News America's aversion to socialism ?

[WhoWee]

If you mean dual eligibility as in receiving both Medicare and Medicaid, or SSI and Medicaid, etc., then I have actually noticed a decrease.

Now, of course, this is just an anecdotal example, but when I completed last month's statistical reports and compared them to the end of 2009, many of the patient cohorts that were receiving Medicare as primary insurance and Medicaid as secondary (mostly those with disability under 65), a lot of them had been removed from Medicaid and now have no supplemental insurance at all.

Did I understand your question correctly?

You've noticed a decrease in the number of cases with dual eligibility Medicare and Medicaid - as people are being dropped by Medicaid? That's very surprising - but I don't monitor all of the states - specifically not Michigan.

 

[kings7]

You've noticed a decrease in the number of cases with dual eligibility Medicare and Medicaid - as people are being dropped by Medicaid? That's very surprising - but I don't monitor all of the states - specifically not Michigan.

It was surprising to me as well. In fact, as another anecdotal piece, I used to do registration in the emergency room. I used register a lot of patients with both Medicare and Medicaid. Recently, I spoke with a couple registrars and they didn't even know the correct financial codes for a patient with both insurances because it's so uncommon! This has been backed up by my stats as well.

However, I know that locally the county DHS and surrounding areas have been cracking down on a backlog of "suspicious" cases and cutting off a lot of people. This could just be unique to my area.

I know that about 90% of DHS's around the country experience a large backlog of some sort. A lot of the fraud problem would be solved with more workers. But more workers mean more cost. And that is obviously not an option at this point. It's a terrible cycle.

EDITED: For spelling.

 

[WhoWee]

Please provide factual, verifiable information. We can hear all this crap we need on the campaign trail and from right-wing media. Please back it up.

Are you kidding me turbo? Rules vary by state, but unemployed people can lose benefits if they refuse work that is offered.

http://www.twc.state.tx.us/news/efte/ui_law_qualification_issues.html#dq-sw

"V. Focus: Refusal of Suitable Work Top of Page

Section 207.047 of the Act disqualifies a claimant who, while in claim status, has refused a referral to, or an offer of, suitable work without good cause. A referral to suitable work can include the situation that occurs when TWC directs a claimant to return to his or her customary self-employment, if they have had their own business in the past. This proceeds directly from the work search and availability requirements that claimants must satisfy in order to be eligible for continued weekly UI benefits. In a nutshell, in all but the most unusual of cases, a claimant must be available and actively searching for full-time work while collecting UI benefits. Claimants are told that if they receive an offer of suitable work, they must accept it, unless there is some good reason not to do so, or else face disqualification. Such a disqualification is every bit as serious as a disqualification for quitting a job without good cause connected with the work or for being discharged for misconduct connected with the work.

"Suitable work", according to TWC, means work that would be in line with the claimant's prior experience or training. Section 207.008(a) lists several factors to consider:
the degree of risk involved to the individual's health, safety, and morals at the place of performance of the work;
the individual's physical fitness and previous training;
the individual's experience and previous earnings;
the individual's length of unemployment and prospects for securing local work in the individual's customary occupation; and
the distance of the work from the individual's residence.

Section 207.008(b) states that work will not be considered "suitable", and thus no disqualification will be imposed, for refusing to accept new work under the following conditions:
the position offered is vacant directly due to a strike, lockout, or other labor dispute;
the wages, hours, or other conditions of the work offered are substantially less favorable to the individual than those prevailing for similar work in the locality; or
as a condition of being employed, the individual is required to join a company union or to resign from or refrain from joining a bona fide labor organization.

TWC's Unemployment Insurance Manual adds that work will not be considered suitable if it "pays less than the claimant's wage demands which are considered excessive, unless the claimant has been informed that the wage demands are excessive prior to or at the time of the refusal of the referral or work offer."

Before TWC will assess a disqualification, the following criteria must be satisfied (as taken from the UI Manual):
A definite work offer or referral must have been made directly to the claimant, with an explanation covering the nature of the work, the wages, hours of work, job location, and other requirements. See AP&P, SW 170.10.
The work must be suitable per the requirements of Section 207.047 and 207.008 of the Act.
The claimant must have refused the offer or referral or failed to report to the employer when so directed."

 

[turbo]

Are you kidding me turbo? Rules vary by state, but unemployed people can lose benefits if they refuse work that is offered.

This has been in place for decades. Portraying this as a new development is unsupported, and you should provide decent documentation.

 

[Evo]

I recall years ago when the State first enforced the requirement that unemployed persons visit the benefits office weekly and offer proof they went on at least 3 job interviews during the previous week - a great many young fellows found it easier to get a job than to put up with the rules.

That's still the rule here, my ex was laid off due to a merger with a company that had the equivalent of his entire office at their corporate headquarters in another state, so they closed his entire office, and he had to constantly show that he was seriously job hunting.

 

[WhoWee]

This is great. You believe in a definition of production that is based on co-operative, pro-social behaviour. You are against selfish individualism.

Actually, my post specified:

"I would like to point out the difference between my use of the word "productive" and your reply that speaks of "production". A "productive" person in my example might be someone who pulls weeds, counsels abused women, licks stamps, answers telephones, helps unemployed persons complete an application, or manages email. A productive person may perform a personal service or build a skyscraper?

Your use of the word "production" infers the making of hard goods for consumption - there is a difference."

Please explain the jump to your conclusion.

 

[WhoWee]

This has been in place for decades. Portraying this as a new development is unsupported, and you should provide decent documentation.

Turbo - you called me out on this post: my bold
"I recall years ago when the State first enforced the requirement that unemployed persons visit the benefits office weekly and offer proof they went on at least 3 job interviews during the previous week - a great many young fellows found it easier to get a job than to put up with the rules."

How do the words in bold "I recall years ago" infer or portray anything as being "new"? PLEASE cut the crap.

 

[apeiron]

Please explain the jump to your conclusion.

Err, you suddenly cited a bunch of pro-social behaviours and dropped your previous specific mention of able-bodied idlers on benefits.

So please now explain your confusion over my conclusion. :zzz:

 

[WhoWee]

It was surprising to me as well. In fact, as another anecdotal piece, I used to do registration in the emergency room. I used register a lot of patients with both Medicare and Medicaid. Recently, I spoke with a couple registrars and they didn't even know the correct financial codes for a patient with both insurances because it's so uncommon! This has been backed up by my stats as well.

However, I know that locally the county DHS and surrounding areas have been cracking down on a backlog of "suspicious" cases and cutting off a lot of people. This could just be unique to my area.

I know that about 90% of DHS's around the country experience a large backlog of some sort. A lot of the fraud problem would be solved with more workers. But more workers mean more cost. And that is obviously not an option at this point. It's a terrible cycle.

EDITED: For spelling.

I haven't been dealing with specific cases/claims - just the plans themselves. All of the pre-AEP meetings I've attended indicate an expected increase in people seeking dual eligible plans for 2012 - because of the way Medicaid pays - the plans often provide enhanced network choices.

Kaiser has some good overview information.
http://www.statehealthfacts.org/comparemapreport.jsp?rep=73&cat=4

 

[WhoWee]

:zzz:

Agreed

 

[apeiron]

Agreed

Meaning you agree my conclusion was justified? Or that you are hoping that your evasive equation of "productive activity" with "pro-social attitudes" is quietly left to rest because otherwise it seems to challenge the whole edifice of your liberal economic argument?

Again, the question I put to you is what should we measure to know that we are maximising/optimising the right thing according to our social theory?

You appear to have ended up pointing to pro-social behaviour. If this is not the conclusion you want to arrive at, then you will need to tell us what was "unproductive" about those able-bodied idlers on benefits.

It seems pretty clear that they were unproductive in some famiilar GDP sense. But what is not clear is why your line of argument so sharply changed track.

 

[CAC1001]

This is great. You believe in a definition of production that is based on co-operative, pro-social behaviour. You are against selfish individualism.

What exactly is "co-operative, pro-social behavior?" And individualism should not be defined as selfish. A society based on individualism means self-reliance as opposed to a nanny state and means a focus on the rights and freedoms of the individual. It does not mean that said individuals will not help out their fellow humans via charity or that they will not be active participants in their communities and so forth.

Also, what do you mean that neo-liberal policies failed in New Zealand? Or was it just that the economy tanked big-time due to the fixing of the inflation that occurred? New Zealand, like the United States and Britain at the time, was experiencing a high rate of inflation during the 1980s, and had price controls, wage controls, restrictions on trade, and so forth.

I would think to judge the effectiveness of thhe neo-liberal reforms in New Zealand that were implemented at the time, one would more need to look at how the economy performs at a later date, not how it performed at the time, because at the time, in order to fix the NZ economy's problems, some major pain was needed. The same was true with the United States, Britain, and Chile as well.

In the U.S., to kill the inflation, the Federal Reserve hiked interest rates, which tanked the economy into the worst recession since the Great Depression, lasting from 1981 to 1982. Whole sectors of the U.S. economy were decastated as a result. In Britain, the Bank of England hiked interest rates there, and Britain, experiencing an even higher level of inflation than the U.S., saw its economy tank into a terrible recession that was devastating. Chile was experiencing an inflation rate in triple digits when the policy was applied there, which sent their economy into a seven year depression.

Today however, all three of the above economies are (or were) doing fine (until the financial crisis, itself partially government-caused). The United States, the UK, Chile, all are prosperous, wealthy, very strong economies (Chile the most prosperous in Latin America). At the time these inflation-fighting policies were being applied though, usually in conjunction with neo-liberal policies of privatization, tax cuts, ending of price controls, etc...to much of the general public, it gave the impression that such policies were a massive failure. They weren't, it was just at the time that's how it seemed.

New Zealand's inflation rate has since gone down to a very healthy level and today New Zealand is rated as one of the most economically-free countries in the world with one of the most satisfied peoples.

 

[WhoWee]

Meaning you agree my conclusion was justified? Or that you are hoping that your evasive equation of "productive activity" with "pro-social attitudes" is quietly left to rest because otherwise it seems to challenge the whole edifice of your liberal economic argument?

Again, the question I put to you is what should we measure to know that we are maximising/optimising the right thing according to our social theory?

You appear to have ended up pointing to pro-social behaviour. If this is not the conclusion you want to arrive at, then you will need to tell us what was "unproductive" about those able-bodied idlers on benefits.

It seems pretty clear that they were unproductive in some famiilar GDP sense. But what is not clear is why your line of argument so sharply changed track.

I simply agreed the discussion needs put to bed.

 

[CAC1001]

Consistent dysfunction. The two-party system in the US seems to be designed to let the elected officials collect tons of money while refusing to legislate.

Is it "dysfunction" really or just the normal behavior of a democratic system, which can be raucous, loud, dysfunctional-seeming, and so forth. It isn't supposed to function as one smooth system where one party rules and that's that essentially.

One tool in the conservatives' bag is to call any program that filters money down to the middle-class and the poor as "socialism". Programs that shove money up to companies and wealthy individuals are called job-creating programs.

Programs that literally shove money up to wealthy individuals and businesses are referred to as corporate welfare by conservatives and conservatives do not support such programs (remember, it was the hard right who wanted to allow the big financial institutions to be allowed to fail completely during the '08 crisis).

 

[Evo]

Turbo - you called me out on this post: my bold
"I recall years ago when the State first enforced the requirement that unemployed persons visit the benefits office weekly and offer proof they went on at least 3 job interviews during the previous week - a great many young fellows found it easier to get a job than to put up with the rules."

How do the words in bold "I recall years ago" infer or portray anything as being "new"? PLEASE cut the crap.

In turbo's defense, I took it the same way that he did, that you were implying that in the old days people had to show an effort in order to receive benefits and now they don't.

I still don't understand the intent of your post, was it a reply to a question?

 

[apeiron]

What exactly is "co-operative, pro-social behavior?" And individualism should not be defined as selfish. A society based on individualism means self-reliance as opposed to a nanny state and means a focus on the rights and freedoms of the individual.

If you read what I wrote, I would align the notion of individualism with local constructive freedoms - the competition part of the balance.

So yes, societies would want to create exactly that - pro-social individualism. People with maximum initiative, capability, etc. But also on the whole, oriented in their actions in ways that promote the greatest social good.

You see the local and the global as opposed - hence you use emotional terms like self-reliance and nanny state. I see them as mutual facets of the same system.

Also, what do you mean that neo-liberal policies failed in New Zealand?...New Zealand's inflation rate has since gone down to a very healthy level and today New Zealand is rated as one of the most economically-free countries in the world with some of the most satisfied peoples.

I could write a book about the subject. NZ has tumbled down the OECD productivity rankings, soared in the income inequality rankings, etc, etc.

But what I was trying to get discussed was the alternative approaches which we are now starting to explore. The work of Elinor Ostrom and the "Swedish model" as it gets called here.

 

[apeiron]

I simply agreed the discussion needs put to bed.

Oh well, then I should explain that the emoticon signified an expectation that you would seek to evade properly answering my question.

But the request to explain your sudden apparent leap in definitions of production still stands.

 

[maine75man]

And applied to Maine75man's case, what does this focus on the pro-social imply?

Does his story suggest a couple who are more likely to have these pro-social attitudes and so we should be pleased that they even have a treat of a very occasional steak as some kind of socialised reward?

Well honestly thank you , but I don't consider anything we get from food stamps or any other program to be a social rewards. They are means to an end for both us and the government. I have never received unemployment benefits before in my life and I'm not happy about getting them now. If I can get those benefits, go back to school, and finally finish a degree I will.

I could sit around and wait for my unemployment to run out faking my work search log (Yes those are still required no they don't have the manpower to check them.) instead I entered a program where I have to prove I'm going to class and getting passing grades and people actually check up on it pretty regularly. Furthermore when my wife was laid off she entered the program as well.

Wic, Day care, and foodstamps all make it possible for my wife and I to focas on our school work and still make a good home for our son. Also since my wife started extreme couponing we have been able to start saving for a house. As I've said before we are able to take food benefits which are meant to be only supplemental and cover our total food budget with a little extra.

As far as being productive well as I've said before thanks to my wife's efforts we have food to donate every month to our local food pantry. We regularly work benefits for the local volunteer fire department and the youth and scouting council. We also both do work study as part of our financial aid. She works in the office and I tutor math. For me that money will run out before the semester is over but I doubt I'll drop the students I'm working with. My wife started a coupon club at school to pass on her knowledge. Oh and we are raising a child who from all current evidence will probably grow up to be a superhero.

 

[lisab]

Well honestly thank you , but I don't consider anything we get from food stamps or any other program to be a social rewards. They are means to an end for both us and the government. I have never received unemployment benefits before in my life and I'm not happy about getting them now. If I can get those benefits, go back to school, and finally finish a degree I will.

I could sit around and wait for my unemployment to run out faking my work search log (Yes those are still required no they don't have the manpower to check them.) instead I entered a program where I have to prove I'm going to class and getting passing grades and people actually check up on it pretty regularly. Furthermore when my wife was laid off she entered the program as well.

Wic, Day care, and foodstamps all make it possible for my wife and I to focas on our school work and still make a good home for our son. Also since my wife started extreme couponing we have been able to start saving for a house. As I've said before we are able to take food benefits which are meant to be only supplemental and cover our total food budget with a little extra.

As far as being productive well as I've said before thanks to my wife's efforts we have food to donate every month to our local food pantry. We regularly work benefits for the local volunteer fire department and the youth and scouting council. We also both do work study as part of our financial aid. She works in the office and I tutor math. For me that money will run out before the semester is over but I doubt I'll drop the students I'm working with. My wife started a coupon club at school to pass on her knowledge. Oh and we are raising a child who from all current evidence will probably grow up to be a superhero.

Whew, we soooo need more superheros these days.

The programs you are using are intended to operate just the way you're using them: they will create taxpayers who will, in all likelihood, pay back the system far more than it's paying you now.

 

[CAC1001]

If you read what I wrote, I would align the notion of individualism with local constructive freedoms - the competition part of the balance.

What are "local constructive freedoms?" Also, shouldn't the freedoms be universal?

So yes, societies would want to create exactly that - pro-social individualism. People with maximum initiative, capability, etc. But also on the whole, oriented in their actions in ways that promote the greatest social good.

Well that's how a market capitalist system generally works. You allow people to pursue their own self interests under the rule of law and protection of private property and it results in a society where things get done that advance the greater good.

You see the local and the global as opposed -

Opposed?

hence you use emotional terms like self-reliance and nanny state. I see them as mutual facets of the same system.

They aren't emotional terms, they're descriptive terms. Also, how would they be mutual facets of the same system? If you increase the state in terms of it caring for the people, you decrease the self-reliance aspect of the people. To increase the self-reliance aspect means decreasing the state. They are opposed.

I could write a book about the subject. NZ has tumbled down the OECD productivity rankings,

Is that because it has literally gone "down," or because the other countries have simply accelerated beyond it in terms of their own levels of productivity, thus leaving it behind? Here is an article by the Reserve Bank of New Zealand, which says that the issue of the low labour productivity in NZ has been a source of a lot of research, but that no one fully understands why it is that way right now: http://www.rbnz.govt.nz/research/bulletin/2007_2011/2007mar70_1drew.pdf"

soared in the income inequality rankings, etc, etc.

Why is that a bad thing? In a free society, everyone is not supposed to come out with some equal amount of wealth and income. Large amounts of income inequality are normal in a free society. What you have to look at is the overall standard of living. For example, while much is made of income inequality in the United States, Americans are a very unequally wealthy people. By global standards, almost all Americans are wealthy, but within America, we have unequal levels of wealth and income.

If anything, I would say large income inequality is probably a sign of how NZ's economy has improved a great deal over the years.

But what I was trying to get discussed was the alternative approaches which we are now starting to explore. The work of Elinor Ostrom and the "Swedish model" as it gets called here.

The thing with Sweden though is remember that that is a very homogenous, and small, country. Up the population to the size of say the United States and throw in a whole slew of additional ethnicities, cultures, religions, languages, etc...and things would get a lot more complicated.

 

[daveb]

The article has more to do with problems in psychiatric diagnoses than in SSDI.

It's also anecdotal. True, yours is too, but you made thatcaveat.

 

[WhoWee]

In turbo's defense, I took it the same way that he did, that you were implying that in the old days people had to show an effort in order to receive benefits and now they don't.

I still don't understand the intent of your post, was it a reply to a question?

I was responding to aperion regarding (able-bodied) people who receive Government benefits - that don't work - hence the "unproductive rail" reference.

The quote in question can be understood in context when read along with the line it followed. my bold

"As per your question, I do think one way to entice people to return to the productive side of the economy is to limit choices (comfort) on the unproductive rail.

I recall years ago when the State first enforced the requirement that unemployed persons visit the benefits office weekly and offer proof they went on at least 3 job interviews during the previous week - a great many young fellows found it easier to get a job than to put up with the rules."

 

[Oltz]

I can confirm that at least In PA and NC they no longer require proof of search for work. the question is asked on the online form you fill out once every 2 weeks and that is the extent of the "did you look for work" check. My wife was on unemployment when she was laid off with the end of the stimulus funds (music teacher)

 

[apeiron]

Well that's how a market capitalist system generally works. You allow people to pursue their own self interests under the rule of law and protection of private property and it results in a society where things get done that advance the greater good.

So how are you measuring "greater good" here? What is it actually?

Your analysis is too simplistic because in reality, societies create frameworks where people are motivated to achieve certain ends. The freedoms they have are the ones they are given (through education, law, religions, all the other varieties of social constraint).

So market capitalism is geared to achieving something. The question then is this what people really want? Or what is good for them in the long run?

It may be. But I would certainly like to see it being more questioned.

They aren't emotional terms, they're descriptive terms.

I thing that is a conversation stopper. So self-reliant is not intended to strike a chord of quiet pride, nanny state a note of shame and revulsion? If you can't see that you are using loaded language here, I can recommend a few good books on the cultural construction of emotions.

Also, how would they be mutual facets of the same system? If you increase the state in terms of it caring for the people, you decrease the self-reliance aspect of the people. To increase the self-reliance aspect means decreasing the state. They are opposed.

What I said is that local construction and global constraints act synergistically. This interaction would happen across all scales.

So something like "self reliance" is a complex systems property. If that is what you want to achieve, it would be something you would want to see across all scales from the individual to the state.

Is that because it has literally gone "down," or because the other countries have simply accelerated beyond it in terms of their own levels of productivity, thus leaving it behind? Here is an article by the Reserve Bank of New Zealand, which says that the issue of the low labour productivity in NZ has been a source of a lot of research, but that no one fully understands why it is that way right now: http://www.rbnz.govt.nz/research/bulletin/2007_2011/2007mar70_1drew.pdf"

Productivity growth has been poor so it is a case of being left behind by others. Radical market liberalisation did not deliver on its promises. However there are plenty of ways to explain this away if you want.

Why is that a bad thing? In a free society, everyone is not supposed to come out with some equal amount of wealth and income. Large amounts of income inequality are normal in a free society. What you have to look at is the overall standard of living. For example, while much is made of income inequality in the United States, Americans are a very unequally wealthy people. By global standards, almost all Americans are wealthy, but within America, we have unequal levels of wealth and income.

If anything, I would say large income inequality is probably a sign of how NZ's economy has improved a great deal over the years.

I realize this is a popular view with some folk. So popular that anytime I challenge it with data I get infracted here. I'll just say IMO that high inequality is not a desirable outcome to target. Just like no inequality. The interesting question is what level of inequality strikes an optimal balance.

The thing with Sweden though is remember that that is a very homogenous, and small, country. Up the population to the size of say the United States and throw in a whole slew of additional ethnicities, cultures, religions, languages, etc...and things would get a lot more complicated.

Which has diddly squat to do with the social theory I was talking about. Or in fact, scale and diversity would only make a formal systems approach to forging strong societies even more appropriate.

 

[mheslep]

... As people keep saying about the recent financial debacle, laisser faire capitalism is fine up until the point it breaks. ...

I can produce examples that reflect relative* laissez-faire with, say, the US electronics industry, internet based web services companies, and so on, but not in US banking, which is much more regulated than most industries, and operates under nothing close to laissez-faire.

Perhaps the bank bailouts were required, but I've yet seen convincing proof. TARP was a choice, one that may yet be regretted, as those banks may fail again if the treasuries they all hold now devalue with an inflation. Also most of the private bank money has been returned, aside from those dead beat creatures of government Fannie Mae and Freddie Mac.

*US labor law is anything but laissez faire, for any industry.

 

[apeiron]

...but not in US banking, which is much more regulated than most industries, and operates under nothing close to laissez-faire.

IMO, having covered the financial crisis myself, there is much evidence to the contrary. You've surely seen the interviews where the regulators confess they did not even understand the financial instruments they were supposed to be regulating.

I talked to our own governor of the Reserve Bank about it. He tells the story of being at the big regulators meeting in Lucern as things were breaking. He confesses he had to rush off and google to discover what sub-prime meant, that no-one in the room had realized the markets had stacked up a quadrillion in derivative bets.

I don't think I have ever heard anyone even try to claim that Goldman Sachs and its like were not the product of market deregulation/slack oversight. I think you might be living on a different planet here.

 

[Hlafordlaes]

I think it might be useful to think realistically about the alternatives to a social safety net, if there are any.

The basic conservative argument stresses personal responsibility and accountability. At the same time, the job market ought to be as unregulated as possible, the argument seems to go, allowing business to prosper. Today, some in the Republican Party also argue against any minimum wage at all, taking the free market concept to its logical extreme, which is where dogmas tend to be taken by the fervent and the righteously enraptured. Yet without going that far, let's see how an average Jane or Joe might fare under existing conditions.

The federal minimum wage is set at http://en.wikipedia.org/wiki/List_of_U.S._minimum_wages" in the last decade. That's $13,050 per year, but let's assume a little overtime and odd-jobbing raises income to $18,000, net of FICA taxes and with no federal or state tax due. That's $1,500 of disposable income per month (part of which will be spent on sales tax).

Now, not everyone is an entrepreneur, nor can everyone become the boss, so there will be a non-negligible amount of people earning more or less this amount for a majority of their working lives.

Being responsible individuals, they will need to pay rent, eat, buy and replace clothing, buy and replace furniture, including white goods (refrigerator at minimum), as well as save for the down payment on a house, in order not to become indigent when retiring. Add free market health care, home insurance, (possibly car payments, car insurance, and gasoline where there is no public transport), saving for retirement, and no child care costs since they are single. No smoking, no drinking, no going to the movies. Just the simple joys of working, eating, sleeping, and schlepping to and from work.

Now, take a city like Washington, DC, where janitors and other minimum wage earners work. Assuming the individual lives 10 miles outside of town to save on rent, say in http://rentbits.com/rb/t/rental-rates/apartments/germantown-maryland", he or she will face an average rent of $1,150 per month for a single bedroom apartment. That's $350 left over for all other expenses.

I don't think it takes much to see that beyond eating (poorly, oops, leading to junk food obesity and undue burden on the health care system, those rats!) and taking public transportation (oops, a little "socialism" has already been required to make this work), there is little or no money left over, perhaps enough for aspirin. Of course, one could share an overcrowded apartment and save some there, as well as sleep on the floor and save on bed costs, but I think you see where the numbers lead us.

So, what shall we do? Either we drastically raise the minimum wage (socialism rears its ugly head once again), which would in turn lead to price hikes across the board in many businesses, and make some types of business inviable. Or we simply say, when you are sick, die, when you reach retirement or are unable to work, starve, and if you ever need any financial help due to an unexpected event, such as a tornado destroying your home, go join Dorothy in Oz.

Just... die. Don't make any noise when doing it, and you damn better have insurance that covers the cost of your burial or cremation. By the way, suicide is a sin! So are abortions! And no stealing, bums, nor window washing at stop lights, nor public begging, slouch! You really should have been a stockbroker, loser! We at least deserve our bailouts.

Perhaps technology can replace them all with robots, and we can let them all die off after we run them out of town? Target practice, anyone? Running head starts are good sport, after all, no? Fertilizer? ...

Of course, we could have a bit of a social safety net, and let the many nice people who scrub our floors, serve us coffee, and attend to our whims at the mall not die in misery, allow them to retire with some small amount to cover their expenses, subsidize their food costs as a preventive health measure, and provide them decent health care... so our coffee won't suddenly have no one to serve it. Makes sense to me.

Too bad that's not a pure market sentiment. Guess I'm a dirty, liberal socialist schweinhund.

 

[WhoWee]

I think it might be useful to think realistically about the alternatives to a social safety net, if there are any.

The basic conservative argument stresses personal responsibility and accountability. At the same time, the job market ought to be as unregulated as possible, the argument seems to go, allowing business to prosper. Today, some in the Republican Party also argue against any minimum wage at all, taking the free market concept to its logical extreme, which is where dogmas tend to be taken by the fervent and the righteously enraptured. Yet without going that far, let's see how an average Jane or Joe might fare under existing conditions.

The federal minimum wage is set at http://en.wikipedia.org/wiki/List_of_U.S._minimum_wages" in the last decade. That's $13,050 per year, but let's assume a little overtime and odd-jobbing raises income to $18,000, net of FICA taxes and with no federal or state tax due. That's $1,500 of disposable income per month (part of which will be spent on sales tax).

Now, not everyone is an entrepreneur, nor can everyone become the boss, so there will be a non-negligible amount of people earning more or less this amount for a majority of their working lives.

Being responsible individuals, they will need to pay rent, eat, buy and replace clothing, buy and replace furniture, including white goods (refrigerator at minimum), as well as save for the down payment on a house, in order not to become indigent when retiring. Add free market health care, home insurance, (possibly car payments, car insurance, and gasoline where there is no public transport), saving for retirement, and no child care costs since they are single. No smoking, no drinking, no going to the movies. Just the simple joys of working, eating, sleeping, and schlepping to and from work.

Now, take a city like Washington, DC, where janitors and other minimum wage earners work. Assuming the individual lives 10 miles outside of town to save on rent, say in http://rentbits.com/rb/t/rental-rates/apartments/germantown-maryland", he or she will face an average rent of $1,150 per month for a single bedroom apartment. That's $350 left over for all other expenses.

I don't think it takes much to see that beyond eating (poorly, oops, leading to junk food obesity and undue burden on the health care system, those rats!) and taking public transportation (oops, a little "socialism" has already been required to make this work), there is little or no money left over, perhaps enough for aspirin. Of course, one could share an overcrowded apartment and save some there, as well as sleep on the floor and save on bed costs, but I think you see where the numbers lead us.

So, what shall we do? Either we drastically raise the minimum wage (socialism rears its ugly head once again), which would in turn lead to price hikes across the board in many businesses, and make some types of business inviable. Or we simply say, when you are sick, die, when you reach retirement or are unable to work, starve, and if you ever need any financial help due to an unexpected event, such as a tornado destroying your home, go join Dorothy in Oz.

Just... die. Don't make any noise when doing it, and you damn better have insurance that covers the cost of your burial or cremation. By the way, suicide is a sin! So are abortions! And no stealing, bums, nor window washing at stop lights, nor public begging, slouch! You really should have been a stockbroker, loser! We at least deserve our bailouts.

Perhaps technology can replace them all with robots, and we can let them all die off after we run them out of town? Target practice, anyone? Running head starts are good sport, after all, no? Fertilizer? ...

Of course, we could have a bit of a social safety net, and let the many nice people who scrub our floors, serve us coffee, and attend to our whims at the mall not die in misery, allow them to retire with some small amount to cover their expenses, subsidize their food costs as a preventive health measure, and provide them decent health care... so our coffee won't suddenly have no one to serve it. Makes sense to me.

Too bad that's not a pure market sentiment. Guess I'm a dirty, liberal socialist schweinhund.

While I realize you just pulled a few numbers out of the air to make a point - perhaps a few too many liberties were talen with the example?

http://www.minimum-wage.us/states/District_of_Columbia
"The District of Columbia Minimum Wage is $8.25 per hour. The District of Columbia Minimum Wage is greater than the National Minimum Wage of $7.25 per hour, so employees in District of Columbia are entitled to the higher minimum wage of $8.25."

The first janitor for hire job search I pulled yielded this.
http://careers.didlake.org/x/detail/a2obafi37x5w
"Title: Janitor - Forrestall
Pay: 18.33
Schedule: 5:30am-10:30am; 5:30pm-9:30pm
AbilityOne: Yes
Location: Washington, DC"

Then Germantown is a bit far for a janitor to commute.
http://www.mapquest.com/directions#e0549aee7ae610d0d7decbad
"Suggested Routes
I-270 S
43 mins / 31.23 miles
***
George Washington Memorial Pky S
47 mins / 31.00 miles"

I agree with your approximation of Germantown rents.

Accordingly, $18.33 @ 40 hours @4.3 weeks per month = $3,152.76/month - slightly different numbers.

 

[apeiron]

Too bad that's not a pure market sentiment. Guess I'm a dirty, liberal socialist schweinhund.

What you think that there is no market in insulating yourself from social inequality?

The rich pay plenty to be gated away from the world, to send their kids to schools where they don't need to mix.

You could see welfare payments in the same light. Look, I know you are hopeless and feckless but I'm willing to sacrifice a little wealth if it means I don't have to deal with your problems.

As expressed here, the concern is then about sacrificing the least amount of wealth to achieve this end effectively.

You would only be a dirty liberal socialist if you actively cared about the plight of the "undeserving poor" as well as the deserving. You might then take the view that society creates the conditions that creates the people, as much as the people make the choices that lead to the problems.

And societies (acting as super-individuals) need to be accountable for what they are doing. They must show a (collective) personal responsibility for things.

The concept of a free market is simplistic. You just let a bunch of actors act, knowing that some kind of collective constraints will emerge at the global level to regulate their behaviour.

That much is so obvious that everyone gets it. But what does not get talked about is what it is exactly our social markets are meant to achieve. And whether those ambitions are generally agreed as right.

A market tuned to maximising happiness, or personal intellectual freedom, for instance, could look very different to one tuned to resource entropification, or GDP increase, or conservative social behaviour.

 

[Hlafordlaes]

While I realize you just pulled a few numbers out of the air to make a point - perhaps a few too many liberties were talen with the example?

http://www.minimum-wage.us/states/District_of_Columbia
"The District of Columbia Minimum Wage is $8.25 per hour. The District of Columbia Minimum Wage is greater than the National Minimum Wage of $7.25 per hour, so employees in District of Columbia are entitled to the higher minimum wage of $8.25."

The first janitor for hire job search I pulled yielded this.
http://careers.didlake.org/x/detail/a2obafi37x5w
"Title: Janitor - Forrestall
Pay: 18.33
Schedule: 5:30am-10:30am; 5:30pm-9:30pm
AbilityOne: Yes
Location: Washington, DC"

Then Germantown is a bit far for a janitor to commute.
http://www.mapquest.com/directions#e0549aee7ae610d0d7decbad
"Suggested Routes
I-270 S
43 mins / 31.23 miles
***
George Washington Memorial Pky S
47 mins / 31.00 miles"

I agree with your approximation of Germantown rents.

Accordingly, $18.33 @ 40 hours @4.3 weeks per month = $3,152.76/month - slightly different numbers.

.

The minimum wage and average working hours were not cherry picked. So the janitorial job you cite makes more. And? You can try to rework things all you like, the fact remains that it is very very difficult to reach the full cost of theoretical free-market totally unsubsidized life at minimum wage. Impossible, in fact. Some major costs of a ruggedly individual and responsible life aren't covered. Free and pure markets as touted by the right do not work humanely, no matter how one stretches it.