private operator must charge enough to break even, four tickets for a LA/SF round trip would cost at least $1,520. Conclusions: California’s 2009 median household income was $42,548.6. For a middle class household to ride the train LA-SF once would cost them about 4% of their annual pre-tax income.

  • San Francisco to city of Brisbane: “Build housing in your city so San Franciscans can enjoy it…or else!”
  • CalPERS tries to stick 700 person town of Loyalton with a $1.6 million bill as punishment for dropping out of the system…for four retirees. (Hat tip: Pension Tsunami.)
  • The Bay Area Air Quality Management District needs more money so employees can enjoy more expensive junkets to New Orleans.
  • Want to sell signed books in California? A newly passed law requires you to issue a certificate of authenticity for any item over $5, including your name and address, even if it came from the publisher pre-signed. No COA? “You can be liable for TEN TIMES damages, plus attorneys fees. Call it a cool half mill, because you didn’t know you were supposed to issue a COA.” Word is they’re planning to change this idiocy, but that doesn’t excuse passing it in the first place.
  • Another California idiot law: A man can’t display historical Civil War paintings at the state fair because they have confederate flags in them. More here.
  • Did California just legalize child prostitution? Snopes says no, but I’ve seen California impose more tendentious readings on other laws. (Hat tip: Director Blue.)
  • “Jerry Brown Just Signed a Tough-on-Rape Bill That’s So Bad, Even Feminists Hate It.” (Hat tip: Instapundit.)
  • Voters in Apple Valley, California push for initiative to force voter approval on debt spending. Naturally the City Council puts their own initiative on the ballot to continue “eminent domain acquisition efforts unencumbered by another election.” Plus they illegally spent taxpayer money advertising in favor of their own initiative. (Hat tip: Pension Tsunami.)
  • Harrison County in east Texas has been enjoying industrial gains.
  • Dallas has become a big hub for philanthropy. (Hat tip: Pension Tsunami.)
  • California passes a hide an actor’s age upon request law. I sincerely doubt this will pass constitutional muster on first amendment and equal protection clause grounds. Plus, IMDB’s servers are in Washington state…
  • Verengo Inc, the largest installer of residential solar systems in southern California, filed for Chapter 11 bankruptcy protection on Friday as it seeks to sell itself after defaulting on a bank loan.”
  • “The San Diego-based Garden Fresh Restaurant Corp., which owns the Souplantation chain, has filed for chapter 11 bankruptcy protection…Court papers show that Garden Fresh pins its troubles on declining sales, higher minimum wages, and higher employee benefit costs.”
  • DentalOne is relocating its headquarters from Ohio to Plano.
  • LinkSwarm for September 30, 2016

    Friday, September 30th, 2016

    Another Friday, another LinkSwarm. On a personal note, I am once again looking for a Senior Technical Writing position in the greater Austin area. If you have any leads in that direction, please let me know.

  • Polls show Hillary losing ground after debate.
  • Likewise, LA Times poll shows a slight bump for Trump.
  • Professor says there are 13 keys for an incumbent to lose the White House. By my count, Democrats suffer from just about all of them.
  • Minnesota, the only state to vote for Walter Mondale in 1984, is now a battleground state. (Hat tip: Director Blue.)
  • Democrats give up on Ohio. (Hat tip: Stephen Green at Instapundit.)
  • Nineteen dead people registered to vote in Virginia. Yet more of that voting fraud Democrats swear up and down doesn’t exist… (Hat tip: Director Blue.)
  • Republicans cave on everything and leave town. But somehow it’s Trump that’s going to sully the spotless reputation of the Grand Old Party…
  • But at least congress overrode Obama’s veto of bill allowing 9/11 survivors to sue the Saudis 97-1. One wonders why Obama even bothered vetoing the bill, given how he had already stabbed the Saudis in the back with the Iran deal.
  • Blue Cross/Blue Shield drops out of ObamaCare exchange in Nebraska.
  • More illegal aliens on the way. (Hat tip: Praire Pundit.)
  • Two Maryland Democrats fight over which is more responsible over making Baltimore burn.
  • Chicago schools are boned. (Hat tip: The American Interest.)
  • Taxis vs. Uber.
  • Will Franklin of WILLisms put a lot of work into this school choice video:

  • Texas among four states to sue to stop the transfer of ICANN to an international governing body.
  • “Target Corporation’s transgender bathroom pander costing its shareholders billions.” (Hat tip: Ace of Spades HQ.)
  • Scott Adams think that the Middle East is just building a wall around the Islamic State.
  • Ace of Spades declares war on the Republican leadership:

    Apparently, some in this party really do think they’re going to hand the election to Hillary, and, bizarrely, they think this will bully the rest of us into knuckling under to their agenda in 2020.

    Rather than simply getting payback and tanking their candidate in return.

    This party is on the verge of self-destructing. The upper class of the party is upset that the lower class has finally had its say, and they’re determined that should never be permitted to happen again.

    Why then would anyone of the lower class ever vote for the GOP again? Are they required to sign a piece of paper confirming that they are Lessers who should know their place in order to have the privilege of voting against their own interests?

    He’s also turns his fire on #NeverTrump:

    we have a hundred people who claim to be #NeverTrump and #NeverHillary but, strangely enough, never talk about the downsides of a Hillary presidency. Oh, they’ll talk up how much of an authoritarian Trump is, but not Hillary’s sense of entitlement, grievance, vengeance, and her own history of authoritarianism and lawlessness in covering up her crimes.

    They talk all day about “Principles,” but discard the most basic principles — such as keeping a proven lawbreaker out of the White House, or just honestly admitting which candidate they’re actually supporting to their readers — as convenience may recommend.

    In fact, right now they’re howling about Ted Cruz’ “calculations” in endorsing Trump, while not admitting their own pose of “Being Against Both Equally” is in fact a completely contrived lie they’ve calculated will permit them to agitate for their candidate (Hillary) while not compromising their career prospects within Conservatism, Inc. too much.

    How much can I agitate for Hillary while still retaining plausible deniability?

    How much can I agitate for Hillary to appease my anti-Trump donors while still keeping enough pro-Trump readers that my anti-Trump donors will feel they’re getting enough eyeballs per dollar of their patronage?

    The party — not just the party;the writers who are supposed to have telling the truth as their first mission, but instead of become nonstop liars all the time decrying Trump as a liar himself — has declared war on all of the Lessers beneath their station, those not in The Media and who should, therefore, not have quite as much of a say in things as they themselves have.

    They’ve made themselves into exactly what they pretend to oppose — and exactly what I do in fact oppose.

  • Canada launches prescription smack. Part of me wants to see how the experiment turns out. And part of me wants to start offering junkies one-way bus tickets to the Great (China) White North.
  • Other Canadian craziness: Montreal to euthanize all non-owned pit bulls. Way to jerk those knees, French Canadians.
  • Navy changes the way it categorizes sailors.
  • Burning Man camp vandalized.
  • More of that vaunted liberal tolerance we hear so much about these days. “Kill yourself bitch.” (Hat tip: Will Shetterly.)
  • There’s a proper and an improper way to turn down an orgy. Proper: “No thank you.” Improper: Getting stabby. Don’t they teach kids basic manners these days?
  • I picked up some signed William F. Buckley, Jr. books cheap.
  • Texas vs. California Update for September 14, 2016

    Wednesday, September 14th, 2016

    Time for another Texas vs. California update:

  • Vance Ginn makes the case that Texas is still kicking California’s ass:

    After descending into a deep valley during the recession, California’s economy has recently grown at a faster rate than in Texas, where the drop in oil prices and higher value of the dollar have negatively affected the mining and manufacturing sectors. However, during the last decade, the productive, real private sector growth has increased by 13.6 percent in California compared with a robust 29.1 percent in Texas.

    This growth translates into output per person in Texas increasing almost four times more than in California in that period, meaning economic output has far outpaced population growth.

    Although contemporary economic growth in California has led to a higher annual job creation rate than in Texas since April 2015, this only tells part of the story.

    Since December 2007 when the last national recession started, total civilian employment increased in California by 1.2 million while it increased by 1.7 million in Texas, with a labor force two-thirds the size of California’s. This increase in employment in Texas constitutes about one-third of all jobs created nationwide — truly remarkable given recent headwinds!

    This phenomenal job creation contributed to Texas’ unemployment rate (4.6 percent) being at or below California’s rate (5.5 percent) for 121 straight months, or since July 2006. But the official unemployment rate only accounts for those actually looking for work, a better gauge of labor force health would be the share of the population employed, which has been higher in Texas than in California since at least 2000.

    More economic output and job creation over time in Texas has contributed to less poverty. The Bureau of Labor Statistics’ supplemental poverty measure, which accounts for the local cost of living, shows that Texas’ rate matches the national average while California has the nation’s highest poverty rate

    Income inequality has also been higher in California than in Texas for years. For example, the average of total income held by the top 10 percent of income earners from 2000 to 2012 was 49.9 percent in California compared with 48.8 percent in Texas.

    The results are pretty clear that California’s progressive policies of having the highest marginal personal income tax rate, cumbersome regulations, huge unfunded pension obligations, an out of control lawsuit environment, and other policies reduce economic opportunity.

    (Hat tip: Pension Tsunami.)

  • High earners are leaving blue states like California for red states like Texas:

    For generations, the Golden State developed a reputation as the ultimate destination of choice for millions of Americans. No longer. Since 2000 the state has lost 1.75 million net domestic migrants, according to Census Bureau estimates. And even amid an economic recovery, the pattern of outmigration continued in 2014, with a loss of 57,900 people and an attraction ratio of 88.5, placing the Golden State 13th from the bottom, well behind longtime people exporters Ohio, Indiana, Kentucky and Louisiana. California was a net loser of domestic migrants in all age categories.


    Much of the discussion about millennial migration tends to focus on high-cost, dense urban regions such as those that dominate New York, Massachusetts and, of course, California. Yet the IRS data tells us a very different story about migrants aged 26 to 34. Here it’s Texas in the lead, and by a wide margin, followed by Oregon, Colorado, Washington, Nevada, North Dakota, South Carolina, Maine, Florida and New Hampshire. Once again New York and Illinois stand out as the biggest losers in this age category.

    Perhaps more important for the immediate future may be the migration of people at the peak of their careers, those aged 35 to 54. These are also the age cohorts most likely to be raising children. The top four are the same in both cohorts. Among the 35 to 44 age group, it’s Texas, followed by Florida, South Carolina and North Dakota. Among the 45 to 54 cohort, Texas, followed by South Carolina, Florida and North Dakota.

  • California just raised your food costs.
  • And agricultural producers are not happy:

    The Governor signed this ag overtime bill in the same year that minimum wage legislation was also passed that will take California to the highest minimum wage as well as legislation forcing California to adopt additional greenhouse gas regulations for businesses in California.

    California is the only state in the country subject to such regulations. Today’s signing occurred despite numerous requests by the agricultural industry to meet with the Governor to discuss our concerns. The message is clear. California simply doesn’t care.

  • Ca;ifornia companies have a hard time attracting workers:
  • More than two-thirds (70 percent) of organizations in California indicated that they have had difficulty recruiting for full-time regular positions in the last 12 months, similar to 68 percent nationally.

  • California organizations were more likely than organizations nationally to report competition from other employers (56 percent), qualified candidates rejecting compensation packages (28 percent), qualified candidates not being able to move to their local area (21 percent), or a relocation or a relocation package not being competitive or not being offered (12 percent) as top reasons for hiring difficulty.
  • Why California can’t build more housing. “Labor unions—which ostensibly stand for working class interests—will not stand for new construction unless it is accompanied by carve-outs and cronyist regulations that artificially boost their compensation.” (Hat tip: Instapundit.)
  • Stop me if you’ve heard this one before: “California’s unfunded pension debts may be larger than acknowledged.” (Hat tip: Pension Tsunami.)
  • “The biggest problem faced by the State of California is not ‘climate change’ or ‘poverty it is the overreaching power of California government itself, namely the California Legislature and Administration, and the threats that this Democrat establishment poses to California’s future, particularly with regard to the economy and individual liberty. California Democrats are celebrating the passage of new climate change legislation that provides California government with broad, sweeping new powers to drastically curb greenhouse gas reductions without regard to economic impact or the basic rights of businesses and individuals.” (Hat tip: Pension Tsunami.)
  • Palo Alto decides that they hate, hate, hate that golden goose.
  • Maybe that’s why some observers are telling people “If You Own A Home In Palo Alto, CA; Sell It Now.” As the median price of homes has actually started dropping, though from admittedly already insane heights…
  • “Case Study: How Politicians Motivate Companies to Leave California.”
  • Orange County clerk took bribes to make charges disappear.
  • Corrupt Oakland police sentenced. There are all sorts of real winners in this story…
  • LAX Police Assistant Chief Resigns Amid Corruption Allegations.”
  • University of California hires India-based IT outsourcer, lays off tech workers. “The layoffs will happen at the end of February, but before the final day arrives the IT employees expect to train foreign replacements from India-based IT services firm HCL. The firm is working under a university contract valued at $50 million over five years.” This might be a good time to throw in a “How’s that $15 minimum wage working out for you, San Francisco,” but there’s another factor at work: “Joe Bengfort, the CIO for the UCSF campus, said the campus is facing ‘difficult circumstances’ because of declining reimbursement and the impact of the Affordable Healthcare Act, which has increased the volume of patients but limits reimbursement to around 55 cents on the dollar, he said.” So San Franciscans IT workers are losing their jobs thanks to ObamaCare.
  • “Texas has proven it’s possible to have both much lower crime and a lower rate of imprisonment. Indeed, Texas’ FBI index crime rate, which accounts for both violent crime and property crime, has fallen more sharply than it has nationally, posting a 29 percent drop from 2005 to 2014, the latest full year for which official data is available.”
  • “It turns out that the average property tax bill required to support BART’s proposed $3.5 billion bond measure on the November ballot could be as much as four times what the transit agency claimed…That’s because legal language in Measure RR allows BART to issue bonds at up to the state limit of 12 percent interest.” 12%? With 30 year U.S. Treasuries running under 2%? The fact they think they may have to go that high to attract investors suggests how worried bond traders are about the future of California’s economy…
  • Some are less than enthused about BART’s bond proposal:

    BART officials want voters to trust them with another $3.5 billion of taxpayer money. But they’ve done nothing to earn that trust.

    Instead, they have recklessly spent what they have, grossly understated how much their ballot proposal would raise property tax bills and devised plans to use money from the measure, intended for capital projects, to indirectly cover inflated labor costs.

    Voters in Alameda County, Contra Costa and San Francisco should say no — hell no. They should reject Measure RR on the Nov. 8 ballot.

    Despite the problems facing the transit agency, it makes no sense to approve five decades of extra taxes when Measure RR lacks a logical budget, a timeline for service improvements and provisions ensuring taxpayers and riders get what they’re promised.

    The measure would authorize the district to borrow $3.5 billion through bond sales as part of a larger plan to upgrade BART’s infrastructure. The ballot wording conveniently omits that the district would tax property owners for 48 years to pay off the debt.

    (Hat tip: Pension Tsunami.)

  • Speaking of California bonds: Proposition 53 explained.
  • California’s legislature passes extension of sexual assault statue of limitations mainly over Bill Cosby. Combine this with the trend of colleges redefining rape to “any sex a woman later regrets,” and suddenly the state has the ability to prosecute anyone who ever had sex in California…
  • Leprosy Scare in California Elementary School. “There are approximately 6,500 cases of leprosy in the United States, and 90 percent of the cases are immigrants from countries where leprosy is endemic.With the increase in illegal immigrants and refugees in recent years, diseases thought to be eradicated in this country — like tuberculosis, polio, measles and leprosy — have unfortunately reemerged in the United States.” (Hat tip: Ed Driscoll at Instapundit.)
  • Image Comics to move from Berkeley to Portland.
  • Cow Fart Regulations Approved By California’s Legislature.” No, not an Onion piece.
  • Follow-up: Pacific Sunwear exits bankruptcy.
  • LinkSwarm for August 26, 2016

    Friday, August 26th, 2016

    Welcome to another Friday LinkSwarm! We’re just weeks away from The Burning Time giving way to The Season of Football.

    Some links:

  • Here’s one forecast that has Trump and Clinton tied.
  • “Always correct election forecast model predicts Trump win, 51%-48%.” (Hat tip: Instapundit.)
  • Average ObamaCare premiums surge 24% for 2017.
  • Well, not in Illinois. There, they’re going up as much as 90%.
  • In case you missed it last week, Pennsylvania’s Democratic attorney general Kathleen Kane resigned after being convicted of nine counts of perjury and obstruction of justice.
  • Silicon Valley CEO Gurbaksh Chahal allegedly hit his girlfriend 117 tiems, but was sentenced to probation. Oh, and he gives his political donations exclusively to Democrats. Why do so many Democrats commit violence against women?
  • George Soros hit up for money to sell the Iran deal.
  • Soros also celebrated the European refugee crisis being the new normal.
  • Obama wants to ban smoking in public housing. Hey, if you think we have riots now… (Hat tip: Ace of Spades HQ.)
  • Massachusetts takes rent-seeking to the next level, taxing ride-sharing services to subsidize taxis. Next up: Taxing cars to subsidize railroads and horses.
  • Germany in August.
  • July in the U.S. was one of the least hot months ever. Maybe not in Austin, but elsewhere…
  • Speaking of which, the 1936 heat wave must have been a nightmare to live with without air conditioning. It hit 121°F in North Dakota…
  • At one level, this piece is a good look at Gawker’s demise. At another, it’s shows New York media professionals at their whiny, narcissistic, incestuous, entitled worst. “It’s an inevitable consequence of living in today’s New York: Youthful anxiety and generational angst about having been completely cheated out of ownership of Manhattan, and only sporadically gaining it in Brooklyn and Queens, has fostered a bloodlust for the heads of the douchebags who stole the city.” Waaaah, the world owes me Manhattan real estate because I think I’m so much cooler than people who can actually afford it!
  • “NPR Deletes Comments, Says Commenters Are Too Old And Male.”
  • Google fiber hits reality: “Gee, wiring up that last mile is sure expensive! Why didn’t anyone tell us?”
  • Researchers say they can diagnose clinical depression from Instagram feeds. If they ever get to Tumblr, there won’t be enough Prozac left in the world…
  • “DNC Creates ‘Cybersecurity Board’ Without Any Cybersecurity Experts.”
  • Federal judge puts kibosh on Obama’s tranny bathroom plans.
  • What Canada needs is strict crossbow control laws. (Hat tip: Dwight.)
  • The Silence of the Jews in advance of the slow Islamicization of Sweden.
  • I know that when I think of Jewish history, I naturally think of Yoko Ono. And when I think of people who need Kickstarter to get funding, Yoko is way up there…
  • The tragic history of RC Cola. Too bad Diet RC tastes like crap. (That goes for that crappy offbrand Maine soda as well.)
  • Important Safety Tip: Don’t have sex on a neighbor’s roof, naked and high on meth.
  • I’m not going to pony up $200+ to attend the Texas Tribune Festival, and I doubt I could finagle a press badge. But Phil Collins being there does indeed make it more tempting, if only I could be sure I could get all my old Genesis albums signed…
  • Abandoned Olympic venues from around the world. (Hat tip: Ace of Spades HQ.)
  • This woman doesn’t have issues, she has a lifetime subscription and bound volumes.
  • And then there was one.
  • LinkSwarm for August 5, 2016

    Friday, August 5th, 2016

    Enjoy a Friday LinkSwarm! A lot of plane and weird news links this time around:

  • Aetna is losing $300 million a year on ObamaCare. (Hat tip: Ace of Spades HQ.)
  • Air Force Declares F-35 ready for combat. (Hat tip: Borepatch, who is more than a little skeptical…)
  • Islamic State Sinai leader Abu Dua al-Ansari killed in Egyptian air strike.
  • Is there any greater bastion of 1%er elitism than New York Times wedding announcements?

    How is it actually acceptable for an ostensibly liberal newspaper to conclude that wealthy, well-educated people’s lives are more interesting and worth more attention than non-wealthy, less-educated people? Everyone laughs about the Weddings section, even the Times itself. But joking aside, isn’t it morally indefensible to treat people as newsworthy in accordance with their elite social status… a paper run by liberals, who would profess themselves averse to inequality, openly treats most of the population as insignificant.

    (Hat tip: Dwight.)

  • Cahnman’s Musings has a really solid review of Jane Jacobs’ classic The Death and Life of Great American Cities and how central planning screwed everything up.
  • Clint Eastwood on various liberal whining over Trump: “Just fucking get over it.”
  • Frau Merkel ist nicht sehr beliebt.
  • Austin’s toy trains are a monument to government waste. (Hat tip: Push Junction.)
  • What Pokémon Go Teaches Us About Capitalism.
  • #BlackLivesMatters is all in against Israel. So what do George Soros and Tom Steyer have against Israel? (Hat tip: Director Blue.)
  • “A point of view should be based on its own merit, not dismissed by a lazy appeal to privilege.”
  • Funny or die mostly does the latter. (Funny or Die still has 95 staffers? Really? It takes that many people to produce mediocre comedy?)
  • Things you never knew about the World’s Strongest Man competition.
  • An Exciting History of Drywall.” (Hat tip: Instapundit.)
  • Who would have won the battle between a Bismarck-class battleship and an Iowa class battleship? (Hat tip: Ace of Spades HQ.)
  • Butthurt level: Epic.
  • Airplane trick.
  • Feel good dog story of the day.
  • Behold the legendary crime spree of Dickface Johnson.
  • “Oh no! Not the bees!
  • LinkSwarm for July 15, 2016

    Friday, July 15th, 2016

    Enjoy a Friday LinkSwarm, including some recent big stories:

  • Truck plows into Bastille Day celebration in Nice, France, killing at least 84, including a father and his 10 year old son from Lakeway.
  • The murder is evidently a Muslim from Tunisia. And his name is evidently Mohamed Lahouaiej Bouhlel. Try to contain your shock.
  • The Permanent Court of Arbitration in The Hague rules against China in the South China Seas dispute. Whether China heeds the ruling is another question…
  • Another day, another Democratic congresscritter indicted. “Corrine Brown, the House rep from the 5th District of Florida, was indicted (along with Ronnie Simmons, her chief of staff) on federal charges of mail and wire fraud.”
  • Donald Trump and Hillary Clinton are neck and neck in swing states.
  • “The U.S. State Department funneled tax dollars to a group that worked to oust Israeli Prime Minister Benjamin Netanyahu, according to a Senate report released Tuesday.”
  • Another ObamaCare exchange shuts down, this time in Illinois.
  • And six of the seven remaining exchanges are in trouble.
  • Philadelphia airport workers to go on strike during the Democratic National Convention.
  • Houston City Councilman calls for segregation in police shifts. Next up: Their own drinking fountains… (Hat tip: Director Blue.)
  • Previously deported illegal alien sentenced to life in prison for murder in Laredo.
  • Following in the footsteps of Annise Parker, Austin City Council wants to silence opponents who speak out on politics.
  • The left’s war on police. (Hat tip: Ed Driscoll at Instapundit.)
  • El Paso police chief Greg Allen calls Black Lives Matter “a radical hate group.”
  • University of Texas to return athletic ticket sales to a group previously proven to be corrupt.
  • Ghostbusters reboot toys already on clearance before the movie’s opening.
  • Strippers, arson and a potato. (Hat tip: Dwight.)
  • Understatement of the Year Award:

    An inspection of the truck’s cargo revealed 169 bundles of marijuana with an estimated weight of 3,996 lbs. were on board.

    The estimated street value of the marijuana is between $1.6 million and $1.9 million. Perez was charged with Trafficking Marijuana in the Superior Court of DeKalb County, Georgia.

    Doraville Police say they are “pretty confident this would exceed personal use.”

    (Hat tip: Ace of Spades HQ.

  • LinkSwarm for June 3, 2016

    Friday, June 3rd, 2016

    Another week, another Texas flood. Try to stay dry and enjoy a Friday LinkSwarm:

  • Paglia on Clinton: “If it were a Republican in the crosshairs, Hillary’s shocking refusal to meet with the Inspector General (who interviewed all four of the other living Secretaries of State of the past two decades) would have been the lead item flagged in screaming headlines from coast to coast. Let’s face it—the genuinely innocent do not do pretzel twists like this to cover their asses.” (Hat tip: Director Blue.)
  • New York Magazine massively re-edits article on why Hillary won’t debate because the original wasn’t fawning enough.
  • Eight reasons Hillary sucks. Including Obama: “she does not seem to want to run on Ben Rhodes’s foreign policy, Jonathan Gruber’s Obamacare, Lois Lerner’s IRS, Lisa Jackson’s EPA, Eric Holder’s Justice Department, or Barack Obama’s racial healing. And yet she needs Obama’s hard-left base. So far she has rejected her 2008 Annie Oakley, Reagan-Democrat schtick, gambling that her Black Lives (alone) Matter and transgenderism pandering can ensure that she will match Obama’s historic share of the minority vote. But so far it seems just as likely that she will lose more voters among the white working class than she can lease from Obama’s core.”
  • College students are allowed to ask Hillary Clinton original, spontaneous questions that just happen to be scripted by the Clinton campaign. (Hat tip: Instapundit.)
  • At judge’s order, 20,000 documents related to Fast and Furious scandal released. (Hat tip: Director Blue.)
  • Trump is right: Some illegal aliens are being lavished with more benefits than our own veterans.
  • How a naval contractor named “Fat Leonard” infiltrated the Navy with bribes, prostitutes and lavish parties. “The Soviets couldn’t have penetrated us better than Leonard Francis.” Our country is in the best of hands. (Hat tip: Dwight.)
  • Oberlin students are among the most precious of snowflakes.
  • More on the same theme. Alas, this morning I just don’t have time to explicate all the manifest idiocies on display by the Social Justice Warrior Campus Cadets…
  • Obama Administration bitch-slapped for attempting ex-post facto regulation. (Hat tip: Ace of Spades HQ.)
  • Columbia was once a basket case and Venezuela a thriving nation on the rise. Thanks to The Magic Power of Socialism™, they’ve switched places.
  • This bitch is so crazy I can’t even keep up with her crazy bitch shit.”
  • Enya: rich crazy cat lady.
  • Flooding-related blackout leads to Texas prison riots.
  • City Manager behind Dallas’ controversial city-owned hotel steps down.
  • If your political party openly calls for the complete destruction of the oil industry, maybe you shouldn’t have your national convention in Houston.
  • Science Fiction writer Gregory Benford on university host escort duties for G. Gordon Liddy, Ray Bradbury, Kurt Vonnegut, and a certain “Tom.”
  • Space City Comic Con turns into an actual con. As in the fraud kind…
  • Swiss open world’s longest tunnel with ceremony featuring marching uniform worker drones, a horned goat god, and a giant flying death baby.
  • Texas vs. California Update for June 2, 2016

    Thursday, June 2nd, 2016

    Time for another Texas vs. California update:

  • Once again, Texas is ranked as the best state for business by CEO Magazine, while California is ranked the worst. (Hat tip: Rider Rants via Pension Tsunami.)
  • This OC Register piece offers an good restatement of the general problem:

    California has earned quite a reputation for being openly hostile to business, as confirmed by numerous studies and surveys. Its plethora of taxes and regulations are driving away legions of entrepreneurs and workers, but they are doing wonders for one segment of the economy: the moving industry. It is almost as though that industry is secretly lobbying the state Legislature for its anti-business policies.

    Joe Vranich, as president of Spectrum Location Solutions, an Irvine business relocation consulting firm, knows all about what drives businesses’ decisions to give up and leave for greener pastures. According to his research, in just the past seven years, approximately 9,000 businesses have decided to leave California or expand their operations out of state. Companies leaving California typically save between 20 percent and 35 percent of operating costs, he concluded.

    Texas has been the biggest beneficiary of California’s business exodus.


    California’s litigious climate has become a common complaint of business owners. No wonder the American Tort Reform Foundation once again named California the No. 1 “Judicial Hellhole” in the nation last year, based on the state’s excessive laws and regulations and a flood of disability access, asbestos and food advertising and labeling lawsuits, frequently more opportunistic attempts at extortion than legitimate attempts to seek justice for victims who have been truly harmed.

    California has proven to be a particularly harsh climate for manufacturing businesses. “Even if California were to eliminate the state income taxes tomorrow, that still would not be enough,” CellPoint Corp. CEO Ehsan Gharatappeh told the Dallas Business Journal of the Costa Mesa company’s move to Forth Worth.

    General Magnaplate Corp., which has made reinforced parts for the aerospace, transportation, medical, oil and other industries for 36 years, decided to shut down its California facility in Ventura altogether. “This is a very sad day for our employees and for my family, who have a long history of job creation in this area, but the simple fact is that the state of California does not provide a business-friendly environment,” CEO Candida Aversenti said in a press release. “Increases in workers’ compensation costs and government regulations, combined with predatory citizens groups and law firms that make their living entirely by preying on small businesses, have left us with no other choice but to shut down our California facility. This is in stark contrast to our New Jersey and Texas facilities, which are flourishing in small business-friendly environments created by the respective local governments and environmental agencies.”

  • Tech layoffs double in the Bay area:

    Yahoo’s 279 workers let go this year contributed to the 3,135 tech jobs lost in the four-county region of Santa Clara, San Mateo, Alameda and San Francisco counties from January through April, as did the 50 workers axed at Toshiba America in Livermore and the 71 at Autodesk in San Francisco. In the first four months of last year, just 1,515 Bay Area tech workers were laid off, according to mandatory filings under California’s WARN Act. For that period in 2014, the region’s tech layoffs numbered 1,330.

  • How did the California city of Irwindale rack up the largest per household market pension debt in the state, at $134,907 per household?
  • Low and negative interest rates means that CalPERS must make risky investments to even come close to hitting their yield targets:

    The nation’s largest public pension fund, the California Public Employees’ Retirement System, has one-fifth of its assets in bonds and is down 1.3% since July 1, according to public documents. The system, known by its abbreviation Calpers, also has 53.1% of its assets in stocks, 9% in real estate and 9.4% in private equity. In 2015, Calpers posted a return of 2.4%, below its target rate of 7.5%.

    Nor is CalSTARS doing much better:

    The nation’s second-largest public pension plan, the California State Teachers’ Retirement System, has shifted a significant amount of money away from some stocks and bonds to protect against a downturn. It moved assets into U.S. Treasurys and so-called liquid-alternative funds, which mimic hedge-fund strategies. Calstrs, as the pension is called, reported gains of 1.5% during a choppy 2015, with returns on its fixed-income investments up just 0.6%.

    (Note: WSJ link, so you may need to do the Google thing.)

  • News: Former CalPERS chief executive Fred Buenrostro convicted of bribery. California: Buenrostro will continue to receive his CalPERS pension while in prison. (Hat tip: Pension Tsunami.)
  • Overview of the Texas budget.
  • UnitedHealth exits California’s Obamacare exchanges.
  • Despite that, California wants to offer ObamaCare subsidies to illegal aliens.
  • California also wants to spend more money to send illegal aliens to college.
  • And those illegal aliens with California driver’s licenses still aren’t purchasing liability insurance.
  • Hate California traffic? Tough:

    The newest outrage comes from the Governor’s Office of Planning and Research in the form of a proposed “road diet.” This would essentially halt attempts to expand or improve our roads, even when improvements have been approved by voters. This strategy can only make life worse for most Californians, since nearly 85 percent of us use a car to get to work. This in a state that already has among the worst-maintained roads in the country, with two-thirds of them in poor or mediocre condition.


    In essence, the notion animating the “road diet” is to make congestion so terrible that people will be forced out of their cars and onto transit. It’s not planning for how to make the ways people live today more sustainable. It has, in fact, more in common with Soviet-style social engineering, which was based similarly on a particular notion of “science” and progressive values.

    (Hat tip: Instapundit.)

  • Toyota’s Plano headquarters takes shape.
  • The UAW is making a big push to unionize Tesla’s Fremont plant.
  • Speaking of Tesla, they’re approaching the grand opening of their giant battery factory…in Nevada.
  • McDonald’s CEO says a $15 minimum wage will make his restaurants shift to using robots. But what would McDonald’s know about minimum wage workers?
  • In the same vein, it’s no wonder that Whole Foods opened it’s first semi-automated Whole Foods 365 store in Los Angeles. “Promoted as a ‘chain for millennials,’ the new ‘365’ stores use about one-third less square footage than the company’s traditional 41,000-square-foot Whole Foods stores, but they also slash almost two-thirds of workers with robots and computerized kiosks.” (Hat tip: Director Blue.)
  • Schedule for California high speed rail boondoggle pushed back four more years. Latest obstacle: wealthy equestrians. “Hey, this study says horses won’t mind a super-fast, super loud train zipping along right next to them.” “You mean the study from the institute that two bullet train authority members sit on? Get stuffed!”
  • “The State Assembly Subcommittee on Education voted Tuesday to delay funding to the UC system because of concerns with the UC Retirement Plan, proposed by UC President Janet Napolitano in March, which would cause the university to incur significant costs. The delay was announced after an actuarial report was released earlier that day by Pension Trustees Advisors, or PTA, which showed that the retirement plan would cost the university $500 million in savings, or $34 million a year, over the next 15 years.” (Hat tip: Pension Tsunami.)
  • Maywood, California (which had previously outsourced services to the corrupt city of Bell) is on the brink of bankruptcy. (Hat tip: Dwight.)
  • “Two L.A. sheriff’s deputies convicted of beating mentally ill inmate.”
  • San Francisco liberals versus the city’s police union
  • “Another aviation company has decided to move its corporate headquarters to Fort Worth to take advantage of the Lone Star state’s business friendly environment and the city’s longtime history in the aerospace industry. The move is historic for Burbank, California-based C&S Propeller — an FAA and EASA certified repair station for propeller and airplane maintenance — which has been in California for nearly five decades.”
  • This one’s a wash: XCOR lays off employees in both California and Texas.
  • LinkSwarm for May 23, 2016

    Monday, May 23rd, 2016

    This kept getting pushed out by other posts, so enjoy a heftier-than-usual LinkSwarm:

  • U.S. district court judge rules that House Republicans lawsuit against ObamaCare on separation-of-powers grounds can move forward. (Hat tip: Elizabeth Price Foley at Instapundit.)
  • You know how American leftists claim socialist Denmark is paradise on earth? Yeah, not so much. “Denmark’s suicide rate has averaged 20.8 per 100,000 during the last five decades, with its highest level of 32. The American suicide rate averaged only 11.1 during the last five decades, and has never exceeded 12.7. Danes are deeply deprived, driven by severe narcissism, and so more than 11 percent of adult Danes – the supposed happiest people in the world – are on antidepressants.”
  • Why the left hates the Jews:

    The Arab–Israeli conflict is a bitter and ugly one. My own view of it is that the Palestinian Arabs have some legitimate grievances, and that I stopped caring about them when they started blowing up children in pizza shops. You can thank the courageous heroes of the Battle of Sbarro for that. Israel isn’t my country, but it is my country’s ally, and it is impossible for a liberty-loving American to fail to admire what the Jewish state has done.

    And that, of course, is why the Left wants to see the Jewish state exterminated.

  • Vaguely related: “Frank Sinatra’s Love Affair With the Jewish People.
  • Brazil’s President impeached.
  • This just in: Europe is still screwed.
  • Greece approves new “austerity” measures that they’ll no doubt continue to cheat and ignore while spending money they don’t have.
  • Speaking of Greece, “More than one in five school-aged refugee children in Greece have never been to school, a study has revealed. Child refugees stranded in Greece have been out of school for on average 1.5 years, and many of them ‘cannot even hold a pencil.'”
  • Hezbollah operations chief killed by Syria, but nobody’s entirely sure by who.
  • Why did the feds give Bill Clinton’s pedophile friend Jeffrey Epstein a sweetheart deal?
  • Elijah Woods says there’s widespread pedophilia in Hollywood. (Hat tip: Ed Driscoll at Instapundit.)
  • One billionaire moving to Florida is going to cost New Jersey $140 million in tax revenue.
  • Electric cars don’t lower emissions overall.
  • No sign of a down ballot Republican crackup.
  • Target has shed $10 billion in stock value since announcing its tranny bathrooms policy.
  • Why feminists hate sex: “The new feminist puritans see heterosexual sex as confirming and reinforcing outdated gender roles. That men and women not only have sex but enjoy it is a threat to the notion that both gender and sexuality are merely social constructs, to be crafted and rejected as instinct takes us.”
  • Why did 16 Republican Senators save the agency that’s hell-bent on creating instant public housing slums across America?
  • More than 300 UK CEOs come out in favor of a Brexit.
  • Eye-open infographic on mass public shootings from John Lott.
  • More proof that Social Justice Warriors hate everything, no matter how cute.
  • World’s oldest woman, and last living American born in the 19th century, dies. (Hat tip: Director Blue.)
  • Listeria outbreak among frozen fruits and vegetables. “Some of the affected products were sold under brand names such as Earth’s Pride, Panda Express, Signature Kitchens and Trader Joe’s.” (Hat tip: Ace of Spades HQ.)
  • Meet the vegan Bernie Madoff. (Hat tip: Ed Driscoll at Instapundit.)
  • Black Pimps Matter.
  • Safety tip: Try not to get killed over cutting in line for the taco truck.
  • Facebook bans conservative for saying that Facebook bans conservatives. (Hat tip: Instapundit.)
  • Canadian company working on 20km high space elevator.
  • Jim Geraghty visits NRRAM.
  • The Dallas convention center sucks.
  • Microsoft is gonna Microsoft redux. (Hat tip: Borepatch.)
  • Wikipedia editor contemplates suicide over toxic atmosphere of powertripping.
  • Rehab for Internet addiction. “The program costs $25,000 for 45 days at the center.” Obviously I can’t be addicted to the Internet, because there’s no way I could afford the rehab…
  • I’m stealing this from Ace of Spades HQ:

  • Good Analysis of the Failure That is ObamaCare

    Wednesday, April 27th, 2016

    I know I just haven’t harped enough on the tremendous, stinking heap of fail that is ObamaCare, but just in case anyone was unclear on that, here’s Marc Thiessen with a solid rundown:

    Historian David Maraniss notes, in Sunday’s Post, that President Obama came to office with the goal of changing “the trajectory of America” and leaving “a legacy as a president of consequence, the liberal counter to [Ronald] Reagan.”

    On the foreign-policy front, he is the anti-Reagan for certain. Reagan defeated Soviet communism and left us a safer world; Obama presided over the rise and metastasis of the Islamic State and left us a far more dangerous one.

    Domestically, Ronald Reagan told the American people: “The nine most terrifying words in the English language are ‘I’m from the government, and I’m here to help.’ ” Obama wanted to convince Americans that they were not terrifying. And the way he was going to do it was through the only great liberal legislative achievement of his presidency: Obamacare.

    He failed. Even before he leaves office, Obamacare has begun unraveling.

    The law was passed over the objections of a majority of Americans, it is still opposed by a majority of Americans — and their opposition has been vindicated. Last week, UnitedHealth Group announced that, after estimated losses of more than $1 billion for 2015 and 2016 under Obamacare, the company was pulling out of most of its ill-fated exchanges.

    In fact, commercial insurers across the country are hemorrhaging money on Obamacare at alarming rates. Health Care Service Corp. (which owns Blue Cross and Blue Shield affiliates in Illinois, Montana, New Mexico, Oklahoma and Texas) has lost “well north of $2 billion” in its first two years — twice as much as UnitedHealth. Highmark, the nation’s fourth-largest Blue Cross plan, lost nearly $600 million in 2015. Blue Cross and Blue Shield of North Carolina has projected it will lose more than $400 million in the first two years, and the company has said it may leave the exchanges entirely next year.

    The president promised these insurers taxpayer bailouts if they lost money, but Congress in its wisdom passed legislation barring the use of taxpayer dollars to prop up the insurers. Without the bailouts, commercial insurers are being forced to eat their losses — while more than half of the Obamacare nonprofit insurance cooperatives created under the law failed.

    So what happens now? Because commercial insurers are not going to keep bleeding cash to prop up Obamacare, they have three choices: 1) scale back coverage, 2) raise prices or 3) get out of the exchanges entirely. More and more are going to choose option 3.

    Does this mean that Obamacare is finally entering its “death spiral”? Not exactly. As my American Enterprise Institute colleague Scott Gottlieb explains, while commercial insurers are starting to leave Obamacare, they are being replaced by Medicaid health maintenance organizations (HMOs) offering skimpy plans that mirror what they offer in Medicaid — our nation’s emergency health insurance program for the poorest of the poor.

    This is a catastrophe for people stuck in Obamacare. According to a 2014 McKinsey survey, about three-quarters of those in the exchanges were previously insured on commercial plans, either through their employers or the individual market. They were doing fine without taxpayer-subsidized insurance but were pushed into Obamacare. They now face rising premiums and smaller provider networks — and as commercial insurers flee, they will increasingly be stuck in horrible, Medicaid-style plans.

    This is not what the president promised when he sold Obamacare to the American people.


    With Obamacare, Obama wanted to restore America’s faith in big government. Instead, the opposite has happened. Today, 69 percent of Americans say big government is “the biggest threat to the country in the future” (ahead of big business or big labor). That figure, which is slightly down from 72 percent in 2013, is higher under Obama than it has been since Gallup began asking the question about 50 years ago. Obamacare has done more to discredit big government than 1,000 Reagan speeches ever did.

    That, in the end, will be Obama’s enduring domestic legacy.

    Read the whole thing.