Really Dumb or Uneducated? Uncle Sam Wants YOU!

The Congressional Budget Office just released new data comparing the compensation received by Federal government employees to that received in the private sector. Once gain it shows that the Federal employees receive much higher compensation. What is particularly glaring is the fact that the premium varies inversely with educational level. That is, if you're not smart enough to have attended college or even graduate from high school, the government will pay you a huge premium to your market value. If you did graduate from college or -- heaven forbid -- got an advanced degree, the government is less interested in incenting you to work there.

Maybe the stereotype that government workers are dolts is grounded in fact?

The Irrational Response to Denied Boarding

In 2016, there were about 800 million people carried on airline flights in the US. 41,000 people were denied boarding on US Airlines. So you have a 0.005% of being denied boarding when you fly. And only one of those 41,000 people were injured. So you have a 0.000001% chance of being treated like the man on United 3411.

Yet listening to the news, you'd think that this a catastrophe of biblical proportions. Worse yet are the calls for government to DO SOMETHING. What are the odds that government will do something to actual improve a situation that affects almost nobody anyway? Reviewing the history of government regulation, what are the odds that government action will have negative effects?

The solution to all of this is (regardless of how egregious you think the problem is ) rather simple. And it involves no action on government's part.

Each time you check in for a flight, you will be asked by the carrier to declare how large a payment would be required to accept denied boarding. Feel free to name any number. $500?  $10 million? It's your choice. Anyone who is denied boarding and paid his bid price can hardly claim he has been abused. And if they have to drag you off the plane, you have nobody to blame but yourself.

Why do Americans (some of whom are intelligent enough to know better) routinely cry out for government to right every wrong? Especially those wrongs that are infinitesimal in consequence.
GET A GRIP AMERICA!

The NY State Free Tuition Lie

Governor Andrew Cuomo in predictably duplicitous fashion has touted a"free tuition" program for some students in New York. Except that tuition isn't free. It's really a loan. There are two hidden catches,

1. Students must live in New York for four years after graduation or have to pay back the loans (works sort of like the Berlin Wall without the concrete).

2. The state already spends over a billion dollars on tuition assistance., This just adds another layer of $200 billion or so. So if you stay in New York, you'll be paying back your loan in the form of higher taxes.

3. Worse yet, only one-third of New York residents get a college degree. Which means the two-thirds that are merely high school graduates will be paying for the college degrees of the one-third that do. Sweet deal. And this from Democrats who are constantly complaining of "regressive " taxes.

Healthcare Cost Growth in One Chart

Why have healthcare costs grown so rapidly? One significant factor is the wild growth of administrators employed in the system to comply with the thousands up thousands of government mandates and regulations. A hospital might be able to afford a botched procedure now and then, but they clearly can't afford to have the wrong number of minority employees or use the wrong reimbursement codes.

Realities of Economic Growth

The Commerce Department just reported that economic growth during the Obama presidency averaged 1.6% annually. This was the lowest of any president's term wince World War II.

Obama bashing aside, here are the economic realities:

Reality #1: There is no way that we can create lots of jobs, continue to pay an aging population promised social security and Medicare benefits and continue to subsidize low income producing Americans without strong economic growth.

Reality #2: You cannot have strong economic growth unless businesses are able to attract investment capital from those who forecast a good return to their investment.

Reality #3: A country which is constantly imposing or threatening to impose new costs on business -- e.g. taxes, health care obligations, burdensome regulations, minimum wage laws -- cannot attract increased investment in businesses located there (want to invest in Venezuelan businesses right now?).

This is the fundamental reason growth was so low during the Obama presidency. While the long-term business outlook in the US was not as dire as in Venezuela, it's clearly been a lot gloomier than any time in recent history. Democrat's response? The beatings will continue until moral improves. The last eight years have been an approximate replay of the Jimmy Carter years. Is it possible that the Trump presidency can turn business pessimism around the way Ronald Reagan did? Reducing taxes and burdensome regulation (starting with Obamacare and overreaching labor and environmental rules) would be a start.