Good morning! Let’s get straight into the mailbag, as I’ve received some fascinating questions, comments, and issues. I love it!

Luigi the Lone Wolf

Sean, great piece on Tucker/Lavrov interview. From a common sense perspective (which obviously is not a strong point of our current administration), this is what I expect would be Russia’s standpoint. My family and I are headed to Hungary and surrounding countries for the Christmas markets. Gulp!! (Russia, just hold on until DJT takes office.) 

On another note, I am going to disagree with the prevailing rhetoric on the sad murder of CEO Thompson. Agree that the healthcare industry is out of control, however, I am inclined to think this was a hit but I reserve the right to be wrong. I’m surprised the authorities haven’t announced that he committed suicide, like the lady who shot herself twice in the head🙄! I guess if it was a hit he would have jumped off a roof just as someone “tried to save him,” or some such malarkey!! Too many witnesses for that tale!!

Ok, I am done opining. Have a great day in Italy - not that I am jealous that you are in my homeland or anything. 😁 (I should probably say my ancestor’s homeland.)

Best,

Susan D.

Thanks for writing, Susan! First, Pam, Micah, and I took a fantastic Christmas trip back in 2019 to Prague, Budapest, Bratislava, and Vienna. The Christmas markets in each of them are spectacular. No need to worry about Vlad Putin doing anything untoward in those countries, as they’re all Russian allies, save Czechia. Slovakia and Hungary are Russia’s main European friends, and there may be more Russian spies in Vienna than in London. Vienna is the spook capital of Europe due to a law allowing spies on its soil as long as they don’t act against the Austrian state. The pretzels are to die for and go particularly well with mulled wine or champagne. Try tokaji (sweet wine) in Hungary if you haven’t already. Egészségére!

As for Thompson, it was a hit! But the assassin’s profile is as startling as the crime.

Bro’ Sean: I am a big fan of yours. But you know there is a roasting coming your way on this article. First, it’s just plain premature. (Looks, to me, more like a professional hit vs a hit from a disgruntled/denial of care member. Pure speculation on my part.) The “callous” label will also be hurled your way. The irony here is that you are talking about a very callous business. Seldom is the intent in this business to “manage care” but more about “managing costs.” Then again, perhaps you saw this sad and unfortunate incident as good a pretext as any to talk about how the “sausage” gets made in this biz.

Many thanks,

Basil G.

Thanks for writing, Basil. I take no umbrage at the term “callous” tossed my way. Guilty as charged! You’re correct in that many, if not most, providers care more about managing cost than managing care. Let’s see how this affects UNH’s claims rejection rate. 

Mr Ring, my but you are easily impressed! Perhaps you missed the quadriennial festivities of the US Presidential Election? Not tremendously different from the Olympic Games. There is so much attention, press coverage and like gossip that you cannot wonder that some lost souls are persuaded to violence. Coverage of corporate [nis]doings is less than one tenth, so fewer assassins are found and motivated.

Robert R. 

Hi Robert. I reckon that will change. Copycats will look at Luigi’s sloppiness and think, “I can do this better, more cleanly, and get away with it.”

Sean,

You made many valid points. The most important was that "CEOs need to make big calls with more in mind than the bottom line." When I finished my business degree, the prevailing view was that “a CEO's only moral imperative was to maximize shareholder value,” and Ray Blanco's chart is just one of many indicators of corporate malfeasance disguised as efficient capitalism. Regulatory "guard rails" exist not because capitalism is a flawed system, but because human beings are. An angry, frustrated populace with plenty of guns is ripe for all sorts of "acting out," so I expect to see a lot of "corporate/executive security" on balance sheets in the future. P.S. The topic of cities' complexity and crime is a topic for a different discussion, but personally, I grew up in cities until I moved to Alaska at age 30. I could never live in a large city again, and the century-long migration from farm town to city has reversed. You didn't choose Rome, did you?

Damon C.

Damon, I, too, read Uncle Miltie’s “The Social Responsibility of Business is to Increase Its Profits” in my—would you believe it—business ethics class, a required course at Villanova. As we’ve seen, we don’t need an angry, frustrated populace to act out. We just need one kid with a 3D printer. Why aren’t I in Rome, London, or New York instead of the countryside? First, safety was my number one priority for Micah. Second, getting paid inflationary wages while living in a place with noninflationary prices (for the most part) is smart arbitrage. But I take your point.

Terrible Tariffs?

Hi Sean, 

You're at it again, causing your readers to think (horror of horrors), and Wednesday's "Rude" undertook a topic of tremendous mis- and malinformation.  I am not at all suggesting what you wrote about tariffs is in error, but I have come across a few contrarian articles concerning them.  One posited that China actually paid 80% of the tariffs Trump introduced (and continued by The Turnip), because they need to keep their economy expanding, and not wanting a lot of unemployed young men getting any revolutionary ideas in their great cities.  So it's a stability issue.  All I ever read is that tariffs "bad," free trade "good."  But haven't Euro nations been protecting their industries with tariffs and VAT taxes for decades?  I'm sure the answer lies somewhere in the middle.

Best,

Brian H.

Thanks for writing, Brian! I’m torn on this subject. Much of the confusion stems from our failure to differentiate between price-maker nations and price-taker nations. For instance, Hong Kongers and Singaporeans scream at the top of their lungs for free trade because, as essentially huge ports with no land, they need free trade to function. However, the nascent United States ran on tariffs until the twentieth century. Singapore and Hong Kong are price takers. America, with its enormous domestic market, is a price-maker economy.

I can’t find any evidence to support your assertion that China paid the tariffs. According to this paper and this paper from the National Bureau of Economic Research, Americans paid for practically all the tariffs imposed. Of course, they could be wrong. If you could write in again with your source, I’d love to read it.

Finally, I laughed out loud as I read your second-to-last sentence. How’s that working out for the EU? 😜

From Hunter to Hunted?

Good morning Sean,

Someone mentioned that Hunter's pardon allows investigations into Ukraine and the CCP Gas Co. and putting Hunter on the stand, where he cannot evoke the 5th Amendment. Since he doesn't face self-incrimination, he could be compelled to spill his guts (sorry for that hideous visual).

Best,

Brian H.

I could be wrong, but I looked it up. As far as I can see, Biden the Younger cannot be tried for any federal crime that may have occurred between January 1, 2014, and December 1, 2024. But that doesn’t mean individual states can’t have a pop at him.

Wrap Up

Thanks for the wonderful mailbag! I’ll answer some more as we go into the holiday season. I’m also planning more Rude School editions for the markets questions I’ve received. They’re great, as well.

Have a fabulous day!