Showing posts with label Cato Institute. Show all posts
Showing posts with label Cato Institute. Show all posts
Monday, October 3, 2022
Friday, July 27, 2018
The lunatics at the Cato Institute admit fiscal windfalls would come from legalizing heroin and cocaine, not marijuana
"[A]lthough media outlets and policymakers mostly focus on marijuana, the majority of budgetary gains would likely come from legalizing heroin and cocaine."
There are even bigger windfalls from ending defense spending, until you're overrun by the enemy.
Thursday, June 1, 2017
Damn fool Cato libertarian Nowrasteh: Odds of being a victim of terrorism MUCH GREATER AT 1:3,609,709 than winning Powerball at 1:292,201,338
And that's using his own artificial terminus a quo of 1975. Why not pick 1978, or 1992?!
In America we've gone to enormous expense to protect children in car seats and adults with seat belts and air bags, but the libertarians think that preventing your death at the hands of a Muslim head-cutter is an impediment to economic growth.
Cato's Iranian American Alex Nowrasteh, here:
Foreign-born terrorism on U.S. soil is a low-probability event that imposes high costs on its victims despite relatively small risks and low costs on Americans as a whole. From 1975 through 2015, the average chance of dying in an attack by a foreign-born terrorist on U.S. soil was 1 in 3,609,709 a year. For 30 of those 41 years, no Americans were killed on U.S. soil in terrorist attacks caused by foreigners or immigrants. Foreign-born terrorism is a hazard to American life, liberty, and private property, but it is manageable given the huge economic benefits of immigration and the small costs of terrorism. The United States government should continue to devote resources to screening immigrants and foreigners for terrorism or other threats, but large policy changes like an immigration or tourist moratorium would impose far greater costs than benefits.
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Friday, October 31, 2014
Wall Street Journal fears conservatives are winning: Trots out libertarian from Cato Institute to smear Laura Ingraham as nativist
You know Laura Ingraham. She hates foreigners so much she adopted three of them, one from Guatemala and two from Russia, and reportedly almost married a very dark-skinned man.
Here:
Many in the GOP are jockeying for the soul of the party ahead of an anticipated 2014 midterm election victory. Social conservatives are eager to reassert their influence after repeated defeats over gay marriage. Fiscal conservatives make the case for a greater emphasis on runaway spending. And then there are the nativists, who contend that the future of the Republican Party lies in opposing immigration reform. Conservative radio host Laura Ingraham, for example, said last month that, “Immigration could be to 2016 what ObamaCare was to 2010.”
----------------------------------------
Swine.
It used to be the conservative movement consisted of social, fiscal and foreign policy wings. The libertarians don't have a foreign policy because they believe in open borders, so they had to invent something they could caricature and toss in order to have a simpler, Manichean world in which they, the sons of light, fight us, the social conservative sons of darkness.
Two-front wars are too hard for libertarians.
Monday, October 28, 2013
Libertarian Freaks In Virginia Hate Cuccinelli's Social Conservatism, Funded By Former Cato Institute President
Tim Carney reports, here:
Purple PAC, a political action committee headed by Libertarian Ed Crane, former president of the Cato Institute, announced Oct. 25 it would spend $300,000 to back Sarvis. And many Beltway politicos with libertarian leanings are backing Sarvis and expressing disgust for Cuccinelli.
Why are libertarians working so hard against Cuccinelli, who is probably the most libertarian statewide official in Virginia in recent history?
I suspect identity politics plays a role.
I asked Sarvis why a libertarian should oppose Cuccinelli, and the first words out of his mouth were “social issues.” Crane’s only critique of Cuccinelli when announcing the $300,000 buy for Sarvis: “Ken Cuccinelli is a socially intolerant, hard-right conservative with little respect for civil liberties.”
Cuccinelli is undoubtedly conservative. He’s an observant Catholic with seven children and a home-schooling wife. He’s a hero to the pro-life cause and an opponent of gay marriage.
Friday, March 1, 2013
Warren Buffett, Amoral Crony Capitalist, Bought An Indulgence From The Left
So says Daniel Mitchell of The Cato Institute, here:
"If you’re an amoral person with political connections, it’s possible to make a lot of money.
"Warren Buffett lined his pockets by making a government-subsidized investment in Goldman Sachs during the financial crisis.
"The rest of us suffered and he got richer, but the left seems to be okay with that perverse form of redistribution because he supports class-warfare tax hikes. Sort of like buying an indulgence in the Middle Ages."
I really like that analogy with the church because it speaks to the failure of all idealist conceptions to deliver on what they promise. This is as true of socialism as it is of capitalism, of fascism as it is of Christianity. All offer a promised land which never seems to arrive, but you have to ask yourself who thought this stuff up.
Like beer to Homer Simpson, it is we who are the cause of and the solution to all of life's problems.
Sunday, November 25, 2012
Joel Kotkin Urges Republicans To Join The Class War
"It’s time for Republicans to break with the traditions of Goldwater, Reagan, and, particularly, Bush and shift to something more akin to the party’s roots in the mid-19th century. This party needs less preaching and libertarian manifestos that essentially defend plutocracy. Instead it’s time to embrace class warfare on today’s gentry, and embrace the aspirations of today’s middle-class. Honest Abe in 2016?"
Egging on the Republicans to embrace Marxist class categories and methods and pretending that's not an appeal to ideology, Joel Kotkin here thinks Republicans could win again if only they gave stuff to the yeoman class and took away stuff from the clerisy. You know, like his hero Pres. Abraham Lincoln did when he signed the Homestead Act in 1862, which gave away 160 acres out west to anyone who would improve the land, and when he signed the Emancipation Proclamation, which took away the property of slaveholders without compensation. Like all good dictators, Lincoln made notions of property and its value even more arbitrary than they had been before.
Egging on the Republicans to embrace Marxist class categories and methods and pretending that's not an appeal to ideology, Joel Kotkin here thinks Republicans could win again if only they gave stuff to the yeoman class and took away stuff from the clerisy. You know, like his hero Pres. Abraham Lincoln did when he signed the Homestead Act in 1862, which gave away 160 acres out west to anyone who would improve the land, and when he signed the Emancipation Proclamation, which took away the property of slaveholders without compensation. Like all good dictators, Lincoln made notions of property and its value even more arbitrary than they had been before.
It is little appreciated how the Homestead Act basically destroyed the flexibility of the federal revenue system, causing the federal government to rely increasingly on tariffs and also excises which up until The War Between The States had fluctuated up and down as revenues from federal land sales did the same.
So Anderson and Martin, here, who emphasize the substitutability of tariff and land sales revenues:
"Coinciding with the rapid increase in land grants to homesteaders, railroads, and the states after 1862, the federal revenue derived from land sales fell rapidly as a proportion of total receipts. Further, the general decline in tariff rates that had occurred until the Civil War was reversed, and tariff rates began to rise rapidly. Import duty rates, which had reached their lowest level in the century in 1857, increased sharply during the Civil War and remained high for the remainder of the century (Baack and Ray 1983, p. 73). Tariffs continued to be the single most important source of federal revenue after the war ended."
So Anderson and Martin, here, who emphasize the substitutability of tariff and land sales revenues:
"Coinciding with the rapid increase in land grants to homesteaders, railroads, and the states after 1862, the federal revenue derived from land sales fell rapidly as a proportion of total receipts. Further, the general decline in tariff rates that had occurred until the Civil War was reversed, and tariff rates began to rise rapidly. Import duty rates, which had reached their lowest level in the century in 1857, increased sharply during the Civil War and remained high for the remainder of the century (Baack and Ray 1983, p. 73). Tariffs continued to be the single most important source of federal revenue after the war ended."
So in an important sense, Lincoln and the Republicans are to blame not just for the development of Our Enemy, The State, they are also to blame for setting the untenable conditions to fund it as it henceforth and inevitably grew large. In the end, the price of Union and black emancipation would be universal bondage to Leviathan with the coming of the Income Tax in 1913.
Kotkin completely misses the significance of what's going on on the right. Conservatives in America are rediscovering the meaning of the constitution, and how people like Lincoln ruined it. Mitt Romney with his incessant talk of American supremacy in the world simply reminded them too much of him.
Kotkin's correct about one thing, though, that the socialism of Obama is misunderstood. But Kotkin doesn't call it the fascism that it is, because Kotkin himself actually advocates it himself, only that it's the good kind which helps grow the middle class.
Kotkin completely misses the significance of what's going on on the right. Conservatives in America are rediscovering the meaning of the constitution, and how people like Lincoln ruined it. Mitt Romney with his incessant talk of American supremacy in the world simply reminded them too much of him.
Kotkin's correct about one thing, though, that the socialism of Obama is misunderstood. But Kotkin doesn't call it the fascism that it is, because Kotkin himself actually advocates it himself, only that it's the good kind which helps grow the middle class.
From the comments section, Kotkin says as much:
Old style democrat? You know, the FDR kind, which admired and imitated the strong men of Europe, who eventually plunged the world into a war far bloodier than, but no less reminiscent of, Lincoln's.
Conservatives want to get rid of the imperial presidency, not just get one friendly to its interests.
Joel Kotkin's "New Geography" isn't old enough.
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Tuesday, March 27, 2012
The Incredibly Fading TARP
USA Today Away recounts here how the political toxicity of TARP has been diluted since 2010, primarily because of the passage of time, its putative success, and the inevitability of one Mitt Romney, who supported TARP and still does, one issue on which Mitt Romney has not flip-flopped:
Mark Calabria, director of financial regulation studies at the libertarian Cato Institute think tank, said some conservatives still oppose the bailout, but the growing assumption he will be the Republican presidential nominee has caused them to "pull their punches."
"Republicans are divided on it: (Some say) it was distasteful but had to be done; others say it was an abomination," he said.
Calabria said it was unlikely that TARP and the bank bailouts would become a general election issue if Romney is the nominee because his and Obama's positions "aren't all that different."
Two years ago, some Republicans found their vote for TARP was enough to draw a populist conservative opponent into the GOP primary.
Never mind bank failures have cost the FDIC nearly $90 billion and GSE failures have cost the taxpayers $150 billion and climbing.
More to the point, legitimizing bailouts legitimizes moral hazard, making the prospect of gaming the system, with even larger bailouts next time, a certainty.
This is not capitalism.
Romney for president!
Never mind bank failures have cost the FDIC nearly $90 billion and GSE failures have cost the taxpayers $150 billion and climbing.
More to the point, legitimizing bailouts legitimizes moral hazard, making the prospect of gaming the system, with even larger bailouts next time, a certainty.
This is not capitalism.
Romney for president!
Labels:
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Mitt Romney 2012,
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Monday, February 13, 2012
Romney Unlikely To Reform Tax Code Fearing Charges Of Personal Gain
So says Cato Institute Senior Fellow Dan Mitchell, here:
Romney will be reluctant - because of his personal wealth - to advance policies that can be portrayed as helping the so-called rich. We can't expect a Reagan-style agenda of economic liberty and individual freedom, so something like a flat tax is very unlikely.
Friday, October 28, 2011
Federal Revenues Came From Tariffs and Land Sales in First Half of 1800s, From Tariffs and Excises in Second Half
A largely forgotten fact when discussing the history and meaning of US tax policy.
Gary M. Anderson and Dolores T. Martin examined the role of land sales in considerable detail in 1987 here.
I provide a few excerpts:
[F]rom 1800 until the beginning of the Civil War, proceeds from the sale of public lands constituted a major source of revenue for the federal government, accounting for 48 percent of net receipts in 1836. ...
After 1820, receipts from land sales became a major component of federal revenues. During 1836, for example, receipts from land sales exceeded 48 percent of total federal revenues. From 1820 to 1860, receipts from land sales averaged 10.8 percent of total federal receipts per annum.
From the program’s beginnings in 1796 until 1862, privatization of the public lands via sales to the private sector scored several major successes. By 1862, acreage equaling about 67 percent of the public domain in 1802 had been sold, and land sale receipts provided a significant, although fluctuating, fraction of total federal revenues. ...
Before the Civil War, proceeds from land sales and tariff revenues were the two major components in federal receipts. The proceeds from these different sources were highly substitutable; one dollar of revenue from land sales could replace one dollar from a tariff and vice versa. There is strong evidence to suggest that this substitutability may have been a significant factor in the demise of the system of revenue-maximizing land sales.
Of course the rise in reliance on excises from 1862 onwards could also explain why reliance on land sales declined to almost nothing by century's end, quite apart from the so-called rent-seeking aspects of tariff politics which the authors explore. But they seem not to notice the role of excises.
Excises on alcohol and tobacco ramp up dramatically to $100 million to $150 million per year from 1862, from next to nothing beforehand, while tariffs move up and down around a trendline of $200 million in revenues per year starting also at the same time, having been in the $50 million and below range per year for most of the century prior to the War Between the States.
The importance of alcohol, and tobacco, in the social and economic history of America should not be underestimated, as Daniel Okrent's important recent book on Prohibition has reminded us.
Gotta go. Time to light up and have a drink!
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Monday, July 26, 2010
George Will, National Treasure, Font of American Wisdom
We are not Europeans. We are not, in Orwell's phrase, a "state-broken people."
It is a principle of liberal social legislation that a program for the poor is a poor program.
[D]ependency is the agenda of the other side.
I believe that today, as has been the case for 100 years, and as will be the case for the foreseeable future, the American political argument is an argument between two Princetonians: James Madison of the class of 1771, and Thomas Woodrow Wilson of the class of 1879.
The very virtue of a constitution is that it's not changeable. It exists to prevent change, to embed certain rights so that they cannot easily be taken away.
Madison said rights pre-exist government. Wilson said government exists to dispense whatever agenda of rights suits its fancy, and to annihilate, regulate, attenuate, or dilute others.
We are going to come to a time when America is going to have to revisit Madison's Federalist Paper no. 45, and his statement, "The powers delegated by the proposed Constitution to the federal government are few and defined."
Gridlock is not an American problem, it is an American achievement!
[W]e always have more to fear from government speed than government tardiness.
We are told that one must not be a "Party of No." To "No," I say an emphatic "Yes!"
[T]he most beautiful five words in the English language are the first five words of the First Amendment, "Congress shall make no law."
The Bill of Rights is a litany of "No's."
The American people are, I think, healthier than they are given credit for. They have only one defect. They have nothing to fear, right now, but an insufficiency of their fear itself. It is time for a wholesome fear of what people with a dependency agenda are trying to do. We have few allies. We don't have Hollywood, we don't have academia, and we don't have the mainstream media. But we have two things. First, we have arithmetic. The numbers do not add up, and cannot be made to do so. Second, we have the Cato Institute. The people in this room are what the Keynesians call "a multiplier." And, for once, they are right!
Don't miss the rest at the link!
Monday, July 12, 2010
"THE MOST DANGEROUS AND INCOMPETENT PRESIDENT WE HAVE EVER HAD"
July 12, 2010
Health Care Rationing Obama Believes In
By Nat Hentoff
As a reporter, I do not use euphemisms - such as calling murderous terrorists "militants" or "activists." And as an American, I can exercise my First Amendment right to say plainly that President Obama is a liar with regard to our new health-care law, often referred to as Obamacare.
When a number of critics of Obamacare, including myself, warned that it would bring the rationing of treatments, medications and research into new procedures, the president said to the American Medical Association (June 15, 2009) that this rationing charge was a "fear tactic."
The next month, he said flat out: "I don't believe that government can or should run health care" (firstthings.com, May 31, 2010).
But in May of this year, the president nominated Dr. Donald Berwick, a professor at Harvard Medical School, to head Health and Human Services' Centers for Medicare and Medicaid Services (CMS) - the most powerful health-care position. As Hal Scherz underlines (RealClearPolitics.com, May 26): "CMS covers over 100 million Americans, has an annual $800 billion budget that is larger than the Defense Department's and is the second-largest insurance company in the world."
Unlike Obama, Berwick is enthusiastically, openly candid in his support of Britain's socialistic National Health Service. In a 2008 speech to British physicians, our new health czar said: "I am romantic about National Health Service. I love it (because it is) 'generous, hopeful, confident, joyous and just.'"
That "just" National Health Care Service decides which care can be too costly for the government to pay. Its real-time decider of life-or-death outcomes is the National Institute for Health and Clinical Excellence (NICE). Here is how "nicely" it works, described by Michael Tanner, senior fellow and health-care expert at the Cato Institute (where I, too, am a senior fellow):
"It acts as a comparative-effectiveness tool for the National Health Care Service, comparing various treatments and determining whether the benefits the patients receives - SUCH AS PROLONGED LIFE - are cost-efficient for the government" (lifenews.com, May 27).
So listen to our very own decider of how the Obama administration will lower our national debt by cutting inefficient health-care costs. After declaring his ardent romantic attachment to the British system, Berwick said: "All I need to do to rediscover the romance is to look at health care in my own country." He will, of course, be too busy to attend the funerals of the sacrificial Americans whose lives - not only those of the elderly - may thereby be cut short.
Tanner makes a grim point as Berwick rediscovers the romance of government cost-effectiveness: "Recent reports suggest that the recently passed health-care bill will be far more expensive than originally projected. As it becomes apparent that Obamacare is unsustainable, the calls for controlling its costs through rationing will grow louder. With Donald Berwick running the government's health-care efforts, those voices have a ready ear" (dailycaller.com, May 27).
By then, Berwick will be involved in the government-controlled health of more than 100 million Americans and - notes Michael Tanner - "Maybe those worries about death panels weren't so crazy after all."
Keep in mind that already, in May, "the Congressional Budget Office updated its cost projections (of Obamacare). It found that the new health legislation would cost $115 billion more than estimated when it was enacted ("ObamaCare's Ever-Rising Price Tag," Wall Street Journal, June 3).
How soon will the romantic rhythms of health rationing follow?
Wesley Smith, an invaluable investigative reporter on the dangers of government-controlled health care, describes the consequences if Obamacare is not repealed by the next Congress after the midterm elections:
"Once the centralized planning of medical delivery is complete - with cost-containment boards controlling the standards of care and the extent of coverage for both the private and public sectors - insurance companies, HMOs and the government will be able to legally discriminate against the sickest, most disabled and most elderly in our country. In other words, those whose care is most expensive."
For what to watch for during the reign of Berwick, whom Secretary of Health and Human Services Kathleen Sibelius recently glorified as "absolutely the right leader for this time" (CNSNews.com, May 26), I bring back Michael Tanner:
In the British Health Service Berwick loves, "750,000 patients are awaiting admission to NHS hospitals. ...The latest estimates suggest that for most specialties, only 30 to 50 percent of patients are treated within 18 weeks. For trauma and orthopedic patients, the figure is only 20 percent. ... Every year 50,000 surgeries are canceled because patients become too sick on the waiting list to proceed."
And, again unlike the president, Berwick tells it like it frighteningly is in a June 2009 interview for the magazine, Biotechnology Healthcare:
"It's not a question of whether we will ration health care. It is whether we will ration with our eyes open."
There are many reasons why it is vital for Americans to vote in the midterm elections - and, of course, in 2012, to prevent a second term for the most dangerous and incompetent president we have ever had - but for many Americans, it is particularly important this year to vote against supporters of Obamacare. The question for many voters should be whether, in the years ahead, they will be in condition to vote if they are on waiting lists for government-controlled health care.
More of us are learning that during the Obama administration, it is essential to continually keep our eyes open on all it does.
Nat Hentoff is a nationally renowned authority on the First Amendment and the Bill of Rights. He is a member of the Reporters Committee for Freedom of the Press, and the libertarian Cato Institute, where he is a senior fellow.
Thursday, March 25, 2010
ObamaCare Will Increase Deficits By Over $500 Billion in First Decade
Sorry. Just correcting the lies.
The article was posted here:
March 25, 2010
Bond Markets Reflect the True Cost of Obamacare
By Michael Barone
Not many people noticed amid the Democrats' struggle to jam their health care bill through the House, but in recent weeks U.S. Treasury bonds have lost their status as the world's safest investment.
The numbers are pretty clear. In February, Bloomberg News reports, Berkshire Hathaway sold two-year bonds with an interest rate lower than that on two-year Treasuries. A company run by a 79-year-old investor is a better credit risk, the markets are telling us, than the U.S. government.
Buffett's firm isn't the only one. Procter & Gamble, Johnson & Johnson and Lowe's have been borrowing money at cheaper rates than Uncle Sam.
Democrats wary of voting for the health care bill may have been soothed by the Congressional Budget Office's report that it would reduce federal deficits over the next 10 years. But bond buyers know that the Democrats gamed the CBO system to get a good score.
The realities, as former CBO Director Douglas Holtz-Eakin pointed out in The New York Times, are different. The real cost is disguised by the fact that the bill includes 10 years of revenue but only six years of spending. It includes $70 billion in premiums for long-term care that will have to be paid out later. It excludes $114 billion in discretionary spending needed to run the program. It includes nearly half a trillion dollars in unrealistic Medicare savings.
Holtz-Eakins's bottom line: The bill will not lower deficits, but will raise them by $562 billion over 10 years. Treasury will have to borrow that money -- and probably pay much higher interest than it's paying now.
Moreover, once the bill is fully in effect, the Cato Institute's Alan Reynolds points out, its expenses are likely to grow at least 7 percent a year -- significantly faster than revenues. At that rate, spending doubles every 10 years.
No wonder that Moody's declared last week that the Treasury is "substantially" closer to losing its AAA bond rating.
It's not only the federal government that is heading toward insolvency. State governments will have to spend more under the health care bill -- $735 million in Tennessee alone, according to Democratic Gov. Phil Bredesen.
And state governments are already facing a huge problem called pensions. The Pew Charitable Trusts estimates that state government pensions are underfunded by $450 billion. My American Enterprise Institute colleague Andrew Biggs argues in The Wall Street Journal that the real figure is over $3 trillion.
The reason: State governments set aside cash to invest in pensions, but they typically assume that their investments will rise 8 percent a year indefinitely. They haven't been getting such high returns and are not likely to do so in the future. But they are under legal obligations, which courts won't allow them to escape, to pay the pensions. Retirees get paid off before bondholders, which means that states are going to have to pay more interest when they borrow.
Back in the 1990s, Clinton adviser James Carville said that if he was reincarnated he would like to come back as the bond market -- "because you can intimidate everybody." Governments, like all organizations, need to borrow routinely. But investors won't lend unless they think they will be paid back. And they will demand higher interest rates as their loans become riskier.
On Sunday, 219 House Democrats, soothed by their leaders' gaming of the CBO scoring process, voted in reckless disregard of what the bond market has been telling them. Some may share Speaker Nancy Pelosi's optimism that the government's looming fiscal disaster can be avoided by imposing a value-added tax -- in effect, a national sales tax.
But, as we know from the experience of high-tax Western Europe and relatively low-tax America over the last three decades, higher taxes tend to retard economic growth. Lower economic growth means less revenue for government than in CBO projections. Less revenue means more borrowing -- and at some point lenders are going to call a halt.
Barack Obama's project of transforming the United States into something like Western Europe is, according to the CBO, raising the national debt burden on the economy to World War II levels. I see train wrecks ahead -- as the bond market forces huge spending cuts or tax increases first on states and then on the federal government. It will make what happened in the House Sunday look pretty.
Monday, March 1, 2010
Neither Obama Nor Congress Understand Real Health Insurance
Michael Tanner of The Cato Institute hits one out of the park with this article, which appeared here:
March 1, 2010
The Case for High-Deductible Health Insurance
By Michael Tanner
If President Obama's health care summit showed anything it is that when it comes to controlling health care costs there is bipartisan agreement in favor of looking for the easy solution. Both sides dragged out the traditional villains, "fraud, waste, and abuse." There was the usual search for silver bullets. Republicans dwelled at length on medical malpractice. Democrats talked about pooling and the advantages of comparative shopping through the exchanges. Everyone was in favor of preventive care.
But both sides seem curiously unwilling to address the most important participant in the health care equation - the consumer.
Democrats appear to see consumers only as a class needing protection. Their focus is almost exclusively on government action.
Republicans at least give lip service to a consumer-focused health care system, but seem reluctant to really endorse proposals that shift more risk and responsibility to those consumers.
Perhaps that is because in the long-run, the only way to spend less on health care is to consume less health care. Someone, sometime, has to say no. But the incentives under our current health care system perversely encourage everyone to say "yes."
Essentially, we all want to live forever. This makes health care a very desirable good. At the same time, the normal restraints imposed by price are frequently lacking. Today, of every dollar spent on health care in this country, just 13 cents is paid for by the person actually consuming the goods or services. Roughly half is paid for by government, and the remainder is covered by private insurance. And, as long as someone else is paying, consumers have every reason to consume as much health care as is available.
On the other, when consumers share in the cost of their health care purchasing decisions, they are more likely to make those decisions based on price and value. Take just one example. If everyone were to receive a CT brain scan every year as part of their annual physical, we would undoubtedly discover a small number of brain cancers much earlier than we otherwise would, perhaps early enough to save the patient's life.
But given the cost of such a scan, adding it to everyone's annual physical would quickly bankrupt the nation. But, if they are spending their own money, consumers will make their own rationing decisions based on price and value. That CT scan that looked so desirable when someone else was paying, may not be so desirable if you have to pay for it yourself. The consumer himself becomes the one who says no.
Think of it this way. If every time you went to the grocery store, someone else paid 87 percent of your bill, not only would you eat a lot more steak and a lot less hamburger - but so would your dog. And food costs would go up for everyone.
The RAND Health Insurance Experiment, the largest study ever done of consumer health purchasing behavior, provides ample evidence that consumers can make informed cost-value decisions about their health care. Under the experiment, insurance deductibles were varied from zero to $1,000. Those with no out-of-pocket costs consumed substantially more health care than those who had to share in the cost of care. Yet, with a few exceptions, the effect on outcomes was minimal.
And, in the real world, we have seen far smaller increases in the cost of those services, like Lasik eye surgery or dental care, that are not generally covered by insurance, than for those procedures that are insured.
In fact, a study by Amy Finklestein of MIT suggests that nearly half of the per capita increasing health care spending is due to increased health insurance coverage.
No one is suggesting that people shouldn't have insurance. But insurance is ultimately meant to spread the risk of catastrophic events, not to simply prepay your health care. Your homeowners insurance covers you if your house burns down. It doesn't pay to mow your lawn or paint the fence.
Unfortunately, rather than getting consumers more engaged in their health care decisions, Congress appears ready to move in the other direction.
The president actually denounced high-deductible insurance and greater consumer cost sharing as "not real insurance." Both the House and Senate versions of health reform reduce co-payments and all but eliminate policies with high-deductibles. No co-payments at all are allowed for a wide variety of broadly-defined "preventive" services. The consumer share of health spending will actually decline to just ten cents of every dollar by 2019.
This all but guarantees that health care costs and spending will continue their unsustainable path. And that is a path leading to more debt, higher taxes, fewer jobs and a reduced standard of living for all Americans.
Health care reform cannot just be about giving more stuff to more people. It should be about actually "reforming" the system. That means scrapping the current bills, and crafting the type of reform that makes consumers responsible for their health care decisions.
Michael Tanner is a senior fellow at the Cato Institute and coauthor of Healthy Competition: What's Holding Back Health Care and How to Free It.
Saturday, December 19, 2009
Jewish Atheist Knows a Tyrant When He Sees One
From John W. Whitehead's December 11, 2009 interview with Nat Hentoff "America Under Barack Obama":
Nat Hentoff has had a life well spent, one chock full of controversy fueled by his passion for the protection of civil liberties and human rights. Hentoff is known as a civil libertarian, free speech activist, anti-death penalty advocate, pro-lifer and not uncommon critic of the ideological left.
At 84, Nat Hentoff is an American classic who has never shied away from an issue. For example, he defended a woman rejected from law school because she was Caucasian; called into a talk show hosted by Oliver North to agree with him on liberal intolerance for free speech; was a friend to the late Malcolm X; and wrote the liner notes for Bob Dylan's second album.
A self-described uncategorizable libertarian, Hentoff adds he is also a “Jewish atheist, civil libertarian, pro-lifer.” Accordingly, he has angered nearly every political faction and remains one of a few who has stuck to his principles through his many years of work, regardless of the trouble it stirred up. For instance, when he announced his opposition to abortion he alienated numerous colleagues, and his outspoken denunciation of President Bill Clinton only increased his isolation in liberal circles (He said that Clinton had "done more harm to the Constitution than any president in American history," and called him "a serial violator of our liberties.").
Born in Boston on June 10, 1925, Hentoff received a B.A. with honors from Northeastern University and did graduate work at Harvard. From 1953 to 1957, he was associate editor of Down Beat magazine. He has written many books on jazz, biographies and novels, including children's books. His articles have appeared in the Wall Street Journal, New York Times, Commonwealth, the New Republic, the Atlantic and the New Yorker, where he was a staff writer for more than 25 years. In 1980, he was awarded a Guggenheim Fellowship in Education and an American Bar Association Silver Gavel Award for his coverage of the law and criminal justice in his columns. In 1985, he was awarded an Honorary Doctorate of Laws by Northeastern University. For 50 years, Hentoff wrote a weekly column for the Village Voice. But that publication announced that he had been terminated on December 31, 2008. In February 2009, Hentoff joined the Cato Institute as a Senior Fellow.
Hentoff's views on the rights of Americans to write, think and speak freely are expressed in his columns. He is also an authority on First Amendment defense, the Bill of Rights, the Supreme Court, students' rights and education. Friends and critics alike describe him as the kind of writer, and citizen, that all should aspire to be—"less interested in 'exclusives' than in 'making a difference.'" Critiquing Hentoff's autobiography, Speaking Freely, Nicholas von Hoffman refers to him as "a trusting man, a gentle man, just and undeviatingly consistent."
Hentoff took to heart the words from his mentor, I. F. "Izzy" Stone, the renowned investigative journalist who died in 1989: "If you're in this business because you want to change the world, get another day job. If you are able to make a difference, it will come incrementally, and you might not even know about it. You have to get the story and keep on it because it has to be told."
Nat Hentoff has earned the well-deserved reputation of being one of our nation's most respected, controversial and uncompromising writers. He began his career at the Village Voice because he wanted a place to write freely on anything he cared about. And his departure from the publication has neither dampened his zeal nor tempered his voice.
Hentoff, whose new book, At the Jazz Band Ball—Sixty Years on the Jazz Scene (University of California Press), is due out in 2010, took some time to speak with me about Barack Obama, the danger of his health care plan, the peril of civil liberties, and a host of other issues.
Nat Hentoff: I try to avoid hyperbole, but I think Obama is possibly the most dangerous and destructive president we have ever had. An example is ObamaCare, which is now embattled in the Senate. If that goes through the way Obama wants, we will have something very much like the British system. If the American people have their health care paid for by the government, depending on their age and their condition, they will be subject to a health commission just like in England which will decide if their lives are worth living much longer.
In terms of the Patriot Act, and all the other things he has pledged he would do, such as transparency in government, Obama has reneged on his promises. He pledged to end torture, but he has continued the CIA renditions where you kidnap people and send them to another country to be interrogated. Why is Obama doing that if he doesn't want torture anymore? Throughout Obama's career, he promised to limit the state secrets doctrine which the Bush-Cheney administration had abused enormously. The Bush administration would go into court on any kind of a case that they thought might embarrass them and would argue that it was a state secret and the case should not be continued. Obama is doing the same thing, even though he promised not to.
So in answer to your question, I am beginning to think that this guy is a phony. Obama seems to have no firm principles that I can discern that he will adhere to. His only principle is his own aggrandizement. This is a very dangerous mindset for a president to have.
JW: Do you consider Obama to be worse than George W. Bush?
NH: Oh, much worse. Bush essentially came in with very little qualifications for presidency, not only in terms of his background but he lacked a certain amount of curiosity, and he depended entirely too much on people like Rumsfeld, Cheney and others. Bush was led astray and we were led astray. However, I never thought that Bush himself was, in any sense, "evil." I am hesitant to say this about Obama. Obama is a bad man in terms of the Constitution. The irony is that Obama was a law professor at the University of Chicago. He would, most of all, know that what he is doing weakens the Constitution.
In fact, we have never had more invasions of privacy than we have now. The Fourth Amendment is on life support and the chief agent of that is the National Security Agency. The NSA has the capacity to keep track of everything we do on the phone and on the internet. Obama has done nothing about that. In fact, he has perpetuated it. He has absolutely no judicial supervision of all of this. So all in all, Obama is a disaster. ...
JW: One of the highest unemployment rates in the country is among African-Americans.
NH: Not only that, the general unemployment rate is going to continue for a long time and for all of us. I have never heard so many heart-wrenching stories of all kinds of people all across the economic spectrum. As usual, the people who are poorest—the blacks, Hispanics and disabled people—are going to suffer more than anyone else under the Obama administration. This is a dishonest administration, because it is becoming clear that the unemployment statistics of the Obama administration are not believable. I can't think of a single area where Obama is not destructive.
JW: A lot of people we represent and I talk to feel that their government does not hear them, that their representatives do not listen to them anymore. As a result, you have these Tea Party protests which the Left has criticized. What do you think of the Tea Party protests?
NH: I spent a lot of time studying our Founders and people like Samuel Adams and the original Tea Party. What Adams and the Sons of Liberty did in Boston was spread the word about the abuses of the British. They had Committees of Correspondence that got the word out to the colonies. We need Committees of Correspondence now, and we are getting them. That is what is happening with the Tea Parties. I wrote a column called "The Second American Revolution" about the fact that people are acting for themselves as it happened with the Sons of Liberty which spread throughout the colonies. That was a very important awakening in this country. A lot of people in the adult population have a very limited idea as to why they are Americans, why we have a First Amendment or a Bill of Rights. ...
JW: You lived through the McCarthy era in the 1950s. Is it worse now than it was then?
NH: McCarthy's regime was ended by Senators who realized that he had gone too far. What we have now may be more insidious. What we have now in America is a surveillance society. We have no idea how much the government knows and how much the CIA even knows about average citizens. The government is not supposed to be doing this in this country. They listen in on our phone calls. I am not exaggerating because I have studied this a long time. You have to be careful about what you do, about what you say, and that is more dangerous than what was happening with McCarthy, but the technology the government now possesses is so much more insidious.
There is much more here. MUST reading.
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