Tag: big government

Tuesday Links

  • Paul Krugman claims a victory for Big Government, which he says “saved” the economy from an economic depression. Alan Reynolds debunks his claim and shows why bigger government  produces only bigger and longer recessions.

Steele and the Left-Wing Republicans

One of the most disturbing things about the current health care debate is that some Republicans are positioning themselves as defenders of Big Government Medicare and against efforts to trim the program’s costs.

Yet the taxpayer costs of Medicare are expected to more than double over the next decade (from $425 billion in 2009 to $871 billion in 2019), and the program will consume an increasing share of the nation’s economy for decades to come unless there are serious cuts and reforms. Even the Obama administration talks about “bending the cost curve” to slow the program’s growth.

Yet Republican National Committee chairman, Michael Steele, takes to the Washington Post today to defend Medicare against any cuts, while at the same time criticizing the Democrats as “left-wing ideologues:”

  • “Under the Democrats’ plan, senior citizens will pay a steeper price and will have their treatment options reduced or rationed.”
  • “Republicans want reform that should first, do no harm, especially to our seniors.”
  • “We also believe that any health-care reform should be fully paid for, but not funded on the backs of our nation’s senior citizens.”
  • “First, we need to protect Medicare and not cut it in the name of ‘health-insurance reform.’”
  • “Reversing course and joining Republicans in support of health care for our nation’s senior citizens is a good place to start.”

Steele uses the mushy statist phrasing “our seniors” repeatedly, as if the government owns this group of people, and that they should have no responsibility for their own lives.

Fiscal conservatives, who have come out in droves to tea party protests and health care meetings this year, are angry at both parties for the government’s massive spending and debt binge in recent years. Mr. Steele has now informed these folks loud and clear that the Republican Party is not interested in restraining government; it is not interested in cutting the program that creates the single biggest threat to taxpayers in coming years. For apparently crass political reasons, Steele defends “our seniors,” but at the expense of massive tax hikes on “our children” if entitlement programs are not cut.

Why Taxing the Rich Is Not Enough to Fund Big Government

Appearing on Fox News on Monday, Cato’s Daniel J. Mitchell explained why taxing the rich to pay for big government programs may make for a good sound bite on the campaign trail, but when there aren’t enough wealthy people to tax, the middle class ends up footing the bill.

“When politicians are aiming at the rich, it’s the middle class that winds up getting hit in the crossfire,” Mitchell said. “They use ‘tax the rich’ as the rhetoric, but they always go after the ordinary people to get more money to fund their big government schemes.”

Watch the whole thing:

Energy Mismanagment

Try as they might, supporters of big government spending cannot make federal programs work very well. The Department of Energy, for example, has been plagued by mismanagement, cost overruns, and scandals for decades.

Today, the Washington Post reports on the poor performance of DoE’s environmental clean-up programs. As I reviewed in the linked essay, these enormously costly programs have been plagued by mismanagement for at least 25 years. Last week, Lou Dobbs lambasted DOE’s National Ignition Facility in California for its huge cost overruns (Hat Tip: Harrison Moar).

I summarize these costly projects and other DoE boondoggles here. With bipartisan support for increases to energy subsidies, we can expect a raft of bipartisan boondoggles developing over coming months and years.

Does Big Government Breed Corruption and Sleaze?

Washington is riddled with both legal and illegal corruption, but why?

Perhaps it is because government is too big and has too much power. The federal budget redistributes $3.5 trillion through more than 1,800 subsidy programs. The regulatory burden is $1.2 trillion and there have been 51,000 new regulations since 1995. And there are more than 70,000 pages of tax law and regulations.

These are the reasons why Washington is a hornet’s nest of deal-making, influence-peddling, and back-scratching.

In this new video, produced by the Center for Freedom and Prosperity, I argue that reducing the size and scope of government is the only effective way to control Washington sleaze.

A Poll for Tax Day

The latest poll to ask the question “would you prefer a more active government with more services and higher taxes or a smaller government with fewer services and lower taxes?” found that 66 percent prefer smaller government and lower taxes, to only 25 percent who prefer a “more active government” with more services.

Note that the poll doesn’t even say “larger government”; Rasmussen has actually made the wording more favorable toward big government.

As I’ve noted before, the usual “smaller government” question, as asked by CBS and other pollsters, is incomplete. It offers respondents a benefit of larger government – “more services” – but it doesn’t mention that the cost of “larger government with more services” is higher taxes. The question ought to give both the cost and the benefit for each option.

That’s what the Rasmussen poll does. And it shows that people prefer lower taxes to more government services.

More Reasons Not to Nationalize Health Care

Advocates of a government takeover of the health care system routinely offer up horror stories of American medicine, and no system yet has found a way around the problem of human imperfection, especially when operating in a system with such distorted incentives–most from ill-considered government policies.  Yet the horror stories in nationalized health care systems are manifold and tend to be more intractable since they result from government policy.

For instance, consider the quality of care delivered by hospitals in one region in Great Britain (with a hat-tip to Philip Klein of the American Spectator for finding this story).  According to the Daily Telegraph:

Sir Ian Kennedy, chairman of the Healthcare Commission, said the report is a ‘shocking story’ and that there were failures at almost every stage of care of emergency patients. “There is no doubt that patients will have suffered and some of them will have died as a result,” he said.

The investigation of the trust now called the Mid-Staffordshire NHS Foundation Trust, found overstretched and poorly trained nurses who turned off equipment because they did not know how to work it, newly qualified doctors left to care for patients recovering from surgery at night, patients left for hours in soiled bedclothes, reception staff expected to judge how seriousness of patients arriving at A&E, patients left without food or drink, others who received the wrong medication or none at all, blood and faeces left on lavatories and floors, and doctors diverted away from seriously ill patients in order to treat minor ones who were in danger of breaching the four hour waiting time target.

When high mortality rates triggered questions, the trust board of directors ‘fobbed off’ investigators by saying the rates were a result of statistical errors but the Healthcare Commission found this was not that case.

The report said there was a ‘reluctance to acknowledge or even consider that the care of patients was poor’.

The trust was more concerned with hitting targets, gaining Foundation Trust status and marketing and had ‘lost sight’ of its responsibilities for patient care, the report said.

Sir Ian said: “The resulting report is a shocking story. Our report tells a story of appalling standards of care and chaotic systems for looking after patients.”

While Britain tends to be near the bottom in terms of health care system in industrialized states, there are plenty of horror stories elsewhere.  Socialism doesn’t work, whether in health care or elsewhere.  As Investor’s Business Daily reminds us:

The Swedish government system is no better. It also refuses to provide some expensive medication and, inhumanely, refuses to let patients buy the drugs themselves. Why? According to a Journal of American Physicians and Surgeons article, bureaucrats believe doing so “would set a bad precedent and lead to unequal access to medicine.”

Like Canadians, Swedes are subjected to long waits. They also have denial-of-care problems that sometimes lead to death.

A reasonable person would see the record of repeated failures in government-run medicine as evidence that such a system is not sustainable. Yet every central planner thinks he or she — or his or her immediate group — is smart enough to correct the flaws of socialist programs and therefore has the moral authority to force others to participate in his experiments. It is the same thinking that will move a person to say we are the ones we’ve been waiting for.

The Obama administration seems determined to waste a lot of money “stimulating” the economy.  We can replace money lost.  But if the administration succeeds in nationalizing the medical system directly or indirectly, the damage may prove irreversible–and deadly.