FROLITICKS

Satirical commentary on Canadian and American current political issues

Oct 8

Obamacare – Solution or Stop-Gap Measure?

by bcurry

Well it’s finally here, much to the consternation of the Republican Party and half of the American population according to recent polls! As of the first of October, the Affordable Care Act (ACA) went into effect and the uninsured multitudes were invited to go on-line or in person to seek out an appropriate health insurance plan. However, the continuing debate is anything but over. Article after article continues to explore the pros and cons of this new healthcare initiative. Critics see it as being too costly for middle class families, forcing many small and medium-sized businesses to lay off workers, being overly complex or hurting the quality of healthcare in the U.S.

On top of which, a Supreme Court’s ruling on the healthcare law last year, while upholding it, allowed states to choose whether to expand Medicaid, the government’s medical insurance program for the poor. As a result, some claim that millions of poor people will be left uncovered by the ACA. They live in states, mainly found in the South, largely controlled by Republicans who to date have declined to participate in a vast expansion of Medicaid. About 60 percent of the country’s uninsured working poor are in those states, many of whom are Black or Hispanic. They are now among the eight million Americans believed to be impoverished, uninsured and ineligible for help.

Regardless of the implementation of Obamacare, the fact is that according to a recent study by the Commonwealth Fund, a private healthcare foundation, almost half of working Americans between the ages of 19 and 64 currently have no insurance or are under-insured. Other recent studies concluded that more than 65 percent of personal bankruptcies in the U.S. are due to healthcare costs. Compared to other member nations of the Organization for Economic Cooperation and Development who have universal government-run healthcare programs, Americans are paying a lot more for healthcare and getting a lot less value for services provided. Furthermore, it pays to be rich in the U.S. in order to have access to quality health care. Lack of regulations essentially allows hospitals to charge whatever they like. According to a database of hospital medical charges, there are huge disparities for pretty well every medical procedure everywhere in the United States. Sticker prices are shockingly inflated and the differences are in many cases astronomical. In 2005, the average cost of a day in a hospital was anywhere from $1,629 (for for-profit hospitals) to $2,025 (for nonprofit hospitals). For cancer patients, the average cost was $3,000 a day.

Dependent upon the private insurance sector in U.S., an important reason for the high healthcare costs is that prices for healthcare goods and services are negotiated between individual health insurers and physicians, hospitals or drug companies. On top of which fees in the private healthcare sector have been jealously guarded trade secrets among insurers and providers of healthcare. In other countries, prices either are set by government or negotiated between associations of insurers and providers of care, on a regional, state or national basis. In Canada, healthcare costs are regulated by provincial healthcare agencies, in consultation with hospital and physician representatives.

One of the major problems with Obamacare is its complexity and general coverage. Indeed, polls indicated that most of the uninsured Americans didn’t know that the health insurance exchanges or marketplaces had opened on October 1rst. It is there that persons who don’t have coverage through their employers can shop for insurance and compare prices and benefits. Incredibly, failure to secure health insurance can end up in one being penalized by the government. Starting in 2014, almost every legal resident of the U.S. will be required to carry health insurance or face a tax penalty, with exemptions for financial hardship, religious objections and certain other circumstances.

All of this is complicated and even confusing. However, it appears to be the best that the current administration can do at this time under difficult circumstances. It certainly isn’t the end all and be all to healthcare reform, and is often portrayed as a stop-gap measure to at least insure the estimated 30 to 40 million Americans that had no health insurance what-so-ever.

Still, here we have former members of the Tea Party holding the Republican Party hostage in a senseless act to delay the ACA’s implementation and its subsequent funding, three years after the Act was passed by Congress. Oh, let’s just shutdown the government and blame the President for not willing to compromise and proceeding with “socialized medicine”! Compromise on what? As in Canada, the healthcare debate will go on for years to come, especially given an aging population and ever increasing healthcare costs. Politicians in both countries will have plenty of future opportunities to bicker over the numbers and options, public or private, short-term or long-term. Bandages aren’t enough when only major surgery may be required.

Health Care US

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Aug 19

Why Minimum Wage Still Remains an Important Issue in North America

by bcurry

Here we go again! Controversy has surfaced over discussions in Canada and the U.S. over raising the existing minimum wage levels at the federal, state and provincial levels. In both countries, minimum wages differ among states and provinces. In the U.S., the federal minimum wage is currently $7.25 per hour. In Canada, minimum wages vary among provinces: the highest being in the territory of Nunavut at $11.00 per hour to the lowest in Alberta at $9.75 per hour. The current provincial average rate in Canada is around $10.00. There is no Canadian federal minimum wage for industries under federal jurisdiction, as the federal government has simply adopted provincial minimum wages in its labour standards legislation.

In his February 2013 State of the Union address, President Barack Obama urged Congress to raise the federal minimum wage from $7.25 to $9, saying the move would reduce poverty and stimulate the economy. As usual, critics argue that increasing the minimum wage would raise businesses’ costs and, in turn, reduce the number of employees they could hire. However as noted by the Department of Labor, the federal minimum wage was only $3.35 per hour in 1981. When adjusted for inflation the current federal minimum wage would need to be more than $8 per hour to equal its buying power of the early 1980s, and more than $10 per hour to equal its buying power of the late 1960s.

This brings us to the question of what is a minimum wage and how is it determined? Originally, minimum wages tended to be calculated based on some percentage of the average industrial wage. For example, one may have desired it to be set at 50 or 60 percent of the average industrial wage. Today according to Statistics Canada, the average hourly wage in Canada for persons 15 years and older is $23.75. In the U.S., the average hourly wage in the private sector is around $24.00. However, what has happened over the recent decades has been a lag in minimum wage levels when compared to yearly increases in industrial wages. Indeed, average minimum wages have rarely even kept pace with inflation rates, not being adjusted for the annual cost of inflation increases. Instead, increases in minimum wage rates are dependent on governments to prescribe in law, a process often taking place over the course of several years.

We are now no longer talking about a “living wage”. How can a family of four expect to live comfortably in an urban setting on one income based on a minimum wage? At or slightly above the poverty line, this is why there are so many families with both couples working: often referred to as the “working poor”. With the loss of good paying jobs in manufacturing in particular, the so-called “middle class” is slowing shrinking. Many unemployed persons are forced to seek employment in the retail and services sectors where minimum wages play a much greater role in effectively determining wages.

Moreover, politicians are less likely to be influenced by anti-poverty groups than by industry lobbyists. Recently, members of the Association of Community Organizations for Reform Now (ACORN) in Canada stated that almost 20 percent of Ontario workers were forced below the poverty line in the three years since the provincial Liberal Government froze the minimum wage at $10.25 per hour. ACORN’s province-wide campaign is calling for the rate to be immediately increased to $14, reflecting the rise in inflation since 2010. A Minimum Wage Advisory Panel, appointed by the Liberals in July 2013, is examining a potential provincial minimum wage increase in 2014. However, one can be certain that industry representatives will once again raise the age-old specter of increased unemployment in those sectors where minimum wages are currently used as base income levels. As in the U.S., it is very unlikely that there will be any significant changes to minimum wage rates in Ontario or in Canada. Perhaps, it’s about time for Ontario to take the lead and ensure that workers are entitled to a real “living wage”.

Minimum Wages Minimum Wages

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May 22

Leadership: It’s Not Only About What You Know, It’s Also About What You Don’t Know

by bcurry

“The buck stops here” is a phrase that was popularized by U.S. President Harry S. Truman, who kept a sign with that phrase on his desk in the Oval Office. Well, in the last few weeks, we’ve learned from President Obama and Prime Minister Harper that the buck appears to stop elsewhere. Sorry, but among the principal attributes of good leadership is setting the tone and establishing the culture for an organization, be it public, private or non-profit. This means that it isn’t always what a leader is aware of but what he or she is not aware of that is important.

In the case of President Barack Obama, it was his apparent lack of awareness of the pending release of the IRS Inspector General’s scathing report criticizing the IRS handling of claims by conservative groups for tax exemption as non-profit “social welfare” organizations. In the case of Prime Minister Stephen Harper, it’s his claims to a lack of knowledge about recent substantial monies gifted to Senator Mike Duffy by his own trusted Chief of Staff, Nigel Wright. Senator Duffy, a Conservative appointee, is involved in the Senate scandal about living and travel expenses, and now sits as an independent in the Senate. The PM apparently denies having any knowledge of what may very well have been a criminal act, and one resulting in the subsequent resignation by Mr. Wright. Now this is a PM who in 2005 vowed to run an accountable and totally transparent government if elected.

In both cases, these national leaders pledged to run ethical and transparent administrations. Thus, like any good leaders, their respective values should be reflected under their administration. In turn, they are accountable to their parties and to the electorate for any and all activities undertaken during their administration. It is not enough to simply deny knowledge of illicit activities and irregularities. Leaders should own up to their general responsibilities for good governance and ensure that those responsible are dealt with under the full force of the law if warranted. Simply making excuses does not cut the mustard!!! Ultimately denying responsibility is not an option, for as President Truman professed: the buck stops at the top.

Leadership Political Scandals Political Scandals

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May 17

IRS Scandal Is Really About Granting Tax-Exempt Status To Groups Participating In Politics

by bcurry

I’m not an American, but in reviewing the political system, one cannot help but notice the growing influence of large political-oriented bodies in recent elections. Big donors were given the green light to spend freely on elections by the Supreme Court’s 2010 Citizens United decision. Everyone remembers those infamous super PACs which ran many of the costly attack ads for both presidential candidates during the last election. Moreover, the 2012 presidential election broke the $2 Billion milestone in its final weeks, becoming the most expensive in American political history. Super PACs supporting Obama and Romney alone spent more than $500 million in media ads. Politically oriented organizations that do not have to declare their finances or identify their fundraisers have spent hundreds of millions on so-called issue ads. No other democratic country that I know of goes through such incredible campaign costs as do the presidential elections in the States, and allows so-called non-profit “social welfare” organizations to engage so extensively in political activities and continue to be tax exempt.

According to the U.S. tax code non-profit “social welfare” organizations are normally those that benefit the community. Such organizations should usually include religious groups, cultural, educational and veterans organizations, homeowners associations and volunteer fire departments. However in recent years, it appears that, partly as a result of the Supreme Court’s decision, more overtly political groups have been claiming non-profit status. Such status would allow them to keep their donor lists secret and to avoid paying taxes on certain income. Critics note that the Internal Revenue Service (IRS) hasn’t done nearly enough over the years to rein in the subversion of the tax law by political groups claiming a tax exemption that is not legally permitted for campaign activity. Nor has it been able to enforce rules requiring that donors to those groups pay gift tax on their donations. This is just the way that big donors to political bodies like it, otherwise donations could quickly dry up.

Recently the IRS was alleged to be targeting the more conservative organizations, notably any incorporating names such as Tea Party, Constitution or Patriots. The IRS is accused of being “overly aggressive” in its handling of requests by conservative groups for tax-exempt status. At the same time, the IRS has been dealing with austerity measures that reduce or stagnate personnel and resources, while trying to deal with a backlog of tax-exempt claims involving hundreds of groups. So-called conservative groups represented but a third of recent claims. Consequently, criteria was introduced by the IRS providing a screening shortcut meant to help with the influx of applications following the Court’s decision. However, more extensive screening meant longer delays in the approval of claims, frustrating many of the groups, conservative or otherwise. All of this came out in the IRS Inspector General’s scathing report released earlier this month.

Republicans in Congress have jumped all over the report and called for heads to roll, claiming that the Obama administration was of course behind the IRS’s activities. Denying any involvement, the administration countered by blaming a few “rogue employees” in the IRS for abuses and bureaucratic mishandling of the process. Needless-to-say, the President called the agency’s misconduct was “inexcusable”, and the acting IRS Commissioner was forced to resign. U.S. Attorney General ordered a criminal investigation into the situation and informed a congressional hearing on the matter that investigators will look at the conduct of IRS offices nationwide. All this and more to come!

However, let’s go back to the beginning. What is the real problem? It would appear to me that the whole definition of non-profit “social welfare” organizations needs to be revisited and clarified. At some point the incredible amount of interest group funding to electoral campaigns and congressional lobbying on specific issues has to become accountable and reasonable. Greater transparency and public oversight has to be brought into the equation. Of course, no one wants to trounce upon anyone’s democratic rights, but the current subterfuge of beneficiaries of such tax breaks has to end. Simply blaming the civil servants who have a tough enough job to do is not the answer. Fix the system.

Conservative Political Groups US

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May 6

After the Past Year, We’re Only Now Going to Seriously Talk About Climate Change!

by bcurry

Well, now that there have been enough serious accidents at the corner, let’s put up some traffic lights. So goes the continuing story of the human race in its often slow reaction to extreme events. The same can be said to our response to recent extreme weather events around the world, and especially in North America. Indeed, a recent survey reported on by Postmedia News indicated that of those Americans surveyed, 58 percent believe “global warming is affecting weather in the United States”. 85 percent of respondents claimed they experienced extreme weather during the last year. Even some Republicans surveyed now want action on climate change, although many continue to deny that it’s a scientific fact.

Scientists and non-scientists at least now fully agree that emerging weather patterns are proving to be consistent with climate-change predictions. So what’s the hang-up? Surely, it’s time for American and Canadian politicians to get really earnest about tackling what is the most important environmental and number one issue of our times and that of our children. Come on folks, climate affects everything societal, economic and political!!!

While we pay lip service to clean forms of energy and green technologies, we still continue to spew all kinds of crap into our air. In 2009, the Canadian government launched a plan to spend $1 billion over a five year period on clean energy research and demonstration projects, with an emphasis on reducing carbon dioxide emissions. At the same time, according to Climate Action Network Canada, the Federal Government yearly continues to give billions of dollars in tax breaks to the companies producing oil and gas. Analysis shows a total of $1.4 billion per year in federal subsidies, $840 million of which are special tax breaks, with a disproportionate share going to dirty fuels such as the Alberta Tar Sands. It is estimated that the oil and gas industry alone accounts for about 20% of all Canadian greenhouse gas emissions. Meanwhile, in the U.S., half of its electricity generation is still provided by coal-burning plants. As well, as indicated by various government reports, the American oil industry receives tax breaks averaging about $4 billion a year. There appears to be a contradiction in both approaches being taken here!

I’m no expert on climate change, and neither are the vast majority of politicians. However, the science speaks for itself, as well as our own everyday weather observations. It would seem that an increasing majority of citizens-voters believe that governments and industry need to do something sooner than later. We owe it to ourselves and future generations to get this one right.

Canada Climate Change US

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Apr 29

How Sequester Shows That Washington Doesn’t Give a Dam!

by bcurry

The media reported that as of April 1rst cancer clinics began turning away thousands of Medicare patients because of budget ‘sequestration’ spending cuts. Budget sequestration is a procedure in United States law that limits the size of the federal budget. Sequestration involves setting a hard cap on the amount of government spending within broadly-defined categories. If Congress enacts annual appropriations legislation that exceeds these caps, an across-the-board spending cut is automatically imposed on these categories, affecting all departments and programs by an equal percentage (e.g. 10%). As a result of sequestration and the inability of the Democrats and Republicans to resolve the nation’s current budget problems, Americans are suffering. For example, the recent flight delays of up to three hours or more resulted from the furloughing of air traffic controllers to the point where a reported 15,000 controllers were off the job at the same time at many of the largest U.S. airports. It’s as if Washington doesn’t give a dam about how much harm is being inflicted on Americans for blatant political gain. The situation with the cancer patients is just the latest and most alarming example of how sequestration has started to harm important government functions. Even as billions of dollars in taxpayer money are still being spent on hundreds of wasteful government programs – many of which have been documented by the Government Accountability Office.

What’s most galling about all this is that despite the real harm the sequestration cuts are causing, wasteful government spending has continued unabated. Yes, monies are being wasted outrageously on such important studies as to why fruit flies fall in love, the sex life of snails, recepies for foods which astronauts could prepare while visiting Mars, the improvement of golfers’ putting by imagining the hole is bigger, how to get your pet’s fur to smell better through the better use of pet toiletries, etc. etc.

As Washington continues to show disdain for its citizens and taxpayers, Americans increasingly are demonstrating disdain and cynicism towards Capital Hill. Surely, Congress and the President can work out their differences before something really bad happens, especially in areas related to public health and safety! It’s time to stop this farce and insanity and get on with running the country in some rational and reasonable manner. I am certain that the majority of Americans would support all sides working together at this important time in their history.

Sequestration US

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Apr 15

Why Has The US Media Forgotten About Iraq?

by bcurry

It’s April 15, 2013, and Forbes is reporting that bombs hit several cities across Iraq, killing at least 20 people. In a recent survey (Washington Post, March 18, 2013), Iraqis said they felt better about their security but worse about economic and political stability since the U.S. military left in late 2011. The Iraq decade-long war is reported to have cost the U.S. the loss of 4,400 U.S. service personnel and 32,000 wounded, as well as a couple of trillion dollars of taxpayers money. Not to mention the deaths of an estimated 120,000 Iraqi civilians over the same period. Today, religious and ethic divisions continue to pervade much of Iraq, threatening to set the country back again. Current Shi’ite Prime Minister Nuri al-Maliki’s political muscle will be severely tested against Shi’ite and Sunni rivals in a scheduled parliamentary election in 2014. While the U.S. continues to pour millions into the strengthening of security forces and the restoration of the country’s infrastructure, the mainstream American media have for the most part chosen to virtually ignore recent developments in Iraq. Perhaps this is because all the attention is being given to Syria and the rise of terrorists’ factions in Africa. Indeed, the Iraqi government very likely prefers it this way. Whatever the reason, one can only hope that more media attention will be paid to the seriousness of the Iraqi situation — even though some Americans may rather choose to forget the unfortunate history and outcomes surrounding this decade-old conflict.

Iraq Today US

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Apr 3

NRA Report Sees Guns as Path to Safety in Schools

by bcurry

Wow!  Here we go again.  The National Rifle Association, or as I prefer to title them “Nuts Running Amok”, has come out with a self-serving proposal to arm kindergarden teachers and janitors in American schools.  Hehaw, if you already have far too many guns in the neighborhood, why not introduce even more lethal weapons?  Indeed, little Johnny and Emma will eventually get the idea that carrying around loaded weapons is simply a part of ordinary everyday life in town.  If the NRA had their way and that of their million or so members, every American citizen would be armed to the teeth, shoulders and waistline.  Why amicably settle a dispute with one’s neighbor when a good old shootout would suffice.  The scary point is that these people are actually dead serious, and I do mean dead.  All the shooting range and safe gun handling instruction will never overcome the natural tendencies for humans to panic.  Furthermore, such courses of action will never be able to prevent premeditated and preplanned attacks by deranged persons armed with semi-automated or automated assault weapons.  As in the case of banks, the first ones to be taken out would be any armed security personnel.  Again, the NRA is dealing only with a symptom of what obviously is a much greater problem – too many easily accessible weapons and not enough control over who possesses them.  Let’s hope that the vast majority of sensible Americans choose an alternative route for the sake of their children’s futures.

Gun Control US

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