Wednesday, July 29, 2009

WSJ.com - Is There a 'Right' to Health Care?

 

WSJ.com - Opinion: Is There a ‘Right’ to Health Care?

If there is a right to health care, someone has the duty to provide it. Inevitably, that “someone” is the government. Concrete benefits in pursuance of abstract rights, however, can be provided by the government only by constant coercion.

The question of health care is not one of rights but of how best in practice to organize it. America is certainly not a perfect model in this regard. But neither is Britain, where a universal right to health care has been recognized longest in the Western world.

Not coincidentally, the U.K. is by far the most unpleasant country in which to be ill in the Western world. Even Greeks living in Britain return home for medical treatment if they are physically able to do so.

Universality is closely allied as an ideal, ideologically, to that of equality. But equality is not desirable in itself. To provide everyone with the same bad quality of care would satisfy the demand for equality. (Not coincidentally, British survival rates for cancer and heart disease are much below those of other European countries, where patients need to make at least some payment for their care.)

In any case, the universality of government health care in pursuance of the abstract right to it in Britain has not ensured equality. After 60 years of universal health care, free at the point of usage and funded by taxation, inequalities between the richest and poorest sections of the population have not been reduced. But Britain does have the dirtiest, most broken-down hospitals in Europe.

 

 

Tuesday, July 28, 2009

WSJ.com - New Jersey's 'Italian' Problem

 

WSJ.com - Opinion: New Jersey’s ‘Italian’ Problem

Big Government is the reason New Jersey ranks as the worst of 50 states on the Small Business Survival Index. And Big Government is a leading reason New Jersey has a “corruption problem” that an FBI agent at Friday’s press conference characterized as “one of the worst, if not the worst, in the nation.”

Sandy McClure, co-author of the book “The Soprano State: New Jersey’s Culture of Corruption,” agrees that big government is a big reason behind the state’s corruption problem. “You have all these little authorities that everyone has to go to for permission,” she says. “Too much government means too many opportunities for officials looking to cash in. And there’s no way that the press can keep track of it all.”

Ms. McClure is right: The more extensive government’s reach, the more opportunities the governing class has to steal from and shake down the productive class.

The point is that politicians and officials have more to sell in an environment of high taxes, big spending and overregulation—the same things that help explain New Jersey’s anemic economic growth and job creation. When government gets too big and complicated for businesses to get their permits and approvals and funding honestly, the dishonest prosper. And the honest get fed up and flee.

 

 

Wednesday, July 22, 2009

WSJ.com - Europe Thumps U.S., Again

 

WSJ.com - Opinion: Europe Thumps U.S., Again

Across the globe, countries are moving ahead with similar bilateral trade deals, often giving their own national companies an edge over U.S. competitors. In a perfect world, all countries would be able to benefit from multilateral trade opening under the Doha Round. But for now bilateral deals are better than nothing, and America is leaving itself behind.

 

 

Friday, July 17, 2009

WSJ.com - Obama Needs to 'Reset' His Presidency

Interesting critique from a Democratic Party insider – while I don’t hope the Democrats remain strong in 2010 elections, I do think the advice he gives to get back on track is telling. 

 

Mr. Van Dyk was Vice President Hubert Humphrey's assistant in the Johnson White House and active in national Democratic politics over 40 years.

 

WSJ.com - Opinion: Obama Needs to 'Reset' His Presidency

What adjustments should be made?

- Cut back both your proposals and expectations. You made promises about jobs that would be "created and saved" by the stimulus package. Those promises have not held up. You continue to engage in hyperbole by claiming that your health-care and energy plans will save tax dollars. Congressional Budget Office analysis indicates otherwise.

It's time to re-examine these initiatives. Could your health plan be scaled back to catastrophic coverage for all -- badly needed by most families, but quite affordable if deductibles are set at the right levels? Should the Rube Goldbergian cap-and-trade proposals be replaced with a simple carbon tax, with proceeds to be allocated to alternative-fuels development?

- Talk less and pick your spots. You are outdoing even Johnson and Mr. Clinton with your daily speeches in the capital and around the country.

Applause and adulation are gratifying. But the more you talk, the less weight your words will hold. Let voters see you at your desk, conferring with serious people about serious matters. When you do choose to talk, people will understand that it's important and they should listen.

- Conform your 2009 politics to your 2008 statements. During your campaign, you called for bipartisanship and bridge-building. You promised to reduce the influence of single-issue and single-interest groups in the policy process. Yet, in your public statements, you keep using President Bush as a scapegoat.

 

 

Thursday, July 16, 2009

WSJ.com - Why We Don't Want a Nuclear-Free World

 

WSJ.com - Opinion: Why We Don't Want a Nuclear-Free World

 

We use nuclear weapons every day, Mr. Schlesinger goes on to explain, "to deter our potential foes and provide reassurance to the allies to whom we offer protection."

"We will need a strong deterrent," he finally says, "and that is measured at least in decades -- in my judgment, in fact, more or less in perpetuity. The notion that we can abolish nuclear weapons reflects on a combination of American utopianism and American parochialism. . . . It's like the [1929] Kellogg-Briand Pact renouncing war as an instrument of national policy . . . . It's not based upon an understanding of reality."

In other words: Go ahead and wish for a nuclear-free world, but pray that you don't get what you wish for. A world without nukes would be even more dangerous than a world with them, Mr. Schlesinger argues.

Mr. Schlesinger expresses concerns, too, about the safety and reliability of U.S. nuclear weapons, all of which are more than 20 years old…  The U.S. is the only major nuclear power that is not modernizing its weapons.

 

 

Tuesday, July 14, 2009

WSJ.com - Mandating Unemployment

 

WSJ.com - Opinion: Mandating Unemployment

Here's some economic logic to ponder. The unemployment rate in June for American teenagers was 24%, for black teens it was 38%, and even White House economists are predicting more job losses. So how about raising the cost of that teenage labor?

Sorry to say, but that's precisely what will happen on July 24, when the minimum wage will increase to $7.25 an hour from $6.55.

Proponents argue that millions of workers will benefit from the bigger paychecks. But about two of every three full-time minimum-wage workers get a pay raise anyway within a year on the job. Meanwhile, those who lose their jobs or who never get a job in the first place get a minimum wage of $0.

Mr. Neumark calculates that the 70-cent per-hour minimum wage hike this month would kill "about 300,000 jobs for those between the ages of 16-24." Single working mothers would also be among those most hurt.

 

 

Monday, July 13, 2009

WSJ.com - The Seinfeld Hearings

 

WSJ.com - Opinion: The Seinfeld Hearings

In the 1930s, academics developed a philosophy they called "legal realism" to undercut judicial resistance to "progressive" statutes such as laws restricting the hours a baker or a woman could work. Legal realism elevated just results over the rule of law. It saw analysis of "the law" as an after-the-fact rationalization that allowed reactionary judges to conceal their empathy for the oppressed. Because legal realists believed judges inevitably made law when they ruled, they thought judges should decide cases with progressive ends in mind.

At the same time, and somewhat inconsistently, realist progressives also condemned judges who declared progressive federal and state laws to be unconstitutional as judicial activists who were thwarting the will of the people. Never mind that the Supreme Court was only tepidly enforcing the original meaning of the Constitution and was upholding the vast majority of enlightened regulations. Any interference of the will of the people was deemed to be undemocratic.

Today we live in a legal world in which many progressives and conservatives share the legal realists' preoccupation with results. So justices must be chosen who will reach the politically correct results or opposed because they will reach the wrong results. Judicial confirmation hearings are thereby turned into a game of gotcha…

 

Supreme Court confirmation hearings do not have to be about either results or nothing. They could be about clauses, not cases. Instead of asking nominees how they would decide particular cases, ask them to explain what they think the various clauses of the Constitution mean….  Don't ask how the meaning of these clauses should be applied in particular circumstances. Just ask about the meaning itself and how it should be ascertained. 

 

Such a hearing would not only be entertaining, it would be informative and educational. After all, it would be about the meaning of the Constitution, which is to say it would be about something.

 

 

Thursday, July 9, 2009

WSJ.com - The Dumbing Down of Democracy

 

WSJ.com - Opinion: The Dumbing Down of Democracy

 

With a calm and confident smile, Mr. Peskov replied: "Ours is a different system of democracy." That was it. He stopped talking but kept smiling. The message sank in.

 

Dmitry Peskov was defining democracy in a way that could hardly be more different than the system of political pluralism developed over the past 300 years in the West. He couldn't have been clearer: We are changing the rules. Get over it.

 

Where is it written that American-style democracy will last forever, much less spread to new nations? If the members of the U.N. General Assembly could choose between the democracy of the U.S., Britain and France or that of Russia, Venezuela and Bolivia, likely it would be the latter. Genuine democracy is hard work. Why should the likes of Pakistan, Iraq, Turkey, Taiwan or Brazil endure that stress if Potemkin Village democracy is acceptable?

 

What Putin, Khamenei, Chávez, Morales and Mubarak want is fait-accompli legitimacy. When resistance to their dumbed-down democracy stops, they'll have it. China's Orwellian filtering software is a nice metaphor for what's at stake. Vocal criticism, even as eloquent as Mr. Obama's in Moscow this week or in Cairo, is not resistance. Real resistance requires acts of political push-back that all the world's people can see and recognize.

 

 

Thursday, July 2, 2009

WSJ.com - Fuel Standards Are Killing GM

A good example of unintended consequences from poor regulation:

 

WSJ.com - Opinion: Fuel Standards Are Killing GM

The actual Corporate Average Fuel Economy (CAFE) results will depend on the mixture of fuel-thrifty and fuel-thirsty vehicles consumers choose to buy from each manufacturer -- not on what producers hope to sell. That means only those companies most successful in selling the smallest cars with the smallest engines will, in the future, be allowed to sell the more profitable larger pickups and SUVs and more powerful luxury and sports cars.

General Motors is likely to become profitable only if it is allowed to specialize in what it does best -- namely, midsize and large sedans, sports cars, pickup trucks and SUVs. The company can't possibly afford to scrap billions of dollars of equipment used to produce its best vehicles simply to please politicians who would rather see GM start from scratch, wasting more taxpayer money on "retooling" to produce unwanted and unprofitable subcompacts and electric cars. The average mileage of GM's future cars won't matter if nobody buys them.

Politicians are addicted to CAFE standards because they create an illusion of doing something sometime in the future without voters experiencing the slightest inconvenience in the present.

The bottom line is that CAFE standards are totally unenforceable and ineffective. Regardless of how much damage the rules do to GM and Chrysler, Americans can and will continue to buy big and fast vehicles from German, Japanese, Korean, Chinese and Indian car companies. CAFE standards might just be another foolhardy regulatory nuisance -- were it not for the fact that they could easily prove fatally dangerous for any auto maker overly dependent on the uniquely overregulated U.S. market.

 

 

Wednesday, July 1, 2009

WSJ.com - Parsing the Health Reform Arguments

 

WSJ.com - Opinion: Parsing the Health Reform Arguments

Here is how one humble economist sees some of the main arguments…

- “Health care represents a rising proportion of our income."

That's not only true but perfectly natural. Quality health care is a discretionary, income-elastic expense -- i.e. the richer a society, the larger the proportion of income that is spent on it.

- "A universal plan will reduce the cost of health care."

Think a moment. Suppose you are in an apple market with 100 buyers and 100 sellers every day and apples sell for $1 a pound. Suddenly one day 120 buyers show up. Will the price of the apples go up or down?

- "We need a public plan to keep the private plans honest."

The 1,500 or so private plans don't produce enough competition? Making it 1,501 will do the trick? But then why stop there? Eating is even more important than health care, so shouldn't we have government-run supermarkets "to keep the private ones honest"? After all, supermarkets clearly put profits ahead of feeding people. And we can't run around naked, so we should have government-run clothing stores to keep the private ones honest. And shelter is just as important, so we should start public housing to keep private builders honest. Oops, we already have that. And that is exactly the point. Think of everything you know about public housing, the image the term conjures up in your mind. If you like public housing you will love public health care.

 

Monday, June 29, 2009

WSJ.com - Honduras Defends Its Democracy

A good explanation of what’s been going on.

 

WSJ.com - Opinion: Honduras Defends Its Democracy

Honduras is fighting back by strictly following the constitution. The Honduran Congress met in emergency session yesterday and designated its president as the interim executive as stipulated in Honduran law. It also said that presidential elections set for November will go forward. The Supreme Court later said that the military acted on its orders. It also said that when Mr. Zelaya realized that he was going to be prosecuted for his illegal behavior, he agreed to an offer to resign in exchange for safe passage out of the country. Mr. Zelaya denies it.

 

 

Thursday, June 25, 2009

WSJ.com - The Cap and Tax Fiction

WSJ.com - Opinion: The Cap and Tax Fiction

House Speaker Nancy Pelosi has put cap-and-trade legislation on a forced march through the House, and the bill may get a full vote as early as Friday. It looks as if the Democrats will have to destroy the discipline of economics to get it done.

Despite House Energy and Commerce Chairman Henry Waxman's many payoffs to Members, rural and Blue Dog Democrats remain wary of voting for a bill that will impose crushing costs on their home-district businesses and consumers. The leadership's solution to this problem is to simply claim the bill defies the laws of economics.

The hit to GDP is the real threat in this bill. The whole point of cap and trade is to hike the price of electricity and gas so that Americans will use less. These higher prices will show up not just in electricity bills or at the gas station but in every manufactured good, from food to cars. Consumers will cut back on spending, which in turn will cut back on production, which results in fewer jobs created or higher unemployment.

 

 

Monday, June 22, 2009

WSJ.com - The NEA's Latest Trick

 

WSJ.com - Opinion: The NEA's Latest Trick

Public school teachers are supposed to teach kids to read, so it would be nice if their unions could master the same skill. In a recent letter to Senators, the National Education Association claims Washington, D.C.'s Opportunity Scholarships aren't working, ignoring a recent evaluation showing the opposite.

President Obama pledged to support whatever works in schools, ideology notwithstanding. But neither he nor Mr. Duncan have dared to speak truth to the power of the NEA. Military families can join urban parents on the list of those who matter less to the NEA than does maintaining the failed status quo.

 

Friday, June 19, 2009

WSJ.com - Too Big to Fail, or Succeed

 

WSJ.com - Opinion: Too Big to Fail, or Succeed

In a speech at the White House yesterday, President Barack Obama outlined what he envisions for future regulation of the financial system. He called his plan "a new foundation for sustained economic growth . . . a transformation on a scale not seen since the reforms that followed the Great Depression." Indeed it is.

His plan, if adopted, will fundamentally change the nature of our financial system and economy. The underlying concerns and assumptions are clear, and they are made clearer by considering other ways that his administration has dealt with the consequences of competition -- particularly the faux bankruptcies of General Motors and Chrysler and the impending change in antitrust policy. Although the president said in his speech that he supports free markets, these initiatives confirm that the administration fears the "creative destruction" that free markets produce, preferring stability over innovation, competition and change.

In AIG, GM, Chrysler, Fannie Mae and Freddie Mac we can see the future that the administration envisions for our economy -- a sclerotic and unchanging structure of big companies working with, protected by, and relying on big government.

 

 

WSJ.com - 'The Fear Is Gone'

Wow.

 

WSJ.com - Opinion: 'The Fear Is Gone'

 

Voices from Iran.

The following are firsthand accounts that were solicited by Journal assistant editorial features editor Bari Weiss. Some were translated from Farsi. Surnames have been omitted to protect the writers.

 

We reformists have no radio, no newspaper, and no television. All our Internet sites are filtered, as well as social networks such as Facebook. Text messaging and mobile communication were also cut off during the demonstrations. And yet we had hundreds of thousands, if not millions.

The state-run TV station has announced that riot police will severely punish anybody that demonstrates. Ahmadinejad called the opposition a bunch of insignificant dirt who try to make the taste of victory bitter to the nation. But his remark was answered by the largest demonstrations ever.

Older people compared Monday's gathering to the demonstrations of 1979 which marked the downfall of the Shah's regime. They even said that this event was larger.

Democracy is a long way ahead. I may not be alive to see that day. With eyes full of tears in these early hours of June 16, I glorify the courage of those who have already been killed. I hope that the blood of these martyrs will make every one of us more committed to freedom, to democracy and to human rights.

 

Wednesday, June 17, 2009

WSJ.com - Health Reform and Competitiveness

 

WSJ.com - Opinion: Health Reform and Competitiveness

Employers may write the checks to the insurance companies, but workers still pay for the coverage they get from those employers. The total cost of an employee is what matters to businesses, and fringe benefits are as much a part of compensation as cash wages. When health costs rise, firms don't become less competitive, as if insurance were lopped out of profits. Instead, nonhealth compensation drops. Or wages rise more slowly than they otherwise would.

A recent study from none other than the White House Council of Economic Advisers notes exactly this point: If medical spending continues to accelerate, it expects take-home pay to stagnate.

It's certainly true that the U.S. employer-based insurance system can dampen entrepreneurial spirits. There's the "job lock" phenomenon, in which employees fear leaving a less productive job because they're afraid to lose their health benefits. Another problem is that insurance costs more for small groups than the large risk pools that big corporations assemble, meaning that it's harder to form new businesses that can offer policies. But all this is really an argument for developing the individual health insurance market, where policies would follow workers, not jobs.

 

Monday, June 15, 2009

WSJ.com - How Safeway Is Cutting Health-Care Costs

 

WSJ.com - Opinion: How Safeway Is Cutting Health-Care Costs*

 

Market-based solutions can reduce the national health-care bill by 40%.

 

At Safeway we believe that well-designed health-care reform, utilizing market-based solutions, can ultimately reduce our nation's health-care bill by 40%. The key to achieving these savings is health-care plans that reward healthy behavior. As a self-insured employer, Safeway designed just such a plan in 2005 and has made continuous improvements each year. The results have been remarkable.

Safeway's plan capitalizes on two key insights gained in 2005. The first is that 70% of all health-care costs are the direct result of behavior. The second insight, which is well understood by the providers of health care, is that 74% of all costs are confined to four chronic conditions (cardiovascular disease, cancer, diabetes and obesity). Furthermore, 80% of cardiovascular disease and diabetes is preventable, 60% of cancers are preventable, and more than 90% of obesity is preventable.

As much as we would like to take credit for being a health-care innovator, Safeway has done nothing more than borrow from the well-tested automobile insurance model. For decades, driving behavior has been correlated with accident risk and has therefore translated into premium differences among drivers. Stated somewhat differently, the auto-insurance industry has long recognized the role of personal responsibility. As a result, bad behaviors (like speeding, tickets for failure to follow the rules of the road, and frequency of accidents) are considered when establishing insurance premiums. Bad driver premiums are not subsidized by the good driver premiums.

 

 

Monday, June 8, 2009

WSJ.com - Obama's Voodoo Health Economics

 

WSJ.com - Opinion: Obama's Voodoo Health Economics

 

On Monday President Barack Obama's Council of Economic Advisers released a report called "The Economic Case for Health Care Reform." The report argues that Americans must curb their consumption of medical care in order to avoid soaring federal deficits, unsustainable burdens on family budgets, and damage to the economy. All of these claims are untrue.

In truth, Medicare can be fixed without subjecting the nation to medical scarcity. Telling all Americans they have to cut back on health care because Medicare is fiscally unsound is like ordering all Americans to go on diets because the food stamp program is in trouble.

It would be safer to reduce government's share of the health-care bill rather than lowering the standard of care for everyone and depressing the nation's largest industry.

Two-thirds of annual health spending increases are the result of the rapid development and use of new medications and devices, according to the CBO. But, as the CBO reminds us, these innovations "permit the treatment of previously untreatable conditions." If you had a heart attack in the 1980s and made it to the hospital you had only a 60% chance of living a year. Now your chance is over 90%. No one wants 1980s medicine at 1980s prices. And in 10 years, no one will want 2009 care.

 

 

Thursday, June 4, 2009

WSJ.com - What I Saw at Tiananmen

For those who don’t remember, and even for those who do.  Today is the 20th anniversary.

 

WSJ.com - Opinion: What I Saw at Tiananmen

It's now 20 years since I ran through a cross-fire of tracer bullets, heading into Beijing's Tiananmen Square in the early hours of June 4 to witness the end of the uprising in which millions of Chinese, in the spring of 1989, peacefully seized control of their own capital and demanded democracy.

In a long career as a reporter, which has included both tanks and gunfire elsewhere, there is no story I have covered that has been more haunting, inspiring and important than that Tiananmen uprising. And there is no story that, in its plotline, has been more heartbreaking.

 

WSJ.com - School Reforms on the Brink

 

WSJ.com - Opinion: School Reforms on the Brink

The education establishment and its political allies employ multiple methods to keep kids trapped in rotten schools. One tactic is to use control of school boards to prevent or limit the creation of charter schools. Another is to smother existing voucher programs with rules and red tape. Real world examples are currently playing out in Milwaukee and New York City.

The Milwaukee Parental Choice Program provides vouchers for some 20,000 low-income, mostly minority children to attend private schools. Because the 20-year-old program polls above 60% with voters, and even higher among minorities, killing it outright would be unpopular. Instead, Democratic Governor Jim Doyle wants to reduce funding and pass "reforms" designed to regulate the program to death. The goal is to discourage private schools from enrolling voucher students and thus force kids to return to unionized public schools.

The great moral outrage of our time is the way the public schools establishment puts its interests ahead of children, trying to kill every school choice program whatever its success. Genuine reformers should be shouting from the rooftops.

 

Tuesday, June 2, 2009

WSJ.com - The End of the Affair

Not much news here, but an interesting historical commentary for anyone still in love with cars.

 

WSJ.com - The End of the Affair

 

The fate of Detroit isn’t a matter of economics. It’s a tragic romance, whose magic was killed by bureaucrats, bad taste and busybodies. P.J. O’Rourke on why Americans fell out of love with the automobile.

 

The fate of Detroit isn’t a matter of financial crisis, foreign competition, corporate greed, union intransigence, energy costs or measuring the shoe size of the footprints in the carbon. It’s a tragic romance—unleashed passions, titanic clashes, lost love and wild horses.

 

The American automobile is—that is, was—never a product of Japanese-style industrialism. America’s steel, coal, beer, beaver pelts and PCs may have come from our business plutocracy, but American cars have been manufactured mostly by romantic fools.

America’s romantic foolishness with cars is finished, however, or nearly so. In the far boondocks a few good old boys haven’t got the memo and still tear up the back roads. Doubtless the Department of Transportation is even now calculating a way to tap federal stimulus funds for mandatory OnStar installations to locate and subdue these reprobates.

 

Tuesday, May 26, 2009

WSJ.com - Why Government Can't Run a Business


WSJ.com - Opinion: Why Government Can't Run a Business

The Obama administration is bent on becoming a major player in -- if not taking over entirely -- America's health-care, automobile and banking industries. Before that happens, it might be a good idea to look at the government's track record in running economic enterprises. It is terrible.

There are a number of reasons why this is inherently so. Among them are:
1) Governments are run by politicians, not businessmen. Politicians can only make political decisions, not economic ones. They are, after all, first and foremost in the re-election business. 

2) Politicians need headlines. And this means they have a deep need to do something ("Sen. Snoot Moves on Widget Crisis!"), even when doing nothing would be the better option. Markets will always deal efficiently with gluts and shortages, but letting the market work doesn't produce favorable headlines and, indeed, often produces the opposite ("Sen. Snoot Fails to Move on Widget Crisis!").

3) Governments use other people's money. Corporations play with their own money.   

4) Government does not tolerate competition. 

5) Government enterprises are almost always monopolies and thus do not face competition at all. But competition is exactly what makes capitalism so successful an economic system. The lack of it has always doomed socialist economies.

Cost cutting is alien to the culture of all bureaucracies. Indeed, when cost cutting is inescapable, bureaucracies often make cuts that will produce maximum public inconvenience, generating political pressure to reverse the cuts.

6) Successful corporations are run by benevolent despots. The CEO of a corporation has the power to manage effectively...  But American government was designed by the Founding Fathers to be inefficient, and inefficient it most certainly is. 

7) Government is regulated by government. 

It is government's job to make and enforce the rules that allow a civilized society to flourish. But it has a dismal record of regulating itself. 


Tuesday, May 19, 2009

WSJ.com - How Washington Rations

 

WSJ.com - Opinion: How Washington Rations

A case study in 'cost-control.'

The problem is that what "works best" isn't the same for everyone. While not painless or risk free, virtual colonoscopy might be better for some patients -- especially among seniors who are infirm or because the presence of other diseases puts them at risk for complications. Ideally doctors would decide with their patients. But Medicare instead made the hard-and-fast choice that it was cheaper to cut it off for all beneficiaries. If some patients are worse off, well, too bad.

Medicare is already the country's largest purchaser of health care. Private carriers generally adopt its rates and policies, and the virtual colonoscopy decision may run this technology out of the marketplace. Now multiply that by the new "public option" that Democrats favor, which would transfer millions of patients to a new insurance program managed by the federal government. Washington's utilitarian judgments about costs would reshape the practice of medicine.

…scarcity forces choices. As the Medicare trustees note in their report, the tax increases necessary to fund merely the current benefit schedule for the elderly would cripple the economy. The far more expensive public option will not turn into a pumpkin when cost savings do not materialize. At that point, government will clamp down with price controls in the form of lines and rock-bottom reimbursement rates.

 

 

Monday, May 18, 2009

WSJ.com - Earmark Nation

 

WSJ.com - Opinion: Earmark Nation

 

The Founders never imagined spending such vast sums.

Mocking this presumed hypocrisy is good sport, but the Murtha example deserves a closer look. You just might find that you are staring at a Pogo problem: We have met the enemy, and he is us.

When we speak of public corruption, we normally mean an official has been convicted of breaking a law. The bad pols did it. We are at the point, though, where it is hard to say that the corruptions of government are only about the politicians.

Murtha may be right. We are all earmarkers now.

We the people have concluded that if we don't use the Honorable John or Nancy or Ted in Congress to get our piece of it, someone else will get it.

For the longest time, we were able to believe that these corruptions were the inevitable but petty price of politics. But I agree with John Murtha. It isn't petty anymore. It isn't just about amusing "pet projects." The whole system has become an earmark. The politicians have been shaping the system so that more and more people have to buy in to the earmark philosophy -- we pay, they decide -- or get left out.

Barack Obama isn't a reformer. He's the president of Earmark Nation. We are about to enact the Obama federal health-insurance entitlement, which on top of all the other entitlements and their limitless liabilities will require pulling trillions of dollars more into the federal budget. Whatever nominal public good this is supposed to achieve, it means that they, these 535 pols, most of them gerrymandered for life, will decide in perpetuity the details of how to dole it out.

 

Friday, May 15, 2009

WSJ.com - Chrysler and the Rule of Law

 

WSJ.com - Opinion: Chrysler and the Rule of Law

The rule of law, not of men -- an ideal tracing back to the ancient Greeks and well-known to our Founding Fathers -- is the animating principle of the American experiment. While the rest of the world in 1787 was governed by the whims of kings and dukes, the U.S. Constitution was established to circumscribe arbitrary government power. It would do so by establishing clear rules, equally applied to the powerful and the weak.

Fleecing lenders to pay off politically powerful interests, or governmental threats to reputation and business from a failure to toe a political line? We might expect this behavior from a Hugo Chávez. But it would never happen here, right?

Until Chrysler.

By stepping over the bright line between the rule of law and the arbitrary behavior of men, President Obama may have created a thousand new failing businesses. That is, businesses that might have received financing before but that now will not, since lenders face the potential of future government confiscation. In other words, Mr. Obama may have helped save the jobs of thousands of union workers whose dues, in part, engineered his election. But what about the untold number of job losses in the future caused by trampling the sanctity of contracts today?

The value of the rule of law is not merely a matter of economic efficiency. It also provides a bulwark against arbitrary governmental action taken at the behest of politically influential interests at the expense of the politically unpopular.