He Has a Point

Stung by accusations that he is a “socialist,” President Obama pointed out to two New York Times reporters that, “it wasn’t under me that we started buying a bunch of shares of banks. It wasn’t on my watch. And it wasn’t on my watch that we passed a massive new entitlement -– the prescription drug plan – without a source of funding.”

Not to defend Obama’s unprecedented increase on government spending or plans to involve the government in almost every area of our lives…but he does have a point. As I pointed out in Leviathan on the Right, the Bush administration’s brand of big-government conservatism was, at the very least, the greatest expansion of government from Lyndon Johnson to, well, Barack Obama.

Looking to a Failed Model for Health Care Reform

CNN health care correspondent Sanjay Gupta, who was briefly considered for surgeon general in the Obama administration, reports that the administration is looking to Massachusetts as a model for its forthcoming health care reform proposal. That model would involve an individual mandate, an employer mandate, a “connector” with increased insurance regulation, and massive subsidies for the middle class.

Given that the Massachusetts plan is expected to run $2-4 billion over budget over the next 10 years, has failed to come close to universal coverage, has done nothing to reduce health care costs (indeed, may have driven up insurance costs), and has actually led to increased wait time for primary care physicians, that may not be the best model out there. In fact, perhaps the Obama administration might like to look at studies by David Hyman and me detailing the Massachusetts model’s many problems.

Mr. President, If You’re Involved It’s Already Politicized

Yesterday, President Obama coupled his lifting of an executive order banning federal funding for embryonic stem cell research with the signing of a memorandum directing “the White House Office of Science and Technology Policy to develop a strategy for restoring scientific integrity to government decision making.” In other words, at the very moment he was directly injecting politics into science by forcing taxpayers to fund research that many find immoral – and that could be funded privately – Obama declared that he wouldn’t politicize science.

Don’t insult our intelligence. When government pays for scientific work that science is politicized. Yes, it could be argued that government not funding something is also political, but which is inherently more politicized, government forcing people to fund research, or leaving it to private individuals to voluntarily support scientific endeavors they believe of value?

You don’t have to be a scientist to grasp the obvious answer to that one.  And as I’ve laid out very clearly regarding education, this kind of compelled support ultimately leads not only to ugly politicization, but social conflict and division.

Culture wars, anyone?

The rhetoric supporting federal funding of embryonic stem cell research – and lots of other science – may sound noble, but the means-ends calculations are anything but. They are divisive incursions on liberty, and make political conflict inevitable.

Bailouts, Big Spending and Bull

John Stossel joined economists from around the country Thursday at the Cato Institute for a taping of a 20/20 special that will air Friday March 13 called “Bailouts, Big Spending and Bull.”

The segment is based on Reason TV’s Drew Carey Project, and examines  “bailouts, medical marijuana, universal preschool, private highways, border walls, and the myth of the struggling middle class.”

Check your local listings for exact air time.

stossel20-20_030409_5320stossel20-20_030409_52871Photos by Kelly Anne Creazzo

More Praise for Cochrane’s ‘Health-Status Insurance’

This time, it’s coming from Reihan Salam at Forbes.com:

Choice and Security: Professor John Cochrane’s advice to President Obama

Last week, at a White House forum on reforming health care, President Obama issued a challenge to advocates of less government control of the medical marketplace.

“If there is a way of getting this done [i.e., reforming health care] 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.”

More to the point, Obama added that he’d be just as happy to pursue an approach that involved more government control as well, and that seems to be the tack he’s taking…

Congressional Republicans have criticized Obama’s approach, and they’ve been particularly hostile to the idea of a new public insurance plan. They argue that Obama’s reforms will eventually lead to a nationalized health care system. But as of yet they’ve failed to offer an alternative that meets Obama’s criteria for a successful health care reform.

Enter John Cochrane, an economist at the University of Chicago Booth School of Business. Professor Cochrane has long advocated a proposal he calls “health-status insurance,” an approach that could guarantee long-term health security while also freeing medical insurers to compete for customers. To most health care reformers, this sounds like a contradiction in terms.

Cochrane’s paper is, “Health-Status Insurance: How Markets Can Provide Health Security.”

New Podcast: ‘El Salvador’s Choice’

El Salvador is becoming an economic success story in Central America, says Cato scholar Juan Carlos Hidalgo.

Since 1992, the country has undertaken an aggressive program of liberalization that has transformed its economy and yielded major improvements in various socioeconomic areas. In a new study, Hidalgo explains how El Salvador “is showing the rest of the region how economic freedom can pave the way for development and how globalization offers great opportunities for developing countries that are willing to implement a coherent set of mutually supportive market reforms.”

In today’s Cato Daily Podcast, Hidalgo explains how despite recent economic reforms, next week’s election in El Salvador could end with a  government that has great admiration for the policies of Hugo Chavez that would turn El Salvador away from market-based reforms.

A third of the [voting] population is under thirty. So that means many young voters don’t remember El Salvador as it was during the early 1990’s… Young people have trouble paying for their cell phone bills, have trouble paying their gas bills and have trouble paying for tuition in colleges. What they don’t remember is fifteen years ago they didn’t have cars, their parents didn’t have cars, their parents didn’t have any cell phones and their parents lived in shanty towns….

…Even though they talk about emulating the socialist revolution in Venezuela, they haven’t been explicit about dismantling democratic institutions in El Salvador.