Categories
National

Howard Dean is Right


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Few people would predict that I would agree with Howard Dean as often as I do, fewer still should be at all surprised that I agree with him when he says of the Health Care Bill:

This is essentially the collapse of health care reform in the United States Senate. Honestly, the best thing to do right now is kill the Senate bill.

Then again, I also agree with President Obama when he said:

the federal government “will go bankrupt” if Congress does not pass a health care bill

Of course we begin to disagree from there because I’m confident that we will go bankrupt at least as fast with his health care bill (any version of it) as we will if we do nothing. We need reform, but we don’t need this reform. Once again I agree with Howard Dean’s take on the cost issue:

He said he also doesn’t see cost-control measures but, rather “a whole bunch of bureaucracies and a lot of promises.”

While we disagree with what health care reform this nation needs I was dismayed by the truth pointed out by Chris Cillizza as he explained why he feels confident that despite all the wrangling, Congress will pass a health reform bill:

The broad strategy adopted by the White House toward health care is based on a single fundamental belief: coming out of this extended fight with nothing to show for it amounts to a political disaster not just for the President but for congressional Democrats as well.

“It’s a huge problem if nothing gets passed,” said one senior Democratic strategist. “Huge.”

Howard Dean is right about the dangers of that strategy:

We’ve gotten to this stage … in Washington where passing any bill is a victory, and that’s the problem. Decisions are being about the long-term future of this country for short-term political reasons, and that’s never a good sign.

I even agree with Howard Dean that there are some good elements in the current Health Care Reform bill. At least, I agree with him if Section 9002 is still in the bill. (As an aside, when did they return to the term “health care reform” from the more accurate “health insurance reform” that they had begun using earlier this year?)

I still contend that the only proper way forward on health care reform (and the only possible way forward when debate over this bill finally ends – regardless of the outcome) is to stop trying for some sweeping omnibus overhaul bill and pass individual pieces of legislation to take baby steps forward. If this bill passes the very first baby step forward will have to be the repeal of the individual mandate.

Categories
General

Your Employer: Competitor or Collaborator?


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photo credit: Trypode

This question is framed in terms of employer sponsored health care benefits, but it really applies to any employer/employee interaction. Are you working with your employer, or are you competing with your employer? To put it another way, is your employer working with you, or simply working you?

I ask this because in the health care debate there are two groups of people who have opposing views on this. One group argues that employer sponsored health care as the dominant source of health insurance coverage is destructive because it distorts the health insurance market by locking people into few if any options for insurance and locks them out of the economic decisions about what plans they want. They also argue that everything your employer spends sponsoring health care coverage is money out of the employees paycheck. The other group argues that employer sponsored health care is a good thing because that is the only way most people can afford coverage and if the employer were to drop coverage the money they save would not go back into paychecks, but would simply pad their bottom line.

The second group obviously views the employer and employee as competitors. These are the people who favor unions because the employee’s need to band together in order to stand up to their employers. This adversarial relationship dampens production and hampers progress. Before anyone gets too upset with this analysis let me just say that there have been situations where unions were necessary but they are no panacea.

Let me explain why I think the first perspective is more accurate based on my own experience.

Categories
General

Questions of Legitimacy


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I found Power, Authority, Legitimacy at Electric Politics to be a very interesting article. It talks about these three important elements to effectively government and how they interact with each other. The focus is on legitimacy, but George Kenney also explains how power and authority can be in place without bestowing any legitimacy.

As I started reading, before Kenney began speaking about the United States government, my thought was that our government is suffering from issues of legitimacy not unlike Mexico or Iran. There is no doubt about the authority or the power associated with our government, but legitimacy is definitely a question.

Nowhere do we see intelligent discussion regarding whether the government of the United States is legitimate or, if not, to what degree it is not, how it got that way, and what should be done about it.

Despite that claim in the article I think that the discussion has been happening on a small scale for some time although I’m not sure the discussion has been framed with the term “legitimacy.” I also think that it is being discussed more broadly and more openly. Kenney also makes this claim which might explain why I see the discussion differently than he does:

American voters have done their job: they’ve elected politicians who promised to satisfy their preferences. But politicians haven’t delivered. Should we blame the voters? That’s one approach . . . Another approach is to blame our leaders. . . All such complaints, though, have to do with either power or authority.

I am among those who has talked about whether the federal government has the authority to do what they are doing and what they propose to do going forward. When Mr. Kenney talks about authority he is not talking about theoretical authority, which is what I am questioning. Instead he is talking about functional authority, which is not in doubt. As the only government operating in the entire United States and with no state governments putting up any real challenge to their mandates, the federal government unquestionably has the functional authority to do what it is doing.

Categories
General

Personal Independence


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I have been wanting to talk about the meaning of personal or individual independence for a while, especially in light of recent discussions – that was even before I got this comment from Charles that captured the debate in a nutshell:

If you are a collection of random individuals each committed to making your own decisions independent of others, then society doesn’t really exist. There is a great deal of distance between radical individualism and a centrally planned society.

The second half of that statement is very true and everyone should keep that in mind as they read my thoughts along with the fact that only and exceptionally small minority of people will be found at either of the extreme positions.

I believe that what Charles had in mind when he spoke about radical individualism could clearly be called anarchy. It is the rule of force, in other words anything I can enforce is a legitimate choice for me to make. If I can drive 120 miles per hour then so be it. If I can afford a car that drives 200 mph then my speed limit just went up significantly. This is the ultimate expression of moral relativism.

A centrally planned society, where individuals do not make choices is tyranny even when it is benevolent;  is the antithesis of liberty. It does not matter if the planning is done by a monarch, a panel of experts (oligarchy), or the will of the majority (generally called democracy, but accurately described as mobocracy).

In contrast to those options, I believe in the rule of law where individuals are free to make decisions within a relatively static set of universal rules (meaning rules that apply to everyone in the system). You may be asking yourself what that has to do with personal independence. The answer is that in a centrally planned society an individual cannot be truly independent. In a non-society ruled by anarchy some people might try to argue that every person is independent, but the fact is that only those who are strong enough to enforce their own independence are independent.

Personal independence can only be achieved in a society ruled by law for people who act in accordance with established law and who choose to be stand on their own. In a society ruled by law there will be those who choose to make themselves dependent on others (the government, their neighbors, their employer) but at least they have the option to be independent which they would not have under other circumstances.

What does personal independence mean? First off, it does not mean ignoring the needs and desires of other people. Instead it means having the opportunity within the parameters set by established law to set personal goals regarding what is important to you and to work for those in a way that abides by the rules of society.

How is personal independence manifest? It is manifest in the ability and willingness to shoulder the responsibility for meeting your own need and goals. It is manifest in the ability to be sufficiently independent of employer, family, friends, and government to make your own determination of where your time, energy, and goods will be put to use.

Why is personal independence important? Obviously for those who do not desire it it is not important but for those who value their independence it is important because it means that others have little if any ability to allocate your resources in ways that contradict the goals you have. It also means that when others make choices that oppose your goals and interests their choices do not have the power to cause you to fail.

As a nation it was the lack of independence from our major financial institutions that brought about the threat that the failure of certain corporations would collapse our entire economy. This dependence put them in a position where they could demand billions of dollars in aid. Similarly because so many financial institutions were utterly dependent on favorable government regulations many of them could not refuse to participate in the bailout scam – all they could do was take their billions and later pay them back with interest despite the fact that some of them knew that they would be better off weathering the financial storm without government intervention.

Categories
General

The Health Care Issue as a Catalyst for Debate


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photo credit: the queen of subtle

When I saw that Jim DeMint had written an article titled Our Health Care Mess Is a Symptom of a Much Bigger Problem my interest was piqued partly because I like DeMint as a senator and partly because I had just been saying the same thing in a series of comments with a reader from New York. It was exactly as DeMint predicted in his final paragraph:

The current debate over health care reform is a symptom of a bigger problem in Washington. But it can be the catalyst for a wider debate about the proper role of government in our lives.

The comments I was receiving demonstrated exactly what DeMint was talking about when he said:

All of these things have happened because we’ve stopped asking, “Should government attempt to solve this problem?” Instead, we start by asking, “How should government fix the problem?” It’s now considered a sign of admirable restraint to occasionally ask, “How much should we spend?” And somehow we started thinking that anything less than a trillion dollars is a bargain. (emphasis mine)

We can’t expect to come up with the right answer when we start by asking the wrong question. For too long we have been asking only how the government should fix our problems and not if the government has any business fixing those problems. Obviously there are some problems that the government should fix, but there are many that it should not address.

Because er have been asking ourselves the wrong question we find ourselves as a nation in this situation:

There’s not a word in the Constitution about the government deciding what medical tests private health insurers should pay for. Nothing about the government deciding how much executives on Wall Street should earn, or what kind of light bulbs and cars we should buy. There’s nothing about the thousands of parochial earmarks that fund local bridges to nowhere, golf courses, bike paths, sewer plants, and tea pot museums.

There’s nothing about these or many other things in the Constitution because they have nothing to do with the proper role of a federal government in a free society. But these are exactly the kinds of things our government spends its time and money on, and we don’t even question anymore why that is.

As the length of that list indicates we have had many opportunities to ask the right question. Hopefully health care will be the issue where we finally step back and ask the right question. Once we ask the right question we will begin to understand the truth that:

It matters because every time we give a job to the government, we take away some control that people have over their lives, and we take away a little bit more of their freedom. In return for letting government try its hand at solving a problem, we as citizens cede our ability to try for ourselves to find a better way.

It’s awkward to admit it, but my colleagues in Congress have led this country into the woods despite our oath of office. We swore to protect and defend the Constitution of the United States and to bear true faith and allegiance to it. The Constitution prescribes a very limited role for the federal government. There is not a word in our oath, or in the Constitution, about most of what we do. As we’ve wandered off the path of liberty, there are few crumbs left of the Constitution in the halls of Congress to lead us out of the woods. (emphasis mine)

If we honestly ask the right question we will undoubtedly reach some uncomfortable conclusions such as the fact that the government has already overstepped its bounds with things we would rather not alter, like Social Security and Medicaid/Medicare, but if we continue to shut our eyes to that primary question there will be no way to reverse our downward spiral, the best we could ever manage to do is quit digging the hole deeper.

Categories
life

The Goal of My Political Activity


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Last month, in response to a comment that:

more often than not it seems the only choice we have in our candidates is a choice between horrible and horrible.

I wrote back saying:

That means that you need to get in earlier in the process – before there are only two candidates left – because I agree that neither hanging nor the firing squad sound very appealing. Of course it’s possible to have more than two candidates and still have nobody who does not look like either a gallows, a firing squad, or a lethal injection chamber. . . In such cases we have to work as voters to encourage better candidates to get in the race. Long term we even have the option to plan ahead and run for office ourselves if we consistently cannot get decent choices. (emphasis added)

My goal in politics is to help illuminate current issues with timeless principles so that I and other will be able to recognize and support (and become when necessary) the kind of high quality candidates that are required to put this country back on the solid footing that it once enjoyed.

As my wife can attest, I am absolutely serious about that last part. Having seen many candidates for important office that I felt were unable to act as the kind of legislator that I am looking for, I have had many discussions publicly and privately about running for various offices. Last night I was talking to my wife about this and I finally was able to state my political goals succinctly – my goal generally is to put myself in a position where I can run for any office where there is no acceptable candidate and my goal for any given race is to find a good candidate that I can support – using myself as the candidate of last resort.

I would consider myself extremely successful politically if I always found solid candidates to support and never felt the need to run myself – especially if the candidates I supported won in most cases. Despite that definition of success I am preparing so that if I ever find myself unable to identify a quality candidate I can and will step in and run an effective campaign with a better than average chance of winning. (Evidence of my preparing is that I already own a campaign domain that I can use anytime I find it necessary to run and as I have time available I am working on developing that site in advance so that all I have to do is develop some graphics and campaign/office specific material in order to launch an effective campaign.)

Categories
culture National

Medical Cultures


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[quote]I have called David Goldhill’s How American Health Care Killed My Father a must-read for anyone who wants to speak up in the health care debate. The New Yorker also has a must-read article on the issue called The Cost Conundrum. In that article we are introduced to the town of McAllen, Texas where Medicare spends much higher than average amounts per capita than the national average ($15000 vs $8000) in an area with much lower than average per capita income($12000 vs $21500) and cost of living. Atul Gawande, himself an associate professor of surgery at Harvard Medical School, introduces us to the town and begins an attempt to discover why the costs of health care are so high in McAllen.

Are the people there less healthy? No, they have higher rates of some health conditions than average and lower rates than average of other conditions. Overall health fails to explain the cost differential.

Was the quality of health care being provided higher than average? While they were not lacking for available medical technology or facilities the quality of care was, once again, nothing unusual.

McAllen costs Medicare seven thousand dollars more per person each year than does the average city in America. But not, so far as one can tell, because it’s delivering better health care.

Gawande went to dinner with some McAllen doctors and showed them the data on health care costs in McAllen:

Some were dubious when I told them that McAllen was the country’s most expensive place for health care. I gave them the spending data from Medicare. In 1992, in the McAllen market, the average cost per Medicare enrollee was $4,891, almost exactly the national average. But since then, year after year, McAllen’s health costs have grown faster than any other market in the country, ultimately soaring by more than ten thousand dollars per person.

He then asked them why they thought the care was so costly there. One suggested the cost of malpractice insurance but then they admitted that since Texas had passed caps on malpractice lawsuits they had virtually no lawsuits to drive up the cost of care.

Finally a general surgeon among the dinner party declared that the issue in McAllen was overutilization.

Everyone agreed that something fundamental had changed since the days when health-care costs in McAllen were the same as those in El Paso and elsewhere. Yes, they had more technology. “But young doctors don’t think anymore,” the family physician said.

Anecdotal evidence and agreement is fine, but Gawande went in search of more concrete evidence.

To determine whether overuse of medical care was really the problem in McAllen, I turned to Jonathan Skinner, an economist at Dartmouth’s Institute for Health Policy and Clinical Practice . . . I also turned to two private firms—D2Hawkeye, an independent company, and Ingenix, UnitedHealthcare’s data-analysis company—to analyze commercial insurance data for McAllen. The answer was yes. Compared with patients in El Paso and nationwide, patients in McAllen got more of pretty much everything—more diagnostic testing, more hospital treatment, more surgery, more home care.

Having identified the cause of the high costs the search was on for an explanation of why there was so much overutilization. The answer was in the culture of the medical practitioners in McAllen – they were very profit oriented rather than results oriented. I believe the one place that Gawande’s article falls short is that he stopped with exploring the cultures among the medical community and failed to examine whether the general community culture in McAllen helped to foster that inefficient mindset among the medical practitioners in the area. I’m willing to bet that such a short-sighted culture in the medical community might not need encouragement from the local culture, but could not survive if the local culture were one that actively discouraged a similar outlook in the community at large.

Talking to a surgeon from McAllen, Gawande concludes that whether we have a public option, single payer, or private health insurance will not matter if the culture in McAllen continues to become more common as it has been doing.

In contrast to McAllen, Gawande explores the cultures in the Mayo Clinic and the Medical community of Grand Junction, Colorado and finds that both of these low-cost, high-quality health care systems took very different approaches to each arrive at “accountable-care {organizations} . . . {where} leading doctors and the hospital system adopted measures to blunt harmful financial incentives  {and} took collective responsibility for improving the sum total of patient care.” He also lists four other high-quality low-cost health care systems each of which has a culture of accountable care – the Geisinger Health System, the Marshfield Clinic, Intermountain Healthcare, and Kaiser Permanente.

Whatever approach Congress tries to take to reform our health care system they and the American people need to understand that we cannot successfully plant a Health Care tree. The only workable approach will be to plant Health Care seed and help it to grow into a health new health care system.

Categories
General

Too Rich to Go Bankrupt


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photo credit: Stowe Boyd

By “too rich to go bankrupt” I don’t mean someone so rich that they never will go bankrupt. What I mean by that is someone so rich that them going bankrupt would destabilize our economy and thus they deserve a bailout if bankruptcy ever threatens them. (Think Bill Gates plus Warren Buffett plus everyone who gets a paycheck from Google.) More on that later . . .

In discussing the role of the federal government in an economic recovery Ronald Hunt and Charles D. brought up the issue of the role of corporations. Charles was good enough to provide links to a 2-part article by Richard Grossman from 1998 (Part 1, Part 2) that did a good job of discussing how corporations have turned into very unwieldy masters over “we the people.” I was amazed when I first realized that these articles, which are so pertinent to our situation of bailing out “too big to fail” institutions was written more than a decade before our massive Bush bailouts.

I especially enjoyed a couple of quotes from the second part of the article:

the Supreme Court of Georgia, in Railroad Co. v. Collins, wrote: “All experience has shown that large accumulations of property in hands likely to keep it intact for a long period are dangerous to the public weal. Having perpetual succession, any kind of corporation has peculiar facilities for such accumulations . . .” (emphasis mine)

And from the end of the first part:

In Richardson v. Buhl, the Nebraska Supreme Court in the late 19th century declared: “Indeed, it is doubtful if free government can long exist in a country where such enormous amounts of money are… accumulated in the vaults of corporations, to be used at discretion in controlling the property and business of the country against the interest of the public and that of the people, for the personal gain and aggrandizement of a few individuals.” (emphasis mine)

Categories
National

A New Federal Role in Economic Recovery


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My post on fundamental assumptions generated some good discussion which began waxing economic in flavor. As part of that discussion I had a new idea about a more reasonable approach the federal government could take to soften economic hard times without outright manipulating our expectations of reality as they do now.

I should start by clarifying my perspective on what the federal government does and what is economically realistic. Economic realism insists that we recognize the inevitability of economic downturns. They are going to happen. Unfortunately the assumption at the federal level seems to be that we must strive for perpetual economic growth – we might tolerate one or two quarters of a mild contraction but anything beyond that is unacceptable. As proven by our significant and now two year old recession sometimes the economy needs to undergo a much harsher adjustment – especially after the government has been pumping the supposedly healthy market with perpetual stimulus for years. (I know, they have not called anything they did stimulus until the stimulus bill in early 2008.)

Personally I think a better approach to the federal government smoothing the rough spots out would be to establish a baseline – let’s say 5% unemployment – where any state meeting that baseline would not receive any federal economic assistance to combat unemployment. Then they would look a the spread between the unemployment rate of various states and be allowed to give economic aid to any state with at least 5% higher unemployment than the state with the lowest unemployment. The upper limit of that aid would be equal to 1/3 of the difference in unemployment between the higher of 5% and the unemployment rate of the state with the lowest unemployment with the limitation that government aid cannot help one state leapfrog another. Let’s show what that would mean with current (October 2009) numbers.

The state with the lowest unemployment is North Dakota at 4.2% so any state with more than 9.2% unemployment could get aid from the federal government to help lower their unemployment. For the October 2009 numbers that would mean that only 21 states could get any federal assistance rather than having the federal government trying to jump start the economies of all 50 states. Of those 21 states Arizona, Missouri, and Washington (at 9.3% unemployment) could receive aid equal to 0.3% of their respective economies (they would not be allowed to leapfrog Idaho and new York which have 9% unemployment and cannot receive this federal aid because they are within 5% unemployment of North Dakota’s unemployment rate). In fact, 12 of the 21 states would receive enough aid to bring them equal to the 9% unemployment rate of Idaho and New York because that would be less than 1/3 of the difference between their actual unemployment rates and the magical 5% unemployment. At the other end of the scale Michigan, with the highest unemployment would have their rate cut below 12% from their current 15.1%.

If every state had unemployment rates over 5% the new benchmark would be the lowest unemployment rate of any state. If we imagine that lowest unemployment rate was 6.5% (adjusting all states up to 6.5% and leaving states with higher unemployment where they are) only states with unemployment over 11.5% would receive aid, six states in all, and only Michigan would get the full 1/3 of the difference between their rate and the base rate of 6.5% (leaving them with 12.2% unemployment).

If all states were below 5% unemployment or if they were all clustered between 3.5% and 8.5% unemployment then the federal government would not give unemployment assistance to any of the states. If anyone is curious to see them, I have all my numbers in a spreadsheet that you can download.

The fact is that of the economy of the entire nation is slumping then no government program can provide a solid foundation to real economic growth – all it can do is produce the illusion of economic stability. Real economic growth can only be build on fundamental economic change, not on the illusion of stability provided by printing money and manipulating interest rates. While committed free marketers would likely hate my proposal just like they hate the current government intrusions in the economy and while those who don’t object to socialism will find my suggestions very harsh on downtrodden regions of the nation, I think that my idea is much better at providing a cushion for the hardest hit areas while allowing the economy to shrink or grow towards whatever the realities of our national economy are which the government tries so hard to mask right now as if our perceptions were the only economic reality worth considering.

Categories
culture

What Are Your Fundamental Assumptions?


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photo credit: quarksteilchen

In the midst of a recent comment the author revealed a fundamental assumption that he and I don’t share that clearly explains why we have differing views on government:

Federal mandates are about the only power the government has to prevent a race to the bottom. . . THE only way to get some states to do what needs to be done is to simply mandate it. The race to the bottom has got to end.

I should start by saying that federal mandates truly are the only power that government has to prevent a race to the bottom – also that I don’t think such mandates are sufficient to prevent such a race (in other words government is powerless to stop that race). After exploring the assumptions that serve as the foundation for that statement about a race to the bottom I quickly concluded that I could not accept that view of the world for myself.

The view that government must use federal mandates to prevent a race to the bottom seems to be built on the belief of Thomas Hobbes that people are basically selfish and evil. People who act as Hobbes expects will naturally engage in a race to the bottom on any issue. It is possible to believe that states will engage in a race to the bottom while still thinking the people are not basically selfish but to hold that combination of beliefs requires a belief that politics is basically corrupt and that it is mainly those who would engage in a race to the bottom who hold public office.