April 9, 2020
Permission to republish original opeds and cartoons granted.
Another 6.6 million jobs lost to Chinese coronavirus, up to 19.6 million lost and counting, but Main Street will reopen very soon
Weekly
unemployment claims in the U.S. were up another 6.6 million, bringing the total
jobs lost since the Chinese coronavirus pandemic anywhere from 16.6 million to
19.6 million as federal and state government closures continue to in order to
stave off the virus and protect the elderly and those with underlying
conditions, more than doubling the jobs lost during the Great Recession when
8.3 million were lost. That puts the effective unemployment rate 15 percent,
pretty much the highest since the Great Depression, with an overall 22 million
to 26 million out of work and rising as Americans continue to engage in social
distancing. Recall, about 5.8 million were already jobless when the outbreak
began when unemployment was just 3.5 percent, a 50-year low, with the worst
likely yet to come. This is like a tidal wave washing over the global economy,
and no one will be spared. Businesses large and small are being tested during
this time, but already the data and the damage is simply catastrophic. Nothing has
ever been seen like it. What’s worse, it could take years or a decade to
recover, even with well-intentioned measures by Congress to help small and
large businesses to shore up payroll. President Donald Trump has requested
Congress increase funding for small businesses by another $250 billion bringing
the total up to $600 billion and the Federal Reserve appears to be opening a
secondary market for these small business loans that it will be purchasing as
banks make the loans, freeing up more capital to keep the lending going. The
next few weeks’ unemployment claims reports will bear out the extent of the
damage that has already been caused and as can be seen, it is quite extensive.
The key thing to understand is that the damage may not be reversible in the short-term
as any notions about getting back to 3.5 percent unemployment anytime soon are
dispelled. However, with the decisive action being taken today by President
Trump and Congress, we can shorten the duration of the job losses and speed the
recovery. Main Street will reopen soon, it’s only a matter of time.
Video: Bernie is gone, death toll statistics and what about already hurting economies?
Bernie Sanders drops out and mortality projections from Chinese
coronavirus continue to drop, and how quickly can the U.S. and global economies
recover from this pandemic?
Walden shocks with support for Pelosi Socialized Medicine pathway
Everyone agrees that America should do everything it can right now to
support our health care providers, yet some politicians in Washington, D.C.,
think this is a perfect time to change the medical payment system in a way that
punishes those very health professionals. Under the guise of doing something
about Surprise Medical Billing, some members of Congress are cravenly seeking
to include one sized fits all medical pricing into the next political grab bag
funding bill being drafted by House Speaker Nancy Pelosi (D-Calif.). The same
Pelosi who delayed passage of a clean funding bill that helped the newly
unemployed and the small businesses which are being destroyed by the health
emergency economic shutdown in order to get funding for her friends at the
Kennedy Center, is seeking to pave the way for socialized medicine through this
federal government medical services price fixing scheme. Pelosi’s Energy and
Commerce Chairman Frank Pallone (D-N.J.) even told the House Progressive
Caucus, that this pricing approach is the first-step to Medicare-for-all. However what is both surprising and
distressing is that House Energy and Commerce ranking member Greg Walden
(R-Oreg.) appeared on MSNBC last week proclaiming the virtues of passing the
Pallone bill without ever telling the public what is in it. Walden, who is retiring from Congress at the
end of this term, apparently has decided that mouthing left wing talking points
without substance is more important than finding a more local, market-based
system for solving the surprise medical billing issue. While it is not
surprising that the big health insurance companies support a system that
provides nationwide fee certainty as it ensures their profitability, what is
shocking is that Republican Greg Walden so easily has fallen into the trap of
having the federal government determine health care pricing based upon the “we
have to do something” bi-partisan argument that he used on MSNBC.
Miranda Devine: Unmasking WHO as a China apologist
“[The
World Health Organization] was wrong about ¬COVID-19 from the start. It bought
China’s lies and then praised its ‘transparency.’ Taiwan warned Dec. 31 that
the virus was contagious. Two weeks later, as China was punishing doctors and
destroying virus samples, WHO tweeted the Chinese line that there was ‘no clear
evidence of human-to-human transmission.’ It wasn’t until March 11, after the
virus had taken hold around the world, that WHO declared a pandemic. No wonder
the president finally directed his ire this week at WHO, a United Nations
agency, and threatened to cut its US funding for failing to warn the world
about the disaster brewing in Wuhan. ‘They [WHO] seem to be very China-centric,’
he said. ‘They err on the side of China. They called it wrong. They could have
called it months earlier . . . They should have known.’ WHO Director-General
Tedros Adhanom Ghebreyesus responded Wednesday with a threat: ‘If you don’t
want many more body bags you refrain from politicizing it.’ Really? This is Mafia talk. Not once has
Tedros criticized China’s malfeasance, including the hoarding of medical
supplies, which caused shortages of protective gear, especially the masks WHO
tells us we don’t need. The single most effective measure taken in this country
to slow the infiltration of the virus was made against Tedros’ vehement
opposition: the president’s China-flight ban on Jan. 3, for which he was
slammed as a xenophobe. After the ban, Tedros tweeted: ‘The greatest enemy we
face is not the virus itself; it’s the stigma that turns us against each other.’
It’s not stigma sending Americans to hospital gasping for breath. It’s not
stigma piling up bodies in refrigerated trucks in Brooklyn.We must never again
trust woke transnational bureaucracies.”
Another 6.6 million jobs lost to Chinese coronavirus, up to 19.6 million lost and counting, but Main Street will reopen very soon
By Robert Romano
Weekly unemployment claims in the U.S. were up another 6.6 million, bringing the total jobs lost since the Chinese coronavirus pandemic anywhere from 16.6 million to 19.6 million as federal and state government closures continue to in order to stave off the virus and protect the elderly and those with underlying conditions, more than doubling the jobs lost during the Great Recession.
That puts the effective unemployment rate 15 percent, pretty much the highest since the Great Depression, with an overall 22 million to 26 million out of work and rising as Americans continue to engage in social distancing. Recall, about 5.8 million were already jobless when the outbreak began when unemployment was just 3.5 percent, a 50-year low, with the worst likely yet to come.
This is like a tidal wave washing over the global economy, and no one will be spared. Businesses large and small are being tested during this time, but already the data and the damage is simply catastrophic. Nothing has ever been seen like it. What’s worse, it could take years or a decade to recover, even with well-intentioned measures by Congress to help small and large businesses to shore up payroll.
President Donald Trump has requested Congress increase funding for small businesses by another $250 billion bringing the total up to $600 billion, even while others say there should be no cap. In the meantime, the Federal Reserve appears to be opening a secondary market for these small business loans that it will be purchasing as banks make the loans, freeing up more capital to keep the lending going. The April 8 Fed release stated, “To facilitate lending to small businesses via the Small Business Administration's Paycheck Protection Program (PPP), the Federal Reserve will establish a facility to provide term financing backed by PPP loans. Additional details will be announced this week.”
The biggest challenge for these lending programs is probably letting small businesses know they exist and that these loans are available, and convincing them that retaining payroll is more advantageous than laying off employees while much of the economy is still closed and is expected to be for several weeks more while the virus runs its course.
Already, Vice President Mike Pence reports more than $98 billion loans have been made to hundreds of thousands of small businesses. Is it enough, though?
On one hand, one can make a case for a swift rebound, that as soon as the closures end and states reopen their economies, all the businesses will open their doors quickly and Americans will swiftly get back to work.
On the other, as I was noting earlier this week, in analyzing the 10 recessions since 1948, on average, it takes about 11 months for all job losses to be realized in a recession, and then on average another 16 months to get those jobs back. Sometimes it’s longer sometimes it’s shorter. The longest cycle took 7 years with the Great Recession. The shortest was the 1970-1971 recession that took 12 months.
So, bare minimum, small businesses will need at least a year or more of support to survive. The CARES Act includes up to $6 trillion from the Federal Reserve. Already, the Small Business Administration and Treasury are working with the Fed to expand payroll protection lending.
The expansive nature of the program is not unsurprising. In 2008, Congress passed the $700 billion Troubled Asset Relief Program to buy privately issued mortgage backed securities from banks, but it instantly became obsolete when the Fed took over AIG and derivatives markets. Additionally, the Fed then purchased the Fannie Mae and Freddie Mac mortgage backed securities directly off the banks’ balance sheets, totaling trillions. That’s because no matter how big Congress thought the problem was, it was in fact larger. Much, much larger.
For the Trump administration to accomplish what they’re trying to do to save 30 million small businesses, the backbone of the economy, it could require trillions of dollars. Congress already created the vehicle for doing so by expanding the Fed’ mandate, recognizing that in an emergency like this, only the Federal Reserve will have enough firepower to deal with the magnitude of the damage being caused by the pandemic-induced government closures.
Additional tools the Fed should consider will be to weaken the dollar relative to other currencies, even as interest rates collapse — yes, both are possible simultaneously, look at 2009 and 2011 when dollar bottoms coincided with labor market and housing market bottoms — amid heightened demand for U.S. securities including treasuries, which can help hasten the recovery and, critically, stave off deflation that must be a real threat with demand completely collapsed at the moment.
So, hope for the best, but prepare for the worst.
Right now, we are witnessing the flight to safety as financial institutions stock up on treasuries, which with unemployment still rising sharply, is expected. That won’t last forever but it will probably go on for a good long while. Like the virus, there is a light at the end of the tunnel. First things first, kill the virus and that will give the confidence states and businesses need to reopen sooner rather than later.
But, simultaneously, we have to make sure there’s an economy to return to.
The next few weeks’ unemployment claims reports will bear out the extent of the damage that has already been caused and as can be seen, it is quite extensive. The key thing to understand is that the damage may not be reversible in the short-term even with the program Congress created. But that does not mean that the program is not ultimately necessary. Quite the contrary. That lifeline will be the reason we get out of this much, much faster than might have been otherwise possible.
By now, any notions about getting back to 3.5 percent unemployment anytime soon have probably been dispelled, but with the decisive action being taken today by President Trump and Congress, we can shorten the duration of the job losses and speed the recovery. Main Street will reopen soon, it’s only a matter of time.
Robert Romano is the Vice President of Public Policy at Americans for Limited Government.
Video: Bernie is gone, death toll statistics and what about already hurting economies?
To view online: https://www.youtube.com/watch?v=qRbt9vEfjEs
Walden shocks with support for Pelosi Socialized Medicine pathway
By Rick Manning
Everyone agrees that America should do everything it can right now to support our health care providers, yet some politicians in Washington, D.C., think this is a perfect time to change the medical payment system in a way that punishes those very health professionals.
Under the guise of doing something about Surprise Medical Billing, some members of Congress are cravenly seeking to include one sized fits all medical pricing into the next political grab bag funding bill being drafted by House Speaker Nancy Pelosi (D-Calif.). The same Pelosi who delayed passage of a clean funding bill that helped the newly unemployed and the small businesses which are being destroyed by the health emergency economic shutdown in order to get funding for her friends at the Kennedy Center, is seeking to pave the way for socialized medicine through this federal government medical services price fixing scheme.
Pelosi’s Energy and Commerce Chairman Frank Pallone (D-N.J.) even told the House Progressive Caucus, that this pricing approach is the first-step to Medicare-for-all.
However what is both surprising and distressing is that House Energy and Commerce ranking member Greg Walden (R-Oreg.) appeared on MSNBC last week proclaiming the virtues of passing the Pallone bill without ever telling the public what is in it. Walden, who is retiring from Congress at the end of this term, apparently has decided that mouthing left wing talking points without substance is more important than finding a more local, market-based system for solving the surprise medical billing issue.
While it is not surprising that the big health insurance companies support a system that provides nationwide fee certainty as it ensures their profitability, what is shocking is that Republican Greg Walden so easily has fallen into the trap of having the federal government determine health care pricing based upon the “we have to do something” bi-partisan argument that he used on MSNBC.
It is also surprising that Walden ignores the fact that in California, where the Pelosi-Pallone national pricing system is being tried, medical providers are being forced out of the state as the reimbursement costs for their services are not enough to cover the costs of providing medical services.
Rep. Walden knows that Senator Bill Cassidy (R-La.), a medical doctor, has a solution to surprise medical billing that puts disputed bills between health providers and insurers who patients pay to cover these expenses in front of a local neutral arbiter, who decides based upon the evidence what the costs should be. While a far cry from an ideal free market solution, this idea which is working in New York State, keeps federal politicians out of the medical pricing game while protecting patients from getting gouged by unexpected demands for payment.
Rather than push the common-sense approach put forward by Senator Cassidy which protects patients in a fair process, Greg Walden’s federal rate setting plan would be disastrous for those very patients he claims to want to protect by putting doctors and other health providers out of business.
The resulting doctor and hospital shortages would most affect rural communities as insurers would be allowed to pay doctors less than the value of the critical care they provide.
Now is the time we should be protecting our doctors fighting on the frontlines against this deadly pandemic. We see the private health care system, already shackled by previous federal Democrat regulations and mandates, stepping up to the plate to do battle with the China-originated COVID-19 virus. Putting their lives on the line as they treat patients in emergency rooms and intensive care units.
Instead Washington, D.C. politicians like Nancy Pelosi, Frank Pallone and yes, even Greg Walden, see the next massive pandemic spending bill as an opportunity to impose a pathway to socialized medicine on the American public and those very health providers we are so dependent upon.
It is time for Americans to say no to socialized medicine by going to www.stopsocializedmedicine.org and telling your representatives to oppose one-size fits all medical rate setting. Let’s stop Pelosi from using this crisis to socialize medicine in America.
Rick Manning is the President of Americans for Limited Government.
ALG Editor’s Note: In the following featured column from the New York Post, as Americans opt for cloth masks, the China apologist World Health Organization questions the utility:
Unmasking WHO as a China apologist
By Miranda Devine
Last week, the Centers for Disease Control and Prevention reversed its position and recommended that Americans wear masks after all, even if asymptomatic.
On Monday, the World Health Organization, as if it hasn’t caused enough trouble, decided to contradict the CDC.
“Masks alone cannot stop the #COVID19 pandemic,” WHO said in a flurry of 12 tweets.
“What is clear is that there is limited research in this area.”
Then it pumped out a confusing, five-page paper claiming: “There is currently no evidence that wearing a mask . . . by healthy persons in the wider community setting . . . can prevent them from infection.”
But that flies in the face of a study from Singapore, cited by the CDC, that healthy people can spread the virus without symptoms. N95 masks needed by health workers are in short supply but even homemade cloth masks are better than nothing.
The unhelpful mask conflict is typical of the toxic pointlessness of WHO. It is worse than useless. It is what it accuses masks of being: a costly distraction that lulls you into a false sense of security.
What’s it been doing in the 17 years since the last deadly respiratory virus, SARS, emerged from China?
WHO was wrong about COVID-19 from the start. It bought China’s lies and then praised its “transparency.”
Taiwan warned Dec. 31 that the virus was contagious. Two weeks later, as China was punishing doctors and destroying virus samples, WHO tweeted the Chinese line that there was “no clear evidence of human-to-human transmission.”
It wasn’t until March 11, after the virus had taken hold around the world, that WHO declared a pandemic.
No wonder the president finally directed his ire this week at WHO, a United Nations agency, and threatened to cut its US funding for failing to warn the world about the disaster brewing in Wuhan.
“They [WHO] seem to be very China-centric,” he said. “They err on the side of China. They called it wrong. They could have called it months earlier . . . They should have known.”
WHO Director-General Tedros Adhanom Ghebreyesus responded Wednesday with a threat: “If you don’t want many more body bags you refrain from politicizing it.”
Really? This is Mafia talk.
Not once has Tedros criticized China’s malfeasance, including the hoarding of medical supplies, which caused shortages of protective gear, especially the masks WHO tells us we don’t need.
The single most effective measure taken in this country to slow the infiltration of the virus was made against Tedros’ vehement opposition: the president’s China-flight ban on Jan. 3, for which he was slammed as a xenophobe.
After the ban, Tedros tweeted: “The greatest enemy we face is not the virus itself; it’s the stigma that turns us against each other.”
It’s not stigma sending Americans to hospital gasping for breath. It’s not stigma piling up bodies in refrigerated trucks in Brooklyn.
We must never again trust woke transnational bureaucracies.
Instead, we should follow de Blasio’s lead and wear any mask we can find. If WHO is against them, it’s a fair bet they’re worthwhile.