Chris is out of town, the babies are in bed, and I am avoiding the dishes for a little while longer, so I decided I would post about my ideas for tort reform.
Everyone hears absurd stories about various lawsuits, and their adverse effects on society in general, and the health care industry in particular but I haven't heard any tort reform measures that I can really get behind. So i thought I would offer my own solutions, uninformed as they may be. I'm interested in what people think of them.
The only type of compensations I usually hear about is reimbursement for medical costs and damaged property, compensation for lost future wages, pain and suffering and punitive damages. Of these, one is easily verifiable and two should be capped at reasonable sums. The last one is the tricky one, and as near as I can see the main problem, since becoming a millionaire through punitive damages has become the new American Dream.
The idea behind the punitive damages should similar to spanking a child. A small swat, sharp and memorable so that hopefully you think twice next time and it doesn't happen again. In practice it seems to be similar to beating the child with a pipe wrench out of a combination of rage and greed. Capping punitive damages doesn't work, because what can kill one company may not even sting another. I think an independent committee of people who understand how businesses are run should assess an appropriate punishment for a company, not 12 jurors who have been emotionally attacked during a trial. The committee should have no knowledge of the particulars of the case, but simply give their opinion of three levels of effective punishment to fit transgressions that are mild, moderate or severe.
The other solution I like best is the idea that punitive damages should punish the company, but NOT to the gain of the plaintiff. The problem with this is where the money goes. Usually, the person suggesting this is a governor trying to secure a new revenue stream for his state, but this is a problem, as it becomes a conflict of interest. The state after all is arbitrating the suit. Other options are for the money to go to charity or other good works, but again this is problematic, since good works are appealing to the jury, it is unfair to the defense. So what we need is a black hole for money. No matter how much is thrown at the black hole, no real good will actually get done. No one benefits, and only the guilty suffer, and the only reason to go through the trouble of making the guilty suffer is for the sake of justice and future safety, not the the McMahon mansion that you think you'll be able to buy once the trial is over. I can't think of a whole lot of good money black holes, but the one that springs to mind is the national debt. I don't think even the tobacco lawsuit settlements would be much more than a drop in that bucket. If it was separated from the government (IE a reasonable balanced budget amendment*) it would be a perfect black hole. Even so, there should be several black holes that the money can go. The jury would not designate which black hole the money would go, it would be assigned randomly. I'll have to think of other options where the money will make no real difference, and no one will benefit. The UN maybe? Meh.
thoughts?
*My idea, by the way, of a reasonable balanced budget amendment involves requirements for all salaries of elected officials to be cut back to the national average household ($40k), and all amenities - top chefs, non-essential travel, etc. to be eliminated for the duration of the crisis that requires adding debt. plus other measures like suspending all spending earmarks until the crisis is over. This idea also needs work.
Thursday, July 24, 2008
Thursday, May 8, 2008
It's not relative
I read with interest the statements of the Austrian rapist father complaining about the way the media has portrayed him.
"I'm only being portrayed as a monster and not as someone who committed monstrous acts... I could have killed all of them — then nothing would have happened. No one would have ever known about it."
I see this sort of thinking as endemic in our society, the skewed moral compass that assumes it must be pointing more or less north as long as there is still room to move the needle further south, when in fact it is really the other way around. I do agree with the first half of his statement. He isn't a monster. He is a fallen being capable of unthinkable actions but he is still a son of Adam, made in the image of God, loved by God and can still submit himself to Christ's lordship and receive grace. The term monster is simply our way of distancing ourselves from him. So we can glory in the comparative sinlessness of our own lives. This is in fact exactly what Friztle is doing with the second half of his statement - he can show that he is also comparatively good, its all a question of your standard.
Then we consider his anticipated defense - insanity. The proof being that all the things he did were so bad, how could a good person do that without being crazy? The proof he is a good person? Well, think of what he COULD have done.
Lower the bar enough, and everyone is good, and those who aren't have some sort of mental disorder, so it isn't their fault, it is society's. There is a great quote by G.K. Chesterton on this subject -
"Whether or no man could be washed in miraculous waters, there was no doubt at any rate that he wanted washing. But certain religious leaders in London, not mere materialists, have begun in our day not to deny the highly disputable water, but to deny the indisputable dirt."
"I'm only being portrayed as a monster and not as someone who committed monstrous acts... I could have killed all of them — then nothing would have happened. No one would have ever known about it."
I see this sort of thinking as endemic in our society, the skewed moral compass that assumes it must be pointing more or less north as long as there is still room to move the needle further south, when in fact it is really the other way around. I do agree with the first half of his statement. He isn't a monster. He is a fallen being capable of unthinkable actions but he is still a son of Adam, made in the image of God, loved by God and can still submit himself to Christ's lordship and receive grace. The term monster is simply our way of distancing ourselves from him. So we can glory in the comparative sinlessness of our own lives. This is in fact exactly what Friztle is doing with the second half of his statement - he can show that he is also comparatively good, its all a question of your standard.
Then we consider his anticipated defense - insanity. The proof being that all the things he did were so bad, how could a good person do that without being crazy? The proof he is a good person? Well, think of what he COULD have done.
Lower the bar enough, and everyone is good, and those who aren't have some sort of mental disorder, so it isn't their fault, it is society's. There is a great quote by G.K. Chesterton on this subject -
"Whether or no man could be washed in miraculous waters, there was no doubt at any rate that he wanted washing. But certain religious leaders in London, not mere materialists, have begun in our day not to deny the highly disputable water, but to deny the indisputable dirt."
Thursday, April 17, 2008
Obama the liar
From the Democratic primary debate on Wednesday.
Q: Can you make an absolute, read-my-lips pledge that there will be no tax increases of any kind for anyone earning under $200,000 a year? ... Senator Obama?
Obama: Well, I not only have pledged not to raise their taxes, I've been the first candidate in this race to specifically say I would cut their taxes.
(a few minutes later)
Obama: What I have proposed is that we raise the cap on the payroll tax, because right now millionaires and billionaires don't have to pay beyond $97,000 a year.
Q: Can you make an absolute, read-my-lips pledge that there will be no tax increases of any kind for anyone earning under $200,000 a year? ... Senator Obama?
Obama: Well, I not only have pledged not to raise their taxes, I've been the first candidate in this race to specifically say I would cut their taxes.
(a few minutes later)
Obama: What I have proposed is that we raise the cap on the payroll tax, because right now millionaires and billionaires don't have to pay beyond $97,000 a year.
Wednesday, March 12, 2008
officially over the hump
We just sent off our first mortgage payment in which the principal that we're paying is more than the interest. Gwyneth and I are planning on going out to celebrate later this month. I figured in honor of this I should post some of the things we learned while buying a house. Some of this information may have become more obvious thanks to the Sub-prime crisis, but I'll post it anyway.
1. Don't even think about buying a house unless you can put 10% down, and 20% is better - I know that it's frustrating to rent while your friends are buying and your family is telling you that you are "throwing your money away", but you are really asking for trouble buying a house with very little down. We know people who can't move because the market went down and now they owe more on their house than it's worth (or at least more than they would clear after paying the realtor's commission). This is a bad position to put yourself in, especially if God is calling you to move. I used to not say anything when friends told me they were considering this, but I've decided that being a real friend means saying things that are hard and that people don't want to hear.
2. Make every effort to get the best rate you can (i.e. look at lots of different sources). Don't trust that your mortgage broker is doing right by you (our mistake), and definitely don't get a mortgage from a big bank (credit union rates usually are up to half a point better). A tenth of a point doesn't seem like a lot, but over the course of the loan it will be several thousand dollars.
3. Under no circumstances use one of the online calculators that tell you how much house you can "afford". Sit down and look at the budget to figure out what kind of payment makes sense. Chances are good that the number you come up with will be several hundred dollars per month less.
4. Consider a 15 year mortgage instead of a 30 year. I'm not going to be dogmatic about this since I see both sides of the argument, but at least consider getting a 15 year mortgage. You'll get a better rate than a 30 year and save tons of money on interest over the course of the loan. The downside is that if your job situation changes, you need to have the flexibility to meet the higher monthly payment. My favorite online calculator to figure this stuff out is Karl's mortgage calculator. If you do go with a 30 year loan for safety reasons, definitely consider prepaying principal to finish off the loan before 30 years.
5. This one is obvious now that we've had the credit crunch, but you don't want an ARM, get a fixed rate mortgage.
6. Avoid paying "points". This is money that you pay up front to get a better rate. Any cash you have lying around should go to principal, not thrown away in closing costs. Don't forget that if interest rates go down anytime between now and the next 30 years, you can always refinance and that most people will either refinance or move WELL before the crossover mark of when paying points pays off.
7. I know it's tempting to get a house that you can "grow into", but if you assume that property values do about the same as inflation (this one obviously depends greatly what market you're in), you save a TON of money if you buy a starter house and then move into a bigger house 5-7 years later even if you include the realtor's commission. Play with Karl's Mortgage Calculator to see the details.
1. Don't even think about buying a house unless you can put 10% down, and 20% is better - I know that it's frustrating to rent while your friends are buying and your family is telling you that you are "throwing your money away", but you are really asking for trouble buying a house with very little down. We know people who can't move because the market went down and now they owe more on their house than it's worth (or at least more than they would clear after paying the realtor's commission). This is a bad position to put yourself in, especially if God is calling you to move. I used to not say anything when friends told me they were considering this, but I've decided that being a real friend means saying things that are hard and that people don't want to hear.
2. Make every effort to get the best rate you can (i.e. look at lots of different sources). Don't trust that your mortgage broker is doing right by you (our mistake), and definitely don't get a mortgage from a big bank (credit union rates usually are up to half a point better). A tenth of a point doesn't seem like a lot, but over the course of the loan it will be several thousand dollars.
3. Under no circumstances use one of the online calculators that tell you how much house you can "afford". Sit down and look at the budget to figure out what kind of payment makes sense. Chances are good that the number you come up with will be several hundred dollars per month less.
4. Consider a 15 year mortgage instead of a 30 year. I'm not going to be dogmatic about this since I see both sides of the argument, but at least consider getting a 15 year mortgage. You'll get a better rate than a 30 year and save tons of money on interest over the course of the loan. The downside is that if your job situation changes, you need to have the flexibility to meet the higher monthly payment. My favorite online calculator to figure this stuff out is Karl's mortgage calculator. If you do go with a 30 year loan for safety reasons, definitely consider prepaying principal to finish off the loan before 30 years.
5. This one is obvious now that we've had the credit crunch, but you don't want an ARM, get a fixed rate mortgage.
6. Avoid paying "points". This is money that you pay up front to get a better rate. Any cash you have lying around should go to principal, not thrown away in closing costs. Don't forget that if interest rates go down anytime between now and the next 30 years, you can always refinance and that most people will either refinance or move WELL before the crossover mark of when paying points pays off.
7. I know it's tempting to get a house that you can "grow into", but if you assume that property values do about the same as inflation (this one obviously depends greatly what market you're in), you save a TON of money if you buy a starter house and then move into a bigger house 5-7 years later even if you include the realtor's commission. Play with Karl's Mortgage Calculator to see the details.
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