Sunday, May 24, 2026

The California Grift Goes On

Eighty percent of improper Medicaid payments nationwide reflect failures of eligibility, not bad-actor providers

Letter to The WSJ

"The California fraud story is even worse than your editorial points out (“The Great California Medicaid Grift,” May 16). The story’s central theme is that state leaders don’t care about fraud.

According to my organization’s freedom of information requests, California’s Department of Health Care Services referred only 127 Medicaid providers for fraud investigation between January and March. Yet CBS News found 89 hospice providers at a single address, 75 of which have racked up a combined 400 violations since 2021. The federal government has also suspended 800 hospice providers in the state this year. Is California even looking for fraud?

The real fraud story is that 80% of improper Medicaid payments nationwide reflect failures of eligibility, not bad-actor providers. California contributes to this crisis by letting people self-attest to key aspects of their eligibility, which is to say, it tolerates lying. The Trump administration should get California to start caring about fraud—to say nothing of every other state.

Hayden Dublois

Foundation for Government Accountability

America’s IPO Mini-Boom

Too bad SpaceX and others didn’t go public sooner, but they are a tribute to the U.S. capitalist system

WSJ editorial. Excerpts:

"Companies are staying private longer because of the 2002 Sarbanes-Oxley Act’s burdensome regulations, shareholder litigation and abundant financing available in private markets. The number of public companies has shrunk by half in three decades.

This means ordinary Americans who invest in the stock market, either directly or through retirement accounts, are sharing less in America’s wealth creation."

"One reason the U.S. boasts the world’s most valuable companies and promising startups is because the government doesn’t seek to punish success—or handcuff entrepreneurs with regulation as the Europeans do. China boasts enormous human capital, but Beijing’s financial markets are stunted by the desire for political control." 

Woman at center of sprawling Minnesota fraud gets nearly 42-year prison sentence

By TIM SULLIVAN of AP

"A judge on Thursday handed down an extraordinary prison sentence — nearly 42 years — to the former leader of a Minnesota nonprofit who was convicted in a staggering $250 million fraud case that helped ignite an immigration crackdown by the Trump administration.

Aimee Bock ran Feeding Our Future, which had claimed it helped provide millions of meals to needy children during the pandemic. The U.S. Justice Department, however, said she was atop the “single largest COVID-19 fraud scheme in the country.”

“I understand I failed. I failed the public, my family, everyone,” Bock, 45, said in federal court.

After the hearing, authorities announced charges against 15 more people accused of fraud in receiving federal payments for a variety of social services administered through Minnesota’s state government. The FBI said one man jumped from a fourth-floor balcony to avoid arrest.

“We will claw back every dollar you have stolen from the American people,” Assistant Attorney General Colin McDonald said, noting that the government sent more prosecutors and agents to Minnesota this year.

President Donald Trump used the fraud cases against Bock and many others to initially justify a massive surge of federal agents to the Minneapolis-St. Paul area last winter to target immigrants, leading to repeated confrontations between residents and those officers and the deaths of Renee Good and Alex Pretti.

Fake lists, lavish spending

COVID-19 brought changes to a federal program that typically fed children through schools. Restaurants could participate, and food distribution was extended to sites outside schools.

Investigators said Bock’s nonprofit was at the center of a crime network that included a web of partner organizations, phony distribution sites, kickbacks and fake lists of children. Feeding Our Future recruited people to create sites throughout Minnesota, and claims for reimbursement quickly followed, according to the government. 

“Aimee was a god,” a witness testified at trial.

Bock had long proclaimed her innocence but was convicted of conspiracy, fraud and bribery. Investigators said she and co-conspirators enriched themselves with international travel, real estate, luxury vehicles and other lavish spending.

“This was a vortex of fraud and you were at the epicenter,” U.S. District Judge Nancy Brasel told Bock.

A co-defendant was sentenced last August to 28 years in prison. Abdiaziz Farah claimed to be serving meals to thousands of children per day, investigators said, but the sites turned out to be parking lots or empty commercial space.

Bock’s lawyer, Kenneth Udoibok, had argued for no more than three years in prison, saying she had provided key information to investigators. He said Bock, a former teacher, had been unfairly portrayed as the mastermind and insisted that two co-defendants were responsible for running the scams.

State auditors found that the Minnesota Department of Education received numerous complaints about Feeding Our Future, but often told the group to police itself. In January, Democratic Gov. Tim Walz said he would not run for reelection after being pounded by Trump about theft in programs that rely on federal cash.

Trump, who has long derided Somalis, last year blasted Minnesota as “a hub of fraudulent money laundering activity.”

“Somali gangs are terrorizing the people of that great State, and BILLIONS of Dollars are missing. Send them back to where they came from,” Trump wrote on social media.

Bock is white, and the U.S. Attorney’s Office says the overwhelming majority of defendants in the cases are of Somali descent. Most are U.S. citizens.

At least 65 people have been convicted in a series of overlapping food fraud cases. Investigations began during the Biden administration.

“This case has changed our state forever,” Joe Thompson, formerly the lead prosecutor in the case, said outside the courtroom. “Aimee Bock did everything she could to earn this long sentence.”

Fraud cases grow

In a fresh batch of criminal cases filed this week in Minnesota, the government said alleged fraud involved $90 million across seven state-managed Medicaid programs.

The defendants include Fahima Mahamud, who was CEO of Future Leaders Early Learning Center, a childcare center in Minneapolis. Over three years, Mahamud’s organization was reimbursed approximately $4.6 million for services on behalf of people who didn’t make a required copayment, prosecutors allege.

A message seeking comment from her lawyer was not immediately returned Thursday. Mahamud earlier this year pleaded not guilty to fraud related to meals.

Two other people were charged with conspiring to get $975,000 in Medicaid subsidies for housing services that were not provided.

Two additional people were accused of receiving $21.1 million by billing Medicaid for autism therapy that was either unnecessary or not provided. Investigators said the two paid families as much as $1,500 per child per month to add their names to the program and get reimbursement. 

Minnesota’s Department of Human Services said it helped build the cases. Inspector General James Clark said payments to more than 600 providers have been halted since 2025 because of fraud allegations."

Saturday, May 23, 2026

The Case Against Socialism, Part V

By Dan Mitchell. Excerpts: 

"here is the most compelling comparison of a pure socialist economy and a mostly capitalist economy."

 

The chart is based on the Maddison database, and there are data gaps during World War II as well as several decades of missing North Korean data.

But the lesson is blindingly obvious. South Korea has become a rich nation while North Korea is mired in grinding poverty. Heck, you can see the difference from outer space.

It makes the East Germany-West Germany comparison seem trivial by comparison.

South Korea is definitely not perfect and its long-run outlook is worrisome because of demographics.

But pretty good is definitely better than totally awful.

Another win for capitalism over socialism.

You can peruse previous editions in this series by clicking here, here, here, and here."

Almost 50% of Preventable Cancers Linked to Just Two Lifestyle Habits

By Carly Cassella of ScienceAlert. Excerpts:

"According to a recent analysis from the World Health Organization (WHO), more than a third of all cancer cases globally are preventable.
Lung, stomach, and cervical cancers make up nearly half of those cases.
This means that millions of deadly cancers every year could be prevented through medical intervention, behavior changes, reducing occupational risks, or tackling environmental pollutants."
"n 2022, there were nearly 19 million new cases of cancer. Roughly 38 percent of those diagnoses were related to 30 changeable risk factors."
"These included tobacco smoking, alcohol consumption, high body mass index, insufficient physical activity, smokeless tobacco (like chewing tobacco), a traditional stimulant known as areca nut"
"The number one preventable factor associated with cancer? Smoking tobacco. It was linked to 15 percent of all cancer cases that year."
"After tobacco smoking, the runner-up among changeable lifestyle factors was drinking alcohol. It accounted for 3.2 percent of all new cancer cases (approximately 700,000 cases)."
"smoking tobacco and drinking alcohol account for almost half (around 48 percent) of all cases of preventable cancer."

Related posts:

Physical exercise and a nutritious diet can fight dementia (2025) 

Regular physical exercise is the single, most effective intervention that can improve brain and physical health (2025) 

Can weight-lifting promote empathy? Can aerobic exercise improve memory? (2025) 

Facing a Cancer Diagnosis? Exercise and Diet Could Make a Difference (2025) 

For a long and healthy life, diet and regular exercise are a better bet than trendy supplements and expensive longevity clinics (2025)

How Your Midlife Eating Habits Can Help You Live Longer and Healthier: A plant-rich diet with some fish and dairy might make the biggest difference, new research suggests (2025)

Self-Control as a Performance-Enhancing Drug: Like cognitive ability, self-control predicts health, wealth, and all things good (2024)

Does Exercise Improve Survival After a Cancer Diagnosis? An Encouraging New Study (2024)

Life expectancy can increase by up to 10 years following sustained shifts towards healthier diets in the United Kingdom (2023)

Even Short Runs Have Major Health Benefits (2023)

What if the Most Powerful Way to Live Longer Is Just Exercise? (2023) 

Exercise Helps Blunt the Effects of Covid-19, Study Suggests (2023)

Carry Your Groceries, Take the Stairs: Short, Intense Movement Can Improve Your Health (plus non drug ways to fight diabetes and Covid) (2022)

Almost half of cancer deaths globally are attributable to preventable risk factors, new study suggests (2022)

New research leads to doubt over the extent or even existence of the ego‐depletion effect (the theory of the exhaustible willpower muscle) (2019)

How lifestyle changes can reduce the risk of dementia (2019)

Good health begins with individual decisions (2018)

Nearly half of U.S. cancer deaths blamed on unhealthy behavior (2017)

Regular Exercise: Antidote for Deadly Diseases? (2016)

Is Willpower An Untapped Resource? (2011) 

Friday, May 22, 2026

Fuel Costs Are Way Up, But It’s Still Pretty Affordable to Fill Up Your Tank (relative to wages)

By Jeremy Horpedahl.

"Two months ago I wrote about gasoline prices and tried to give the current prices some historical context. Gas prices have, of course, only continued to increase since then. Here’s a chart I created to give a bit more context, using an idea from Ryan Radia: how much does it cost to drive a car 250 miles? Since fuel efficiency has increased over time, we might be understating how much it costs to drive today relative to the past. And of course, to give the “cost” proper context I have stated in terms of hours worked at the average wage (note: the final data point is from April 2026, as we don’t have wage data for May yet):

 

In April 2026 it took about 1.4 hours of work at the average wage ($32.23) to purchase enough gasoline to drive 250 miles (10.7 gallons) at the average fuel efficiency (23.4 miles per gallon). That average fuel efficiency figure is from 2024, the latest available, so it could be a bit higher today. Maybe it’s a little easier than 1.4 hours of work to buy it, but even if fuel efficiency had crept up to 25 mpg (that would be a big increase in 2 years, historically speaking), it would still be 1.3 hours of work.

1.4 hours of work is certainly a big jump from earlier in 2026, but you’ll notice it is still on the low end in this chart, and well below the peak we saw in June 2022 of just over 2 hours of work to buy 250 miles worth of gasoline.

But 23.4 miles per gallon is pretty low, as this is includes lots of trucks and SUVs with pretty bad fuel efficiency. What if we looked at some more fuel efficient vehicles?

Here’s a few I checked on (all for 2026 models, with gas and electricity at current national averages):

  • Toyota Camry: 0.71 hours of work
  • Chrysler Pacifica Hybrid: 0.61 hours on electric, 1.18 hours on gasoline
  • Tesla Model Y: 0.37 hours of work

It will probably not surprise you that the all-electric Tesla Model Y is cheaper than the average car to operate at current prices, but you may not have realized that it is almost four times cheaper. But the Toyota Camry, with all models operating as hybrids now, also comes in pretty good at about half the cost of the average vehicle to operate (and the Camry is a very affordable car to purchase). The Chrysler Pacifica hybrid minivan does pretty well too, though even operating only on electricity (30 miles at a time), it’s only slightly more fuel efficient than the Camry."

Does Providing Laptops Improve Educational Outcomes?

From Jeffrey Miron.

"The One Laptop Per Child program was supposed to bridge the digital divide for children in developing countries.

To assess the long-term effects of the program, one study performed

a large-scale randomized evaluation of the OLPC program implemented by the Peruvian government in rural primary schools, using administrative and survey data from 2007 to 2019.

The study found that the program had

no effects on students’ exam or test scores or on their likelihood of completing primary or secondary school or enrolling in a university… [T]he program [also] reduced the fraction of primary students who advanced to the next grade by 1 percentage point between 2009 and 2016.

Despite lengthy teacher trainings,

the program had no significant effects on teachers’ digital skills … [and it] led to limited academic use of laptops and generated few benefits beyond basic digital literacy, which partly explains the absence of effects on achievement and attainment."