Tag: Politico

The Pelosi Bill’s High Water Mark

Democrats are having difficulty corralling 218 votes for the Pelosi bill because Americans do not want government to be as big and as powerful as the House leadership does. Pro-life Democrats do not want a government so big that it can force taxpayers to fund abortions. Pro-choice Democrats do not want a government so big that it uses subsidies to restrict access to abortion coverage. Other Democrats don’t want a government so big that it turns the United States into a welfare magnet.

The American people don’t want the Democrats’ approach to health care generally. The more time the public has to digest ObamaCare, the more they dislike it:

And the Pelosi bill is the most expensive and extreme version of ObamaCare.  Opposition will climb higher when the public learns the bill costs some $1.5 trillion more than Democrats claim.

Even a majority vote would not necessarily indicate majority support for the Pelosi bill. Rep. Jim Cooper (TN) and other Democrats are voting aye only because they want to keep the process moving – i.e., because this isn’t the vote that counts.

Win or lose, tonight’s vote will be the high water mark for the Pelosi bill.

(Cross-posted at Politico’s Health Care Arena.)

One Year Later

This morning, Politico’s Arena asks:

“Election 09: What’s the message?”

My response:

A note on NY 23, then to the larger message in yesterday’s returns. Already this morning we’re seeing an effort to spin the NY 23 outcome as a warning to Republicans and a hopeful sign for Democrats. Yet the striking thing about that outcome is how close a third-party candidate came in the face of opposition from the Republican establishment. And the ultimate outcome can doubtless be explained simply by absentee ballots, plus voters unaware of the last-minute developments in the race.

Thus, given those factors, the NY 23 outcome is perfectly consistent with returns in the rest of the country. (In fact, Conservative and Republican votes in that race total more than 50 percent.) And the message will not be lost on blue-dog Democrats. If the internal inconsistencies of ObamaCare did not trouble those Democrats before yesterday, they surely must now. The silence coming from the White House last night spoke volumes.

Are Savvier Democrats Playing Rope-a-Dope?

Let’s simplify things and say there are essentially two parts to the health care bills moving through Congress: an individual mandate that would effectively nationalize health care, and a government-run program that would explicitly nationalize it slowly, over time.

One explanation for Majority Leader Harry Reid (D-NV) including the government-run program – supporters call it a “public option”; I prefer Fannie Med – in the Senate bill is that Fannie Med’s popularity is on the rise.  Another explanation is that Reid had to include it to remain majority leader and get left-wing Nevadans to work for his re-election.

But a third explanation, not inconsistent with the others, is that the savvier Democrats know that all they need to nationalize health care is an individual mandate.  So they’ll let Fannie Med take a beating, and then pass the more sweeping individual mandate when opponents are too exhausted and distracted by their “victory” over Fannie Med to notice.

(Cross-posted at Politico’s Health Care Arena.)

Yes, Mr. President, a Free Market Can Fix Health Care

At his White House forum on health reform back in March, President Barack Obama offered:

If there is a way of getting this done where we’re driving down costs and people are getting health insurance at an affordable rate, and have choice of doctor, have flexibility in terms of their plans, and we could do that entirely through the market, I’d be happy to do it that way.

In a new Cato study titled, “Yes, Mr. President, a Free Market Can Fix Health Care,” I take up the president’s challenge and explain that markets are indeed the only way to achieve those goals.  I also explain how Congress can remove the impediments that currently prevent markets from doing so:

  1. Give Medicare enrollees a voucher (adjusted for their means and health risk) and let them purchase any health plan on the market,
  2. Reform the tax treatment of health care with “large” health savings accounts, which would give workers a $9.7 trillion tax cut (without increasing the deficit) and free them to purchase secure coverage that meets their needs,
  3. Free consumers and employers to purchase health insurance across state lines (i.e., licensed by other states), which could cover up to one third of the uninsured,
  4. Make state-issued clinician licenses portable, which would increase access to care and competition among health plans, and
  5. Block-grant Medicaid and the State Children’s Health Insurance Program, just as Congress did with welfare.

Unlike the president’s health care proposals (which, as Victor Fuchs explains, would merely shift costs), these reforms would reduce costs, expand coverage, and improve health care quality – without new taxes, government subsidies, or deficit spending.

Would a free market be nirvana?  Of course not.  But fewer Americans would fall through the cracks than under the status quo or the government takeover advancing through Congress.

There is a better way.

(Cross-posted at Politico’s Health Care Arena.)

Obama’s Fall Offensive

In today’s Politico Arena, the editors ask:

White House Strategy: Will Obama’s effort to undermine critics undermine Obama instead? Is it overdue or overdone?

My response:

Obama is losing it. His increasing moves to marginalize his critics, richly detailed this morning at Politico, mark him as an amateur. America is not Chicago. Nor are those who oppose his agenda synonymous with the Republican Party. They’re far more numerous than that, and their numbers are growing.

Politics is one thing: “It ain’t beanbag,” Mr. Dooley noted. But scorched-earth politics is something else. It’s over the edge, like Nixon’s enemies list. It has no place in America, except in political backwaters like Chicago. (Personal note: In 1972 my wife and I served as Republican election judges in the first Mayor Daley’s Chicago. On election day, when we walked into the Hyde Park polling station at 5:30 a.m., the three Democratic judges looked at us in astonishment: “Are you real Republicans?” How else are you going to control the election?! Hamid Karzai has nothing on Chicago.)

As a practical matter, in our two-party system the Republican Party is the organizational antidote to this kind of abuse. But as the Wall Street Journal editorializes this morning, the party’s going to have to get its act together before that happens. It’s claim to be a party of principle has been seriously undermined in recent years by Republican officials at all levels of government. That leaves it to private individuals and organizations to call Congress and the administration on what they’re up to. And that’s why we too are in Obama’s cross-hairs. It won’t work – unless we let it happen. Thank you, Politico, for drawing these sad facts together in one place.

Should the White House Be Taking on Fox?

Today’s  Arena question over at Politico asks:

Is Fox News a “legitimate news organization?” Is the White House smart, or not so smart, to take on Fox?

Is Fox News a “legitimate news organization?” As compared to what? The New York Times? NPR? MSNBC? Please.

The Obama team, Democrats like my good friend Walter Dellinger, and the so-called Mainstream Media (MSM) howl about Fox News for two main reasons. First, Fox is covering news the MSM ignores because it doesn’t “fit.” And second, in part because of that, the Fox audience continues to grow while the MSM audience is shrinking, raising a serious question about whether the MSM is any longer “mainstream.”

Let’s not pretend that the MSM doesn’t “manage” the news. It does it mainly by deciding daily what is and is not “news” and then by deciding how to report that news. Do we need any better example than the current ACORN story? As Fox was bringing the facts to light, nowhere were those facts to be found in the MSM – until they could be ignored no longer. Or take the huge 9/12 anti-big-government rally here in Washington. Fox covered it for the event that it was. Where was it covered in The New York Times? On page A37. And more revealing still, in the NYT electronic edition, the second of three stories posted under “Politics” was headlined “Thousands Rally in Minnesota Behind Obama’s Call for Health Care Overhaul,” the third was headlined “Thousands Rally in Capital to Protest Big Government” – the implication being that the two rallies were equivalent in size when in fact the protest rally dwarfed the Obama rally by many multiples.

But why pretend it’s otherwise? The president himself admits the MSM bias. Speaking at the May 9 White House Correspondents’ Association Dinner, “I am Barack Obama. Most of you covered me. All of you voted for me. (Laughter and applause.) Apologies to the Fox table.” A good laugh line in that setting, to be sure, but only because he’s said at last what we all know to be true.

Walter Dellinger may write, citing no evidence, that the Tax Day Tea Party protests were “conceived and executed by Fox News,” but he surely knows that’s not true. He hails from North Carolina, albeit now from Duke. He knows that outside that cloister there’s protest in the land. Fox News isn’t generating that opposition to the Obama juggernaut. It’s real, but it’s so much easier for the MSM to blame the bearer of that news than to face the reasons for their own falling numbers: Their “news” doesn’t fit with what so many people see with their own eyes. I’m reminded of the great Groucho Marx line: “Who are you going to believe, me or your own eyes?”

C/P Politico’s Arena

ACORN and Health Care

Last week, editors at Politico posed two questions to an online panel to which I contribute: “ACORN: Underplayed or overblown?” and “Will the Dems ever get their act together on healthcare?”

The two are intimately connected by a simple proposition: “Most people want more housing and health care than they can afford.” Of course, for “housing” or “health care” one could substitute whatever one wishes: food, clothing, cars, education, entertainment, vacations, you name it. Economists call this the problem of scarcity, and it’s the beginning of economics.

In a free society, most individuals, families, and firms will deal with that problem through such homely measures as creating and husbanding wealth, planning for the future, and living within their means. Some, however, will be indifferent to such discipline and will demand more than they can afford. Enter thus ACORN and the Dems – the party of government. ACORN, like our president, is in the “community organizing” business – a euphemism for putting (some) people in a position to better demand things from government. Some of those demands are perfectly legitimate: reduce crime; fix the potholes. But others, the demands ACORN specializes in, are not thus “common.” They can be satisfied, in a world of scarcity, only by taking from some and giving to others.

And that’s what the housing and health care debates today are largely about. And it’s why on both, the Dems are having difficulty getting their act together, because however much they turn a blind eye toward scarcity or pretend that they all agree, the truth is that they represent discrete constituencies, with discrete conflicting interests. That’s what happens when we’re all thrown into the common pot. What once was decided by individuals, reflecting their own particular interests, is now decided by government – and it’s a Hobbesian war of all against all.

The AP report on ACORN last week illustrated that nicely. ACORN has been in the forefront of those browbeating banks, under the Community Reinvestment Act, to provide housing loans to people who couldn’t afford them. Banks were reluctant to make those loans, of course – until the government stepped in to “guarantee” them. Well, we’ve seen where that ended: we’re all paying the price, especially those who couldn’t afford the homes in the first place, and will be for years to come. AEI’s Peter Wallison details some of that fiasco in this morning’s Wall Street Journal, placing a finger on none other than Barney Frank, who parades now as our savior.

But the same something-for-nothing mindset is at work in the health care debate. Here again, many people want more health care than they can afford, which means that someone else will have to pay for it – the government having nothing except what it takes from us. The pretense that it is otherwise – or that they can redistribute more equitably than the market does – is what drives the Dems to their pie-in-the-sky schemes – until some among them realize that it is they and their constituents who are being taken for a ride. At that point, either the recalcitrant are silenced, with some temporary sop, or the bottom falls out of the scheme, which is what many of us are hoping for here. If not, the housing debacle will prove in time to be a pale harbinger of the health care debacle, at least for those who live to see it.

C/P Politico’s Arena