Category: too much government

Out of Our Misery

Obamacare, ACA, Trump, Chickens home to roost

Obamacare may be on the way out.

According to The Atlantic, “the powers of the incoming Health and Human Services secretary are broad enough to cripple the [Affordable Care Act] so it has to be replaced.” Which is significant since the new President has just “signed an executive order empowering his administration’s agencies to do all they can — within the bounds of the Affordable Care Act — to undercut that law.”

The Atlantic’s Vann R. Newkirk II suggests this is . . . “ironic.” The executive leeway Trump is taking is not without precedent. “The irony of that component,” he writes, “is that it rests on precedent set by the Obama administration, which used executive and regulatory power liberally to make the law work in the face of Republican opposition.”

Irony? How about chickens returning to the home roost?

Obamacare itself undermined Obamacare. The plan, from the beginning, was so gimcrack with hidden redistribution that, to both opponents and proponents, it was designed to fail . . . to usher in the Glorious Era of socialized medicine.

Since Obamacare increased “insurance” costs for hundreds of thousands of previous insurance policy holders, and increased medical costs generally, too, it actually discouraged participation from the healthiest, many of whom would rather pay the exorbitant fines, er, “taxes.” Throwing the insurance industry into a death spiral.

So, putting the system out of our misery sooner seems sensible.

But Congress and Trump cannot stop there. Either they repeal more federal regulation and subsidy*, or keep parts of Obamacare, despite a lack of financial stability. A new bill in the Senate promises to do the latter.

We haven’t seen much hint of the former.

But can hope. Audaciously.

This is Common Sense. I’m Paul Jacob.

* To let markets work. Note that The Atlantic tends to miss the point of Obamacare critics. In describing more market-based options, the magazine characterizes the Medical Health Savings Account approach as “For people sick of high deductibles, Republicans offer high-deductible plans as replacements for Obamacare.” The idea is to incentivize people to pay for their own care, which would bring costs down generally.

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Tags ACA, Chickens home to roost, ObamaCare, Trump

ideological culture meme moral hazard nannyism national politics & policies Popular too much government U.S. Constitution

How Socialism Kills

3 Ways That Socialism Kills:

state enforced redistribution requires violence (even if some participate willingly, it’s guns and gulags for everybody else)
central planning produces starvation
a state powerful enough to enforce socialism is an irresistible temptation to those who would abuse power

All the good intentions in the world can’t change this…

but hold on… what about “democratic socialism?”

Tags central planning, death, Democratic Socialism, kills, planned economy, progressivism, socialism, starvation

Accountability folly general freedom ideological culture media and media people moral hazard national politics & policies too much government

Bring Back the Eunuchs?

Washington, corruption, big government, too much government, book

“Everybody knows that ordinary Americans are a bunch of idiots,” a Health and Human Services official told Benjamin Ginsberg. “Why do you need to do a survey to find that out?”

Actually, he was not surveying Americans for their IQs and knowledge levels. He was surveying Washington insiders. Like her.

She hadn’t been listening.

Ginsberg and co-author Jennifer Bachner have a new book out, What Washington Gets Wrong (2016). “We found that public officials,” Ginsberg told C-SPAN’s Brian Lamb last month, “the people who really govern this country . . . don’t think much of ordinary Americans.”

Surprise, surprise. This has been an “open secret” for some time. Washington insiders “are wealthier,” “better educated,” and “think ordinary Americans don’t really know very much.” More alarmingly, they think that the government should “not pay too much attention to what ordinary folks think.”

According to Ginsberg and Bachner, this has been a long time coming. Progressive Era reformers transformed government in an effort to make it less partisan.

They succeeded — only to make it less accountable and less . . . American.

In ancient times, great administrative states were run by eunuchs, men gelded to curb their appetites the better to serve their sovereigns (pharaohs; emperors; kings). Not their own interests.

Is it time to bring back the practice?

Just joking. Instead, Congress can tame the bureaucratic leviathan it has created by trimming its ranks and pulling back on pay and benefits until they’re more in line with the private sector.

Let’s hope the House’s recent passage* of the REINS Act, requiring congressional approval of major regulations, is a sign that Congress’s lackadaisical attitude about the bureaucracy is changing.

This is Common Sense. I’m Paul Jacob.

* Let’s hope the Senate follows suit.

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Tags big government, book, corruption, regulations, too much government, Washington

free trade & free markets general freedom meme moral hazard nannyism national politics & policies Popular too much government

Is Denmark Socialist?

Democratic Socialism, meme, problems, solve

First… some definitions:

Socialism advocates the public ownership (or control) of business and industry in service of a more equal distribution of wealth.

Bernie Sanders and his version of “democratic socialism” places emphasis on redistribution and downplays the public ownership and control part of the system.

However… Bernie seems never to have met a government monopoly he didn’t love, or a free market enterprise he didn’t distrust or despise.

What are the problems (dangers) of socialism?

It idealizes envy.

It rationalizes theft.

It idealizes state power.

It penalizes accomplishment.

It rewards indolence.

It promotes obedience to the state.

It encourages dependence on the state by treating citizens as children.

It dismisses the protection of individual rights with a vague appeal to the “collective good” or “public good.”

It has repeatedly led to economic collapse, oppression, poverty and starvation. So how have Scandinavian democratic socialists managed to overcome these problems?

Quote from the current Prime Minister of Denmark:

“I know that some people in the US associate the Nordic model with some sort of socialism. Therefore I would like to make one thing clear. Denmark is far from a socialist planned economy. Denmark is a market economy.”
—Speech, Harvard Institute of Politics

From “Scandinavian Unexceptionalism” (from the Institute of Economic Affairs):

Today the Nordic economies are again growing, following a return to broadly free-market policies that served them well before policies changed during the 1960s and 1970s.

The countries are changing in the face of serious long-term problems that have developed over the last 30 years.

Finland, Sweden and Denmark have…introduced far-reaching market reforms. These changes include greater openness to trade, clear reductions in the tax burden, private provision of welfare services, the introduction of personal retirement accounts and, in Denmark, even a shift towards a liberal labour market.

—Scandinavian Unexceptionalism (highly recommended!)

And the moral hazards?

The development of Scandinavian welfare states has led to a deterioration in social capital.

Nordic societies have for hundreds of years benefited from a strong Lutheran work ethic, a strong sense of individual responsibility and high levels of trust and civic participation.

In the early stages of their transition to “democratic socialism”, safety nets DID exist, but few used them. Over time, an increasing share of the population became dependent on government transfers. The welfare states moved from offering services to the broad public to transferring benefits to those who did not work.

The situation that exists in Nordic societies today is one in which ethics relating to work and responsibility are not strongly encouraged by the economic systems. Individuals with low skills and education have limited gains from working. This is particularly true of parents of large families, which gain extra support if on welfare.

It is true that welfare systems have reduced poverty. However, especially in the second generation, they have also created a form of social poverty of the same type that is apparent in the countries from which many of the admirers of the Scandinavian systems come. Detailed research clearly shows that welfare systems have formed a culture of dependency which is passed on from parents to children.

MUCH MORE HERE on the moral and economic capital that preceded the welfare state, and its gradual disintegration over time…

Do you believe that socialism is a good idea that has simply been corrupted by ruthless dictators? Consider the story of the Chinese Cultural Revolution. . . a mass movement of Chinese youth dedicated to eradicating capitalism and advancing socialism. Its bloody history tells us quite a lot about the logic of this flawed political philosophy. . . “Socialism’s Idealistic Youth”

Useful References

Scandinavian Unexceptionalism (Institute of Economic Affairs)
This paper is especially valuable because it was written by someone who actually favors a large welfare state. His willingness to concede the problems inherent in such a state are refreshingly honest… and useful for anyone interested in the issues.

What Can the United States Learn from the Nordic Model? (CATO Institute)

Myth: The Scandinavian countries are proof socialism works (Being Classically Liberal)

The Myth of the Scandinavian Model

Economic Freedom of the World: 2013 Annual Report

International government spending (Wikipedia)

Index of Economic Freedom (Heritage Foundation)

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Tags Democratic Socialism, democratic socialist, meme, Scandinavia

Common Sense general freedom ideological culture moral hazard too much government

A Tree Fell In a Forest

Calaveras Big Trees State Park is famous for its hollowed-at- the- trunk Pioneer Cabin Tree, a sequoia

It’s neither “iconic” nor “ironic.”

“Storm fells one of California’s iconic drive-through tunnel trees, carved 137 years ago,” Travis M. Anderson’s title informs us. Calaveras Big Trees State Park is famous for its hollowed-at-the-trunk Pioneer Cabin Tree, a sequoia you have seen in hundreds of photos.

It fell, almost certainly, because of a storm. The ground got wet, undermining the sturdiness of the tree’s root system. And the winds got fast, sending the tree crashing to the ground.

But that’s not the hole — er, whole story.

The obvious reason it fell down is that the “hollowed-out” tunnel amounted to a huge cut. It is almost as if loggers started the felling job nearly seven score ago, and it took all that time to fall.

That is not “ironic,” in case you were wondering. It’s to be expected. The real wonder is that it stayed up so long.

Which should remind us: more than one cause can contribute to a singular effect. We are always tempted to focus on only one factor when we argue about an event. But in society, as in trees and forests, multiple influences are always at work.

Life isn’t monocausal, to put it in professor-speak.

Anderson dubbed the tree “iconic.” Now, an icon is an image used to stand in for other things that look similar. That tree didn’t stand in or represent, did it, other trees in the forest? It stood in memory by standing out as different, distinct — one of a very few hallowed, hollowed California sequoias. The opposite of “iconic.”

Still, in using the tree’s toppling as an object lesson in complexity, the fallen timber might be iconic. It stands for a common sense view of how tragedies happen.

This is Common Sense. I’m Paul Jacob.

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