Archive for October, 2009

Monday Links

Have $795 to Spare? Want a Fancy Jacket Celebrating a Communist Murderer?

Want to look cool, authentic and rugged? Want to celebrate the work of a famous communist murderer? J.Crew has something for you: The Beltstaff® Che Guevara replica jacket for only $795. Credit cards only.

Update: It looks like J. Crew got some heat for the reference to Che Guevara, and renamed the jacket. However, my colleague Chris Moody found a screen shot of the page when it still mentioned the name of the bloody Latin American revolutionary.

che

NAEP Math Scores, NCLB, and the Federal Government

I’m surprised anyone was surprised by the recent flat-lining of scores on the NAEP 4th grade math test. The rate of improvement in NAEP scores has been declining since No Child Left Behind was passed, and the recent results are consistent with that trend.

But what really amazes me is that so many people think the solution is just to tweak NCLB! The unstated assumption here is that federal policy is a key determinant of educational achievement. That’s rubbish.

We’ve spent $1.8 trillion on hundreds of different federal education programs since 1965, and guess what: at the end of high school, test scores are flat in both reading and math since 1970, and have actually declined slightly in science. (Charted for your viewing pleasure here).

If we’ve proved anything in the past 40 years, it is that federal involvement in education is a staggering waste of money.

Meanwhile, education economists have spent the last several decades finding out what actually does work in education. They’ve compared different kinds of school systems and it turns out that parent-driven, competitive education markets consistently outperform state monopoly school systems like ours. I tabulated the results in a recent peer-reviewed paper and they favor education markets over monopolies by a margin of 15 to 1.

So policymakers who actually care about improving educational outcomes should be spending their time and resources enacting laws that will bring free and competitive education markets within reach of all families. And they should be ignoring the education technocrats who — like Soviet central planners — just want to keep spending other people’s money tweaking their fruitless five year plans.

Drug War Insanity Goes Up in Smoke

As my colleague David Rittgers notes below, the announcement by the Department of Justice that it will no longer seek to arrest medical marijuana users is a breakthrough for common sense in federal drug policy.

It is bizarre that it takes a major policy announcement to spell out what a waste of police and court time it is to investigate the ill people who use medical marijuana. Historians will surely look back on this period and ponder how our government could have seriously embraced the opposite policy, in the same way we look back at the strange days of alcohol prohibition.

The Obama administration should be taking much bolder steps to stop the criminalization of drug use more generally. More and more people have come to recognize that the drug war has been given a fair chance to work, but it has proved to be a grand failure.

Should Congress Even Try to Achieve Universal Coverage?

If the goal is to improve health, then the answer is clearly no.

Ironically, even though universal coverage is presumably about helping the sick, the Democrats’ pursuit of universal coverage demonstrates not how much, but how little they care about their neighbors’ health.

Economists Helen Levy and David Meltzer explain, in a book published by the Urban Institute, “There is no evidence at this time that money aimed at improving health would be better spent on expanding insurance coverage than on…other possibilities,” such as clinics, hypertension screening, nutrition campaigns, or even education.  In the Annual Review of Public Health, they explain further:

The central question of how health insurance affects health, for whom it matters, and how much, remains largely unanswered at the level of detail needed to inform policy decisions…Understanding the magnitude of health benefits associated with insurance is not just an academic exercise…it is crucial to ensuring that the benefits of a given amount of public spending on health are maximized.

If Democrats were serious about improving health, they would first gather evidence about which of those strategies produces the most health per dollar spent.  (As I recommend elsewhere, the $1.1 billion Congress allocated for comparative-effectiveness research should just about do the trick.)  Democrats would then fund the most cost-effective strategies, which may or may not include broader insurance coverage.

But the fact that Democrats are pursuing universal coverage without any such evidence necessarily means that they are willing to sacrifice potentially greater health improvements to achieve…whatever else they hope universal coverage will achieve.

Universal coverage is not about improving public health.  It is about subordinating health to some X-factor that supporters value even more.

Which leads to an even more intriguing question: what is that X-factor?

Financial security?  (If so, would universal coverage achieve that?  Or are there better strategies?)  Political power?  Dependence on government?  Industry subsidies?  The appearance of compassion?

I’d like to see that question put to the group.

(Cross-posted at National Journal’s Health Care Experts Blog.)

Good News on Medical Marijuana

The Department of Justice is changing its long-standing policy of ignoring state laws that allow marijuana use for medicinal purposes. This federalism question played out several years ago in the Supreme Court in the Raich case; Cato’s amicus brief is available here.

Cato hosted Rob Kampia of the Marijuana Policy Project in March, and you can view the event here. Glenn Greenwald wrote an influential study for Cato on the successful decriminalization of drugs in Portugal. Greenwald notes that he gets more invitations to speak on the subject now than he did when it was published.

A good first step. Fourteen states permit medical marijuana dispensaries; I suspect more are on the way now that this hurdle has been cleared.

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.

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I’m From the Government, and I’m Here to Give You a Golf Cart

How would we be managing if Congress hadn’t voted to subsidize virtually everyone everywhere in the name of stimulating the economy?  Well, taxpayers wouldn’t be buying people golf carts.  It turns out that golf carts meet the federal criteria for high-mileage cars in the stimulus legislation.

Editorializes the Wall Street Journal:

We thought cash for clunkers was the ultimate waste of taxpayer money, but as usual we were too optimistic. Thanks to the federal tax credit to buy high-mileage cars that was part of President Obama’s stimulus plan, Uncle Sam is now paying Americans to buy that great necessity of modern life, the golf cart.

The federal credit provides from $4,200 to $5,500 for the purchase of an electric vehicle, and when it is combined with similar incentive plans in many states the tax credits can pay for nearly the entire cost of a golf cart. Even in states that don’t have their own tax rebate plans, the federal credit is generous enough to pay for half or even two-thirds of the average sticker price of a cart, which is typically in the range of $8,000 to $10,000. “The purchase of some models could be absolutely free,” Roger Gaddis of Ada Electric Cars in Oklahoma said earlier this year. “Is that about the coolest thing you’ve ever heard?”

The golf-cart boom has followed an IRS ruling that golf carts qualify for the electric-car credit as long as they are also road worthy. These qualifying golf carts are essentially the same as normal golf carts save for adding some safety features, such as side and rearview mirrors and three-point seat belts. They typically can go 15 to 25 miles per hour.

In South Carolina, sales of these carts have been soaring as dealerships alert customers to Uncle Sam’s giveaway. “The Golf Cart Man” in the Villages of Lady Lake, Florida is running a banner online ad that declares: “GET A FREE GOLF CART. Or make $2,000 doing absolutely nothing!”

In a normal world this would be shocking, even scandalous news.  Taxpayer money wasted buying carts for golfers.  Uncle Sam as reverse Robin Hood, stealing from the needy to enrich well-heeled golfers.  Legislators would be scrambling to change the law.

But the issue has earned barely a peep in Washington.  No surprise, those benefiting from Washington’s largesse aren’t complaining.  After all, they consider it to be just about “the coolest thing” around.

And with legislators now used to wasting not just billions but trillions of dollars, what are a few thousand wasted dollars on a golf cart or two?  This nonsensical tax write-off is barely a rounding error in the federal budget today.  The 2009 deficit was $1.4 trillion.  The federal government is likely to run up another $10 trillion in red ink over the next decade — assuming away a deluge of new bail-outs of Fannie Mae, Freddie Mac, the Federal Housing Administration, and the host of other money-losing federal subsidy operations.  What of golf cart subsidies?  Not worth a second look.

The golf cart subsidy gives new meaning to the old line:  I’m from the government, and I’m here to help you.  The only people not on Uncle Sam’s “to help” list are taxpayers.

Emanuel on TV and Filkins on McChrystal

A. It’s encouraging to see Rahm Emanuel and John Kerry saying that we shouldn’t up force levels in Afghanistan without a reliable partner. But if we shouldn’t send 40,000 more troops to prop up a crooked government, why keep the 68,000 we have there? A focused counter-terrorism mission would require far less than that.

B. According to Dexter Filkins’ article in the New York Times Magazine, the war in Iraq taught General Stanley McChrystal the following:

No situation, no matter how dire, is ever irredeemable — if you have the time, resources and the correct strategy. In the spring of 2006, Iraq seemed lost. The dead were piling up. The society was disintegrating. One possible conclusion was that it was time for the United States to cut its losses in a country that it never truly understood. But the American military believed it had found a strategy that worked, and it hung in there, and it finally turned the tide.

What’s interesting about this claim is its utter confidence in the potential efficacy of US military power — it is not just necessary to solving Iraq’s problems, but sufficient. If this view is right, Iraqis themselves, and their civil war, were unnecessary to the limited political reconciliation that occurred there.

Filkins, surprisingly, seems to agree, depicting the evolution of the war this way:

For four years, the American military had tried to crush the Iraqi insurgency and got the opposite: the insurgency bloomed, and the country imploded. By refocusing their efforts on protecting Iraqi civilians, American troops were able to cut off the insurgents from their base of support. Then the Americans struck peace deals with tens of thousands of former fighters — the phenomenon known as the Sunni Awakening — while at the same time fashioning a formidable Iraqi army. After a bloody first push, violence in Iraq dropped to its lowest levels since the war began.

Note the use of the word “then” preceding the sentence about peace deals. It carries a heavy load. Filkins wants to say that the hearts and mind theory of counterinsurgency caused the Anbar Awakening. But he offers no real causal story about how they are connected; he just says that one happened and then the other.

Another view, one that leaves Iraqis some agency, is that the growth of the al Qaeda Iraq and the progress of the civil war changed the Sunni insurgents’ strategic calculus, such that they decided to cooperate with Americans to gain locally. And that in turn, limited violence. U.S. forces had a role in this — the covert killing campaign that McChrystal led and Filkins chronicles probably pressured insurgents and weakened AQI, for one. But the deals — the awakening — began well before the troop surge and before David Petraeus took command and tried to implement a new counterinsurgency doctrine. The key American decision was willingness to play ball with insurgent groups. This decision had little to do with winning hearts and minds via population security and increased troop levels. And by empowering forces at odds with the central government, it contradicted the goal of state-building in Iraq, at least in the short-term.

I obviously agree with the latter view. Our dependence on local politics limits what we can accomplish in counterinsurgency. We can certainly affect what happens in Afghanistan, but it is hubris to think we control it.

Filkins also quotes McChrystal on Afghanistan’s effect on Pakistan:

“If we are good here, it will have a good effect on Pakistan,” he told me. “But if we fail here, Pakistan will not be able to solve their problems — it would be like burning leaves on a windy day next door.

It’s sensible to conclude chaos nearby is unhelpful to stability in Pakistan, but it goes way too far to say that Afghanistan’s stability is necessary to Pakistan’s, which has been fairly stable for long periods while Afghanistan was not. What’s more, as Robert Pape argues, it is likely that U.S. forces are a cause of insurgency in both countries.

Filling the Airwaves with Deception and Dishonesty

In his weekly radio address, President Obama says private health insurance companies are “filling the airwaves with deceptive and dishonest ads.”

Gee, I wonder if the insurers’ deceptions and dishonesty will reach even half the number of people that President Obama’s did during his address to Congress.

(Cross-posted at National Journal‘s Health)

Totalitarian Leftovers in Eastern Europe

The Berlin Wall fell 20 years ago.  A hideous symbol of the suppression of liberty, it should remind us of the ever-present threat to our freedoms.  Even two decades later the legacy of repression continues to afflict many people in Eastern Europe.  For instance, those in countries formerly behind the Iron Curtain still struggle with the knowledge that their friends and neighbors routinely spied on them.

Reports the Associated Press:

Stelian Tanase found out when he asked to see the thick file that Romania’s communist-era secret police had kept on him. The revelation nearly knocked the wind out of him: His closest pal was an informer who regularly told agents what Tanase was up to.

“In a way, I haven’t even recovered today,” said Tanase, a novelist who was placed under surveillance and had his home bugged during the late dictator Nicolae Ceausescu’s regime.

“He was the one person on Earth I had the most faith in,” he said. “And I never, ever suspected him.”

Twenty years ago this autumn, communism collapsed across Eastern Europe. But its dark legacy endures in the unanswered question of the files — whether letting the victims read them cleanses old wounds or rips open new ones.

Things have never been so bad here, obviously, but that gives us even more reason to jealously guard our liberties.  Defend America we must, but we must never forget that it is a republic which we are defending.

House Democrats Choose Dishonesty

I’m not a fan of the House Democrats’ proposed takeover of the health care sector.  (If there’s one thing that legislation is not, it’s “reform.”)  But at least House Democrats were honest enough to include the cost of the $245 billion bump in Medicare physician payments in their legislation, unlike some committee chairmen I could mention.

Unfortunately, House Democrats have since decided that dishonesty is the better strategy.  They, like Senate Democrats, now plan to strip that additional Medicare spending out of health “reform” and enact it separately.  (Democrats are already trying to exempt that spending from pay-as-you-go rules, making it easier for them to expand our record federal deficits.)  Why enact it separately?  Because excising that spending from the “reform” legislation reduces the cost of health “reform”!

But why stop there?  Heck, enact all the new spending separately, and the cost of “reform” would plummet!  Enact the new Medicaid spending separately, and the cost of “reform” would fall by $438 billion! Do it with the subsidies to private health insurance companies, and the cost of “reform” would plunge by $773 billion!  All that would be left of “reform” would be tax increases and Medicare payment cuts.  Health “reform” would dramatically reduce federal deficits!  Huzzah!

Except it wouldn’t, because at the end of the day Congress would be spending the same amount of money.

The only good news may be this.  If this dishonest budget gimmick succeeds, then Congress will have “fixed” Medicare’s physician payments.  Absent that “must pass” legislation, the Democrats health care takeover would lose momentum, and would have to stand on its own merit.  That would be good for the Republic, though not for the legislation.

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