Perverse Incentives

101 Million Americans Received Food Aid Last Year

"Nearly one-third of Americans received government-funded food aid in 2012, according to a new report from the U.S. Department of Agriculture (USDA). There are roughly a dozen federal food assistance programs operating today. The USDA reports that 59 percent of households that participated in one of the four largest food assistance programs—food stamps, school breakfasts, school lunches, and WIC—end up receiving benefits from 'two or more programs.' This indicates significant duplication, 'providing participants total benefits in excess of 100 percent of daily nutritional needs.'" Continue reading →

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Hey, kids – let’s talk about heroin!

"In Switzerland, they took a different approach — give it away for free. Yes, they gave away free, controlled, safe doses of heroin to addicts in a clean clinic with doctors and social workers. They did a study in conjunction with this program and found a 94% reduction in criminal activity by those in the program; addicts were living longer; once stabilized they had an easier time kicking the drug; and… they made it unprofitable to be a criminal heroin dealer, so fewer young people were starting! Changing our drug laws will save lives." Continue reading →

Continue ReadingHey, kids – let’s talk about heroin!

Medical research on animals often biased, scientists warn

"Researchers examined 160 previously published meta-analyses of 1,411 animal studies on potential treatments for multiple sclerosis, stroke, Parkinson’s disease, Alzheimer’s disease and spinal cord injury, all done on more than 4,000 animals. Just eight showed evidence of strong, statistically significant associations using evidence from more than 500 animals. Only two studies seemed to lead to 'convincing' data in randomized controlled trials in humans, it said. The rest showed a range of problems, from poor study design, to small size, to an overarching tendency toward publishing only studies in which positive effects could be reported." Continue reading →

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Restaurant Shift: Sorry, Just Part-Time

"Rod Carstensen, owner of 11 Del Taco restaurants around Denver, began in April converting his mostly full-time workforce into one comprising mostly part-time help to minimize his health-care costs. He estimates the costs could have climbed by as much as $400,000 a year without the change. Mr. Carstensen had 180 full-time and 40 part-time workers and is in the process of switching to 80 full-time and 320 part-time workers who clock no more than 28 hours per week. He is plowing ahead despite the Obama administration's reprieve, he said, because 'we need to get there anyway, and it will take until January 1, 2015, to make this transition.'" Continue reading →

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Burn your Obamacare card

"Without premium payments by millions of young adults under 40, Obamacare can’t work. Younger Americans make up the bulk of the uninsured today because health insurance simply costs too much relative to their needs. If they don’t obey the mandate, premiums will be higher than expected in the new government 'exchanges,' people will be driven away, and a vicious cycle will set in, ending in the scheme’s failure. This suggests an opportunity. If all of us, especially millennials, were to become health care draft resisters, we could hasten Obamacare’s inevitable collapse and pave the way for a patient-centered system." Continue reading →

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Dear New Yorkers: Here’s Why Your Rent Is So Ridiculously High

"While the average rent for available apartments in New York City is now over $3,000, the U.S. Census Bureau says renters in New York City were only paying a median of $1,125 in 2011. What gives? The answer is, there are lots of cheap apartments in New York. You just can't get one of them, because they're rent controlled, and tenants with great rent controlled deals cling to their apartments until they die. In Manhattan below 96th Street, 35% of rent regulated apartments are occupied by a tenant who has lived there for more than 20 years. Less than 3% of market-rate tenants have been around that long." Continue reading →

Continue ReadingDear New Yorkers: Here’s Why Your Rent Is So Ridiculously High

Not All Insurers Game for State Exchanges: The Consumer Impact

"As more insurers decide to pack up and leave certain states as health exchanges start to take form, experts say consumers are going to be left feeling the pain. Over the last few weeks, several departure announcements have sent a ripple through the health insurance industry, as companies weigh whether or not they want to play ball under Obamacare. So far, California has experienced the biggest migration with Aetna (AET), UnitedHealthcare (UNH) and Cigna (CI) leaving the state’s exchange, Covered California. Fifteen states and D.C. are in the process of creating their insurance exchanges before the 2014 deadline; when individuals must purchase insurance or face a fine." Continue reading →

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Senators push bill to replace Fannie, Freddie with national mortgage insurance

"The two firms, which back nearly half of all new U.S. home loans, were chartered by Congress to expand mortgage finance but operated as private, profit-making companies. Given the central role they played in the financial system, the government felt compelled to bail them out when they ran into trouble. The bill would require private entities to buy mortgages from lenders and issue them to investors as securities. Private equity would be required to absorb a 10 percent loss of the principal underlying those new mortgage-backed securities if the loans went bad. A new guarantor, called the Federal Mortgage Insurance Corp., would replace Fannie Mae and Freddie Mac." Continue reading →

Continue ReadingSenators push bill to replace Fannie, Freddie with national mortgage insurance

58,000 Californians Will Lose Health Care Insurance in 2014.

"Two insurance companies have announced that they will no longer offer health care insurance to individuals in California next year. They will sell policies only to group insurance policies. Obama promised this: 'If you like your health insurance, keep it.' He and Pelosi forget this: 'Of course, your existing company may decide not to sell it to you after we’re finished with the health insurance system.' Nobody says that companies have to sell policies that are money-losers. So, the way for companies to protect themselves against rising claims is to pull out of the market. If other firms think they want the risk, they can keep selling these individual policies." Continue reading →

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Washington state pot regulators favor outdoor growth for environmental reasons

"The regulatory board overseeing marijuana legalization in Washington State is leaning toward allowing licensed growers to raise the drug outdoors, citing the much higher carbon footprint of indoor and greenhouse cultivation, board members said. The shift on cultivation rules underscores the degree to which the Washington State board is taking public feedback to heart, Chairwoman Sharon Foster said, and comes after the Seattle Times cited a 2012 study published in the journal Energy Policy saying that a kilogram of cannabis grown indoors requires the same amount of energy as 11 cross-country car trips." Continue reading →

Continue ReadingWashington state pot regulators favor outdoor growth for environmental reasons