Errors of Enchantment

The Feed

“First they ignore you, then they ridicule you, then they fight you, then you win.”

07.31.2009

The quote above is from Mahatma Gandhi and it described how his movement eventually achieved victory. Apparently, although we skipped the ridicule part, from reading the pages of the Albuquerque Journal, we at the Rio Grande Foundation must be getting close to victory. After all, our opponents are fighting us and our ideas harder than ever. Why else would readers attack us three times in published letters during just the past week? To me, that seems to indicate a high level of effectiveness and proximity to victory.

First, on Monday, a reader wrote this letter in response to my recent article on “Health Care for All.” Yesterday, I picked up the paper only to see a reader attempt to discredit another organization, CARE, through their association with us. In a letter entitled, “Jimmy Carter Had It Right,” Marita K. Noon’s commentary “Green on the Surface, Dirty Underneath,” is fitting for the executive director of the Citizens Alliance for Responsible Energy — an ally of the Rio Grande Foundation.

Lastly, in today’s paper, a letter writer again decries our opposition to “Medicare for All,” stating:

“Think Tank Needs To Get Real on Need for Health-Care Reform”

THINK-TANK ESSAYS on real-life issues are always interesting to read but are generally lacking in usefulness, and Paul Gessing’s recent op-ed on health-care reform is no exception. He suggests that we limit the government’s role in the health-care industry in order to “ restore the doctor-patient relationship by empowering consumers to shop around for the highest quality care at the best price.”

Where is he? When I had health insurance, the company would send me a list of approved doctors, hospitals and pharmacies that they had already forged working agreements with and that would guarantee their profitability but not my satisfaction.

I currently have no health insurance because the last company I had a relationship with gave me an offer of $800 a month, with a $50 co-pay and a $2,000 deductible. I shopped, but the only others doing business in my area were mysteriously similar in terms and money.

We will get health-care reform. Approximately 48 million Americans have no health care, and millions more have it but can’t afford to use it. I will guess that when the uninsured number reaches 100 million, in say seven years, the medical-industrial complex will realize that they have priced themselves out of the market and that there are no more new customers to be had.

They will then run panic-stricken to the federal government and beg for a bailout. They will then call it health-care reform.

The writer seems to believe that our opposition to government-run health care results from alleged support of the insurance industry as it currently exists and functions. This could not be further from the truth. The key to free market health care and reforming the existing system is to do away with the third-party-payer system which places undue emphasis on health insurance companies. Insurance should play a role that is limited to true insurance and should not be the first place we go when Americans seek health care.

Debunking Some Health Care Myths

07.30.2009

An excellent article appeared recently in the American Spectator. Rather than directly targeting what we know — Obama’s plan will dramatically increase federal control over Americans’ health care — the author, Philip Klein targets an even more important topic, what we know but that isn’t so.

Among the myths that hinder opponents of government-run health care are the “fact” that we have a free market health care system (I have written about this in the past and the “fact” that 46 million Americans are without health care. Many good points made in the article and if conservatives and free market advocates can kill this federal takeover and then work to expand free market health care while educating Americans about the 46 million, we’ll be in a much better position to enact positive reforms in the future.

“Lights of Liberty” Recap; David Boaz’s Speech Now Online

07.29.2009

If you did not attend the Rio Grande Foundation’s “Lights of Liberty” luncheon, you missed out on a truly amazing event (I’m not saying that because I’m the President of RGF). We had 170 liberty lovers gathered at the Marriott Pyramid in Albuquerque to witness several awards being given to the Foundation’s supporters and leaders in the fight for liberty including former Governor Gary Johnson and current Rep. Janice Arnold-Jones.

Also, David Boaz of the Cato Institute gave a powerful talk about “Liberty in Crisis.” The video can be found here:

The Uninsured and Health Care Reform

07.27.2009

New Mexico State Senator Sue Wilson Beffort had an excellent opinion piece in today’s Albuquerque Journal. As Beffort points out, it is useful to note that New Mexico has a whole host of public programs available for the uninsured, that people with pre-existing health conditions are not denied insurance (as reform proponents often claim), and that prescription drugs are actually becoming more affordable for both the elderly and the general public. As Beffort summarizes her argument, Congress should consider maximizing these programs and their effectiveness before completely revising our entire health care system.

In addition to this piece, a reader attacked my recent opinion piece. The author, Leon Logan, writes:

Paul Gessing’s column on July 20 is pure propaganda that is a coordinated and intensive effort to maintain the status quo in health care.

He says that the “heavy hand” of the government and its bureaucracy are the reasons for our expensive health-care system. The Food and Drug Administration is given as an example. I suppose his “research” has determined that the “heavy hand” of the government was responsible for our current financial situation. Medicare’s bureaucracy is about one third that of private insurance “bureaucracy.”

The Rio Grande Foundation is supposed to be a “nonpartisan, tax exempt, research and educational organization.” I guess the fact that we have the most expensive health-care system in the world, rank about 35th in results … and the only “free market” system was too obscure for “research” to reveal.

Not surprisingly, Logan argues that I want the “status quo.” This is patently false and I mention some specific reforms at the end of the piece. I’ve also made the case for free market reforms elsewhere. And then he goes on to exempt the government from any and all responsibility for the current financial crisis, a very complex situation that resulted from many factors, including government policy.

Lastly, the cartoon below is an excellent summary of the “uninsured” situation in the United States.

Mining Needed to Produce “Green Energy”

07.25.2009

Our good friend Marita Noon over at the Citizens’ Alliance for Responsible Energy had an excellent op-ed in the Albuquerque Journal recently (you can read it here). The basic point of the article is that even “green” energy sources like wind power require mineral resources from the earth. Unfortunately, environmental zealots, many of whom preach the benefits of green jobs that they say will inevitably result from a taxpayer-subsidized shift to their preferred sources of energy, often stand in the way of efforts to access those needed resources here at home.

Health Care Reform: Views on Holland from an Albuquerque Resident of Dutch Descent

07.24.2009

Americans are abundantly knowledgeable about the shortcomings of their health care system. On top of this is the drivel from the mainstream media touting the wonders of socialized medicine overseas. Fortunately, there are many Americans who have first-hand experience with foreign medical systems. And, while personal stories vary based on the individual, the importance of these first-hand accounts cannot be denied.

The Rio Grande Foundation’s Research Director, Ken Brown’s wife Agnes is of Dutch decent and has had significant dealings with the system. In this brief article, “Dutch Health Care, I’ll Take Albuquerque,” Agnes Brown explains how the system places onerous restrictions on end-of-life care and burdens taxpayers.

Also, I will be debating Carol Miller on health care on “In Focus” on KNME (Channel 5 in Albuquerque) this evening at 7pm. Tune in.

Wolves or Humans: Who is worth more?

07.23.2009

The Rio Grande Foundation hasn’t really done any work on the wolf reintroduction issue. After all, the killing of wolves was subsidized by US taxpayers.

That said, we do have serious concerns about the cost and scope of federal programs. That is the tack that our investigative journalist, Jim Scarantino, took in his new report “Does the Federal Government Value Wolves More Than Humans? The Money Says It All.” The press release is available here.

Richardson Opposed to Obama’s Health Care Plan?

07.22.2009

Several governors around the nation have been speaking out in opposition or “with concern” about the health care plans being pushed by President Obama and Congressional Democrats. A New York Times article about this can be found here. In the article, New Mexico’s Bill Richardson is quoted as saying “I’m personally very concerned about the cost issue, particularly the $1 trillion figures being batted around.”

While not explicitly opposing the plan, Richardson’s comments are clearly negative and should be cheered by opponents of government-run health care. Of course, we all know that Richardson proposed his own government-run health care scheme a few years back. Richardson’s proposal was a bit more like the Massachusetts plan that is also failing, but there are enough differences between the two, that I suppose Richardson could support one and not the other.

At this point, an excellent question might be “What say you Diane Denish?”

Who’s Responsible for Today’s Deficits?

07.21.2009

President Obama has increased spending to unprecedented levels. This has rightfully caused a great deal of consternation among broad swaths of American society. Hopefully it will result in the deaths of legislation that would restrict our health care and energy choices while killing economic growth.

But which president bears the greatest responsibility for our current predicament? As much as Obama has done to grow the federal government, George W. Bush still retains the dubious distinction as the architect of our current economic mess. As Ivan Eland of the Independent Institute points out:

The U.S. government is deeper in debt than it has been since just after World War II. When Bill Clinton, who actually reduced the federal deficit as a portion of GDP, left office, the Congressional Budget Office projected an $800 billion dollar yearly budget surplus for the years 2009 to 2012. Now CBO projects an annual budget deficit of a whopping $1.2 trillion.

Although Republicans are blaming Barack Obama for this gargantuan budget gap, George W. Bush is responsible for 53 percent of the total, according to the New York Times. Another 37 percent is due to the recession of the early part of the decade and the global meltdown that began in late 2007. Obama is responsible for only 10 percent of the total. Yet the reason that Obama’s portion is so small is because George W. Bush, a big-government Republican, was in office for eight years, and Obama has been in office less than six months. Obama has been spending at a phenomenal rate—on a pork-filled stimulus bill and an expansive domestic agenda.

Thus, Obama is guilty of making Bush’s legacy of massive red ink even worse. Obama’s budget would double the projected deficit over the next 10 years. By 2019, federal spending is projected to be an eye-popping quarter of the nation’s GDP. By contrast, for four decades federal taxation has averaged about 18 percent of GDP. These massive deficits, accumulating as a monstrous national debt, could cause hyperinflation and the prolonged economic stagnation (stagflation) that would make the 1970s look like an economic picnic.

The good news is that Obama still has time to pull the country out of this economic nose-dive. If he fails to restrain the federal leviathan, he’ll undoubtedly surpass Bush in the big-spending, big-debtor category.

This week’s episode of Speaking Freely online

07.20.2009

Jim and I sat down with Albuquerque Dr. Torre Near for an hour-long discussion of health care issues on Saturday. The podcast is available here. While Near is generally free market in her approach, she, Jim, and I certainly don’t agree on all the issues relating to health care reform. I have to say that this is one of the best shows we’ve done.

Channel 4 Story on High Speed Rail

07.20.2009

As I wrote yesterday, I was going to be on Channel 4 to discuss a high speed rail proposal that Governor Richardson and Sen. Tom Udall are eying. The story led off the 6pm news and my interview was the bulk of the story.

Check it out here.

What’s your energy IQ?

07.20.2009

The American Petroleum Institute has put out its annual energy quiz. The interactive quiz will ask about 25 questions about energy and energy policy. There are no “gimmees!” I scored only 55%. See if you can beat me and post a comment.

Check out the New Mexico Breeze

07.18.2009

The critics and pundits say that newsprint is dead. Don’t believe it! The Rio Grande Foundation has a print publication focusing on issues relating to the Legislature and state policy issues called Capitol Report New Mexico. You can subscribe to Capitol Report by donating to the Rio Grande Foundation.

Another recently-launched publication is The New Mexico Breeze. The publication attempts to:

1. better inform readers regarding politics and current events with behind-the-scenes information, and

2. provide positive news about the state, leaving readers with a sense of pride as New Mexicans.

Recently they published an article by our own Jim Scarantino on the paper’s front page.

Do you have “pension envy?”

07.17.2009

I just got around to reading last Sunday’s Albuquerque Journal opinion section. There I saw a piece by Nick Mandel’s piece “Pension Envy Won’t Fix State Budget, Policy Woes.” As far as I could tell, the organization does not have a website, but the essence of Mandel’s argument is:

1) Yes, government pensions are far more generous than those offered by the private sector because government can always extract money from the private sector and they don’t have any profit pressures (but please don’t hold it against us);
2) Cuts can be made to the Governor’s exempt employee hires, double-dipping should be stopped, and taxes should be raised on corporations in order to bring in more money. Well, two out of three ain’t bad. Certainly, Richardson’s has hired great numbers of exempt employees and double-dipping should be stopped (of course, the problem is that public employees are able to get pensions far too early, thus they can retire and get back to work for the government again).

I took a different take in a recent article on the pension situation. Sure, government pensions have been reduced by $80 million, but this is a drop in the bucket. As we’ve discussed in the past, the number and overall compensation levels of government employment are out of line with the private sector. Mandel prefers to ignore that.

So, Mandel offers a few good options for cost savings (and one bad tax hike), but that doesn’t mean that an inflated government bureaucracy is not a problem.

Health Care Plan Flow Chart

07.16.2009

Those who advocate for government-run health care reform love to talk about how “simple” their plans are and how they are the ones restoring the patient-doctor relationship. The problem is that anytime government is involved in managing the economy, things get complicated…and fast.

Here is a flow-chart illustrating how the House Democrats’ health care plan would work in practice:

Unfortunately, the flow chart does not adequately illustrate how the $1.5 trillion extra needed to run the plan will have to be obtained.

This article more fully explains the flow chart and how it will be used.

New Mexico is not getting High Speed Rail, at least not soon!

07.15.2009

Last week I wrote about my appearance on Channel 4’s News on the topic of “high-speed rail.” Of course, when government officials discuss rail in a “high-speed” context, some inevitably get stars in their eyes and believe that this means 150 mph or more.

Blogger Heath Haussamen makes this mistake in his weekly blog roundup when he writes that 2 hours to Denver would be “cool.” He’s actually citing a post by the Santa Fe Reeper blog which fantasizes about actual high speed rail to Denver which is being advocated by a special interest, but is not even remotely on the table policy-wise because it would be ridiculously expensive.

The reality is that Denver and Albuquerque are 450 miles apart. Even running at the Reeper’s fantasy speed of 200 mph, trains won’t go from ABQ to Denver in 2 hours. At 110 mph, the speed
proposed by President Obama, Governor Richardson, and Sen. Udall, a train trip from Albuquerque to Denver would take at least 5 or 6 hours.

Rail advocates can dream about 200 mph rail in New Mexico if they want to, but if Obama had any brains at all, he’d focus resources on increasing speeds on Amtrak’s Northeast Corridor, an area with far greater population density than New Mexico and Colorado, yet the Acela only gets up to 150 mph, it’s top speed, for a few miles of its trip between Washington, DC and Boston.

The RailRunner is already enough of a boondoggle. Can’t we stop wasting our money with that?

Saturday’s episode of Speaking Freely now Online

07.14.2009

You can listen to the podcast of this and other episodes of “Speaking Freely” here.

On Saturday’s episode, Jim and Paul discussed Diane Denish’s recent pronouncements on government transparency and whether her ties to the corruption of the Richardson Administration and silence regarding ongoing scandals detracts from her forward-looking stance on the issue. Then, Jim and Paul discuss plans for “high speed rail” being put forth by President Obama, Governor Richardson, and Sen. Udall and whether the plans make sense for New Mexico.

Democratic Party Happy Talk on Health Care

07.14.2009

Brian Colón, the Chairman of the Democratic Party of New Mexico, and I took part in an online health care debate for the Albuquerque Journal last week. He essentially re-stated his opening remarks in an opinion piece on health care that appeared yesterday in the Journal.

Unfortunately, while Colón is good at providing talking points as to why we need health care reform, he does a lot of writing without actually suggesting any specific ways in which Americans in general and New Mexicans in general can obtain less costly, better health care. This is not a surprise since Colón is not a policy expert, rather he is a party builder, and he may not want to step on any toes. After all, not all elected Democrats support “universal,” let alone single-payer, health care.

Unlike Brian, I have actually proposed some specific health care reforms that will, if adopted, reduce costs and lead to better health care. The problem I have with most advocates of so-called “reform” is that they are working under the assumption that the politicians can get together and Washington and come up with a government system that will please everyone. Unfortunately (for them), as Obama and Congressional leadership have been forced to come up with specifics, the various interest groups have started fighting and the plan seems to be stalling.

The simple fact is that we live in a world of limited resources. While everyone thinks they can get their way when they sit down at the lobbying table, the fact is that someone ultimately loses in a zero-sum game.

Another Spaceport?

07.13.2009

While New Mexicans have been led to believe that their economic futures are tied to the New Mexico Spaceport now being built near Truth or Consequences, the truth is that spaceports are already under development across the nation.

With an already-crowded spaceport field, I read over the weekend in the Albuquerque Journal that Hawaii is the next state that may be entering the fray. According to the report:

If the plan goes forward, tourists would pay $200,000 for a weeklong package including spaceflight training, resort accommodations and short test flights to simulate weightlessness.

At the vacation’s finale, five voyagers would embark on a horizontal takeoff aboard a special rocket plane, climb to 40,000 feet before rockets fire, accelerate to 3,500 mph, coast for a few minutes of weightlessness 62 miles above the Earth, flip over and then return to ground.

While New Mexico’s spaceport will undoubtedly be an early entrant into , it seems highly unlikely that the space industry will be very lucrative for the Land of Enchantment given the ever-increasing number of competitors. Perhaps Hawaii Governor Linda Lingle will give Hawaii taxpayers a break by not releasing funding for that State’s spaceport. Unfortunately, spaceport fever seems to be spreading among elected officials nationwide.