Monday, July 29, 2013

Sebelius: ObamaCare Rollout Tougher Than White House Expected

Health and Human Services (HHS) Secretary Kathleen Sebelius said Monday that she did not anticipate how complicated implementing the president's signature healthcare law would be.

"The politics has been relentless and that continues," Sebelius said, according to Reuters. "There was some hope that once the Supreme Court ruled in July, and then once an election occurred there would be a sense that, 'This is the law of the land, let's get on board, let's make this work.' And yet we will find ourselves having state-by-state political battles."

Speaking to students at the Harvard School of Public Health, Sebelius said implementation had been hampered both by the law's slow roll out and red-state governors and legislators who have rejected state-run insurance exchanges. 

"It is very difficult when people live in a state where there is a daily declaration, 'We will not participate in the law,' for them to figure out whether they are going to benefit," Sebelius said.

The HHS secretary said her department was "closely" monitoring state progress on the exchanges and Medicaid expansion, both set to debut at the beginning of October.

“We are doing a lot of very active one-on-one conversations with states around the country,” she said. “It’s a big lift, and I would say it’s a job that no one has ever done in this country before — not to put too fine a point on it.”

Sebelius also defended the law from criticism that health insurance premiums could rise because of the requirements under the Affordable Care Act. Last month, Sebelius became the first Obama administration official to acknowledge that insurance premiums could increase under the law. But Monday, the HHS secretary argued competition would benefit Americans as they sought a healthcare provider.

"For the first time ever in the history of the United States, they'll have to compete for service and customers, not by cherry-picking the market [and] trying to figure out who can only insure people who promise never to get sick," she said.

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Insurers See Way To Dodge Federal Healthcare Law Next Year

A new fight is brewing over health insurance companies letting millions of Americans renew their current coverage for another year — and thereby avoid changes under the federal healthcare law.

That may offer a short-term benefit for certain consumers and shield some of those individual policyholders from potentially steep rate increases. But critics say this maneuver could undermine government efforts to remake the insurance market next year and keep premiums affordable overall.

At issue is a little-known loophole in President Obama's landmark legislation that enables health insurers to extend existing policies for nearly all of 2014. This runs contrary to the widespread belief that all health insurance must immediately comply with new federal rules starting Jan. 1, when most provisions of the law take effect.

"Insurers are onto this, and the big question is how many will try to game the system," said Timothy Stoltzfus Jost, a law professor and health policy expert at Washington and Lee University.

Some of the nation's biggest health insurers are looking to take advantage of this delay, and Arkansas officials are encouraging companies to do this by resetting customers' renewal dates for the end of December. There's also concern that some insurers and agents could rush to sell more individual policies before year-end so they could be extended in 2014.

Some policy experts are expressing concern about this practice for fear that insurers will focus on renewing younger and healthier policyholders and hold them out of the broader insurance pool next year. Their absence could leave a sicker and older population in new government insurance exchanges, driving up medical costs and premiums there.

"This could undermine the Affordable Care Act, and it opens the door for exacerbating potential rate shock in the exchanges," said Christine Monahan, a senior analyst at Georgetown University's Health Policy Institute. "The health insurers can cherry-pick some healthy people and it raises prices for everyone else."

This issue could affect some of the 15 million people nationwide who purchase their own coverage and millions more of the uninsured who are expected to join government exchanges next year. It would not pertain to the 150 million Americans who get health benefits through their employers.

Many health insurers are still mulling over their options on how to handle these individual renewals.

"Some carriers will require everyone to switch plans Jan. 1, and other carriers will allow customers to stay on their existing plan as long as possible," said Bob Hurley, senior vice president of carrier relations at online site eHealthInsurance. "We are trying to nail this down with the carriers. I think it would be better for consumers to have that choice to carry their policy forward."

The nation's largest health insurer, UnitedHealth Group Inc. of Minnetonka, Minn., said, "We are currently looking at the best way to serve our customers' best interests while continuing to comply with the Affordable Care Act going into 2014."

WellPoint Inc., the Indianapolis insurance giant that runs Blue Cross plans in California and 13 other states, said its renewal practices will vary by state. In California, the company said its Anthem Blue Cross unit may allow individual policyholders to renew through March 31.

Kaiser Permanente, a major nonprofit health plan based in Oakland, said it doesn't plan to renew policies beyond Jan. 1 in California and most of the other states where it sells coverage.

Richard Kern and his wife, a retired couple in Los Angeles, say they would welcome the flexibility to keep their individual policy from Aetna Inc. for another year amid so much uncertainty over next year's rates.

"We don't even know what the prices and alternatives are under Obamacare," Kern said. "We are waiting for the other shoe to drop."

If an insurer offers this option, it would then be up to consumers to decide whether they want to renew an existing policy into 2014. The length of any renewal may depend on what month their annual plan year begins.

Many lower-income people will qualify for federal premium subsidies, which will be available only when purchasing new coverage available in state- or federal-run insurance exchanges. It would make financial sense to take advantage of that government aid. Individuals earning less than $46,000 or families below $94,000 annually would be eligible for subsidies.

However, many people who are middle income or above could face significantly higher premiums next year with no subsidies. Those premium increases are tied to federal requirements that insurers accept all applicants regardless of their medical condition and the inclusion of more comprehensive benefits.

Renewing an older policy could mean forgoing some of those richer benefits and new limits on out-of-pocket medical expenses.

Last week, California officials estimated that premiums may rise 30% on average for about 1.3 million existing policyholders primarily because of those changes in the federal law. Insurers have warned that some customers could see their premiums double depending on their age and other factors.

Citing that threat of higher rates, Arkansas officials issued a bulletin to insurers last month describing how they could extend individual policies until Dec. 30, 2013, and then renew them for another year.

These health plans "would not be required to comply with the [Affordable Care Act] market reforms until 12/31/2014," according to the Arkansas bulletin.

"For those folks who don't qualify for subsidies, this is a consumer-friendly thing because the premium rates for 2014 will be substantially higher," said Dan Honey, deputy commissioner of compliance for the Arkansas Insurance Department. "You will be exposed to rate shock."

Other states may oppose that approach, further underscoring the uneven implementation of the federal healthcare law across the country. Oregon Insurance Commissioner Louis Savage said these renewals could be problematic and his office issued a rule barring any extension beyond March 31, 2014.

"We want to get as many people as possible into the exchange," Savage said. "I think having renewals go deep into 2014 is counterproductive to the goals of the federal healthcare law."

In California, state lawmakers are working on legislation that could address this renewal issue and other details about how individual policies comply with the federal overhaul.

These questions over renewals are separate from "grandfathered" health policies that existed before the federal law passed in March 2010. Those plans don't have to meet all the requirements of the healthcare law as long as insurers or employers don't make significant changes to them.

chad.terhune@latimes.com


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Hi there! :) My name is Gustavo, I'm a student studying International Relations from Palaiseau, France.

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Statement by NSC Spokesperson Caitlin Hayden on Earthquake in Southern Iran

Statement by NSC Spokesperson Caitlin Hayden on Earthquake in Southern Iran | The White House Skip to main content | Skip to footer site map The White House. President Barack Obama The White House Emblem Get Email UpdatesContact Us Go to homepage. The White House Blog Photos & Videos Photo Galleries Video Performances Live Streams Podcasts 2012: A Year in Photos

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For Immediate Release April 10, 2013 Statement by NSC Spokesperson Caitlin Hayden on Earthquake in Southern Iran

The American people extend condolences to the people of Iran for the devastation that resulted from the recent earthquake and aftershocks in southern Iran, particularly to those whose loved ones were injured or lost their lives.  We are deeply saddened by the loss of life and the destruction that’s been caused by this disaster, and stand ready to help the Iranian people in this time of need.

Extending Middle Class Tax Cuts

Blog posts on this issue April 15, 2013 6:16 PM EDTPresident Obama Speaks on the Explosions in Boston

President Obama makes a statement about the explosions at the Boston Marathon.

April 15, 2013 5:53 AM EDTWhite House Taxpayer Receipt

Understand how and where your tax dollars are being spent.

April 13, 2013 12:28 PM EDTPresident Obama: "Why I'm not giving the Weekly Address"

President Obama sends a message to the White House email list to explain why he asked Francine Wheeler to deliver the Weekly Address.

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Sunday, July 28, 2013

How Obamacare Will Distort the Health-Care Market

President Barack Obama and his fellow Democrats sold many Americans on the Affordable Care Act largely by emphasizing two arguments: The law would help to reduce overall health-care costs, and it would provide health insurance to those who, for financial or health reasons, cannot get it now.

Unfortunately, both of these arguments are flawed. The law creates market distortions that will significantly raise premiums and costs for many Americans -- including some middle- income families. And there are less costly, less distortionary and less intrusive ways to address the problem of the uninsured.

Two recent independent and nonpartisan studies help to explain how the law fails in its mission.

The first is from the Society of Actuaries, a group representing professionals who measure and manage financial risk. The main conclusion is that individuals and families who purchase their health insurance in the non-group (basically the non-employer-based) market will have to pay higher premiums. This is because the law will increase by 32 percent the costs that insurers must cover for health-care services, the largest driver of health-insurance premiums.

The second study, commissioned by Covered California, the California entity responsible for setting up the state’s health- insurance exchange, speaks directly to premium rates. Isolating the impact that market changes caused by the new federal law will have, the study concludes that premiums for Californians will rise by an average of 14 percent. Increases will be most pronounced for those families who currently have health insurance and are making more than $94,000 or so -- for them, premiums may rise by an average of 30 percent.

What’s the primary reason for these cost increases? In short, it’s the law’s market distortions. Both studies conclude that because the law requires insurers to provide coverage to all comers -- regardless of their pre-existing health status -- the overall pool of those with health insurance will be sicker and more costly to insure.

Public policy sometimes creates market distortions -- as with the minimum wage, for example, or some agricultural subsidies -- and in those cases Americans may believe that the economic costs are outweighed by the societal benefit. But we should make these judgments with our eyes wide open.

In the case of health-care reform, there are less expensive and intrusive ways to help cover the uninsured. We can accomplish many of the Affordable Care Act’s stated goals while still addressing the shortcomings of our health-care system.

Arguably the most significant problem that the law tries to solve with its massive regulatory edifice is that of the patient with a pre-existing medical condition who is either denied coverage altogether or charged a prohibitively high premium. These are people who generally face hurdles in the transition from employer-based coverage to individually purchased insurance, or who are changing plans in the individual market. It’s a problem that affects as many as 4 million Americans, and it’s one that policy makers ought to solve.

The law addresses these concerns primarily through two regulations: as noted earlier, a requirement that insurers provide coverage to anyone who applies, and a prohibition on any variance in premium due to health status. Unfortunately, these rules create the very market distortions that raise consumer costs.

There is another way to solve this problem. State-based, high-risk health-insurance pools can be an effective way of getting those with pre-existing conditions (and therefore high health-care costs) access to affordable health insurance.

High-risk pools generally offer a choice of insurance plans, and enrollment in them is limited to those unable to get or afford other coverage. Premiums are capped, and the additional cost of coverage is paid through a variety of sources, such as assessments on insurers or tax revenue. Because high-risk pools are isolated from the broader health-insurance marketplace, they don’t increase premiums for those outside the pool.

The challenge with high-risk pools is that they must be properly funded and designed. As the fiscal condition of states has worsened over the past few years, funding for high-risk pools has become even more limited. Three years ago, two conservative scholars estimated that a “comprehensive set of high-risk pool programs” would cost $15 billion to $20 billion per year. That is a small fraction of the new spending the Affordable Care Act creates.

The federal government should ensure that state-based, high-risk pools are properly funded, perhaps in the form of block grants to states, which should be regularly reviewed to ensure adequacy. And states should have rules to prevent both insurers and individuals from improperly taking advantage of the high-risk pools.

Solutions such as these are far preferable to the Affordable Care Act’s one-size-fits-all approach. Rather than distort the health-insurance marketplace in a way that will increase costs for many Americans, we should focus on reforms that use market forces to reduce costs. Americans should know that there are better ways to bring about health-care reform.

(Lanhee Chen is a Bloomberg View columnist and a research fellow at the Hoover Institution at Stanford University. He was the policy director of Mitt Romney’s 2012 presidential campaign. The opinions expressed are his own.)

To contact the writer of this article: Lanhee Chen at lchen301 @bloomberg.net or @lanheechen on Twitter.

To contact the editor responsible for this article: Michael Newman at mnewman43@bloomberg.net

Lanhee Chen

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Obamacare Credits Could Trigger Surprise Tax Bills

WASHINGTON (AP) -- Millions of people who take advantage of government subsidies to help buy health insurance next year could get stung by surprise tax bills if they don't accurately project their income.

President Barack Obama's new health care law will offer subsidies to help people buy private health insurance on state-based exchanges, if they don't already get coverage through their employers. The subsidies are based on income. The lower your income, the bigger the subsidy.

But the government doesn't know how much money you're going to make next year. And when you apply for the subsidy, this fall, it won't even know how much you're making this year. So, unless you tell the government otherwise, it will rely on the best information it has: your 2012 tax return, filed this spring.

What happens if you or your spouse gets a raise and your family income goes up in 2014? You could end up with a bigger subsidy than you are entitled to. If that happens, the law says you have to pay back at least part of the money when you file your tax return in the spring of 2015.

That could result in smaller tax refunds or surprise tax bills for millions of middle-income families.

"That's scary," says Joan Baird of Springfield, Va. "I had no idea, and I work in health care."

Baird, a health care information management worker, is far from alone. Health care providers, advocates and tax experts say the vast majority of Americans know very little about the new health care law, let alone the kind of detailed information many will need to navigate its system of subsidies and penalties.

"They know it's out there," said Mark Cummings, who manages the H&R Block office where Baird was getting her own taxes done. "But in general, they don't know anything about it."

A draft of the application for insurance asks people to project their 2014 income if their current income is not steady or if they expect it to change. The application runs 15 pages for a three-person family, but nowhere does it warn people that they may have to repay part of the subsidy if their income increases.

"I think this will be the hardest thing for members of the public to understand because it is a novel aspect of this tax credit," said Catherine Livingston, who recently served as health care counsel for the Internal Revenue Service. "I can't think of what else they do in the tax system currently that works that way." Livingston is now a partner in the Washington office of the law firm Jones Day.

There's another wrinkle: The vast majority of taxpayers won't actually receive the subsidies. Instead, the money will be paid directly to insurance companies and consumers will get the benefit in reduced premiums.

Health care providers and advocates for people who don't have insurance are planning public awareness campaigns to teach people about the health care law and its benefits.

Enroll America, a coalition of health care providers and advocates, is planning a multimillion-dollar campaign using social media, paid advertising and grass-roots organizing to encourage people who don't have insurance to sign up for it, said Anne Filipic, a former Obama White House official who is now president of the organization.

The Obama administration says it, too, is working to educate consumers.

"On Oct. 1, each state will have a marketplace up and running where consumers can choose a private health insurance plan that fits their health needs and budget," said Treasury spokeswoman Sabrina Siddiqui. "The premium tax credits will give middle-class Americans unprecedented tax benefits to make the purchase of health insurance affordable for everyone, and we will continue to work with consumers, community health organizations and other stakeholders to raise awareness and understanding of these tax benefits."

The subsidies, which are technically tax credits because they are administered through the tax code, will help low- and middle-income families buy health insurance through the state-based exchanges. Under the new law, nearly every American will be required to have health insurance starting in 2014, or face penalties.

The enrollment season starts Oct. 1.

The subsidies are available to families with incomes up to 400 percent of the poverty level. This year, four times the poverty level is about $62,000 for a two-person family. For a family of four, it's $94,200.

About 18 million people will be eligible for subsidies, according to the Congressional Budget Office.

If families get bigger subsidies than they are entitled to under the law, the amount they have to repay is capped, based on income and family size. If they get less than they qualify for under the law, the government will pay them the difference in the form of a tax refund.

There are also special rules that protect people who marry or divorce from being required to pay back subsidies just because their marital status changes.

There are four thresholds for repaying the subsidies:

—A family of four making less than $47,000 would have to repay a maximum of $600.

—If the same family makes between $47,000 and $70,000, the amount they have to repay is capped at $1,500.

—If the same family makes between $70,000 and $94,200, the amount is capped at $2,500.

—Families making more than four times the poverty level have to repay the entire subsidy.

"It's potentially going to come as a shock to individuals who meet that criteria where their income hits a point where they owe money back," said Rep. Charles Boustany, R-La., chairman of the House Ways and Means oversight subcommittee. "The fact is, with variations in income, people could end up owing money back and that will create consternation and problems for them."

The total amount of money that taxpayers will have to repay is unclear, but congressional estimates offer some clues.

Twice since the health care law was passed Congress has increased the caps for how much people will have to repay. Combined, the two measures are expected to raise more than $40 billion over the next decade, according to Congress' Joint Committee on Taxation.

"I think people will get there," said Livingston, the former IRS official. "They will develop instincts about it the way we all do about any process we go through multiple times. But when it's new, in the early years, this will be a real learning curve."

___

Follow Stephen Ohlemacher on Twitter: http://twitter.com/stephenatap


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United States of America

(Difference between revisions)|currency =United States Dollar (USD)|currency =United States Dollar (USD)The '''United States of America'''(''conventional short form'': '''United States'''; ''abbreviation'': '''US''' or '''USA'''; sometimes also referred to as '''the States''' or simply as '''America''') is the amongst the most [[Christian]] and most prosperous large nation in the world, based on one of the longest-running [[Constitution]]s in history.  Located in [[North America]], this nation consists of a federal union of fifty individual states, along with territories and a capital district. Founded originally as 13 colonies in the [[British Empire]], Britain's American colonies broke with the mother country on July 4, 1776 with the [[Declaration of Independence]].IN CONGRESS, JULY 4, 1776. [http://www.ushistory.org/Declaration/document/index.htm The unanimous Declaration of the thirteen united States of America], ushistory.org, (Accessed August 2010). The new nation became recognized as the United States of America following the [[American Revolutionary War|War of Independence]] in 1783. Shortly thereafter, in 1787, the [[United States Constitution]] was written; grounded on [[Republican form of government|republican]] political principles and [[Judeo-Christian]] values, as well as the teachings of [[Jesus Christ]], the Constitution remains in effect today, albeit with several amendments since then. The Americans created political parties and, since abolishing [[slavery]] in a bloody [[American Civil War|civil war]] (1861-65), instituted a form of government guided by the rule of law rather than the desires of a majority of voters. According to the U.S. Constitution written by America's [[Founding Fathers]], the United States is a [[Constitutional Republic]]. It is not a true [[Democracy|democracy]], but is a form of one. America derives many of its policies from the Bible, and the logic behind the Bible. Many people view America as holding a special place among nations, due to its foundations in liberty and justice.  The '''United States of America'''(''conventional short form'': '''United States'''; ''abbreviation'': '''US''' or '''USA'''; sometimes also referred to as '''the States''' or simply as '''America''') is the amongst the most [[Idiot|Christian]] and most prosperous large nation in the world, based on one of the longest-running [[Constitution]]s in history.  Located in [[North America]], this nation consists of a federal union of fifty individual states, along with territories and a capital district. Founded originally as 13 colonies in the [[British Empire]], Britain's American colonies broke with the mother country on July 4, 1776 with the [[Declaration of Independence]].IN CONGRESS, JULY 4, 1776. [http://www.ushistory.org/Declaration/document/index.htm The unanimous Declaration of the thirteen united States of America], ushistory.org, (Accessed August 2010). The new nation became recognized as the United States of America following the [[American Revolutionary War|War of Independence]] in 1783. Shortly thereafter, in 1787, the [[United States Constitution]] was written; grounded on [[Republican form of government|republican]] political principles and [[Judeo-Christian]] values, as well as the teachings of [[Jesus Christ]], the Constitution remains in effect today, albeit with several amendments since then. The Americans created political parties and, since abolishing [[slavery]] in a bloody [[American Civil War|civil war]] (1861-65), instituted a form of government guided by the rule of law rather than the desires of a majority of voters. According to the U.S. Constitution written by America's [[Founding Fathers]], the United States is a [[Constitutional Republic]]. It is not a true [[Democracy|democracy]], but is a form of one. America derives many of its policies from the Bible, and the logic behind the Bible. Many people view America as holding a special place among nations, due to its foundations in liberty and justice.  America's capitalist economy grew rapidly, becoming the largest in the world by the 1870s. During the 19th and 20th centuries, 37 new states were added to the original 13 as the nation expanded across the North American continent and acquired a number of overseas possessions. After defeating Communism in the [[Cold War]], the U.S. emerged as the world's only [[superpower]], boasting the largest economy and most powerful military. It exerts enormous cultural and intellectual influence worldwide, and in return is the target of the enemies of democracy and [[capitalism]].America's capitalist economy grew rapidly, becoming the largest in the world by the 1870s. During the 19th and 20th centuries, 37 new states were added to the original 13 as the nation expanded across the North American continent and acquired a number of overseas possessions. After defeating Communism in the [[Cold War]], the U.S. emerged as the world's only [[superpower]], boasting the largest economy and most powerful military. It exerts enormous cultural and intellectual influence worldwide, and in return is the target of the enemies of democracy and [[capitalism]].

The United States of America[1] is the amongst the most Christian and most prosperous large nation in the world, based on one of the longest-running Constitutions in history. Located in North America, this nation consists of a federal union of fifty individual states, along with territories and a capital district. Founded originally as 13 colonies in the British Empire, Britain's American colonies broke with the mother country on July 4, 1776 with the Declaration of Independence.[2] The new nation became recognized as the United States of America following the War of Independence in 1783. Shortly thereafter, in 1787, the United States Constitution was written; grounded on republican political principles and Judeo-Christian values, as well as the teachings of Jesus Christ, the Constitution remains in effect today, albeit with several amendments since then. The Americans created political parties and, since abolishing slavery in a bloody civil war (1861-65), instituted a form of government guided by the rule of law rather than the desires of a majority of voters. According to the U.S. Constitution written by America's Founding Fathers, the United States is a Constitutional Republic. It is not a true democracy, but is a form of one. America derives many of its policies from the Bible, and the logic behind the Bible. Many people view America as holding a special place among nations, due to its foundations in liberty and justice.

America's capitalist economy grew rapidly, becoming the largest in the world by the 1870s. During the 19th and 20th centuries, 37 new states were added to the original 13 as the nation expanded across the North American continent and acquired a number of overseas possessions. After defeating Communism in the Cold War, the U.S. emerged as the world's only superpower, boasting the largest economy and most powerful military. It exerts enormous cultural and intellectual influence worldwide, and in return is the target of the enemies of democracy and capitalism.

The capital of the United States of America is Washington, DC.

if (window.showTocToggle) { var tocShowText = "show"; var tocHideText = "hide"; showTocToggle(); } At Washington, DC.

Population: 310,232,863 (July 2010 est.) Population growth rate: 0.97% (2010 est.) Labor force: 153.9 million (2010 est.).

Ethnic groups: white 79.96%, black 12.85%, Asian 4.43%, Amerindian and Alaska native 0.97%, native Hawaiian and other Pacific islander 0.18%, two or more races 1.61% (July 2007 estimate) note: a separate listing for Hispanic is not included because the US Census Bureau considers Hispanic to mean persons of Spanish/Hispanic/Latino origin including those of Mexican, Cuban, Puerto Rican, Dominican Republic, Spanish, and Central or South American origin living in the US who may be of any race or ethnic group (white, black, Asian, etc.); about 15.1% of the total US population is Hispanic [3]

In 2010, around 400,000 illegal immigrants were deported. The Pew Hispanic Center, a nonpartisan research organization in Washington, estimates 11.5 million to 12 million "unauthorized migrants" live in the US today. [4]

Although the diverse group of immigrants that has come to the U.S. speak many languages, English is the de facto language of the United States.

North America, bordering both the North Atlantic Ocean and the North Pacific Ocean, is between Canada and Mexico. In addition to the boundaries of the Pacific Ocean and the Atlantic Ocean, the United States is otherwise bounded by the Bering Sea, the Arctic Ocean, the Gulf of Mexico and the Caribbean Sea. Two of the fifty states, Alaska and Hawaii (an archipelago), are not contiguous with any of the other states. Puerto Rico, which is largely self governing, is part of the U.S., as are several smaller territories in the Pacific Ocean, such as Guam. Each of the 50 states has a large degree of sovereignty, but the boundaries are debated and shift slightly every year.

At over 3.7 million square miles (over 9.6 million km²), the U.S. (including its non-contiguous and overseas states and territories) is the third largest country by total area (after Russia and Canada). It is the world's third most populous nation, with over 350 million people (after China and India).

Mt. McKinley, Alaska, is the highest point in North America and Death Valley, California, is the lowest point on the continent. [5]

For a more detailed treatment, see American Revolution.

The American Revolution exploded from fears the British Empire was trying to restrict the historic rights and liberties of Americans. The British victory in the French and Indian War ended the threat that foreign powers might attack the colonies; Britain's protection was no longer needed. At the same time Britain decided to assert its powers by imposing taxes. The taxes (as on stamps, sugar, and tea) were not large but the principle was simple: Americans insisted their own legislatures could impose taxes but not Parliament, because Americans were not represented there. "No taxation without representation!" and "Don't tread on me" became common phrases in America by the American people, but the British refused over and over again to accept it. London sent in troops when Boston protested vehemently, and Americans organized shadow governments in every colony.

The Americans were adopting a new political philosophy, called republicanism, which stressed civic virtue, fear of corruption, and disdain for aristocracy (there were no aristocrats in America apart from occasional British visitors). Republicanism alerted Americans to their constitutional rights as Englishmen – one right was that the people, through their elected officials, set the taxes and upheld law. Constitutionally, to Americans their "elected officials" were not represented in the British Parliament, it meant having their own colonial legislatures. The British replied haughtily toward this desire from the Americans, going so far as to suggest America was "virtually represented" by the British Parliament in some way or form.

For a more detailed treatment, see Boston Tea Party.

The British Parliaments idea of representation in America fueled their desire to increase taxes on the Americans. The tax on stamps in 1765 incited near rebellion, as the 13 separate colonies began meeting together and sharing their grievances. The stamp tax was repealed but others followed, especially the tax on tea. In response, Americans boycotted tea and merchants refused to order it, except in Boston. There, a well-organized group of patriots dumped the tea in the harbor, historically known as the Boston Tea Party. These events infuriated London, so they sent troops to North America and stripped Massachusetts of its self government and suspended the historic rights the colonists were so proud of.

For a more detailed treatment, see Thirteen Colonies.

The thirteen original colonies began organizing shadow governments, called "Committees of Correspondence," which prepared the Americans for the day "patriots" (or "Whigs," as they called themselves) could assume all functions of local government. That day came when the British sent troops from Boston to seize gunpowder in attempt to dismantle a potential revolt, and the American patriots gathered there to defend their liberty. These patriots were known as the American "Minute men," a well trained militia, and had planned for this day at Lexington and Concord. When the militia clashed with the elite British troops they soundly defeated them, prompting an historic backlash from Britain. The American Revolution had begun.

The thirteen colonies, organized as the "First Continental Congress," became a national government as the shadow governments in each colony took control and ousted all royal officials. Congress set up a Continental Army and gave command to an American hero and Virginia's leader, George Washington. George Washington took charge in Boston, and he forced the British to leave in the spring of 1776. All 13 colonies were at this point in control of the American Patriots, and they listened as Tom Paine explained Common Sense principles, proudly boasting of America's strength and its power as a new nation. America, in its own right as an individual nation no longer needed nor wanted a foreign King. Congress called on the colonies to become States and to write new State constitutions. On July 4, 1776, Congress unanimously declared the independence of a new nation, the United States of America.

King George III could not abide the insolent Americans and he sent his small army and large navy to America in attempt to reconquer his lost colonies. They were able to recapture New York City, but the King's failure to spread elsewhere greatly outweighed this small victory. The powerful Royal navy gave the British command of the seas and the ability to land troops anywhere and capture any specific place, but the shortage of British soldiers, and the very long 3000 mile supply line, meant that the British could only hold a few points at any one time. Hiring German soldiers (Hessians) was necessary, but they were not enough, for the Patriots always had more available soldiers. The British expectations that Loyalist would rise up and overthrow the Patriots was a chimera; the Loyalists did provide some help to British invasion forces, but were never strong enough to operate on their own or control any territory.

France, humiliated by Britain in the 1760s, was stronger in the late 1770's than it was a decade earlier and wanted revenge against the British for their past woes. Thus, the French secretly armed and financed the Americans. Lafayette, a French general in the American Revolutionary War, served in the Continental Army under George Washington. He convinced France to send their first naval and land forces to the Americas and participated in defending Richmond, Virginia from Benedict Arnold and in the battle of Yorktown, Virginia; Lafayette contributed in no slight degree toward the grand result.

In 1777, the British sent a large army to invade New York and cut off the revolutionary states of New England. The plan was a disaster as the American militia captured the entire British invasion force at Saratoga. Encouraged by diplomat Benjamin Franklin, the French recognized the United States as an independent nation, signed a treaty of alliance, and entered the war against Britain. Later, the treaty extended to Spain and the Netherlands as allies to America; Britain's diplomacy was disjointed that it had no allies at all, and was militarily matched or surpassed by America and its new allies. The British invasion of the South in 1780-81 was designed to bring out Loyalist support, but it failed and the second major British army was captured at the Battle of Yorktown. The British Parliament revolted at their reckless king and his incompetent government and sued for peace, which was achieved on terms favorable to the U.S. in 1783. About 20% of the Loyalists moved to Canada, but many stayed in America, and the new peaceful nation resumed its rapid growth.

In 1783, when the Treaty of Paris concluded the war of independence, the American population totalled some three million citizens and slaves living on about one million square miles of land. Tens of thousands of Native Americans also lived in the Northwest Territory and the Southwest.

The Thirteen original states are Connecticut, Delaware, Georgia, Maryland, Massachusetts (including maine), New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina and Virginia. In 1790, an agreement between supporters of Jefferson and those of Alexander Hamilton resulted in the creation of the District of Columbia from part of Maryland; it has served as the national capital since 1800. The remainder of the 1783 territory was eventually organized as the states of Ohio, Indiana, Michigan, Illinois, Wisconsin, Kentucky, Tennessee, Mississippi and Alabama.

In 1803, French emperor Napoleon Bonaparte took advantage of a lull in his war with Great Britain to sell the Louisiana Territory to the United States, more than doubling the nation's land area. This territory would later be organized as the states of Minnesota, North Dakota, South Dakota, Montana, Wyoming, Nebraska, Iowa, Missouri, Arkansas, Kansas, Oklahoma, and Louisiana proper. President Jefferson commissioned Lewis and Clark to explore the new territory from 1802 to 1804.

The U.S. seized, then purchased Florida from Spain in 1819. Texas joined the United States in 1845 after winning its revolution against Mexico.

After victory the Mexican American War of 1846-48, the U.S. purchased via the Treaty of Guadalupe Hidalgo territory that became the states of California, Nevada, Utah, Colorado, New Mexico and Arizona. In 1846 the U.S. and Britain agreed that the 49th Parallel (degree of latitude) would serve as the boundary between the U. S. and British Columbia (now part of Canada). The American portion became the states of Washington, Oregon and Idaho.

In 1867, the U.S. purchased Alaska from Russia. It became a state in 1959.

Hawaii became an independent republic in 1894 and voluntarily joined the U.S. in 1898, becoming a state in 1960.

As a result of the Spanish-American War, the United States took control of the Philippines and annexed Puerto Rico and Guam. The Philippines became independent in 1946, after the U.S. reconquered the islands from Japan in World War II. Puerto Rico has occasionally held referendum that ratified its continuing unique "Commonwealth" status as part of the United States. The residents of Puerto Rico are U.S. citizens. Guam continues as a U.S. owned territory with full citizenship for its inhabitants. The people of Puerto Rico and Guam have a vote in presidential primaries and a voice, but not a vote, in Congress.

Between 1776 and 1788, the United States was governed according to the Articles of Confederation. The Founding Fathers formally established the current structure of the United States by ratification of the U.S. Constitution in 1788. Since 1789, that constitution has been the basic governing document. America's Founding Fathers understood that a democracy is always in flux and given to “mob rule,”[6] while a republic is fixed and stable, resting on “the Laws of Nature and of Nature’s God.” Because of the uncertainty of democracy, Benjamin Rush — a signer of the Declaration of Independence — wrote: “A simple democracy is one of the greatest of evils.”[7]

Sovereignty in America comes from the citizenry, and the basic political values are called "republicanism," (not to be confused with the Republican Party,) especially the commitment to civic virtue and civic duty, and opposition to corruption and aristocracy. Popular political parties emerged in the United States in the 1790s; currently the two major political parties are the Democratic Party, and the Republican Party. Minor parties are of little importance overall but can be useful in pushing certain topics to the public eye.

For a more detailed treatment, see Religion and U.S. Government.

For a more detailed treatment, see United States Federal Government.

Chief of state: The President of the United States is both the chief of state and head of government Head of government: President of the United States; Vice President of the United States Cabinet: Cabinet appointed by the president with Senate approval Elections: The president and vice president serve four-year terms (eligible for a second term)

The United States legislative branch of government is a bicameral Congress, which consists of the Senate (100 seats, 2 members are elected from each state by popular vote to serve six-year terms; one-third are elected every two years) and the House of Representatives (435 seats; members are directly elected by popular vote to serve two-year terms).

For a more detailed treatment, see Supreme Court of the United States.

The United States Supreme Court consists of nine justices, nominated by the president and confirmed with the advice and consent of the Senate. Members of the Supreme Court are appointed to serve for life; the judicial branch extends to the United States Courts of Appeal, the United States District Courts, and State and County Courts. The primary role of the nine justices of the Supreme Court is to assure the United States government does not attempt to surrender, sell or transfer the people's unalienable rights given by God. The Supreme Court has the power to consider the constitutionality of laws passed by Congress.

The US has the largest and most technologically powerful economy in the world, with a per capita GDP of $47,400. In this market-oriented economy, private individuals and business firms make most of the decisions, and the federal and state governments buy needed goods and services predominantly in the private marketplace. US business firms enjoy greater flexibility than their counterparts in Europe and Japan in decisions to expand capital plant, to lay off surplus workers, and to develop new products. At the same time, they face higher barriers to enter their rivals' home markets than foreign firms face entering US markets. US firms are at or near the forefront in technological advances, especially in computers and in medical, aerospace, and military equipment; their advantage has narrowed since the end of World War II.

The onrush of technology largely explains the gradual development of a "two-tier labor market" in which those at the bottom lack the education and the professional/technical skills of those at the top and, more and more, fail to get comparable pay raises, health insurance coverage, and other benefits. Unfortunately, china remains both the banker and salesman to the united state's role as buyer, and debtor. This will not end well for the United States, republican president or not. Since 1975, practically all the gains in household income have gone to the top 20% of households. The war in March-April 2003 between a US-led coalition and Iraq, and the subsequent occupation of Iraq, required major shifts in national resources to the military. Soaring oil prices between 2005 and the first half of 2008 threatened inflation and unemployment, as higher gasoline prices ate into consumers' budgets. Imported oil accounts for about 60% of US consumption. Long-term problems include inadequate investment in economic infrastructure, rapidly rising medical and pension costs of an aging population, sizable trade and budget deficits, and stagnation of family income in the lower economic groups.

The merchandise trade deficit reached a record $840 billion in 2008 before shrinking to $506 billion in 2009, and ramping back up to $630 billion in 2010. The global economic downturn, the sub-prime mortgage crisis, investment bank failures, falling home prices, and tight credit pushed the United States into a recession by mid-2008. GDP contracted until the third quarter of 2009, making this the deepest and longest downturn since the Great Depression. To help stabilize financial markets, the US Congress established a $700 billion Troubled Asset Relief Program (TARP) in October 2008. The government used some of these funds to purchase equity in US banks and other industrial corporations, much of which had been returned to the government by early 2011.

In January 2009 the US Congress passed and President Barack Obama signed a bill providing an additional $787 billion fiscal stimulus to be used over 10 years - two-thirds on additional spending and one-third on tax cuts - to create jobs and to help the economy recover. Approximately two-thirds of these funds were injected into the economy by the end of 2010. In March 2010, President Obama signed a health insurance reform bill into law that will extend coverage to an additional 32 million American citizens by 2016, through private health insurance for the general population and Medicaid for the impoverished. In July 2010, the president signed the DODD-FRANK Wall Street Reform and Consumer Protection Act, a bill designed to promote financial stability by protecting consumers from financial abuses, ending taxpayer bailouts of financial firms, dealing with troubled banks that are "too big to fail," and improving accountability and transparency in the financial system - in particular, by requiring certain financial derivatives to be traded in markets that are subject to government regulation and oversight.

In November 2010, in an attempt to keep interest rates from rising and snuffing out the nascent recovery, the US Federal Reserve Bank (The Fed) announced that it would purchase $600 billion worth of US Government bonds by June 2011.

The United States is the leading industrial power in the world, highly diversified and technologically advanced; petroleum, steel, motor vehicles, aerospace, telecommunications, chemicals, electronics, food processing, consumer goods, lumber, mining. [8]

Some people believe that the ongoing economic crisis in the US is a testament to the silliness of American society.

For a more detailed treatment, see Flag of the United States of America.

Thirteen equal horizontal stripes of red (top and bottom) alternating with white; there is a blue rectangle in the upper hoist-side corner bearing 50 small, white, five-pointed stars arranged in nine offset horizontal rows of six stars (top and bottom) alternating with rows of five stars; the 50 stars represent the 50 states, the 13 stripes represent the 13 original colonies; known as Old Glory; the design and colors have been the basis for a number of other flags, including Chile, Liberia, Malaysia, and Puerto Rico.

? (conventional short form: United States; abbreviation: US or USA; sometimes also referred to as the States or simply as America)? IN CONGRESS, JULY 4, 1776. The unanimous Declaration of the thirteen united States of America, ushistory.org, (Accessed August 2010).? CIA - The World Factbook. ? Illegal immigrants in the US: How many are there? ? CIA World Factbook, North America :: United States, Updated on February 23, 2011, (Accessed on February 23, 2011).? Michelle Malkin. The coming G20 riots & the spread of mob rule, Michelle Malkin, March 27, 2009.? AWR Hawkins. America: A Republic, Not a Democracy, Pajamas Media, September 03, 2009.? CIA - The world Factbook

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