Topic: General

On What Planet?

Peter Beinart writes in the New Republic:

The struggle that initially roiled the Clinton administration–between deficit hawks and deficit spenders–is basically over; today, even the most liberal Democrats are fiscal conservatives.

Stephen Slivinski’s new book does demonstrate that today’s Republicans are bigger spenders than LBJ. But as the National Taxpayers Union notes in its latest rating of congressional voting, the average Democrat still votes for far more spending than the average Republican. Democrats offer no plan to avert the impending insolvency of the Social Security system. They have denounced the Republicans’ trillion-dollar expansion of Medicare on the grounds that it isn’t generous enough.

Even the relatively conservative Democrats at the Democratic Leadership Council recently released a plan to spend hundreds of billions more taxpayer dollars on everything from college tuition to housing to socialized health care for children to McGovern-style “demogrants” for every baby, with no plausible offsetting spending cuts.

Ready to Pay More for Longer Lines at the DMV?

The Decatur (Alabama) Daily News reports that a server shut-down froze driver licensing operations on Friday.

Lines that tend to be long on the best days meandered double-file through hallways at the Morgan County Courthouse after a computer server in Montgomery shut down at about 12:45 p.m. The faulty server, which came back online at 3, is owned and maintained by Oregon-based Digimarc Co., a state contractor, according to [the Alabama Department of Public Safety].

Digimarc is one of several companies that are in the business of licensing and regulating driving. Another cited in the story is AAMVA, the American Association of Motor Vehicle Administrators, which operates a variety of driver surveillance programs under the AAMVAnet brand.

AAMVAnet is the conduit most states use to access various databases involved in driver license applications and renewals. Alabama uses the service for commercial driver license information, problem-driver point systems and Social Security number verification.

AAMVA is particularly interesting because it styles itself as a neutral interlocutor on motor vehicle administration, police traffic services and highway safety. But according to its non-profit disclosure form, its $30 million in 2003 revenue was comprised of $11 million in government grants and more than $14 million from “contracts/user fees” - most of it likely from operation of the Commercial Driver License Information System.

Anyone who understands the role of self-interest in guiding organizations - even ‘non-profits’ like AAMVA - must recognize that this is an advocate for increased driver regulation and surveillance, most recently through the REAL ID Act’s national identification card. If REAL ID is implemented, AAMVA stands to increase its revenue ten times over.

Department of Public Safety spokeswoman Martha Earnhardt told the Decatur Daily News, “As more and more states go through AAMVAnet, it hasn’t been able to handle the volume.” But AAMVA intends to move you into the national ID program - long lines or not - using your state and federal tax dollars.

More on AAMVA and the REAL ID Act can be found in my book Identity Crisis: How Identification is Overused and Misuderstood.

Political Entrepreneurship

From the Washington Post:

[Kevin] Schieffer is trying to persuade the Federal Railroad Administration to give him a $2.5 billion loan for the project [to build a 1000-mile rail line from Wyoming to Minnesota], among the largest in history.

If it succeeds, it could be a boon to farmers – and Schieffer.

The project would cut transportation costs for coal, corn and ethanol, and would make Schieffer what Fortune magazine calls “America’s first self-made railroad baron since the days of Teddy Roosevelt.”…

“He’s talking about using eminent domain out here and just wiping out 110 or 120 farms and ranches out here,” [rancher Paul] Jensen said.

Schieffer received help from an old friend, someone he admired as a South Dakota basketball legend years ago: Sen. John Thune (R), who defeated Senate Majority Leader Thomas A. Daschle (D) in 2004.

Despite opposition from the White House, Thune helped persuade Congress last year to increase the amount of the program from $3.5 billion to $35 billion. Thune, who received campaign contributions from Schieffer and who earned $220,000 as DM&E’s chief lobbyist in the 18 months before joining the Senate, is promoting the project to lure jobs. The law would allow Schieffer to put down no collateral and to make no payments for up to six years. [Sen. Mark] Dayton and other critics fear that taxpayers would be on the hook if the project were to fail.

He’s no James J. Hill.

A Telling Analogy

From the Washington Post:

“At this point, it seems like the war on drugs in America,” added Spec. David Fulcher, 22, a medic from Lynchburg, Va., who sat [in a barracks in Baghdad]. “It’s like this never-ending battle, like, we find one IED, if we do find it before it hits us, so what? You know it’s just like if the cops make a big bust, next week the next higher-up puts more back out there.”

Hey, GOP: Combat Anti-worker Image by Being Pro-worker!

Any real concern House Republicans may have for low-wage workers is apparently evaporating in the heat of the midterm elections.

Here’s the GOP political calculus, as reported by the New York Times:

Republican moderates used a closed party meeting on Thursday to make their case for a vote, saying it was crucial for helping to dispel the party’s antiworker image. The moderates ran into opposition from conservatives who said the wage proposal could turn off campaign contributors with the elections looming and drive away the party’s business base. But some lawmakers said opponents also recognized the political necessity of giving moderates some political cover, a prospect more appealing than potentially losing their majority in the House.

Perhaps there was a “compassionate conservative” somewhere in the room who thought to mention that a national minimum wage hike is likely to harm low-wage workers, especially young urban workers trying to gain some experience and start on a path to economic independence. But, as far as I can tell, the conclusion was that it is better to be actually anti-worker than to have a false “antiworker image.”

If House Republicans wish to get out from behind false perception and stand up for the real interests of workers, they should take a look at this good overview of recent empirical work on the minimum wage by James Sherk at Heritage. And here is Cato adjunct scholar and George Mason economics chair Don Boudreaux on why we should expect government-mandated price floors to harm workers. If the vaunted rightwing messaging machine is so amazing, why can’t it do more to explain why reducing opportunities for low-wage workers is not pro-worker?

Hmm. Students Are Leaving… Maybe We Should Improve?

This headline and story, ladies and gentlemen, is what market education reform is all about:

School board, staff to address student exodus

Saying it’s time to take a direct role in addressing parents’ concerns about district schools, the Columbus Public Schools Board of Education pledged to create a vision statement to guide policies that will strengthen the city schools and keep students from leaving.

At the same time, administrators and staff members promised to work together on ways to make the the district better.

Board members held a special meeting last Thursday, along with administrators and members of the district’s employee unions, to discuss a survey that said one in nine parents plans to withdraw their child from CPS this year.

That, in a district that has lost nearly 7,000 students to charter schools over the past several years, and stands to lose more because of private school vouchers this fall….

Want Electronic Medical Records? Fix the Incentives

Suppose you are traveling, and needed to visit a doctor, who says he’d like to do an MRI. You had one done just two weeks ago at home, but your personal doc would have to snail mail the image to the new doc. The new doc needs to have a look inside you, but another MRI would be expensive.

Now think: in what kind of health care system are you more likely to get electronic medical records, where doctors can send MRI results to each other instantly:

  • A health care system where you are on the hook for the cost of the second, unnecessary MRI, or
  • A system where someone else (Medicare, your employer, etc.) is going to pay for it?

Thanks to government subsidies and the federal tax code, Americans are less sensitive to the price of medical care than even Canadians, whose government is supposed to pay for everything. As a result, most providers still keep patients’ medical records on paper, essentially because the government lets them get away with it. Some providers have started using electronic medical records, but those systems are in their infancy and are unable to talk to each other. That means lots of wasteful spending, plus treatment delays and medical errors.

When Katrina hit Louisiana, thousands (millions?) of medical records were destroyed. But when the World Trade Center went down in a fiery blaze, there was no hue and cry about the loss of financial records, because those were secured, electronically, in various sites. Why the asymmetry? My guess is that the financial services industry has customers who demand value, including responsiveness and security, because they bear the cost. Health care providers that do have price-sensitive customers, such as services like MinuteClinic and TelaDoc, do offer electronic medical records. But most of the health care industry does not have price-sensitive customers, and we have Congress to thank for that.

So when House Republicans plan to vote this week on legislation that would spend your tax dollars to encourage the creation of electronic medical records, it seems like a classic case of one fouled-up government intervention begetting another. Congress has spent the last 60 years doing little in health policy but insulating patients from the costs of paper medical records. But don’t worry, because now they’re going to throw $40 million of the taxpayers’ money at health information technologies (HIT) that create interoperable medical records.

In a further demonstration that Congress is wasting its time (isn’t there a war on?), this week Microsoft announced plans to start producing interoperable electronic medical records. Maybe the fact that the private sector is trying to muster to the task – in spite of Congress’ past meddling – will persuade Congress not to compound its past mistakes. Perhaps Congress will instead look at ways to restore the incentives that encourage providers to offer such cost-saving innovations. One can always hope.