Archive for the ‘Domestic Policy’ Category

After Health Care Reform, Reform Democracy

Sunday, December 20th, 2009

It ain’t over till is over, but unless Joe Leiberman decides to move the goal posts again, it looks like the Democrats have enough votes to approve health care legislation.

The compromises necessary to win the votes of a few conservative Democrats have opened a yawning chasm within the Democratic Party between those who hail the plan as a giant leap forward for progressive ideals and those who are bitterly disappointed about what could have been.

 Paul Krugman on balance approves:

But let’s all take a deep breath, and consider just how much good this bill would do, if passed — and how much better it would be than anything that seemed possible just a few years ago. With all its flaws, the Senate health bill would be the biggest expansion of the social safety net since Medicare, greatly improving the lives of millions. Getting this bill would be much, much better than watching health care reform fail.

At its core, the bill would do two things. First, it would prohibit discrimination by insurance companies on the basis of medical condition or history: Americans could no longer be denied health insurance because of a pre-existing condition, or have their insurance canceled when they get sick. Second, the bill would provide substantial financial aid to those who don’t get insurance through their employers, as well as tax breaks for small employers that do provide insurance.

All of this would be paid for in large part with the first serious effort ever to rein in rising health care costs.

The result would be a huge increase in the availability and affordability of health insurance, with more than 30 million Americans gaining coverage, and premiums for lower-income and lower-middle-income Americans falling dramatically. That’s an immense change from where we were just a few years ago: remember, not long ago the Bush administration and its allies in Congress successfully blocked even a modest expansion of health care for children.

The bill establishes a fundamental principle that liberals have been advocating for decades—that all citizens have a right to health care, regardless of pre-existing conditions or the ability to pay.

This is a rare opportunity—I don’t see how a genuine progressive could vote against such a bill.

But having said that there is a sense in which the bill offers no real reform and progressives are right to be upset about our inability to replace a fundamentally broken system. The structure of the private, employer based insurance system is still in place. And the lobbying power of the insurance companies made sure of it—they stand to profit handsomely from 30 million new customers.

But such is the nature of political change in our system.

When Medicaid was passed it was unavailable to many low-income adults; the original Medicare bill didn’t cover people with disabilities, the original social security program excluded agricultural workers, government employees, railroad employees, etc. and offered no cost of living adjustments.

In order to achieve any significant social change, liberals must constantly battle to improve programs—but the programs first have to be written into law before they can be expanded.

Matt Yglesias thinks the bill is promising:

And the crucial question going forward is whether it will be possible to further improve this legislation.”

I think it’s very possible, but only if the people who are disappointed by the shortcomings of this bill take appropriate action. First and foremost, that means working as hard as possible to produce as good an outcome as possible in the 2010 midterm elections. [...]

[Y]ou accept compromises and then keep on working to build more political power. You do it by contacting members. You do it by urging friends and colleagues to contact members. You do it by donating to and volunteering for good candidates. You do it by turning out and voting for the better candidate in the race even when that candidate is disappointing. You do it by urging viable candidates to mount risky primary challenges against incumbents who don’t reflect the real possibilities of their constituency. You do it by staying engaged, and working hard.

I think this is an excellent bill, all things considered, but whether you agree with that or not the most important thing is what does the progressive community do going forward to enact even better bills in the future.

I agree; progressive voices calling for a defeat of the bill are delusional.

The issue that ought to have progressives riled up is not the bill itself but the process by which the bill was created, which reveals the utter corruption at the heart of our political system. The wholesale bribery which we call “democracy” was on view. The insurance companies made out like bandits with millions of customers who are now mandated to purchase insurance and no competition or price controls that would limit insurance company exploitation. Most of the bill was negotiated in secret with lobbyists and their pawns in Congress calling the shots, supported by the always supine media who praised the so-called “centrists” as genuine pragmatists rather than corporate whores.

What seems to be in tatters is Obama’s promise to change the culture of Washington. Of course, it is not obvious how that culture can be changed (without a wholesale change in the make-up of the Supreme Court which has persistently enabled the Washington cleptocracy with its rulings on commercial speech). Change requires legislation and, with a Republican Party in full-dress, nihilist regalia, Obama had little choice but to play ball with corporate shills like Lieberman and Ben Nelson.

So going forward, while we try to mend the defects in the health insurance system, we should devote more attention to finding some way of mending defects in our democracy—apparently elections aren’t sufficient.

 

Heroes of the Free Market

Sunday, October 18th, 2009

The titans of Wall St.—those fearless risk-takers who keep our economy going with their steely determination, grit, and superior intelligence—are once again making money hand over fist.

The recent share market rally on Wall Street has most economists tipping the worst of the global financial crisis might be over.
That optimism was underscored today when the big investment bank Goldman Sachs reported a surge in its third quarter profit to more than $US3 billion.

We should all bow to them as exemplars of the true American enterprising spirit while reverently thumbing the dog-eared pages of Atlas Shrugged.

I guess Rand is proven right once again.

But as this article in the NY Times makes clear, these profits have little to do with courage, enterprise, or intelligence:

It may come as a surprise that one of the most powerful forces driving the resurgence on Wall Street is not the banks but Washington. Many of the steps that policy makers took last year to stabilize the financial system — reducing interest rates to near zero, bolstering big banks with taxpayer money, guaranteeing billions of dollars of financial institutions’ debts — helped set the stage for this new era of Wall Street wealth.

The recent success of some banks is a case study in the degree to which economic success in this country is never the product of individual genius or initiative alone. People who make a lot of money do so because social and political arrangements enable them to make it.

But even in an article that makes this transparently clear, the language of individual initiative is still dominant.

A big reason for Goldman Sachs’s blowout profits this year has been the willingness of its traders to take big risks — they have put more money on the line while other banks that suffered last year have reined in such moves. Executives say there are big strategic gaps opening up between banks on Wall Street that are taking on more risks, and those that are treading a safer path.

But it is not a risk if the government is guaranteeing you will not fail.

“All of this is facilitated by the Federal Reserve and the government, who really want financial institutions to get back to lending,” said Gary Richardson, a research fellow at the National Bureau of Economic Research. “But we have just shown them that they can have the most frightening things happen to them, and we will throw trillions of dollars to protect them. I have big concerns about that.”

If anyone is taking risks it is the American taxpayer.

The very language the media uses to describe an ordinary news event presupposes an utterly misleading explanation of what is happening that reinforces the patently ridiculous notion of big business bureaucrats as cultural heroes.

That is part (but only part) of the reason why Rand’s books still sell.

Homeland Security

Wednesday, October 14th, 2009

Matt Yglesias,  a recent visitor to Europe, didn’t find the level of airport security or security checks in public buildings that we have in the U.S. He rightly wonders why we are so security conscious:

Just think about all the completely soft targets that exist even in the United States of America. If you assume the existence of a person with a functioning explosive device and a desire to massacre innocent people, there’s nothing stopping that person from detonating it on a crowded Chinatown bus or a packed subway platform. To me this overwhelmingly suggests that there are extremely few people in the United States with the means and motive to carry out a terrorist attack and that law enforcement is reasonably good at catching those people. That indicates that the money and time spent doing security screening is basically 100 percent wasted. Even if you could just walk through the door at the State Department and blow up a bomb, it wouldn’t happen any more often than people walk into the Gallery Place Metro Station and blow up bombs.

The alternative hypothesis would be that there’s a substantial number of people being preventing from undertaking terrorist attacks by security systems but who are for some reason unwilling to accept the available soft targets as a “second-best” alternative. But why would that be?

He then hypothesizes that having metal detectors everywhere creates a level of fear that makes war escapades like Afghanistan seem necessary.

But that is awfully conspiratorial for my taste. I think the excessive security is explained by politicians and bureaucrats covering their asses. They would rather spend a lot of money for security than run the risk that something might happen on their watch.