Robert Whitcomb: Raimondo Status, Medical Cost-Shifting to the States; & Saving the Citgo Sign

Robert Whitcomb, Columnistt

Robert Whitcomb: Raimondo Status, Medical Cost-Shifting to the States; & Saving the Citgo Sign

Robert Whitcomb, Columnist
Budget Bathos: Raimondo Status Report; Pan-Eurasian Mafia Government; Medical Cost-Shifting to the States; Saving the Citgo Sign

 

It’s entertaining to watch Trump voters, including congressional Republicans, push back against the myopic, incoherent and often ignorance-based Trump federal budget program as they find more and more parts of it that hurt them.  Indeed, many Trump-voting constituents  depend on federal programs that Mr. Trump seeks to axe. Good luck, suckers and hypocrites! More to come on this.

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Senator Russell Long with LBJ
''Don’t Tax You. Don’t Tax Me. Tax That Fellow Behind the Tree''


-- The late Louisiana Senate Russell Long

 

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Governor Gina Raimondo
Rhode Island Gov. Gina Raimondo was understandably pleased when the state’s unemployment rate fell below the national average in January, to 4.7 percent, for the first time in almost 12 years. Meanwhile, some high-profile companies have moved to the state or expanded there and there’s quite a lot of new  construction underway. To me, the best news has been that the  big projects at the Route 195 relocation land are starting to get cooking and that rapidly growing  United Natural  Foods Inc. is now based in Providence.

 

How much of this was due to Ms. Raimondo’s leadership? Economics has so many variables that it’s hard to say. For that matter, the Ocean State is so tiny it’s hard to say that there’s a “Rhode Island economy.’’ It’s part of the much bigger regional, national and international economies. And note that a shrinking  state work force explains at least some of the recent jobless-rate drops.

 

I would say, however, that Ms. Raimondo’s knowledge of business and national connections as a former venture capitalist, her willingness to implement long-overdue reforms and her calm and intelligence have indeed inspired confidence in firms that might be candidates for moving to or expanding in the state. That she’s willing to get very able people from outside the state with fresh perspectives to join her administration rather than  automatically pick well-connected Rhode Islanders (“I know a  guy…’’) has also been good, although it has, along with her fancy education, gotten her labeled an “elitist,’’ which I don’t believe this daughter of middle-class Rhode Islanders considers herself. The more new people moving into Rhode Island the better, to dilute the parochialism that is at the root of many of its political and economic problems.

 

As in many states, her administration has had headaches with big computer systems (e.g., public benefits and the Division of Motor Vehicles). Could she have headed these headaches off by firing people faster who were charged with getting them going but didn’t succeed? Probably.

 

Hire Republican Ken Block, a brilliant systems guy, to oversee state computer systems?  That would be exciting.

 

Ms. Raimondo has gotten a lot of flak from some people about what former Gov. Lincoln Chafee calls the “candy store’’ approach of using tax incentives to lure businesses. I share a lot of this dislike. It can create a race to the bottom as states compete to get sexy companies. As I’ve written here before, for long-term economic success, jurisdictions must focus on broad improvements, especially in education and infrastructure. The governor says she is focusing on those things but the $130 million in tax incentives so far in her term understandably get a lot of attention. And how do you make these companies stay?

 

Pretty much every state and large city play the tax-incentive game in varying degrees.

 

Of course, the governor thinks that attracting such big companies  as General Electric to set up new operations in the state signals to other companies that it’s now a good place to do business and,  they find, a beautiful place to live for many.

 

She has had some success in changing the perception of out-of-staters about the Ocean State so that many  have come to believe that the Rhode Island is finally, if slowly, fixing its business climate. The deeply embedded tribalism, negativity and cynicism in the state militate against her but I believe she’s making progress – two steps ahead, one step back.

 

Meanwhile, I’m sure that Rhode Islanders would like to see a updated list of companies that have decided to stay and grow in the state as a result of Raimondo administration policies.

 

On two big issues she’s been embroiled in: the car tax, about which she is less enthusiastic about cutting than some other politicians, and “free college’’ for two years:

 

Cutting or eliminating the car tax, as hated as it is, will have little or no effect on the state’s economy.  And rather than “free college,’’ it might make far more sense to put some of the tax revenue to be spent on subsidizing students into creating a public-private vocational education system (including apprenticeships) like that which has been so successful in Germany.  And even more important is pushing aside  Rhode Island special interests in order to adopt a  K-12 public-education system with the rigor of Massachusetts’s, which has helped make the Bay State so prosperous in the past couple of decades.

 

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Putin and the United States
The endless hacking , theft and sabotage directed against American government, business and individuals by people working for the Russian government suggests, among other things, how pathetic the Russian economy is. Oil and gas sales are big, but much of the economy involves criminal behavior, a lot of it run out of the Kremlin. Thus a giant Mafia controlling a large part of Eurasia.

 

A good example of how Russian dictator Vladimir Putin’s regime operates came last fall in tiny Montenegro, in the Balkans, when the Kremlin tried to have Prime Minister Milo Djukanovic assassinated in order to derail Montenegro’s attempt to join NATO.

 

The government of the tiny Balkan nation plans to indict two Russian intelligence agents who reportedly spent a few months training  some Serbians to seize the parliament building and kill Mr. Djuknanovic. (Serbians tend to be pro-Russian.) The two agents are safely back in Russia now.

 

Mr. Putin has long seen murder as a standard operating procedure.

 

But in any event, Montenegro is still due to join NATO in May.

 

 

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Steve Bannon, who may well be President Trump’s closest adviser outside of the Trump family itself, has made a recent career of touting the need to reenergize the cultural and moral aspects of Western Civilization. But his chaotic  and corrupt personal life suggests that he could use some civilizing himself. For example, read:.
 

 

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The publication of President Trump’s federal tax return for 2005 wasn’t worth much: Only two pages were available. The public has no  clear idea of where his income came from and  or a plethora of other details that would help explain or at least suggest what he’s been up to.

 

His hiding of his finances as president is scary because, among other things, we don’t know how beholden he is to foreign entities. We do know that his family is moving ASAP  around the world to use their presidential proximity to further enrich themselves  as much as and as fast as possible.

 

In the end a court order and congressional subpoena may be needed to get the president’s tax information from the IRS. National security may be at stake.

 

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President Donald Trump
Not unexpectedly, President Trump is pushing to roll back Obama administration rules requiring that cars run at 54.4 miles a gallon of fuel by 2025, up from 27.5 miles per gallon. That is projected to reduce greenhouse-gas emissions by 6 billion tons over the lifetime of new vehicles and save 2 million gallons of oil a day by 2025. Thus the Obama rules would be good for the environment and good for national security by reducing our need for oil, much of which still comes from nasty places abroad.

 

Car company senior executives always say that they can’t meet new fuel standards but because of always developing technology they always do. In so doing, they’re making more efficient, better-engineered cars. But  they’ll take the easy way out if they can to maximize their short-term profits. Senior execs rarely hold their jobs for more than five years so why should they worry much about bad PR about the long-term environment?  Their children and grandchildren can fret about global warming.

 

But global warming aside, what about cleaner air?

 

Meanwhile such nasties associated with global warming as acidification of the oceans and the consequent death of coral reefs goes on.

 

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It seems  that the coldest part of our winter this year comes at the end, after the jet stream flipped and decided to send the warm weather Out  West and much-below temperatures to the Upper Midwest and New England. It’s doing a number on the plants brought out of hiding by the almost summery weather we had just a few weeks ago. They say that New England weather builds character but it’s just as likely to build bitterness.

 

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The Congressional Budget Office figures that the Republican healthcare bill would reduce the federal budget deficit by $337 billion through fiscal 2026. I doubt that, but even assuming that it’s true, it doesn’t project how much the bill could cost the states.

 

A problem is that every state mandates that all sick and/or injured people who show up in inefficient and expensive hospital emergency rooms (which is most of them), and indeed at many other providers, must be treated regardless of ability to pay. There will be a heightened flood of such people at ERs over the next few years if the GOP bill is enacted because many of these folks would no longer have coverage that has let them get preventive treatment as part of a regular clinical relationship with a physician, especially with a primary-care doctor.

 

Hospitals and other providers and state governments would have to eat much of the cost of caring for the low-income people cast off with the demise of the Affordable Care Act. Unless state governments decide that they’ll just let a lot of poor people die on the street. Now that’s libertarian!

 

As former Massachusetts Gov. Mitt Romney said in 2006 in explaining his health-insurance plan for the Bay State: “Some of my libertarian friends balk at what looks like an individual mandate {as in the future Affordable Care Act}. But remember, someone must pay for the healthcare that must, by law, be provided: Either the individual pays or the taxpayers pay.’’

 

As for the alleged evil of “individual mandates,’’ states have long had them for auto insurance, and generally those who want to own a home are compelled to buy property insurance to get mortgages.

 

In any event, the Republican healthcare plan, among other things, is a great big inefficient cost-shifting to the states.

 

There are elements of the GOP approach that, in principle, have merit. For instance, the Trump administration wants the states to charge Medicaid patients at least some premiums, require them to pay part of their emergency-room charges (Medicaid patients tend to overuse ER’s) and push recipients to get jobs. These changes might reduce some of the vast amount of waste pervasive in American healthcare. And everyone should be reminded that healthcare is never “free’’; it’s just a question of who’s paying for it. But what percentage of Medicaid folks can meet these demands is unknown.  Many of them are already under a lot of economic and other stress.

 

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The famous  glowing Citgo sign  atop a building at Boston’s Kenmore Square will be saved, thus keeping fresh in the minds of now aging Baby Boomer potheads a significant landmark from their youth. Boston officials helped broker a deal between Citgo  and a real estate company with the weird name of Related Beal to keep the sign up.  The current, “psychedelic’’ version of the sign went up in 1965, just in time to appeal to the hordes of mostly young people in the area who were “experimenting’’ with marijuana.

Daniel Bluestone, an architecture-history professor at Boston University, told The Boston Globe he was very happy about the agreement: “It’s a landmark in the truest sense of the word. It helps people know where they are.”   Above-the-street landmarks are particularly important in a city with as confused a layout as Boston.


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