Governments love to promise benefits. But politicians prefer not to have to raise the funds necessary to provide the promised services. The result for nationalized medical systems is political rationing … and long waiting lists. The Mackinac Institute, located in Michigan, has produced a series of videos on Canadians speaking about how their system works. The British Columbia Automobile Association even developed medical access, or wait list, insurance, before abandoning the program under pressure.
Cato at Liberty
Cato at Liberty
Email Signup
Sign up to have blog posts delivered straight to your inbox!
Topics
Government and Politics
A Tax That Would Finance the Road to Serfdom
Michael Tanner and Michael Cannon are working nonstop to derail government-run health care, but they better figure out how to work more than 24 hours per day, because if they fail, it is very likely that politicians will then look for a new revenue source to finance all the new spending that inevitably will follow. Unfortunately, that means a value-added tax (VAT) will be high on the list. Indeed, the VAT recently has been discussed by powerful political figures and key Obama allies such as the Co-Chairman of his transition team and the Speaker of the House.
The VAT would be great news for the political insiders and beltway elite. A brand new source of revenue would mean more money for them to spend and a new set of loopholes to swap for campaign cash and lobbying fees. But as I explain in this new video from the Center for Freedom and Prosperity, the evidence from Europe unambiguously suggests that a VAT will dramatically increase the burden of government. That’s good for Washington, but bad for America.
Even if the politicians are unsuccessful in their campaign to take over the health care system, there will be a VAT fight at some point in the next few years. This will be a Armageddon moment for proponents of limited government. Defeating a VAT is not a sufficient condition for controlling the size of government, but it surely is a necessary condition.
Related Tags
Peace? The Promise of Peace? Eh, Close Enough
Worse choices have been made than Barack Obama for the Nobel Peace Prize.
There was Woodrow Wilson in 1919, an award that rates as one of history’s more grotesque international jokes. Wilson promised to keep us out of war and promptly got us into it, meanwhile laying the ideological and geopolitical foundations for 90 years of war-nationalism, war-liberalism, and war-socialism. To say nothing of saddling us with the terrible idea of world government. Among those who weren’t Nazis or communists, Wilson may have done more than any other individual to promote human suffering in the last hundred years.
So yes, there have been worse choices. (Next to Wilson, I’d have to give Al Gore and Yasser Arafat both honorable mentions. We could go on, of course.) But still, Barack Obama? Seriously? I doubt the committee has any idea how badly their choice will be mocked in the United States.
Over here, the prize will be a disappointment to the anti-war left, the anti-war right, and, of course, the pro-war right. The only contingent I can see taking pride in it over here is the establishment left, which hasn’t had much time lately for substantive work on peace, but which is always happy to make speeches and receive awards. Sometimes, the American image abroad is just that important.
Rather than piling on in what is sure to be a bipartisan laugh-fest, let’s think about what Barack Obama actually could have done for world peace. And weep.
Like Wilson, Obama ran a campaign promising peace and the international rule of law. Politically, peace is a winning message, and the advocates of peace would do well to remember this. Decade after decade, American voters are willing to give peace a chance.
Obama promised to withdraw from Iraq and to close the illegal Guantanamo Bay prison camp. He promised to end the Bush-era detention and rendition policies that have tarnished America’s reputation abroad and weakened trust among nations.
Americans embraced those promises, which are fully consistent with the ideals of the Nobel Peace Prize. The prize, recall, is awarded “to the person who shall have done the most or the best work for fraternity between nations, for the abolition or reduction of standing armies and for the holding and promotion of peace congresses.” Ending wars, treating prisoners of war humanely, and ensuring international criminal suspects’ due process of law are exactly the sorts of things that the peace prize was designed for. They’re just what you’d expect a laureate to do.
But once in office, Obama didn’t deliver. The promises disappeared, replaced by vigorous defenses of virtually every presidential power that the Bush administration invented for itself, including not only those that subvert domestic civil liberties, but also those that threaten the international rule of law.
And the withdrawal from Iraq? Delayed and partial. The latest word — received just as the peace prize was announced — is that it’s “complicated.” Sort of like a bad Facebook relationship.
Our other war, in Afghanistan, continues to escalate, even as its strategic goals seem further and further removed. As Cato author Glenn Greenwald notes, U.S. airstrikes in Afghanistan continue to kill and maim the innocent, with very little to show in the way of stabilizing the country or defeating international terrorism. Withdrawal from Afghanistan is both possible and desirable, as my colleagues Malou Innocent and Ted Galen Carpenter argue. Yet our latest Nobel laureate doesn’t see peace as an option here either.
How sad. Not to sound bitter or anything, but when does the Cato Institute get a peace prize?
“Read the Bill” = Deliberative Process, Please
The debate about whether members of Congress and senators should read bills has been getting highly literal lately. It’s capped off by Angie Drobnic Holan’s article, “Speed-Reading the Health Care Reform Bill?, on Politifact (a St. Petersburg Times site) this morning.
Faced with a 1,000-or-so-page health care reform proposal, “a person could conquer the bill in seven to 13 hours.”
There you have it! That’s what it takes if you want ‘em to read the bill!
Of course, the “read-the-bill” concept is a stand-in for others:
One is simply having a more deliberative process in Congress. It’s dawning on the American public that bad things happen when Congress operates in haste—the derivatives debacle, for example. Oh, and also, government takeovers. Oh yeah, and spending orgies.
But “read the bill” is also about power.
“Waiting periods … tend to disperse power to people who might otherwise be at the margins of the debate,” reports Holan. “Centrist Democrats in the Senate, for example, have asked for waiting periods after amendments and conference reports.”
It goes beyond that, too. Letting the public read finalized bills before they become law allows the public to second-guess Washington, D.C. and transfers power back home. People want to use the Internet to have more say in governance.
And there is far more knowledge, sense, and brain-power out there in the land than on Capitol Hill (I say as a former legislative staffer). Given a regular process for doing so, the people (and lawyers) faced with implementing proposed federal laws would examine and critique proposals in Congress much more than they do now. This would help improve results, though Members of Congress would surely chafe at being overseen by the lowly public.
Speaking of waiting periods, recall that President Obama promised to post the bills coming out of Congress for five days before he signs them. Let’s take a look at how he’s done with this promise so far:
Still only one of 68 have been posted online for five days before signing. Forty-six of 68 (nearly 68%) have been held at the White House for five days after presentment. There is nothing stopping the president from posting these bills online for the time he promised.
It might be that the folks in the White House don’t want to reveal the trivialities that Congress and the president deal with. Eighteen of the 68 new laws this year (26%) have renamed post offices and courthouses.
Also, five bills have been temporary extensions of existing laws (plus one temporary government funding measure). These are all examples of Congress and the president failing to manage existing government programs and spending. It’s possible that the White House doesn’t want to give exposure to these laws and bring discredit on the federal government generally.
Whatever the case, here’s the list so far of new laws and the president’s adherence to the “Sunlight Before Signing” pledge.
Related Tags
The Problem Is Spending, not Deficits
Speaking recently a Steamboat Institute conference, I explain that big government is America’s fiscal challenge, not whether the spending is financed with taxes or borrowing.
This issue is important because the statists are trying to create the conditions for a big tax hike. We got huge spending increases under Bush, and now Obama has picked up the baton and is racing in the same direction. Needless to say, the politicians don’t care about deficits when they are spending money. But when it is time to discuss tax policy, deficits suddenly become a giant threat to the economy and turning more of our money over to the political class is the only solution.
The Q&A session also is interesting, as I pontificate about the financial crisis, Keynesian economics, the rule of law, and tax competition(both videos courtesy of the Center for Freedom and Prosperity).
Related Tags
Hurting the Sick Is Not Good Politics
I was glad to see James Pinkerton engage my criticism of Louisiana Gov. Bobby Jindal’s (R) endorsement of federal price controls for health insurance. I was even more pleased to see that Pinkerton has his own blog devoted to developing a Serious Medicine Strategy.
If I understand Pinkerton, his argument is essentially: it’s all well and good for some unelectable wonk in the “citadel of libertarian thinking” to “uphold ivory-tower free-market purity” by opposing price controls. But Republicans need “art-of-the-possible solutions” to win elections, and 90 percent of the public support those price controls. “Everyone has a right to his or her principled position,” Pinkerton writes, “but the majority has rights, too.”
Two problems.
First, Pinkerton suggests that libertarians oppose price controls for reasons that only matter to libertarians, and therefore may be safely ignored. Problem is, price controls hurt people. Were Pinkerton to explore the merits of Jindal’s proposal, he would soon conclude that imposing price controls on health insurance taxes the healthy, reduces everyone’s health insurance choices, and creates even greater incentives for insurers to shortchange the sick. (Turns out that what Larry Summers said about price controls applies to health insurance, too.) As John Cochrane explains, those price controls also block innovative products that would provide more financial security and better medical care to the sick.
But Pinkerton’s advice for Republicans is, essentially: “Do what’s popular now, even if it hurts people and voters end up blaming Republicans for it later.” How is that a good strategy?
Second is this idea that “the majority has rights.” Majorities don’t have rights. Individuals have rights. For example, you have the right to negotiate the terms of your health insurance contract with the individuals at this or that insurance company. Majorities may attain power, but that’s the opposite of rights. (See the Bill of Rights.)
Finally, a couple of important odds and ends. Pinkerton suggests it is “un-libertarian” to be “pro-life,” or to “support the police, the military, and other upholders of public order,” or to “support government restrictions on…euthanasia.” Writing from the “citadel of libertarian thinking,” I can assure him he is wrong. Might I suggest Pinkerton read the relevant chapters from The Encyclopedia of Libertarianism? (The health care chapter is a page-turner!) Also, I did not “denounce Jindal” any more than Pinkerton denounced me. I criticized his ideas, and I respect the man.
(Cross-posted at Politico’s Health Care Arena.)
Related Tags
Eyewitness to Government’s Robbery of Chrysler Creditors
Further to Ilya Shapiro’s post this morning, let me also point you to a concise chronology of events culminating in the government’s robbery of Chrysler creditors.
The story is that of Richard Mourdock, Treasurer of the State of Indiana and the man responsible for stewardship of the state’s pension funds, some of which were victimized by the Obama administration’s pre-packaged and then forced-fed bankruptcy deal for Chrysler. I strongly urge you to read Mr. Mourdock’s testimony, which is at once revealing, sobering, compelling and, regrettably, a frightening sign of the times.
Mourdock will be speaking on this very topic at Cato, along with bankruptcy law expert David Skeel, on Thursday, October 15 at noon. Reserve your seat now.