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What can Republicans do in the next four years?
Somebody recently asked me: What can Republicans do on health care? The answer is simple. They lose. In fact, for the next four years, that's going to be the answer Republicans are forced to face over and over again. So let's be blunt about what we can expect: taxes will be higher, universal health care will be imposed, spending will go way, way up, Unions will be given more power, and the government will increasingly pick winners and losers.
And there's almost nothing Republicans can do to stop it.
But though we can't stop it, that doesn't mean we can't do anything about it. We ought to do two things:
- While we lose, Republicans ought to work to include accountability/transparency mechanisms, so that the public can evaluate the success/failure of the Democrat's programs; we need to insist on the inclusion of market mechanisms (such as lower licensing barriers for health care practitioners) to provide space for the market to innovate within the new, more restrictive Democratic regulations.
- Republicans don't need to "get back to their principles." Principles aren't the problem. The idea of individual freedom, free markets and limited government is just fine. The problem is that Republicans lack any viable political strategy to achieve them. It's one thing to say "cut spending," but it's quite another to actually cut spending in a significant and lasting way. Republicans must focus on developing the viable political strategies that address the underlying incentive problems that make a "philosophically conservative" America so "operationally liberal."
These problems include our lack of a price mechanism for government, a "safety net" that catches everybody and thus has become untouchable, a health care system captured by cartel interests, an inflation measurement that overstates inflation — thus understating economic progress — and a legislative process that removes accountability through bundling.
Over the next four years, Republicans would do well to remember one more thing: Democrats are not The Problem. Nor are Republicans. The Problem is structural, and the only way Republicans can actually move the ideological ball forward is by limiting Republicans and Democrats alike. Republicans can rise again, but they will have to persuasively argue that they can limit themselves.
[Reposted from the late, lamented Culture11]
- Jon Henke's blog
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Comments
I think you are sadly right,
I think you are sadly right, although I think there are a few issues (e.g. socialized medicine) that I hope Republicans absolutely go to the mat fighting against. We have to present a vision of how we think the relationship between government and people ought to be. This may be a tough sell but it will be worth it in the long run.
Socialized medicene can be stopped
I see no reason why Obama's health care drive can't be stopped. The partisan makeup of Congress is very similar now to what it was in 1993, and we were able to stop Hillary's big push for it then. Obama will learn from Clinton's mistakes, but we have greatly refined our own alternatives, and have more conservative GOP caucuses in each house of Congress. Health care nationalization is an enormous and complicated undertaking with lots of thorny problems. Getting most of the congressional Democrats behind a single plan will be very difficult. No matter what they do they will have many members of their caucus upset that they are going too far or not far enough.
They will also have a huge problem figuring out how to pay for it. They haven't dared to push a sizable tax increase since 1993, and pushing one to pay for health care will make the program far less popular. And with deficits already skyrocketing and tons already being spent on the stimulus and various bailouts, just charging it up will also be difficult.
Plus there are a bunch of tricky ethical issues to address. For example, one of the key reasons Hillarycare failed was because the Dems had several dozen members refusing to vote for it if abortion was not included, and another few dozen refusing to vote for it if it was. They needed both groups to push the bill through but couldn't resolve the impasse.
Certainly stopping a major expansion of government control over health care will be difficult, but it is very possible. Stopping it should be a very high conservative priority.
Supreme Dittos!!!
n/t
healthcare should be revenue neutral if not revenue positive
depending on how much weight it takes off small businessmen (who suffer disproportionately under our current system) and Detroit's Big 3.
We can save 6% of our GDP by getting Universal Health Care (more akin to unionizing than nationalizing, btw. no one is seriously talkign about nationalizing hospitals. banks on the other hand need to be nationalized posthaste. our treasury is taking us to the cleaners).
I don't think it can be stopped, but for different reasons
I don't think Obama is going to push for Universal Healthcare. Obama is the slickest kind of Fabian. He certainly intends to increase the number of people on government healthcare rolls, and those covered by mandated coverage, but he recognizes that any big push for Universal Healthcare would create public outrage that he can't afford. So he'll expand SCHIP, Medicaid, and put a few new requirements/subsidies on employer provided healthcare. We'll get another 10% of the population with government provided healthcare, and another 10% with partially-taxpayer-funded healthcare. We will get universal healthcare the same way we'll get smoking Prohibition, a bite at a time. And it's smart. Were I a Progressive, it's the same approach I would use.
A Few Thoughts in Response
Jon, this is very, very good. A couple thoughts in response:
1) Regarding the principles of freedom, free markets, and limited government, not only do Republicans have no viable strategy to act upon them as you point out, but there is a widespread perception that Republicans only give lip service to these principles and actually do violence to them. The last 8 years has seen everything but limited government and the GOP has become identified with efforts to "supervise" our personal lives including (apparently) our relationship with God.
2) Inflation, mostly like sustained high inflation, is a likely consequence of present policies. If so, this should create an opportunity for the GOP if it acquires the adequate intellectual capital and operational strategy to exploit the issue. If inflation accelerates in the next few years, the problem won't be that it is overstated; rather, the government will understate it and lie about it as they did in the '70s. The population will know better, thus creating a potential opportunity.
Carter didn't lie. REAGAN lied.
Clinton Lied, Bush Lied.
Carter was our last honest president, and everyone else saw where that got him!
What the Hell Are You Talking About?
As my old boss says in his memoir, Jimmy Carter was the most dishonest politician he ever met in his life.
cite me chapter and verse
on the Inflation statistics and how he rigged them. specifics matter, and I was talking inflation.
not going to get into anything else about Jimmy right now.
Henke's right -- Universal Health care is unstopable
1. If you look at the record you see that Hillary Care's largest stumbling block was the requirement that any medical professional or hospital who accepted geovernment payments would be prohibited from providing private pay services. The liberals saw this as a mechanism to prevent "one health care system for the poor and one for the rich." The middle class saw it as a barrier to getting the health care they wanted when they wanted it. If Clinton had been willing to yield on this one point, we would have had universal coverage in 1993. Reid and Pelosi will probably stick with the class warfare argument; but, Obama and Emanuel are much more pragmatic and will go for the win.
2. We were coming out of a recession in 1993, not going into one. People were a lot more confident about their own ability to cover health care costs and the stability of their employers' health care plans.
3. For a wide variety of reasons, health care costs have risen much faster than inflation. In 1993 most people recognized that a major illness or injury could seriously dent thier savings and the extended nursing coverage usually required just prior to death could deplete their childrens' inheretence but the first event was seen as relatively rare and the second as a part of life. Today, even a moderate illness or injury could wipe out years of savings already ddepleted by the economy and preventive care is only affordable if you are covered by a good insurance policy. (Yeah I know contributing to an HSA would allow a person to save a couple thousand a year if they can find it after paying all their other bills. My preventative cardiac tests ran close to $14,000 in a matter of a week. Make the HSA pitch to someone who has delt with real medical bills and they roll on the floor laughing.)
Nevertheless, Republicans can and should fight hard to maintain choice, accountability and responsibility through several mechanisms.
First, there must always be aprivate pay option available. Take the heat on the class warfare nonsense and insist it is a fundamental right of a doctors, hospitals and patients to make whatever private arrangements fit them best. The fact a doctor has 20 government patients should not prohibit taking on private patients as well. Nor should the fact a patient has recieved government health care prevent them from supplementing it with private care.
Second, push hard for single payer/multiple provider where universal coverage is achieved through a refundable tax credit that allows individuals and families to purchase health insurance through the private sector.
Three inist that HSAs combined with high deductable health insurance is part of the mix. It is not a pariticularly good deal but it should be an option for those who want it.
Four, fight hard against including the government as a direct provider of either health care or health insurance. There is no need for a government plan with single payer/ multiple provider and we can make the argument it would only waste money and become the "health care for the poor" option the class warfare clowns rage against.
Five, oppose any and all requirements that health care providers and/or insurance companies cover procedures that violate their religious convictions (abortion). Insist on the rights of religious groups to band together to operate hospitals and insurance companies.
We can win these points, if not in Congress than in the public's opinion. Our choice is to be percieved as the know-nothing and do-nothing party or as the sane sensible alternative party.
much of this sounds really good.
If I give you insurance companies that don't cover abortion (that way certain doctors can choose only to work with these insurance companies), will you give me Medicaid covered abortions? an estimated 25-30% of poor mothers-to-be who want to have an abortion can't afford it.
I don't mind private funding, so long as we provide effective ethical controls so that the private folks don't get seen first (aka triage, prioritize based on need).
Third thing: there are insurance companies out there who have a policy of denying any claim above a certain dollar amount, regardless of medical necessity. There needs to be some transparent way for people to find out about the bad apples in the insurance companies.
Pelosi and Reid are compromisers, it's Boehner who's a hardass (not the guy to get on the bad side of).
health care insurance and cost transparency
WoodbridgeVa, I really like your five points listed above. But really they are only a starting point. The real health care problem, as I see it, is that we insist on health insurance paying for everything. It is absolutely ridiculous for any kind of insurance to pay for routine checkups! This has the predictable effect of driving up health care costs as there is no cost transparency at the consumer's end. So I think these points should be combined with a message that returns to the original idea of health insurance, that it should be used only to cover big, catastrophic expenses.
is a $500 bill for diagnostics a catastrophic expense?
How about mandatory shots every week?
Please go on, about this preventitive being covered by the patient.
Anyone getting allergy shots to reduce incidence of mild to moderate shock... how exactly do they fit into your plan?
Look here's the bottom line.
First we don't have a free market in health care. We haven't had one for a long time now. So whatever bill you get for $500, that doesn't represent the market price for that service. It represents an inflated price that insurance companies are willing to pay.
Second, look I'm real sorry about your allergy problems, but here's the thing: it's your burden. It's a sucky burden. Just as my health care problems are my burden. Is it right to foist upon you my medical bills? Is it right to demand "society" pay for my medical problems?
So I believe people should be responsible for their own burdens. No it's not fair. But life isn't fair, and government attempting to make life "fair" for everyone just ends up making it more unfair.
So if you want health insurance that pays for everything, then go right ahead and get it. I don't think that should be standard practice, though, just as it's not standard practice for virtually every other type of insurance.
do you suddenly have some problem with the hypocratic oath?
honest question.
because there are solutions that will prevent mandatory hospital time, and solutions that will require it.
this is the case with much preventative care.
hippocratic oath
I believe in completely consumer-driven health care. If you want to stay in the hospital, that's your choice, if you don't, that's your choice too. And it should be up to you to demand that your doctor fully inform you of the risks thereto. The Hippocratic Oath doesn't require doctors to force patients to stay in a hospital against their will. It broadly assers that doctors should do no harm, that's all.
But, like all things, choices have consequences. So if you want to stay in the hospital, it will be more expensive than if you don't.
in many cases, releasing a patient
whose life is endangered from that release is considered "doing harm"
I do know someone who escaped from a hospital after having been involuntarily dragged to the emergency room. I don't think that is the ideal way of dealing with most problems.
comprehensive v catastrophic expenses
I agree, Chemjeff, that's why I like the option of the high deductible insurance combined with the HSA for the more incidental stuff. At least that begins to move towards some semblance of individual choice, consumer-driven choice. This may not be ideal for everyone, but this has worked for me, and it is a path back to more choice and cost controls.
AS if federal telecom prosecution
hasn't already picked winners and losers! Let alone bush's favoritism and no-bid contracts for EVERYTHING.
The most striking thing about the past eight years is the sheer collossal stupidity of the CEOs on Wall Street, aided and abetted by their former coworkers in Bush's administration.
RUBIN, we are watching you.
perspective from the middle
I think the premise of your post has gotten the Republicans in the spot they find themselves.....universal healthcare or nothing at all. Why is that the case? Obama is already on record as not wanting to go as far as Hillary with mandates...why not reach out and try something different? Healthcare for kids up to age 12, or coverage up to age 15 or 16 (whatever age you can legally be employed).
One gets the sense that if the healthcare system was left as-is, and if it weren't for Democratic whining, Republicans could care less. What Republican considers health care reform his/her signature issue? This is where the "do-nothing" perception comes from in public opinion.
Learning from Medicare Part D
The problem that you illustrate is, to a degree, a problem of perception only. By and large, Republicans believe that government meddling in the market only makes things worse; and, by and large, Democrats believe that government meddling in the market is necessary to create "social justice", "environmental harmony", or what have you. So it seems like do-nothing-ism when Republicans aren't presenting a detailed 14-point plan on how government will make your life better, because we as a general rule don't believe government can make your life better in this regard. So as I see it, and I think Jon Henke is right on the money with this, the problem is twofold: we must (1) persuade people that government will not solve their problems, that their problems are best solved by their own individual actions; and (2) create a realistic vision of how this might come to pass in the context of our current bloated government leviathan. This isn't an easy task.
But, bear in mind that when Congressional Republicans were in charge, they did do something about health care - they gave us MMA. It gave us Medicare Part D (i.e. more government meddling), AND it gave us expanded Health Savings Accounts (HSAs). The HSAs are much closer philosophically to what we Republicans ought to be supporting IMO. But MMA is the poster child of the type of compromise that you speak of. On one hand it did what Democrats normally do when they meddle in the marketplace, while on the other hand it gave us HSAs that, while a great improvement over the status quo ante, are still insufficient as WoodbridgeVa points out. In the end it satisfied nobody - Democrats called it a giveaway to Big Pharma while the Republican base were outraged over the vast expansion of government that Part D represented. Politically, this is a losing strategy.
If, by this you are suggesting that Republicans should meet Obama halfway and not support full nationalization of health care but instead support nationalization only for kids, I just cringe. It sounds like MMA Redux for Republicans. So I don't think we should attempt to compromise on the Democrats' field. We should present an alternative vision altogether, one that does not include yet more government meddling in the health care marketplace.
even hayek wouldn't believe it was possible
for the free market to work in such a deliberately obfuscatory, corrupt, and downright fraudulent marketplace as the health care industry has turned into.
Health Care is NOT a growth industry, or at least dang well shouldn't be. That's how we got to spending 6% of our GDP on NOT giving people care.
HSAs are good
but you are right....Med Plan D was more meddling and just another example of Republicans not governing according to their principles.
I get what you are saying about an alternative plan, but this goes back to my point about perception.....which republucan out there would americans trust on this issue? (Time magazine mentioned Mitt Romney...)
Too many people are filing for bankruptcy over health issues, too many people can't afford basic care for their children....these are real issues. And until Republicans come up with a plan that helps people going through the worst of it, Democrats are going to win this argument.
You need to change your base.
the south has always been in need of federal dollars... rural areas in general, and particularly Appalachia too.
Find some republicans somewhere else, or create a coalition that works there, and you can do conservative things.
/KILLFILE or not to /killfile, that is the question?
My mouth is agape at the astounding display of ignorance that is your assertion that inflation is overstated. We are currently in a deflationary period. Are you truly trying to assert that DEFLATION is occurring at a HIGHER rate than is currently supposed?
I can outline to you the steps that Reagan, Bush I and Clinton, along with Bush II took to decrease inflationary statistics. They did it for a very simple reason -- decreasing the inflation numbers made government payroll and Social security Cost of Living changes underperform actual inflation. Therefore the government made money based on decreasing the amount of stated inflation.
SHADOWSTATS exists for a very capitalistic reason. That is to say, there are a great many businesses out there who need REAL inflation statistics, not the sophistry that the government produces.
Or do you suddenly not believe in the free market capitalism that you so devoutly espouse?
Show up with some statistics from a reputable economist, or shut the hell up about things that the free market understands better than a bloviating blowhard like yourself.
I reserve the option to killfile your ignorance, therefore allowing you the option to apologize for your ignorance or to state your position more coherently and cogently.
After all, who knew that the free market had a manifestly apparent liberal bias? ;-P
Actually it's showing ~3.5%
Actually it's showing ~3.5% price inflation, almost 17% M1 inflation, and 12% M3 inflation. If the banks ever start lendin again, the 17% M1 inflation will turn into 30+% M3 inflation.
look again:
http://declineandfallofwesterncivilization.blogspot.com/2008/11/cpi-defl...
http://www.econosseur.com/2008/12/cpi-deflation-watch-november-close-cal...
http://www.creditwritedowns.com/2009/01/us-cpi-lowest-since-1954-deflati...
http://seekingalpha.com/article/107926-deflation-is-worse-than-the-cpi-i...
Currently deflation is in bank assets, oil, housing, 401ks, and the stock market. Haven't really hit a bad spiral effect. That would kill America dead to the point of bankruptcy and war with China.
Shadow Stats
http://www.shadowstats.com/
thanks. i don't have a subscription
so forgive me for looking at my own bank balance and cpi. I fear for monetary deflation... ;-)
Boskin Commission
Look up the Boskin Commission report for the BLS (mid/late 90's). They found CPI overstated inflation by around 1.1 percentage points per year. The BLS concurred and adjusted the way they figured CPI to some small extent. However, there's still substantial, systemic overstatement of inflation (which may vary over time, of course). That conclusion has been supported by economists from Alan Greenspan and Ben Bernanke to Brad DeLong and Paul Krugman.
the free market begs to differ with the Boskin Commission.
I don't know about you, but I'll trust the free market.
I don't know about the GOP or TNR or Henke, but
I don't know about the GOP or TNR or Henke, but it wouldn't be that difficult to fight* any of those (if someone were so inclined). That would involve coming up with real questions designed to reveal the flaws in those proposals, and then going to public appearances and asking those who support the plans to answer them. If the questions are good enough, that will reveal the flaws in their proposals. And, the exchange can be uploaded to video sharing sites. For a tangible example, see this. That occurred pre-Youtube and involved someone few have heard; if it had been on video and had involved a national politician it would have had an impact on their ability to push that plan.
If people would start actually doing things, it would be tremendously effective in many ways: it would show that the promoters haven't thought things through, it would hold politicians accountable, and it would make the MSM look bad.
Yet, several bloggers who get a lot of traffic refused to back that plan, and in some cases it's been actively opposed.
Perhaps the real problem is that there's a leadership gap, or that some people don't want to attack their opponents in an effective way lest those same techniques be used against them.
If there's anyone here who can overcome that, try to engage Kirsten Gillibrand about what she now supports, and upload her response to Youtube. And, ask your leaders why they're engaging in defeatism rather than promoting plans that would work.
*UPDATE: "Fight" is meant in the "fight with all one's might expecting to win" sense rather than the McCain "I'll show up" sense.
Missed the point
I never said Republicans shouldn't fight against those issues. Indeed, that's what "losing" implies Republicans are doing.
Republicans on healthcare
Jon I think your points are well taken and for the most part correct. However I would challenge Republicans to actually think of what policies they would implement if they were given the majority and actually communicate this. Part of the problem during the SCHIP debate last year when Bush vetoed the bill is that we didn't have a coherent message as to why it should be defeated and we didn't offer real alternatives to deal with the problem. As a republican who has worked in healthcare I am often embarrased how we handle this issue and I think what we say resonates horribly with voters, especially women. One idea House and Senate Republicans could offer is that they would put forth legislation that would allow for interstate competition among health insurance. For example, a person in Massachusetts can buy a more affordable insurance in say, Minnesota, and therefore avoid having to pay for $400/month premiums that mandate coverage for accupuncture. I think Congressman Shadegg has a bill to this extent but it never gets passed or considered. Either way, we're losing the next few years so we might as well pull ourselves together.
Actually, Charles Murray has a viable health care proposal
Check out Charles Murray’s ”A Plan to Replace the Welfare State, which has a universal health care insurance voucher that “socializes” much of the cost of basic health care but leaves it’s provision in private hands, contingent on a suite of free-market reforms that restore the proper incentives for health care consumers to economize and providers to innovate and become more efficient.
This is analogous to the choice America faced in the mid-19th century when it came to public education. The public demanded public support, and did not realize that this didn't necessarily mean anything other than government schools. We see the eventual devastation of that wrong choice today in the inner cities (although in a more virtuous and self-confident society it worked OK.)
We're at a similar point today with health care. Yes, the right will lose if it opposes socialization of most of the costs, but that does necessarily mean we must have a government health care system. The right should work to ensure that the current and proposed policies that skew or pervert market incentives in the system are eliminated/not imposed, while supporting a system that ensures all Americans have access via an insurance voucher system.
so how does he propose to stem the bleeding?
we're already spending 6% of GDP denying people healthcare.
the devastation of the inner city is more because of decreased social mobility (in the case studies I have read, mostly the loss of union/construction jobs that did not require a high school diploma, thus allowing children to contribute to their families at an earlier age).