The last week or two have brought with them a cascade of negative news about Obamacare. Almost every day I read of a friend or relative whose premiums are skyrocketing, policies are being cancelled, do not qualify for subsidies, and the like. So far, the sign-up process has had its share of troubles. Even President Obama has not been impressed.
What if Obamacare is not the worst thing happening? What if something was happening with the potential to dwarf Obamacare?
There is. And, it could. more >>
It's official: the Obamacare rollout was an unmitigated, absurdly expensive disaster. When even the administration's biggest fans in the media (The Huffington Post, The New York Times, The Washington Post) are forced to admit it, it's so obvious as to be excruciatingly painful.
But some of us who teach entrepreneurship could have predicted it. (Though, I will admit, even I was stunned to read that the federal government had shelled out nearly two-thirds of a billion dollars on millions of lines of garbage code.) Observing this administration's complete ignorance of (and often, hostility to) business made clear early on that such a failure would be inevitable. They made every mistake in the book. Here are just a few of them:
1. Not identifying your assumptions This is Obamacare Major Mistake #1. And to a certain extent, it's forgivable. Even businesses blow this. All first-time entrepreneurs think they are launching a product or starting a business. But they aren't. They are actually testing assumptions about that product or business: assumptions about the customers; assumptions about the features and functions those customers want; assumptions about pricing; assumptions about the competition; even just basic assumptions about human behavior. more >>
Amid the news of the debt ceiling debate and the government shutdown, a disturbing report was released in the U.S. Senate on October 7 revealing rampant abuse in the approval process of Social Security Disability benefits. The report, issued by the U.S. Senate Homeland Security and Government Affairs Committee, offers a peek into just how loosely at least one government benefits program is administered and sheds light on the need for more oversight of the programs that swallow 10 percent of the nation's GDP.
The Committee report encapsulates a two-year investigation, led by Senator Tom Coburn (R-OK), of a West Virginia Social Security office charged with the disbursement of Social Security Disability funds. The investigation uncovered an advanced network of inside dealings between a Kentucky-based law firm, local doctors, and an Administrative Law Judge resulting in a complex rip-off of the federal government's disability program. The suitably named Eric Conn of the Conn law firm in Kentucky paid doctors substantial fees for unsubstantiated medical evaluations of his clients, maintained a highly questionable relationship with the judge who consistently approved Conn's clients for benefits, and in doing so generated more than $4.5 million in attorney fees paid by the Social Security Administration for services rendered to disability applicants.
The travesty, however, is not the millions paid to the attorney, but the billions that will be paid out over the lifetimes of those whose claims were improperly approved under this scheme to defraud the U.S. taxpayers. more >>
The national debt has surpassed $17 trillion, or about $53,765 for each U.S. citizen, including children. Total unfunded liabilities, what the federal government is projected to owe minus what the federal government is projected to receive in revenue, is over $126 trillion.
The U.S. Treasury Department posts the national debt, to the penny, on weekdays, not including holidays, at around 3 p.m. On Friday, Treasury reported the national debt at $17,075,590,107,963.57, the first time it has surpassed the $17 trillion mark. By Monday afternoon it was down slightly, at $17,074,260,390,144.95.
Part of that amount, about $5 trillion worth, is debt the government owes to itself, in the form of the Social Security trust fund. Since Social Security now pays more to beneficiaries than it receives in revenue, through a payroll tax, the program trades in its special Treasury bonds to make up the difference. more >>
In a speech that showed both frustration and hope for the future, President Barack Obama addressed the American people Thursday morning after Congress reached a short-term compromise late Wednesday night to end the federal government shutdown, reopening the government until Jan. 15 and suspending the debt ceiling through Feb. 7.
The president said in his address that the past weeks of federal shutdown have wreaked havoc on America's economy and the trust of the American people in their government. Obama sternly said that the federal shutdown has done more to undermine the economy than anything else in the past three years.
Obama added that the shutdown has "inflicted completely unnecessary damage" on the U.S. economy and American people, as well as "encouraged our enemies, emboldened our competitors, and depressed our friends who look to us for steady leadership." more >>
Americans were shocked by headlines like, "Priests Face Arrest for Holding Mass During Shutdown." News accounts reported that Catholic priests were warned that they are not permitted to minister on base during the shutdown, and they risk being arrested if they attempt to do so.
Since they are unpaid volunteers, this was not caused by a shutdown of military funds. Priests were warned that they risked arrest and military discipline if, without pay, they simply walked onto the base property to perform a chaplain's regular duties.
Congress quickly responded with a nonbinding resolution to reinstate furloughed chaplains on a volunteer basis. The House voted 400 to 1, and the Senate passed a similar resolution. more >>