Tag: Politico

Core Supporters: We’ve Just Been Too Darned Principled!

According to Politico, supporters of the Common Core have come to a realization: they are losing the public relations war. And what do they think the problem has been? They’ve just been too darned factual:

“The Common Core message so far has been a head message. We’ve done a good job talking about facts and figures. But we need to move 18 inches south and start talking about a heart message,” said Wes Farno, executive director of the Higher State Standards Partnership, a coalition supported by the U.S. Chamber of Commerce and the Business Roundtable.

Um, no.

The argument for the Core – to the extent one has even been given – has mainly been a simple one of “build high standards and success will come.” See, for instance, this recent op-ed from former Tennessee Representative Harold Ford (D), or these superficial videos from the U.S. Chamber of Commerce Foundation. For the most part, they simply assert that the Common Core represents high standards, and that’s what we need to vault near top place in the world educational and economic competition. This ignores the major empirical evidence I and many others have brought against the Core, and national standards generally, showing that standards – much less the Core itself – have demonstrated no such power. But Core supporters have very rarely engaged that crucial evidence, including before Washington did their bidding and coerced lightning-quick state adoption of the Core.

Flight Not an Option in Public School Wars

People viciously go for each other’s throats when they’re trying to help “the children.” At least, according to a new Politico article, that’s the case over the last several years, with demonization increasingly the weapon of choice when it comes to education politics.

Several pragaraphs in, the piece gets to the inflamed heart of the problem:

The policies the two sides fight over are high-stakes indeed. They drive hundreds of billions in public spending. They could impact millions of union  jobs and millions in corporate profits. And they will have an enormous impact on where, how and what the next generation learns.

That may be why the hostility seems to be escalating.

Public schooling politics is a zero-sum game: all people pay in, but only those with political power get control. That is exactly why public schools drive such vitriol and anger. It is like politics generally, but with the emotionally charged, added stakes that people’s children and, often, their basic values, hang in the balance. Making matters worse is that basic decisions about crucial questions—including who is held “accountable,” how, and what children will learn—have for roughly 50 years been increasingly made at the federal level. As a result, people who want something different can’t move to another district or even state to get the education they want. There is no more flight. There is only fight.

Of course, painful conflict caused by public schools is nothing new, even if nationalization is making it worse and more visible. Familiarizing oneself with the history of American education makes clear just how divisive public schooling has been. For instance, see the Philadelphia “Bible Riots,” or the textbook war in Kanawha County, WV. And just because something is local- or state-controlled doesn’t free it from conflict. Cato’s still-under-construction public schooling “battle map” pinpoints well over 800—and growing—contemporary battles over basic values and rights fought at the school, district, and state levels. And that doesn’t include constant combat over budgets, teacher evaluations, school start times, math curricula, and on and on.

Ultimately, understanding why public schools are the source of unceasing conflict—and why it worsens the more that control is centralized—requires the simplest of logic: One government school system cannot possibly serve all, diverse people equally. And the higher decision-making goes, the more diversity the monolithic system encompasses.  

Government schooling essentially guarantees war without end, and increasing centralization only puts peace further out of reach.

Politico Has Been Reading My Email

From today’s Politico Pulse:

OBAMACARE LAWSUIT RECRUITMENT 101: START WITH THE INTERNS - Cato Institute’s libertarian mastermind Michael Cannon appealed to former interns of the right-leaning group to join an “exciting” legal challenge to Obamacare. Cannon is among the top proponents of a legal theory that suggests the health law forbids federal subsidies to people accessing insurance through a federally run insurance exchange.

—”To see if you might qualify, have a look at this checklist,” Cannon writes in a “Dear former Cato Intern” letter. “There are income criteria, plus you must live in one of 33 states, prefer to purchase no health insurance (or low-cost catastrophic insurance), et cetera. If you believe you meet the criteria for at least one of the three categories, email me … to learn more about how you can get involved in this exciting legal challenge, and jump on this chance to make history. Feel free to forward this email to others who may be interested.” The checklist: http://bit.ly/12lJ8Yb.

Thanks, guys. Might as well tell everybody, now. (And “right-leaning”? Seriously?)

ObamaCare’s Triple-Digit Premium Hikes Dramatize the Need for Repeal

In 2010, the Obama administration excoriated health insurance companies for “rate hikes as high as 39 percent.” HHS Secretary Kathleen Sebelius wrote:

This is unacceptable…

President Obama has offered a health insurance reform proposal to help working families and small business owners.  It will hold insurance companies accountable by laying out common-sense rules of the road to keep premiums down…

Reform will change the rules and help stop exorbitant increases.

And the President’s plan will help reduce costs…

According to the Chicago Sun-Times, that double-digit rate increase “helped dramatize the need for regulation.”

That episode came to mind this morning when I read about a survey of health insurers that shows ObamaCare will neither “keep premiums down” nor “stop exorbitant increases” nor “reduce costs”:

The survey, fielded by the conservative American Action Forum and made available to POLITICO, found that if the law’s insurance rules were in force, the premium for a relatively bare-bones policy for a 27-year-old male nonsmoker on the individual market would be nearly 190 percent higher…

Most other studies have tried to estimate average premium increases, which have ranged anywhere from negligible to 85 percent and higher. This survey looks at individual examples in specific markets to show the itemized impact of the major Obamacare reforms…

On average, premiums for individual policies for young and healthy people and small businesses that employ them would jump 169 percent, the survey found.

These findings are in line with projections by neutral observers and even ObamaCare supporters like MIT economist Jonathan Gruber that the law will increase premiums for some individuals and small businesses by more than 100 percent. 

If double-digit premium increases dramatized the need for regulation, do triple-digit increases dramatize the need for its repeal?

Politico offers a strange rationalization for these rate hikes:

The increase will most likely be substantial for “a slice of the younger population,” said Massachusetts Institute of Technology health economist Jon Gruber, a supporter of the health law who has studied its impact on premiums.

And those are the people who, before Obamacare, benefited from insurers’ ability to charge older, sicker people much higher rates — or deny them coverage altogether — practices that have kept premiums for the young low.

Set aside the fact that these rate hikes effectively tax young workers to subsidize older workers who generally have higher incomes. According to this theory – I can’t tell if it came from Gruber or Politico – those young workers are today unjustly enriched because they’re not being robbed.

Joe Barton, Meet Alessandro Acquisti

We were all very excited about the Facebook IPO last week (I guess), and Washington, D.C. wants to have its part in the action. This Politico article, “Facebook IPO Pits Privacy vs. Profits,” is a good illustration. It is the organs of government saying we are relevant, you know.

I was particularly intrigued by the comment of Rep. Joe Barton (R-TX). He’s playing against type—if we’re still to believe that Republicans stand for limited government—where he’s quoted saying: “I believe in free market principles, but there are some things the market can’t put a price on because they lack a monetary value. Privacy is one of those things.”

Aha! Washington does have a role the market can’t provide.

Except that the observation isn’t valid. There are lots of things in markets that “lack a monetary value.” You don’t think that every dimension of every good and service has a price tag on it, do you? Markets still deliver these things through the decision-making of their participants.

Alessandro Acquisti at Carnegie Mellon University has been studying how consumers value privacy for years. Crucially, he’s been studying how they value privacy when confronted with real and simulated trade-offs. (What consumers and politicians say isn’t very informative.) He sometimes puts a price tag on privacy in his studies.

It’s often a low price. Consumers don’t value privacy as much as many of us would like. But markets do implicitly price privacy. You make a little bit more—not a lot—if you deliver privacy. You stand to lose—sometimes a lot—if you don’t protect privacy.

Stand down, Mr. Barton. Stand down, Washington, D.C. You are not relevant to the Facebook IPO. Free market principles suggest leaving markets free to serve consumers’ actual preferences as determined by market processes. This is the case whether you think of privacy as having a “monetary value” or not.

But, But…Price Controls Poll Well!

Politico’s Jason Millman writes:

How much does Rick Santorum hate President Barack Obama’s health care law? So much that he even opposes the parts a lot of Republicans like.

The Republican presidential candidate, talking health care across the street from Minnesota’s Mayo Clinic Monday morning, blasted parts of the Affordable Care Act that poll well even among Republican voters — like guaranteeing coverage for people with pre-existing conditions and making health insurers cover preventive care.

Santorum, who has touted free market health principles like health savings accounts as an alternative to the Affordable Care Act, defended insurance industry practices the law eliminates, like setting premiums based on people’s health status.

Sigh. I refer my right honorable friend to the smack-down I gave such silliness some time ago:

Asking people whether they support the law’s pre-existing conditions provisions is like asking whether they want sick people to pay less for medical care.  Of course they will say yes.  If anything, it’s amazing that as many as 36 percent of the public are so economically literate as to know that these government price controls will actually harm people with pre-existing conditions.  Also amazing is that among people with pre-existing conditions, equal numbers believe these provisions will be useless or harmful as think they will help.

But as the collapse of the CLASS Act and private markets for child-only health insurance have shown, and as the Obama administration has argued in federal court, the pre-existing conditions provisions cannot exist without the wildly unpopular individual mandate because on their own, the pre-existing conditions provisions would cause the entire health insurance market to implode.

If the pre-existing conditions provisions are a (supposed) benefit of the law, then the individual mandate is the cost of those provisions. If voters don’t like the individual mandate–if they aren’t willing to pay the cost of the law’s purported benefits–then the “popular” provisions aren’t popular, either.

Or, as Firedoglake’s Jon Walker puts it, ObamaCare is about as popular as pepperoni and broken glass pizza.

Even among Republican voters? Good grief.

Finally, a Vote on the Three Trade Agreements

Almost a thousand days into his term, President Obama has at last submitted the trade agreements with South Korea, Colombia, and Panama for an up or down vote in Congress.

All three agreements appear to have majority support in both the House and the Senate. Organized labor is putting up its usual anti-free-trade fight against all three, with AFL-CIO boss Richard Trumka coming out swinging in a Politico op-ed this week. He makes the standard union argument that Colombia is an unworthy free-trade partner because of ongoing violence against union members in that country.

In a Free Trade Bulletin earlier this year, my Cato colleague Juan Carlos Hidalgo and I examined the commercial benefits of the agreement with Colombia as well as the hollowness of the union charge. In the past decade, Colombia has made tremendous progress against violence in general, and especially violence aimed at union members. In fact, as we write in the FTB:

The statistics on the number of killings against union members vary depending on the source, with the figure from the government’s Ministry of Social Protection being lower than that of the National Union School (ENS for its acronym in Spanish), a Colombian nongovernmental organization affiliated with the labor movement. However, both sources show a steep decline in the number of killings since 2001. Moreover, when compared with the total number of homicides in the country, killings of union members clearly have dropped at a faster rate than those of the general population (see Figure 1).

Critics of the FTA fail to recognize that violent crime affects all levels of Colombian society, not only trade unions. What is more, the statistics show that union members enjoy more security than the population at large.

Looking at the homicide rate as defined by the number of murders per 100,000 inhabitants, the rate for the total population in 2010 was 33.9 per 100,000, whereas the rate for union killings was 5.3 per 100,000 unionists that same year (using the statistics of the ENS). That means that the homicide rate for the overall population is 6 times higher than that for union members.

Having just returned from a speaking trip last week to Medellín, Colombia, I can vouch that, after a difficult period of battling Marxist guerrillas and drug cartels, Colombia has once again become a normal country with a growing economy. Medellín is a bustling, business-oriented city with the usual challenges of traffic congestion. The students I spoke with at EAFIT University seemed eager for closer ties with the United States, and they do not understand why it has taken almost five years since the signing of the agreement for Congress to schedule a vote on it.

As I explained in an interview with the city’s leading newspaper (conducted in English, but translated here in Spanish), the politicians in Washington have run out of excuses for not establishing free trade between our two countries.

[Our Cato colleague Doug Bandow made the case for a trade agreement with South Korea in a study we released last year.]

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