IPOPA has a nice rant on the brouhaha over Michael Phelps and the devil’s weed marijuana. Bottom line: the reaction to Phelps is as ridiculous as our demonization of marijuana as opposed to our approach to cigarettes and alcohol.
On Unemployment Numbers
Meteor Blades has a nice explanation up about how the Bureau of Labor Statistics computes those unemployment numbers you always hear about on the news. Turns out that they’ve been rejiggered over the years so that “5%” now doesn’t necessarily mean what “5%” meant 15 or 20 years ago. Also, there are various categories. U3 is what the media usually reports.
The BLS definition of U3 is “Total unemployed, as a percent of the civilian labor force.” The BLS categorizes U6 as “Total unemployed, plus all marginally attached workers, plus total employed part time for economic reasons, as a percent of the civilian labor force plus all marginally attached workers.”
Employed part time for economic reasons covers workers who would love to have a full-time job – who may need full-time work to pay all the bills – but can only find something part time. Marginally attached workers are those available for work, who have looked for work sometime in the past 12 months, but who aren’t included in the unemployed count because they have not searched for work in the four weeks preceding the most recent BLS survey.
Which one might be “right,” depends on what you’re trying to learn from the statistics. U6 probably makes the most sense if you’re trying to figure out how the economy is treating people who want to work.
Finding out about the different categories was a light bulb moment for me. I had been doing collections and getting the feeling that people were having a rougher time than before, but the unemployment numbers were hovering around 4% or whatever. I was down on the ground without a good perspective, but even knowing that, the stats didn’t reflect the reality I thought I was seeing. The U6 numbers were probably a better correlation for me.
A Primer on How Hospitals Get Paid
Uwe Reinhardt has written a primer on how hospitals get paid. Government programs like Medicare and Medicaid might not be the most rational approach, but the free market is not doing any better for non-government paid health services.
Hospitals have a giant charge master, usually secret, with a master schedule of sticker prices for various services. Almost nobody pays these prices; though the uninsured tend to get charged these prices. Private insurers negotiate discounts from the master charge list, but the resulting prices tend to have less to do with quality of service than they do with bargaining power of the insurer vis-a-vis the hospital. Small hospital versus big insurer = big discounts while big hospital versus small insurer = smaller discounts.
Over all, then, annually establishing the prices that a given insurer will pay a particular hospital and the prices charged the uninsured is an enormously cumbersome and highly labor-intensive process not used by any other health system in the industrialized world. It adds a significant component to the high administrative cost that is unique to the American health system.
One interesting aspect of this process is the wide variation in how much a basic medical service costs at different hospitals — a variation that does not appear to be tied to quality.
Normal free market rules do not apply to health care, in my opinion. First, the market is inelastic. In many cases, you can’t simply do without unless you’re willing to die to save some money. Second, the knowledge of what needs to be purchased is not within the grasp of the average consumer. Third, the price and cost of the services from one provider to the next are not available to the average consumer.
General Weather Grousing
Is it just me getting old, or have we spent way too much time this January with temperatures in the teens, single digits, or below? Hopefully this link is permanent; it’s January 2009 historical weather data from Weather Underground. The low has been below 20 degrees on 21 days this month, most of the packed into the second half.
Grumble grumble.
Contrapositive
I am going to think out loud for a second here. And, my grasp of formal logic is basic and 20 years out of the class room. So, I guess what I’m saying is that this one might not be worth reading. But when has that ever stopped me?
I have heard the proposition that “if you increase taxes on a thing, you get less of it.” I am willing to accept that as true. However, in propositional logic, as I understand it, the contrapositive of a true statement is necessarily also true, but the negative of that statement is not necessarily true. Roughly speaking this would mean that the contrapositive of the statement, negating both aspects, would be true — for the proposition above, that would be something like, “if you are getting more of something, you have not increased taxes on it.” Meanwhile, the negative of the statement would be “if you decrease taxes on a thing, you get more of it.” That could be true, but it’s not a logical necessity.
Conservatives, it seems to me are taking the negative of the proposition as necessarily true. They apparently believe as an article of faith that if we decrease taxes on production, we will necessarily increase production. The main problem, probably more so than the logical fallacy involved, is that our economy is not a binary system with the tax rate as the only meaningful input. People have to have to be employed producing things and services of value; they have to have to retain a great deal of that value for their own purchasing needs; and they have to spend that value on something other than debt service.
Seems to me we have a system where people work more sporadically than they would like; where the value they generate by and large ends up in someone else’s pocket; and where the money they earn is used to service debt while their purchases are made through incurring more debt. Too much of the value generated is pooled in the hands of too few who don’t spend the money in ways that add sufficient value to the economy. Our economy is like a leaky steam engine wasting energy.
O.k, this post didn’t turn out any prettier than I anticipated. But, I’ll post it anyway, warts, logical gaps, and all.
Lafayette Beer News
(Via the Hoosier Beer Geek):
From Greg at Lafayette Brewing Company in Lafayette: Lafayette Brewing Co. has recently expanded our bottle sales for Tippecanoe Common Ale and Black Angus Oatmeal Stout to select Tippecanoe county liquor retailers. Look for LBC beers at Elmwood Liquors, Clark Liquors, 350 South Liquors and all area Bar Barry Liquors locations. We hope to have additional retail locations on board in the coming weeks.
Politics and Entertainers
For the most part, I don’t let the politics of my entertainers get in the way of my enjoyment. The fact that Chuck Norris, Arnold Schwarzenegger, Clint Eastwood, Sonny Bono, and Gopher from the Love Boat are right wingers doesn’t get in the way of me enjoying their stuff. (Frequently the quality of their stuff gets in the way of me enjoying their stuff, but that’s another story.)
Via The Editors, Orson Scott Card, an author whose books I have enjoyed, has sprinted past Dennis Miller in the too-loony-to-enjoy-anymore sweepstakes. With Miller, it hasn’t been that his politics are so utterly beyond the pale, it’s that his politics are so entwined with his entertainment product. With Card, primarily a science-fiction writer, that is not so much the case. However, this little pro-treason outburst is jaw-dropping:
How long before married people answer the dictators thus: Regardless of law, marriage has only one definition, and any government that attempts to change it is my mortal enemy. I will act to destroy that government and bring it down, so it can be replaced with a government that will respect and support marriage, and help me raise my children in a society where they will expect to marry in their turn.
Biological imperatives trump laws. American government cannot fight against marriage and hope to endure. If the Constitution is defined in such a way as to destroy the privileged position of marriage, it is that insane Constitution, not marriage, that will die.
Card is a Mormon, and that might be what makes me think of this. But his rant reminds me quite a bit of some of the pro-polygamy rants I’ve seen from fundamentalist Mormons who proclaim that they’ll see the Godless United States burn before abandoning the Sacred Principle of “plural marriage.”
In any event, as divorced from politics as they may be, I suspect I won’t be able to enjoy Card’s stories anymore without thinking about his willingness to foresake the United States Constitution before seeing a gay couple happily married, by god.
A geeky measure of transparency for the federal government
Jason Kottke noted a significant change in the “robots.txt” file for whitehouse.gov. “Robots.txt” is a file that tells web crawlers –Google’s indexing program, for example — what to index and what not to index.
The old whitehouse.gov site gave web crawlers 2,400 lines of instructions about what not to include. The new whitehouse.gov site gives two lines of instruction:
User-agent: *
Disallow: /includes/
This tells the webcrawler not to track the “includes” directory at the site, but everything else is fair game.
HB 1669 – Loans to Schools for Geothermal Heating Systems
Rep. Michael has introduced HB 1669 concerning installation of geothermal heating systems in schools. It does a couple of things. First, it exempts installation of geothermal heating systems (either in a new school or to replace an existing conventional system) from consideration as a “controlled project.” Controlled projects are those that can potentially be subject to a referendum on additional spending.
Next, it creates a state revolving fund for the purpose of making loans to schools for installation of geothermal heating systems. The amount of loan cannot exceed the difference between the cost of a conventional system and the cost of the geothermal system — the state wants to subsidize the geothermal system, not heating and cooling needs in general.
Finally, it appropriates $2 million from the state general fund to the geothermal loan fund. “Geothermal heating and cooling system” is defined as a heating and cooling system that uses the natural heat from the earth to generate heating and cooling. For an overview, here is the Wikipedia entry on geothermal heating.
From that entry:
Benefits
Geothermal energy is a type of renewable energy that encourages conservation of natural resources. According to the U.S. Environmental Protection Agency, geo-exchange systems save homeowners 30-70 percent in heating costs, and 20-50 percent in cooling costs, compared to conventional systems.[10] Geo-exchange systems also save money because they require much less maintenance. In addition to being highly reliable they are built to last for decades and can add considerably the resale value of a structure.
. . .
Problems
Geothermal heating projects may cause problems if the geology of the area is poorly understood. An example is a 2007 geothermal heating project for the historical city hall of Staufen im Breisgau, Germany. After the 140m borehole caused groundwater to come into contact with a hitherto isolated gypsum layer, the ground underneath the city underwent a chemical reaction, causing the city centre to rise after an initial drop. This has been causing considerable damages to buildings in the city centre.
HB 1650 – Road Salt Purchases
Reps. Austin and Michael have introduced HB 1160 having to do with road salt purchases in an effort to take advantage of bulk purchasing power. Specifically, it requires the state Department of Administration to enter into quantity purchase agreements with salt vendors that have a provision requiring the vendor to offer salt purchases to local units of government under the same terms.
That’s right, I’m blogging about road salt purchases. It can’t all be pretty speeches and inaugurations.
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