Does America Need a Training School for Bureaucrats?

Investor’s Business Daily comments on Hillary Clinton’s proposal for a national school to train “public servants.” But does America need a West Point for bureaucrats? The IBD editorial touches on some of the obvious shortcomings of the scheme, but it also is worth noting that such a school sounds frighteningly similar to France’s infamous l’Ecole d’Administration, the elitist institution that produced a long string of statist politicians such as Jacques Chirac:

Sen. Hillary Clinton says she wants to establish a national academy that will train public servants. Why do re-education camps come to mind? … Somehow we doubt there will be many lectures in making government smaller, deregulating business, cutting taxes or increasing individual freedom. Is there a chance that this “new generation” attending the academy will hear a single voice that isn’t hailing the glories of the nanny state? Will students being groomed for public service ever hear the names Hayek, von Mises or Friedman during their studies? … Government at all levels is already overflowing with bureaucrats who suck up taxpayers’ money and produce little, if anything, of economic value. More often, the bureaucracy actually gets in the way of economic progress.

Update on the Anti-Universal Coverage Club

Joining the Anti-Universal Coverage Club this week is a list of organizations that have formed a new group called The Health Care Freedom Coalition.  Here are a few lines from their agenda:

Most Democratic presidential candidates, one Republican presidential candidate, many business trade associations, and unions have endorsed “universal health insurance” as the solution to our nation’s health care problems.

With 46 million Americans who don’t have health insurance, these politicians and special interest groups have concluded that covering everyone will magically make health care affordable.

“Universal health insurance” is a myth. The only way to make health care “affordable” under a “universal health insurance” scheme is through price controls and limiting access. Any proposal claiming to provide “universal coverage” is nothing more than a system that must rely on private and/or public entities to administer government-run health care. 

Emphasis added.  The Health Care Freedom Coalition includes:

  • 60 Plus
  • Alabama Policy Institute
  • American Conservative Union
  • American Shareholders Association
  • Americans for Prosperity and AFP Foundation
  • Americans for Tax Reform
  • Center for Freedom and Prosperity
  • Christus Medicus Foundation
  • Commonwealth Foundation for Public Policy Alternatives
  • Consumers for Health Care Choices
  • Council for Affordable Health Insurance
  • Fairness Foundation
  • FreedomWorks
  • Grassroot Institute of Hawaii
  • Illinois Policy Institute
  • Indiana Family Institute
  • Medical Savings Insurance Company
  • Mississippi Center for Public Policy
  • National Center for Policy Analysis
  • National Taxpayers Union
  • Pacific Research Institute
  • Public Interest Institute
  • Rio Grande Foundation
  • Small Business Entrepreneurship Council
  • The James Madison Institute
  • Washington Policy Institute

Not joining the Anti-Universal Coverage Club this week are the U.S. Senate and House of Representatives, which approved legislation to expand government health insurance to people who don’t need government assistance, and the Galen Institute’s Grace-Marie Turner, who reiterated in her weekly newsletter:

The question isn’t whether children should or should not have health insurance. The question is how do we achieve that goal.

What Does Hillary Think about Taiwan?

In this video from Foreign Policy magazine, Carnegie Endowment for International Peace scholar Michael Swaine talks about a conversation he had with Hillary Clinton. In it, he said, Hillary had intimated something along the lines of “it is absurd to think that the American people would support a war with China over Taiwan.” Swaine’s response, as I recall, was to say that that may be the view of the American people, but American foreign policy elites certainly would contemplate a war with China over Taiwan.

Now, you may be saying, “Logan, you sure sound sketchy on this. Is this just your recollection? How about a quote?” Well, I’d love to provide a direct quote, and that was my intention when I started this post. However, when I clicked back to the video, the anecdote from Swaine was gone. “Am I losing it?” I thought. Until I scrolled all the way down to the bottom of the page and found this:

Editor’s Note: This video has been edited since its original posting. A small portion was removed at the request of an interviewee.

So here’s a question for Senator Clinton: What did you mean by your comment to Swaine? And to Swaine: What was your interpretation of what Hillary was driving at? That she wouldn’t go to war over Taiwan? That we shouldn’t?

These are very serious questions and they deserve a place in the presidential campaign.

Brother, Can You Spare a Z$200,000 Note?

Hyperinflations would be almost comic if it were not for the misery they inflict on the people they affect. In the misruled African country of Zimbabwe, the inflation rate of the Zimbabwean dollar has reached an annualized rate of 13,000 percent. According to a story Thursday in the Financial Times, an IMF official predicts the annual rate could be heading towards an incredible 100,000 percent.

One sure sign of a hyperinflation is that the central bank must issue new currency notes in ever higher denominations so that people won’t have to carry bags or wheelbarrows of money around to make everyday purchases. Sure enough, the government of Zimbabwe is now wrestling with that very question. According to the FT story:

The launch yesterday of a new large-denomination bank note of Z$200,000—worth [US$13] at the official exchange rate and [US$1.30] at the more realistic parallel rate—underlines the disarray. The central bank had wanted to issue a Z$500,000 note, but a bank official said this was vetoed by the finance ministry because senior staff thought such a large denomination would have reinforced an impression that inflation was out of control.

At a 13,000 percent rate, that cat is probably already out of the bag.

If You’re Not a Farmer, Then Shut Up

I blogged about the arrogance of some members of Congress during last week’s farm debate in the House.

From the Congressional Record, check out this bluster from farm committee member Tim Walz (D-MN) during the floor debate. (Note that he is objecting to reforms proposed by Reps. Ron Kind (D-WI) and Jeff Flake (R-AZ):

I rise in opposition to my good friend from Wisconsin’s piece of legislation. It’s well meaning, but I believe it does not address the needs of my district. The people of the First District of Minnesota, I think, can probably lay claim to one of the richest agricultural pieces of land in the entire world … I had 14 hearings throughout my district with universal acceptance of making sure the safety net is maintained … When I need advice on the farm bill, I go to a couple of good farmers in my district, Kevin Papp, president of the Minnesota Farm Bureau, and Doug Peterson, president of Minnesota’s Farmers Union. I don’t need to go to the ideologues at the Cato Institute or Club for Growth to know what’s good for rural America.

Have you got it? If you are a taxpayer footing the bill for $30 billion or so of farm subsidies each year, then tough beans–just sit down and let Mr. Walz spend your money on his special interest friends.

A few questions to ponder:

Do you think that there was “universal acceptance” of big farm subsidies at his meetings because they were meetings of farmers?

If Mr. Walz’s district is “one of the richest agricultural pieces of land in the entire world” then why the heck does it need subsidies?

What They Say It Does

Over at Eduwonk, there’s a little discussion about a finding in a new Education Next poll that 57 percent of Americans like the No Child Left Behind Act (NCLB) and want it reauthorized more or less as-is. What interests the Wonk is that when NCLB is referred to simply as “federal legislation,” support rises to 71 percent:

What jumped out at me is how much language matters. If you ask people about a generic law that does what No Child Left Behind does they are more favorably disposed to it than if you ask them about “No Child Left Behind” specifically.

The Wonk is right – language does matter. But here’s the thing: The Education Next pollsters didn’t tell respondents what NCLB actually does, they very superficially told them what it is supposed to do: force “states to set standards in math and reading and to test students each year to determine whether the standards are being met.”

The language matters because many people aren’t all that familiar with the law, and many such folks would not oppose NCLB if they were told that all it does is require states to set standards and track student mastery of them. The reality, however, is that NCLB does a lot more than that, and is rife with problems that have made it a scourge in many people’s minds, including encouraging states to actually push standards down, not up.

It is perhaps that people have a general sense of how bad NCLB truly is, even if they can’t remember specific problems, that led to a June Educational Testing Service finding that, when asked for their views about NCLB without being given any description of the law, only 41 percent of respondents favored NCLB, while 43 percent viewed it unfavorably. Unfortunately, ETS went on to ask the question with a description even more candy-coated than Education Next’s, raising favorable responses to 56 percent. The public’s true feelings about NCLB were, nonetheless, clear: when not biased by loaded descriptions, Americans simply do not much care for the No Child Left Behind Act.

State and Local Workers Retain Advantage

The Bureau of Economic Analysis has released its annual data on employee compensation by industry. (See tables 6.2, 6.3, 6.5, and 6.6).

The new data for 2006 show that the nation’s 16 million state and local government workers earned an average $61,727 in total compensation (wages plus benefits). That is 11 percent more than the $55,470 average earned by U.S. private sector workers.

Looking just at wages, state and local workers earned an average $46,937, which is similar to the $45,995 average earned by private sector workers. Thus the primary state and local advantage is the generous fringe benefits.

The figure below shows that the state and local worker advantage has remained fairly constant since at least 1990. Private pay boomed in the late-1990s, but state and local pay has grown faster this decade.

Source: Chris Edwards, Cato Institute, based on Bureau of Economic Analysis data

For those interested in the welfare of teachers, the BEA data shows that teacher compensation has closely tracked the overall state and local average since 1990. The average compensation in state and local education in 2006 was $62,371

State and local workers are not paid as well as federal workers, on average, but they usually receive similar generous fringe benefits including high job security, and lucrative pension and health care plans.