Archive for September, 2009

Select quotes from Atlas Shrugged

After a little re-reading, I’ve noticed another part of Atlas Shrugged that seems to be timely. Here are some quotes about a small-scale factory socializing, among other things, health care.

Atlas Shrugged – Part II – Chapter X

The plan was that everybody in the factory would work according to his ability, but would be paid according to his need.

…it wasn’t too clear, but nobody asked any questions. None of us knew just how the plan would work, but every one of us thought that the next fellow knew it. And if anybody had doubts, he felt guilty and kept his mouth shut—because they made it sound like anyone who’d oppose the plan was a child killer at heart and less than a human being. They told us that this plan would achieve a noble ideal.

When it’s all one pot, you can’t let any man decide what his own needs are, can you?

Well, anyway, it was decided that nobody had the right to judge his own need or ability. We voted on it.

In the old days, we used to celebrate if somebody had a baby, we used to chip in and help him out with the hospital bills, if he happened to be hard-pressed for the moment. Now, if a baby was born, we didn’t speak to the parents for weeks. Babies, to us, had become what locusts were to farmers. In the old days, we used to help a man if he had a bad illness in the family. Now—well, I’ll tell you about just one case. It was the mother of a man who had been with us for fifteen years. She was a kindly old lady, cheerful and wise, she knew us all by our first names and we all liked her—we used to like her. One day, she slipped on the cellar stairs and fell and broke her hip. We knew what that meant at her age. The staff doctor said that she’d have to be sent to a hospital in town, for expensive treatments that would take a long time. The old lady died the night before she was to leave for town. They never established the cause of death. No, I don’t know whether she was murdered. Nobody said that. Nobody would talk about it at all. All I know is that I—and that’s what I can’t forget!—I, too, had caught myself wishing that she would die. This—may God forgive us!—was the brotherhood, the security, the abundance that the plan was supposed to achieve for us!

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Croton Water Filtration Plant Project

According to New York City Comptroller, William C. Thompson, the new Croton Water Filtration Plant Project is necessary to “ensure that our water remains clean”. Additionally, the federal government charged that the city had failed to protect its water system. Accordingly, New York City agreed to build the Croton Walter Filtration Plant. With such an important issue, the plant should have been fast-tracked and completed within 5 years. Don’t remember hearing about this? Maybe it’s because this happened over 10 years ago. Haven’t heard anything about it recently? Maybe it’s because the plant isn’t ready yet – not even close.

According to a study by the City of Winnipeg, a new Water Treatment Plant, from pre-construction approval to operation, should take 6 years and cost $204 million. “This includes design, construction and environmental approval costs, and provides for inflation.” Only 2-3 of these years are needed for actual construction.

In New York, as usual, government planners have under-budgeted and under-estimated project times. Although the plant should cost $200 million, New York City budgeted $992 million and 8 years. That’s 5 times the budget and 150% the allotted time. Maybe they were following the rule of thumb that project always take twice as long and cost twice as much as planned.

In usual government fashion, the treatment plan “will cost more than twice the original estimate of $992 million and it will not be finished on time“. With a budget expansion of over $1 billion and an additional 4 years tacked on, the new plant is expected to open on October 31, 2011 at a cost of over $2 billion. October 2011? Don’t hold your breath. And unlike the World Trade Center, this is without the MTA and Port Authority holding it up.

After acknowledging the importance of the situation, over 10 years have gone by, and there is still no treatment plant. It’s a good thing the government can milk the taxpayers and doesn’t have to beg bondholders for more money, otherwise this plan would have been grounded years ago.

If it can’t produce clean drinking water in a dozen years for 10 times the average cost, why should we trust the government to manage something as complicated as a health care system? We also shouldn’t trust their cost estimates. Not without magnifying them 10-fold.

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