In Prager University’s latest video, UCLA economics professor debunks one of the Left’s favorite economic fallacies.
I’m going to go through it piece by piece, combine — when I was secretary, excuse me, when I was governor of Massachusetts, and we looked at the Secretary of Health and Human Services, we had 15 different agencies. We said, let’s combine those into three. We’re not going to get rid of the work that each do, but we’re going to combine the overheads, we’re not going to have as many lawyers and press secretaries and administrators, and that saves money and makes it more efficient. And I hope to be able to do the same thing in Washington […] We’ll look agency-by-agency and look where the opportunities are best, but I’ll take a lot of what Washington does and send it back to the states.
Mitt Romney isn’t interested in reducing the reach of government into Americans’ lives, but instead making it more efficient. That’s part of the message Romney delivered to Jay Leno’s audience on Tuesday evening, and what you need to realize about all of this is that Romney is not a conservative. He’s a technocrat, and he’s a businessman, but his interest in making various programs and agencies of government more efficient does not make him conservative. Conservatives realize that to save this nation, we must re-make the government in a smaller, less intrusive, and less-encompassing form. We need to eliminate programs, bureaus and agencies, and discard their functions. Romney won’t do any of that, and in fact, he will likely extend their reach.
He cut state spending by $600 million, including reducing his own staff budget by $1.2 million, and hacked the largest government agency, Health and Human Services, down from 13 divisions to four. He did this largely by persuading the Legislature to give him emergency powers his first year in office to cut government programs without their consent.
Although Romney was not able to get any income tax cuts past the Democratic Legislature, he won other tax cuts totaling nearly $400 million, including a one-time capital gains tax rebate and a two-day sales tax holiday for all purchases under $2,500.
He also vetoed more bills than any other governor in Massachusetts history, before or since. He vetoed bills concerning access to birth control, more spending on state zoos, and the creation of an Asian-American commission — all of which were reversed by the Legislature.
As Barbara Anderson, executive director of Citizens for Limited Taxation, said, “What else could he do?”
Medicare was a scam from the start. It had to be a scam because its ostensible purpose — providing health insurance for the elderly — was never the objective of its proponents. Instead, Medicare was a stepping stone to a utopia its champions dared not acknowledge: A compulsory universal-health-care system administered by government experts. FDR’s Committee on Economic Security initially intended to issue a health-care plan in conjunction with its universal, compulsory Social Security proposal in 1934. As Cato’s Charlotte Twight recounts, the former was dropped due to fear that pervasive opposition among the public and the medical profession would jeopardize passage of the latter. But Roosevelt got right back to it the day after he signed the 1935 Social Security Act, empowering the new Social Security Board to study the “related” area of health insurance.There followed three decades of progressive proposals, each shot down by lawmakers animated by fierce public dissent. The Left realized the dream of socializing the health-care sector was not attainable in one fell swoop, so an incremental strategy was adopted: Get a foot in the door with less ambitious proposals; establish the precedent of government control while avoiding debate over the principle of government control. “Incremental change,” said Medicare scholar Martha Derthick, “has less potential for generating conflict than change that involves innovation in principle.” […]More shrewdly, proponents misrepresented Medicare as an “insurance” program, with a “trust fund” into which working people paid “contributions” and beneficiaries paid “premiums” that would “entitle” them to claim “benefits.” In reality, there is no “trust fund.” Workers pay taxes — at levels that can no longer satisfy the pay-outs for current beneficiaries. This state of affairs was entirely predictable when Medicare was enacted in 1965 with the Baby Boom well underway. Back in the early days, when the program was flush, the surplus of taxes passed from the “trust fund” into the federal treasury, which redistributed the money to whatever chicanery Washington happened to be heaping money on. In return, the “trust fund” got an IOU, which would ultimately have to be satisfied by future taxes (or by borrowing from creditors who’d have to be repaid by taxpayers with interest). And the “premiums” largely turned out to be nonsense, too: The pols endeared themselves to elderly voters by arranging for Uncle Sam pick up more and more of the tab, or by using the government’s newfound market power to demand that providers accept lower payments.When Medicare was enacted in 1965, the inevitability of its many adverse consequences was crystal clear. The system was grossly underfunded. The fee-for-service structure (expertly described by Capretta) was certain to increase costs exorbitantly with no commensurate increase in quality of care (indeed, care is mediocre, or worse). But most palpably, the fact that government was at the wheel made Medicare instantly ripe for political gaming and demagoguery. The ensuing 46 years have not only made the obvious explicit; Medicare and its tens of trillions in unfunded liabilities are actually worse than even its most fearful early critics predicted it would be.
Former House Speaker Newt Gingrich steered the break-out of his presidential campaign into a ditch a couple of weeks ago by suggesting that the Ryan Medicare reform was “right-wing social engineering.” He was wrong, but not for the reason cited by his critics. To be more precise, Representative Ryan’s plan is a surrender to left-wing social engineering on terms the right wing naïvely believes it can accept. Ryan is the darling of a Washington breed of conservative wonk convinced that we can make the welfare state work if we just incorporate a few free-market, family-friendly tweaks […]Reformers such as Representative Ryan always ignore this inevitable trajectory of entitlement politics. They rationalize that they can make a government-sanctioned bribery system run better, or at least preempt Democrats from making it run worse. Hoping to stave off Medicare, congressional moderates in 1960 passed a bill to provide means-tested medical assistance to the elderly. It only greased the wheels for not only Medicare but Medicaid. In Massachusetts, Romneycare was another well-meaning attempt to install a compulsory statewide health-insurance system that would be less autocratic and costly than the one the Left would have imposed. It is, predictably, a disaster that tends toward ever-more-suffocating government control.
My first RedState post:
As many of us celebrated the birth of our nation this weekend, our pride and gratitude were tempered by the fear that America might have a dwindling number of future Independence Days to look forward to. A survey of the political landscape reveals that such pessimism regarding the survival of our Founding principles and institutions is not without cause.
The Left’s cancerous influence over our politics, media, and culture remains widespread, and the Right’s efforts in curing it leave much to be desired:
- Over one million unborn children are slaughtered every year, yet when the Susan B. Anthony List asks those running to be the nation’s next president for the most basic and mild of pro-life promises, National Review decides they ask too much. Reason’s Matt Welch claims that only 30% of professed libertarians apply their philosophy of liberty and unalienable right to those most in need of their protection.
- Despite all the this-time-we-really-mean-it promises from Republicans after their 2010 victory, it’s still doubtful that the GOP has the fortitude or savvy to right our fiscal ship. Speaker John Boehner settled for a budget deal that began with far smaller spending cuts than America needs and turned out to be far, far less than even the announced numbers. Signs of further disappointment suggest the GOP still hasn’t kicked its addiction to compromise.
Nurses casually stepped over a patient as he lay dying on a hospital floor.Peter Thompson, 41, was left in a corridor for ten hours before someone noticed he had passed away.In a final act of indignity, hospital auxiliaries pulled his lifeless body across the floor in a manner his family described as like ‘dragging a dead animal’.The scenes which shame the NHS were all captured on CCTV. Staff thought Mr Thompson was merely drunk and left him to ‘sleep it off’.Yesterday a coroner condemned the death as ‘wholly preventable’.An inquest heard that the father-of-one, who had consumed a cocktail of drink and drugs, could have been saved had he received emergency treatment.The hospital’s accident and emergency department was just 200 yards away.