Tracing consequences both seen and unseen.
Wirkman VirkkalaA growing incredulity
Posted at 7:27 pm on March 23, 2010, by Wirkman Virkkala

The passing of the Democrats’ medical institution reform package, by clever and opaque political maneuvering, has angered many people. Though all ancient sages unite to advise us not to lose composure about things we cannot change, I, too, have been a bit angry about the recent events regarding what is popularly (and nauseatingly) called “health care reform.”

But what interests me at the moment is how risky the Democrats’ maneuvers are. We often say that politicians can’t accomplish much. Washington is riddled with gridlock; its prime movers are not merely dishonest and petty, but unable to take stands.

Here, however, regarding the nationalization of medicine in the United States of America, the Democrats have taken a daring stand. They are bucking the growing incredulity amongst Americans that government can solve our problems by taking control. For the past few decades, the long-term trend has been towards skepticism about large-scale government efficacy.

But this long-term trend has had its set-backs. The three biggest counter-trends to growing anti-statist opinion have pertained to

  1. War — There was a lot of support, early on, for the conquest of Iraq;
  2. Anthropogenic Global Warming Catastrophe — There was a huge surge, in recent years, in the belief that there had been recent global warming, that this was in some sense unique, that human civilization had caused it, that this would only grow more dangerous, and that government could (and must) solve it; and
  3. “Health Care” — A rising number of people had begun to see rising costs and spotty insurance for medical care as a problem requiring a national solution.

In each of these three counter-trends to the rising general incredulity over government efficacy, the wave of pro-government sentiment has recently waned. Spectacularly.

Regarding the advisability of conquering Iraq, the widespread support for this had ended before the end of George W. Bush’s final term in office. Even Republican legislators, today, are almost unanimous in realizing that the war was a mistake. The general consensus, now? War and conquest and remaking other polities is tough work, and we should always be super-cautious about engaging in such action.

AGW catastrophism hit its peak popularity in 2008, and is now in steep decline. The leaked emails from Britain were in no small part responsible for this. Careful criticism also had an influence. And, finally, the silly folk sayings confirming global warming itself probably did the most to undermine the position. People can only speak risible nonsense so long before laughing. (Al Gore and media folk were largely responsible for encouraging the idea that every storm, every heat wave, and every exceptional weather event provided “more evidence” that global warming was happening. Record-breaking cold spells and blizzards heralded as signs of “global warming” became a popular folk joke in 2009 and 2010.) The hard rhetorical barrage Americans had been hit with for years — from scientist-advocates, media folk, popular entertainers trying to look serious, and Al Gore — appeared to toughen them up, not convince them.

Finally, support for new national programs for medical insurance peaked last year. By the beginning of this year, popular support had dropped to below 40 percent.

And here’s where courage comes in. It is now risky for Democrats to unite around an unpopular issue.

What could they be thinking? I mean, we expect politicians to rally around popular causes, not unpopular ones. Politicians have demonstrated a rather consistent desire to get re-elected. So what gives? What do they hope for?

I can think of a few possibilities:

  1. Democrats hope that, like Social Security, the new program package will grow in popularity over its first 20 years after implementation. Social Security became the infamous “third rail” of politics, which one dare not be seen to criticize, from the ’60s though the ’80s and beyond. They hope for a similar effect with health care regulation and nationalization.
  2. Democrats know that they have only a limited time in majority, in united government, and feel they have to do what their core constituency really wants, before they lose control. They are hoping that it will be harder to repeal the medical reform package than it was to pass. (It is harder, in America, to repeal programs than it is to create them. This is fairly well established.) Think of it as their “Final Solution.”
  3. They know that it will likely be struck down in courts, and that this will rally their supporters to take on a new, bigger fight, which they can make hay over for years.
  4. They really are (or, perhaps more likely, want to be seen as) ideologues, to appeal to their core supporters in the government unions, people who by their nature think that government is the key to all progress (the sole sense in which they can be called “progressives” . . . that is, they believe only in the eternal progress of increasing size, scope, and efficacy of political and bureaucratic governance).

In these four scenarios, they come out as risk-takers. People of courage.

But, when you look at the hodge-podge of proposals that make up the reform package, they come off as something else again. I’ll let the reader name that “something else.”

Republicans have a huge opportunity for a comeback, here, but only if they stick to the theme that nurtures Americans’ justified incredulity. And the only way to make this stick is to attack the package not for such things as Death Panels and Abortion support — proof positive that Republicans tend to be a rather brain-dead group, so off-point are most of these issues — but for its long-term and wide-spread negative consequences.

This is hard work. I have not done it here. We have only just begun. Thinking “beyond Stage One” (as Thomas Sowell puts its), identifying the “unseen” as well as “the seen” (as Frédéric Bastiat put it), striving to discover the long-term effects as well as the near-term effects (as Henry Hazlitt put it) — these critical modes of thought aren’t easy. They require effort. They rub against the grain of enthusiasm. They seem treasonous to people who demand symbolic action, and identify themselves chiefly by the “good deeds” they do by merely supporting a political party.

Ah, and there’s why we don’t see Republicans normally taking to this agenda. The technique of honest and thorough social thought cuts both ways. It cuts against the right as against the left. It makes hash of simplistic arguments for war as it does against simplistic arguments for government handouts and regulations.

But there is one thing we, who try to practice economic criticism, can take solace in: Our agenda may not be the mainstream political agenda, but it does fit in, very nicely, with the common sense of the American people. Americans’ native skepticism over government may be superficial, but it is strong, and it is growing.

By applying economic thinking, and publicizing this thought, we strengthen the growing incredulity to statism in American culture, and prepare the way, perhaps, even for an eventual political success.


Filed under: Health Care
Comments: 3 Comments
 

Justin M. StoddardUnintended Consequences
Posted at 5:14 pm on March 23, 2010, by Justin M. Stoddard

It seems appropriate to start my first entry on this blog with a quote from Henry Hazlitt, author of Economics in One Lesson, which is the inspiration for the name of this new adventure.

“The most frequent fallacy by far today, the fallacy that emerges again and again in nearly every conversation that touches on economic affairs, the error of a thousand political speeches, the central sophism of the new economics, is to concentrate on the short-run effects of policies on special groups and to ignore or belittle the long-run effects on the community as a whole.”

By far, the aspects of economics I pay attention to the most are those of Unintended Consequences and opportunity costs. When Hazlitt talks of “the short-run effects of policies on special groups and to ignore or belittle the long-run effects on the community as a whole”, Unintended Consequences and Opportunity Costs come into play

Several such consequences/costs come immediately to mind when thinking of the current Health Care bill recently passed by Congress and signed into law by President Obama.

-We can probably expect new innovations in medical science to stagnate.

We can never know what amazing technology will never be invented simply because the money or the incentive no longer exists to invent that technology. This points to Bastiat’s Broken Window Theory Fallacy, which simply states that though a broken window may unexpectedly enrich the window maker, it impoverishes the person who must now replace the window. His money could have been spent on something else, entirely.

-We can probably expect a new wave of crackdowns on immigration.

Though I have some problems with Milton Friedman, he had it exactly right when he said, “You cannot simultaneously have free immigration and a welfare state.” I understand that ‘illegal immigrants’ are not explicitly covered under this new legislation, and there is a good deal of economic proof that immigration is a net boon to the economy, but we must face some inconvenient truths. There is a strong movement in this country to give millions of immigrants ‘amnesty’, meaning they will not only be in the country legally, they will be on the first step to obtaining citizenship.

Do not misunderstand me, I applaud the efforts to make this happen as I agree with open borders/immigration. However, as the majority of elected Republicans are against this, if it is passed, it will be because of the Democrats. I do not mean to be cynical here, but the legalization and naturalization of millions of immigrants as a political movement coming from the Left has to be repaid somehow. Namely, there will be millions more in the Democratic party 10 years hence.

This will cause a huge, irrational backlash against immigration. An ‘unintended consequence”. Instead of attacking the welfare state, Republicans and others from the right will score points by fear-mongering and know-nothingness. We can assuredly expect the passage of a National ID bill sometime in the near future, and that’s not even mentioning the hundreds of millions of more dollars that will go towards “protecting the borders”.

It is going to be interesting to see how this plays out.

[Cross-posted at Shrubbloggers.]


Filed under: Health Care, Unintended Consequences
Comments: 3 Comments
 

Eric D. DixonWelcome
Posted at 5:28 am on March 23, 2010, by Eric D. Dixon

Does the world really need another libertarian group blog? Well, yeah. If we’re convinced by the Hayekian notion that information and insight are decentralized and dispersed throughout society, we should always welcome new forums in which a set of people with heretofore underrepresented individual perspectives can share their unique ideas and join the fray of public discourse.

The people who contribute here don’t agree about everything, but we do share a desire to see radical increases in freedom, for ourselves and others. One way to work toward that freedom is to spread useful ideas about how the world works. We hope to hash some of them out here.


Filed under: Blog
Comments: 4 Comments
 

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Henry Hazlitt"[T]he whole of economics can be reduced to a single lesson, and that lesson can be reduced to a single sentence. The art of economics consists in looking not merely at the immediate but at the longer effects of any act or policy; it consists in tracing the consequences of that policy not merely for one group but for all groups."
Henry Hazlitt, Economics in One Lesson
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