The unintended consequences of Obamacare

President Obama signing the Affordable Care Act

What do these disparate items have in common?

          -  9.9 horsepower outboard motors

          -  50-seat regional jets

          -  29 hour work week

All are unintended consequences of government actions.

For instance, the great state of Maine, as well as other jurisdictions, require that 10 horsepower outboard motors and above be registered (and therefore taxed). What was the reaction of manufacturers? Of course, they detuned their 10 horsepower models slightly and rebranded them as 9.9 hp. Now, in the marketplace, 10 horsepower motors are extremely rare and 9.9 models plentiful.

The Federal Aviation Agency has a safety regulation (FAR 121 section 391) that specifies the following:

“For airplanes having a seating capacity of more than 50 but less than 101 passengers – two flight attendants [are required]”

Airlines could save a lot of money by using only one flight attendant in a 50 seat aircraft. And indeed they did, ordering the Bombardier CRJ200 in the 50 seat configuration in great numbers even though the aircraft was capable of carrying 52 passengers.

And finally, the Affordable Care Act (“Obamacare”) defines full time employees as those working 30 hours or more, and requires that those employees must be provided with full health insurance coverage.

“For purposes of section 4980H, a “full-time employee” is an employee who is employed on average at least 30 hours per week.”

So, once again, the reaction of the marketplace is predictable. The Huffington Post reports that the “Community College Of Allegheny County will cut the hours for some instructors to avoid paying for their health insurance coverage under new Affordable Care Act rules.” CCAC President Alex Johnson announced that they will be cutting the hours of 400 employees to less than 30 hours to avoid paying for health insurance, thereby saving $6 million.

But the surprising thing here is the comments posted in response to the Huffington Post article by their audience of typically liberal readers. Here is an example, directed at CCAC:

“If you can't afford to pay for employee benefits, don't start a business. Period.”

So let’s analyze this sentiment. This particular individual, representing the voting bloc that reelected President Obama, is advocating for higher unemployment.

How about this one?

“This is being portrayed as a failure of Obamacare, but it's more a failure of inadequate financing of state run higher education.”

This Obama voter is calling for higher tuition rates, a burden that parents and students already find intolerable.

And CCAC is only the tip of the iceberg. Similar stories are emerging regarding many other companies including Walmart and numerous others. For instance, the New American reports:

“According to the Orlando Sentinel, Darden Restaurants, Inc., operator of casual dining chains such as Olive Garden, Red Lobster, and LongHorn Steakhouse, is doing just that [reducing hours].”

The Affordable Care Act was validated by the Supreme Court and cemented by the election of 2012. The only surprise is that Mr. Obama’s supporters are surprised by its unintended consequences. Apparently, the 1,017 page bill should have been read before being voted into law.

Many liberals are now calling for additional legislation to prohibit companies from reducing hours to avoid health insurance costs. Proof only that big government always leads to even bigger government.

At what cost dignity?

Students at the Barnard School, Washington DC, 1955

One thing that we used to learn young is that there is never something for nothing. That axiom appears to be on the wane. At least one state plans to give away academic achievement.

Imagine that you work at a jewelry factory on a line that produces earrings. You are paid by the piece and are expected to complete 10 sets per hour. You are pretty good at your job and regularly meet or exceed your quota. You are proud of your performance and feel that you earn every penny of your paycheck. 

Suddenly, one day, your manager approaches and asks to speak privately. Upon discovering that you are of Lithuanian ancestry, she confides that you are no longer to be held to the same standard as your peers. Instead of the 10 pieces per hour expected of your coworkers, you will only be required to complete five (although you will be paid the same).

How will you react?  How do you feel? Relieved, because ten sets per hour was demanding and now you can coast? Or ashamed, because you will now take it easy while your coworkers continue to produce at the higher level? The answer might well be the latter since you were deemed not capable due only to your Lithuanian ancestry. What’s wrong with being Lithuanian, anyway? 

A poor analogy, perhaps, but something quite similar is about to happen in Virginia. The state board of education, upon receiving a federal waiver from the “No Child Left Behind” act, is adjusting expectations for students based on their ancestry.

According to Virginia Public Radio, this is the scoop. “Here's what the Virginia state board of education actually did. It looked at students' test scores in reading and math and then proposed new passing rates. In math it set an acceptable passing rate at 82 percent for Asian students, 68 percent for whites, 52 percent for Latinos, 45 percent for blacks and 33 percent for kids with disabilities.”

So now, depending on your ancestry, you will be held to different levels of expectation and standards of success. An African American student is expected to achieve only roughly half of an Asian American. What kind of message is that to send to striving students? How is that expected to motivate and cheer them on to succeed? And how will they fare in college, once graduated from high school under this tiered multi-ancestral success scheme?

Another approach is to believe that all students are capable of great achievement if only they are nurtured and encouraged. Students who are believed in and presented with high expectations can achieve great results.  Lowering the standards of success is cruel and destructive. It is far better to cultivate and raise each individual student to their greatest human potential. 

One thing is clear - this policy benefits only adults. The teachers and their unions, by redefining failure as success, have mitigated their own failures. And bureaucrats also come out on top - they no longer have to focus energy on the problem because, poof, they have made the problem vanish. The only faction accruing absolutely no benefit - the children.

Lowering expectations unavoidably leads to the diminution of human dignity. How can we possibly do that with a clear conscience? 

The banana boat who went to war

SS Contessa

Autumn of 1942 was grim, somber. The Axis was ascendant – Japan had conquered the Philippines and Singapore and most of the western Pacific including a wide swath of China and all of Korea. The map of Nazi Germany’s conquests had ballooned to include central Europe (except Switzerland), Scandinavia (except Sweden), Italy, and North Africa. There was no good news on the home front. Rationing was in effect, blackouts, German submarines sinking our coastal freighters. These were scary times – we were in an uncertain, but committed, struggle for survival.

Then a banana boat went to war.

The SS Contessa, owned by the Standard Fruit Company (later the Dole Food Company), was a tramp steamer built in 1930 in Glasgow, Scotland. She had a shallow draft and was designed to haul tropical fruits in iced storage holds from Honduras and Nicaragua to New Orleans.  With four steam engines, she managed 15 knots on a good day. The economics of tramp steamers were such that a few first-class passengers were carried on these trips, enjoying a tropical cruise, and general cargo hauled on the otherwise empty returns to the Caribbean. Altogether, Standard Fruit eked out a modest profit.

In late summer of 1942, the American President Franklin Roosevelt and British Prime Minister Winston Churchill proposed a major Allied campaign against the Nazi juggernaut. Operation Torch was intended to strike at the German Nazi and Vichy French occupation of North Africa, thereby opening a second front, drawing German troops away from the Russian front, and setting the stage for an invasion of southern Europe in 1943. Such colorful characters as Dwight David Eisenhower and General George S. Patton were called on to plan and lead the campaign. Another, perhaps intended, byproduct of the operation was to bring some sorely needed good news to war-weary American and British and Canadian civilians.

The major challenge was the sealift: 107,000 troops and all of their associated gear and tanks and airplanes and fuel and chow had to be landed on the coast of North Africa. A huge convoy of over 340 ships must be assembled, and quickly, if the landing date of November 8th were to be met.

The Contessa was pressed into naval service and summoned to Newport News. She was loaded with nearly 1,500 tons of explosive cargo – because of her relatively shallow draft, she was a critical element in the strategy to deliver fuel and bombs to an Allied air force to be based at Port Lyautey in French Morocco, 12 miles up the shallow Sebou River. This air force would provide vital air cover to the Allied landings, but would be toothless without Contessa’s cargo of provisions and weaponry.

The convoys, three in number and totaling 340 ships, were separated to avoid German submarines, destined to rejoin before passing through the straits of Gibraltar. One of the convoys was guarded by the battleship USS Massachusetts, “Big Mamie” (now ensconced in Fall River). The experience of crossing the storm-tossed Atlantic in autumn is best characterized by the chronicle of the destroyer USS Barnegat. From the US Naval History and Heritage Command, this description:

“On 24 October, [Barnegat] received orders to transport VP 73 to Londonderry, Northern Ireland. During the passage, Barnegat encountered heavy seas and, at 1541 on the 26th, took a ‘rapid, heavy roll to starboard’ while efforts were underway topside to secure depth bombs that had come adrift on deck. A torrent of water cascaded across the fantail and swept Ens. George V. Grabosky and two sailors over the side. Barnegat, herself, had to try to recover her drifting men, since the stiff gale precluded the lowering of a boat. Men on board worked lifelines and tended knotted lines, grapnels, and lifebouys, as she struggled against the elements to maintain proper position for a rescue. The two enlisted men were finally recovered, but the officer was not found.”

Life at sea was indeed arduous, and without relief. Very shortly after arriving in port, Barnegat was ordered back to sea with an Operation Torch convoy, with no chance of respite for her crew. But they persevered.

Meanwhile, the Contessa had reported to Newport News, Virginia, for refitting and loading of ordnance and aviation fuel. Unfortunately, upon her arrival, most of her crew scattered and could not be located. A US Navy military history of the episode recounts that the jails of Norfolk were scoured and men pressed into service. With this motley crew, and a US Navy liason officer, Lt. A. V. Leslie, her captain “volunteered to sail her unescorted across the submarine-infested Atlantic.” The crew proved worthy and the Contessa arrived at Safi, Morocco on 10 November. 

The Contessa had still to complete her mission, delivering vital supplies to the allied airbase, 12 miles up the shallow Sebou River. The tale is best told by the official US Navy military history.

“The cruise of this vessel sounds like a story by Conrad. After a hectic voyage during which she lost her way, the Contessa turned up at Safi a few hours prior to that landing. She was thereupon headed up to Mehdia, escorted by the Cowie. Up the winding channel, over sand bars, past obstructions, the Contessa scraped her way in spite of dented plates and leaking steams. Two miles south of Port Lyautey she ran hard aground and, before she could be floated, the ebb tide swung her around until she was pointing downstream. She had accomplished her mission, however. Lighters were rushed out from the airport, which had just been occupied, and her invaluable cargo was safely disembarked.”

With this kind of dedication, Operation Torch was a success. The Contessa delivered her store of weapons and fuel to the airfield at Port Lyautey with great skill and courage, though not without high adventure. The landings on the North African coast were difficult, but the Allies prevailed. General George Patton began to build his reputation as a tough, successful warrior. And on the home front, a little bit of cheer was finally felt in this dismal war.

So during this November, when we celebrate Veterans Day, let’s please remember, and honor, the sacrifices of all our active duty and veteran military members and their families. Your life would not be as comfortable, as safe, your rights inviolate, without them.

And don’t forget a hat tip to that brave little banana boat, the SS Contessa, who went to war and then returned to the fruit trade, as figuratively, all of us veterans did.

Fact checking the fact checkers

The “Republican war on women” is a trope. It is a figurative use of language which does not literally mean that helmeted Tea Partiers are lobbing hand grenades into hair salons, pedicure spas, state and federal capitals, and corporate boardrooms. And thank goodness for that.

But the Associated Press, a staunch participant in the “fact checking” movement, has entered the fray in an attempt to sway your opinion.

In an article published widely on Sunday, 10/21/12, the AP claims that abortion “laws [are] more restrictive – even though it’s legal, many states set up new hurdles”.  Then the article describes the circumstances of abortion in South Dakota. The caption of a photo of Rapid City Dr. Marvin Buehner claims that “he can perform pregnancy terminations only when there is a risk to the mother’s life.”

Holy cow! What’s the matter with these South Dakota Republicans? In spite of Roe vs. Wade, have they made it illegal to perform abortions unless the life of the mother is threatened? Is it possible that women in South Dakota cannot obtain an abortion unless their life is threatened by the pregnancy?

It turns out the that AP has earned four Pinocchios… their fact checking is all wet.

The South Dakota legislature has recognized a woman's right to terminate her pregnancy under these conditions:

• In the 1^st through 24^th week, a woman has a right to an abortion following a 72 hour waiting period..
• After the 24^th month, if necessary to preserve the life or health of the mother.

So what is the basis of Dr. Buenher's claim? Certainly, if in his judgment a termination is advisable in the first 24 weeks, he can perform a legal abortion. But the catch is that the state will not pay for it with Medicaid funding. (The federal Hyde Amendment, passed in 1977, prohibits the expenditure of Medicaid funds for abortions unless the life or health of the woman is at risk.)

Does this mean that, because taxpayer funds from Massachusetts and Rhode Island are not to be used for abortions in South Dakota, abortions are not obtainable there? Ridiculous.  Here are the options. 

1. The woman pays for the abortion herself  
2. The woman’s sex partner pays for the abortion (a much fairer outcome)  
3. The woman applies to a foundation (such as Planned Parenthood) for help

But in no case are Tea Partiers militantly prohibiting the abortion.

If you want to know what a real war on women looks like, consider Islamic extremists. The current prime example is the Taliban of Pakistan, who recently boarded a school bus and shot a fifteen year old girl in the head, repeatedly, for the high crime of promoting education for women.

The Pakistanis are our allies. Except that their Taliban hate our values, our women, and their rights. The Republicans look pretty darned fuzzy in comparison.

The dignity of work

Fisherman working on the Belize River.

Belize is the smallest of the Central American countries, approximately the size of Massachusetts. But with a population of 328,000, the interior of the state is largely empty, with a density more like that of Arizona.

Approaching Belize from the sea, one is struck by the beauty of the country. The Belize Barrier Reef, extending nearly 200 miles from the Yucatan Peninsula in the north to Honduras in the south, is one of the most significant coral reef systems in the world. Mangrove islands dot the coast, and manatees and dolphins roam the coastal waters and brackish rivers.

A former British colony, Belize is the only Central American country where English is the dominant language. The inhabitants are largely a mix of Mestizos, Creoles, Mayan, and an international blend of Chinese, Indians, and Anglos from Canada, England, and the United States.

It is impossible to describe Belize without mentioning the historically important Mayan ruins that bejewel the country. Impressive pyramids, temples, and tombs surround central plazas, built with construction techniques that are surprising even today. Mayan achievements in art, writing, architecture, and astronomy are impressive. If not for human sacrifice, this would have been a pretty cool era for a time traveler to visit.

In today’s Belize, the economy is a mixture of agriculture, forestry (logging), tourism, and manufacturing. Unemployment is estimated at 13% and there is a shortage of skilled laborers. That shortage may well be related to a literacy rate of only 77%.

But all of these facts and figures aside, what is it really like? Traveling the interior, one sees many small farms carved out of the forest. These are not the tidy farms of New England. The houses are small, raised on stilts to allow cooling air to circulate; there is no air conditioning. A few skinny goats populate the yard, keeping the vibrant jungle vegetation at bay. Piles of stones and rubble dot the perimeter and mounds of half-burnt logs smolder near the encroaching forest. A scatter of multicolored garments flutter on a line, drying in the sun.

This may seem a bit bleak, but that is our projection. We cannot imagine living in a tropical climate without air conditioning – how could we sleep at night? Could we possibly survive without washing machines and electric dryers?

But in fact, the people of Belize seem quite happy. A fisherman casting a net on the Belize River offers a broad smile and an affable wave. A construction crew laying hot asphalt on a steamy afternoon all beam and wave enthusiastically. A waitress in a back-country restaurant cheerfully serves wholesome chicken and beans and rice with a large smile. It must be something in the water – these folks are just downright friendly.

We ask our guide, of Mayan descent, to enlighten us. “Yes,” he explains, “the people are happy. You are seeing the dignity of work.”

The dignity of work. Indeed.