4 - Tuesday, March 24, 2009 The Michigan Daily - michigandaily.com I e Iicl ig n aiiy Edited and managed by students at the University of Michigan since 1890. 420 Maynard St. Ann Arbor, MI 48109 tothedaily@umich.edu GARY GRACA ROBERT SOAVE COURTNEY RATKOWIAK EDITOR IN CHIEF EDITORIAL PAGE EDITOR MANAGING EDITOR Unsigned editorials reflectthe official position ofthe Daily's editorial board. All other signed articles and illustrations representsolely the views oftheir authors. FROM TH E DAILY The cost of coverage Universal health care would make system more affordable hile many University students wait in fear of another tuition hike, faculty members took the first financial hit last week.. On Friday, the University announced that faculty and retirees on University health plans will have to pay a higher proportion of the costs. Though this will be a tough increase for faculty, the University wasn't left with much of a choice. Burdensome health care costs are a national problem, and institutions like the University shouldn't be responsible for them. Instead, the federal government needs to create a universal health care system that provides for the medical needs of all people - a reform that eases the financial burden many organizations like ours are carrying. According to University officials, health care is the most rapidly increasing cost on the University's budget. That's one reason why faculty members will soon be paying 30 percent of their total health care costs under a new plan - a considerable increase over the current 20 percent. The commit- tees that created the plan, the Committee on Sustainable Health Benefits and the Committee to Study Retirement Savings Plan vesting Options, opted to increase faculty contributions, rather than scrap benefits. With the University facing rising costs and state funding cuts from the state, something had to give. Failure to cut costs could harm other priorities like the need to keep tuition low. These costs are clearly draining money that should be available for other things. And the University isn't the only one hurt- ing -burgeoninghealth care costs are partly to blame for the financial woes of Michigan's auto makers. The best solution to the prob- lems is federally managed universal health care. This would alleviate health costs that employers shouldn't have to worry about. The rising cost of health care is a national issue that shouldn't be left to individuals, employers and schools to solve. The government is better equipped to address escalating costs and also has a duty to provide such services to all people. A national health care plan would reduce the cost of health care because private plans that already exist would have to offer lower prices to compete. This would in turn drive down costs for institutions like the University. With the cost of health care decreas- ing from the creation of a national system, more people will be able to afford coverage. opponents of universal health care might claim that a universal policy will lower the quality of care or result in abuse of the system, but this shouldn't be the case in a well-managed program. Universal health care is the best solution to the inequalities created under current health care policies. Colleges shouldn't have to struggle with raising tuition or charging faculty mem- bers through the roof for services that their lives cpuld literally depend on. Edu- cators and other individuals aren't respon- sible for the problems in private health care systems - they shouldn't have to pay the price for the problem. And the federal government can't shirk its responsibility to make high quality health care accessible to everyone. It's time for Congress to make efficient, affordable health coverage a real- ity for all Americans. Notre Dame has chosen prestige over principles, popularity over morality.' - A petition from the Cardinal Newman Society, calling for the University of Notre Dame to rescind its invitation to President Barack Obama to speak at commencement, as reported yesterday by the Chicago Tribune. ELAINE MORTON I T CLLS E-MAIL ELAINE AT EMORT@UMICH.EDU Sunday was World Witer Day. 20% ofrWho? peopleVon 5rP+e don- MOr+1' f1 orAnae dcinkir 4te C. S''r' Discounting the future T he last eight years have been of our industrial base, fatal weaken- And of course, government paper especially difficult for capital- ing of our currency and the accumu- would be the market's last choice as a ists like myself. A lot of non- lation of massive amounts of debt. monetary arrangement, as evidenced sense has recently But the current macroeconomic pol- by the fact that it took until 1690 for been written about icy espoused by most economists is government paper money to be cre- the alleged free- still that spending "drives" the econ- ated. There is also the fact that a cen- market activities omy and all we have to do to become tral bank has never existed without causing our current wealthier is buy more things. express consent of the government, instability. To me, We are consumingcapital - we are i.e. banks have never taken over the this view is comical. diverting resources away from sav- economy without the direct help of But for the populace ings and toward consumption. This government. This should make it clear as a whole, it's not leads to a higher standard of living that manipulation of money and cred- only damaging but in the short run but eventually will it is impossible on the free market. potentially fatal. VINCENT lead to economic collapse. Suppose In the first place, PATSY my car was not running well and I a free market is an -_ needed to get it fixed. I could decide economic system to delay spending money to fix my car HOw speculation in which the means of production and spend the money on something are entirely privately owned. We do else, like a new TV. Eventually, my -has depleted not operate under a free market, as car would stop working and I would evidenced by the fact that I attend a need to pay more to fix it. Saving our savings. public university. money allows for a higher standard But it gets worse when one turns to of living in the future at the expense the financial sector. The basis of our of the present. Our current economic financial system is a government car- philosophy says-that saving money The important question is not how tel of private banks with the Federal is unimportant, which destroys our to get out of this mess, but rather how Reserve having the sole monopoly on future standard of living for the sake the mistakes could have been made the creation of money and credit. To of the present. in the first place. Why was there sud- put this in perspective, the only com- --As I mentioned in a coluan a few denly a massive rise in housing prices parable sector of the economy would weeks ago, our current baking at the same time as a massive expan- be passenger train service, which arrangement of fractional-reserve sion ofcredit? Whyis it thatthere was is controlled by government-owned banking is not a market institution. enough credit for those companies Amtrak. These are examples of pri- Even if it were permitted, however, to expand that way? In a free mar- vate corporations owned and con- banks in a free market would have ket, if you extend your position, you " trolled by the government - hardly a to pay depositors on demand. This become riskier and thus less credit market institution. means that under a free market, is available. By doing the opposite of Under a free market, there obvi- eventually fractional reserve banking the market, the Fed made speculation ously would be no central bank, and would eventually become 100 percent a costless venture, and thus investors interest rates would be set by the reserve banking. who were risky became thesuccessful amount of savings. With our savings Since the government guarantees ones. This promotion of speculation rate going negative in the last few money market funds, bank accounts was a result of government interven- years, we should have seen a massive and other financial instruments, tion into the market. Add in the fact rise in interest rates. Since this didn't there is little incentive for inves- that the government was unwilling to happen, it's safe to assume the free tors to do due diligence on where to shut it down and it's no wonder we're market has not been setting interest put their money. There is also little in our current predicament. rates, incentive for banks to be honest or to Would you still say capitalism By setting interest rates low, the act prudently, which leads to incred- abounds, comrades? federal government has decreased ible moral hazard. Do you honestly the amountnofsavings in the economy. believe that George Bush's minions - Vincent Patsy can be reached This has resulted in the destruction were that competent? at vapatsy@umich.edu. LETTERS TO THE EDITOR: Readers are encouraged to submit letters to the editor. Letters should be less than 300 words and must include the writer's full name and University affiliation. Letters are edited for style, length, clarity and accuracy. All submissions become property of the Daily. We do not print anonymous letters. Send letters to tothedoily@umich.edu. LISA TREUMUTH AND JOSHUA LEEI VIEWPOINT Recognizing World TB Day EDITORIAL BOARD MEMBERS: Nina Amilineni, Emad Ansari, Emily Barton, Elise Baun, Harun Buljina, Ben Caleca, Satyajeet Deshmukh, Brian Flaherty, Emmarie Huetteman, Emma Jeszke, Sutha K Kanagasingam, Shannon Kellman, Jeremy Levy, Erika Mayer, Edward McPhee, Matthew Shutler, Neil Tambe, Radhika Upadhyaya, Rachel Van Gilder SEND LETTERS TO: TOTHEDAILY@UMICH.EDU Rich pay more than their fair share of tax burden the bottom SO pt Under Obama' ers will pay no in' half of earners ha other people's me TO THE DAILY: some is the fact t I enjoyed reading Patrick O'Mahen's latest nesses - the prir column (Taxation Frustration, 04/23/2009) - file under pers about how income taxes are unfair to poorer nesses will be the people. The article epitomizes the spin Presi- and will directly dent Barack Obama as well as many liberals put can - by cuttingj on the way income tax works in this country. Many people Obama has claimed that 95 percent of all Forbes Wealthie Americans will pay less in taxes and only the 20 richest people top 2 percent will receive a tax increase. Let's losing a staggeri try to weed through the liberal spin and get ingsentiment th. real. First off, nearly half (45.3 percent in 2007) deserved it, butp of all government revenue comes from individ- facts;and the fac ual income taxes. The top one percent of indi- just realize thatt viduals in this country pay 40 percent of the boat. total revenue from income taxes and the top five percent pay around 60 percent. In addition, Sam van Kleef the bottom 40 percent pay no income tax and LSA freshman ecent pay under 3 percent. s new tax plan, half of all earn- come tax. This would mean that ve absolutelynostake inhowthe oney is spent. Even more worri- hat about half of all small busi- mary job creators in the nation onal income taxes. These busi- e biggest losers in tax increases respond in the only ways they jobs or raising prices. were ecstatic when the new st People list showed 19 out the e were worse off than last year, ng $2 trillion. There is a grow- at those "greedy rich bastards" erhaps we should consider the cts don't lie. Sure, hate the rich; they are the ones who float the JASON MAHAKIAN E-MAIL JASON AT MAHAKIAJ@UMICH.EDU WA Ta, t ti t ,.- MAPIHT txi Today is World TB Day, when countries around the world focus on the problem of tuberculosis, a disease that still kills about 1.7 million people per year. This year, World TB Day falls at a time of financial uncertainty and fear for the future of our economy. During this period of financial crisis for even the richest countries in the world, we in the United States may be tempted to turn inward and look only at our own needs and problems. Of course we must find ways to help American families that have lost their homes and American workers who have lost their jobs. But at the same time, we should not overlook our global family for the sake of our security. Just a little attenition and help can enhance national security while simultaneously upholding the dig- nity oftour fellow human beings. Typical TB can be treated with a cheap six-month pro- gram of two or three medications, but the increasingly common, multi-drug-resistant TB can cost millions of dollars to treat. Nearly 500,000 people around the world developed MDR-TB last year. Even more threatening is extensively drug-resistant TB, which has a mortality rate of 85 percent and has been found in 35 countries, includ- ing the United States. As we learned last year through the case of Andrew Speaker, those with TB in one country can spread the disease easily in a closed area, like in an airplane. Now that global travel is so commonplace, TB in one country threatens all of us. Currently, the United States provides funding for TB programs primarily through the Global Fund to Fight AIDS, TB, and Malaria. This fund, which is financed through contributions from avariety of wealthy countries, solicits grant proposals for health programs in poorer nations to combat these deadly diseases. If the proposals are deemed worthy by an independent technical review panel, the Global Fund grants the money to launch and sustain these programs. Since its inception, the Fund has disbursed $7.2 billion for programs that have saved an estimated 3.5 million lives. In 2007, leaders at the Global Fund Board and G8 agreed to scale yearly contributions to the Global Fund up to between $6-8 billion if countries crafted high-qual- ity grant proposals. This encouraged a dramatic increase in the number and scale of proposals submitted, and the Global Fund agreed to increase yearly funding. But G8 countries have not lived up to their commitments to increase contributions to the Fund yet and consequently many worthy projects still can't obtain funding. If these projects stall, it could lead to lost lives and an increased likelihood that TB will spread to more countries. Congress and the President have a chance to remedy this situation by increasing funding for the Global Fund in the coming supplemental appropriations bill. Our fair * share of the financial need of the Global Fund is $2.7 bil- lion. Compared to the trillions that we have poured into our irresponsible banks, this sum seems like pennies, and this money could actually provide a return on investment. Please contact your legislators and ask them to fight for full funding for the Global Fund. If you are unsure about who your legislator is, feel free to contact Lisa Treumuth (lmtreu@umich.edu) and Joshua Lee (msnbc@umich. * edu) to receive that information. Millions of lives could depend on it - maybe. Joshua Lee is a Business sophomore and Lisa Treumuth is a graduate student. l &