More on TABOR
To follow up on the TABOR debate, read this article at The Center on Budget and Policy Priorities:False Promise of Prosperity: For Kansas Economic Growth, TABOR May Do
More Harm than Good, 11/3/05
Peter Radford / Economics, Politics /
To follow up on the TABOR debate, read this article at The Center on Budget and Policy Priorities:False Promise of Prosperity: For Kansas Economic Growth, TABOR May Do
More Harm than Good, 11/3/05
Peter Radford / Economics, Politics / health care /
The American Health Care [non-]system is in decline. The number of Americans covered by employer health care plans actually fell by about 5 million during the past four years, even though the number of people eligible rose by about 10 million. That’s an additional 15 million average Americans for whom the health care system is a distant mirage. Plus for those lucky enough to have coverage the cost is rising rapidly. American industry is in a pickle: how does it contain cost without antagonizing it’s employee base? A national crisis is looming, but before it can be resolved Americans need to face the truth about their system.
It is time Americans stopped thinking that they have ‘the best health care in the world’ and recognize that they are, in fact, way behind most every other industrialized nation. The facts are stark when you face up to them: America spends twice as much on health care as its industrial partners, yet ranks below them in terms of basic results. For all that vaunted money and technology, Americans have shorter life spans and higher infant death rates than anyone else in the industrialized world. That’s a rotten return on investment. Very rotten. Not only this, but Americans are much less likely to see a doctor — they say they are afraid of the cost, or to take the medicines that they are prescribed — they cost too much. Clearly, at least to an objective observer, Americans are getting a bad deal from their market driven system.
Why? Because the system is knee deep in bureaucrats all of whom cost money, and all of whom are fighting to cut or eliminate expenditure rather than to provide care: they do not add to care but they take up a lot of dollars. It is a system designed for accountants not those in need of care. This is truly ironic given that a major criticism leveled at Government run systems is that they are typically bureaucratic, but in this case the reverse is true: a Government system would have less, not more, bureaucracy. Another aspect of this is that the system is fragmented, there are too many players none of whom have the clout that the Government would in the market place. For instance, Americans pay far more for their drugs than anyone else because no one in their system has sufficient power to drive a hard bargain with the drug makers. The Government could do that, but such is the lobbying power of the drug industry that the George Bush’s pet Medicare bill explicitly forbids the Government from using its market power. So the sick and the taxpayers get the shaft while drug company profits are inflated.
America has a system where the rationing of service is by price rather than government allocation. It is market driven. In other words you can get whatever you want if you can afford it; if you can’t then you get nothing. For instance, it is correct to observe that people in Britain and elsewhere wait longer for elective surgery [what’s wrong with waiting for something that is elective?]; but wait times mask a grim reality here in the U.S.: for many people the system simply doesn’t exist because they cannot afford it. So those short wait times are irrelevant, the service isn’t there to wait for. It is a scandal that the world’s richest nation has approximately 15%, and rising, of its population uncovered for health care, and it is delusional nonsense to keep lauding the system as if it’s good. It isn’t.
The fix is obvious: America needs some form of national health care system. It’s time to press for the correct answer. Then maybe the system will deserve the credit Americans currently give it.
Peter Radford / Politics / California, democracy /
Arnold Schwarzenegger is in trouble in California where he has four propositions up for a vote this year. Current polls show him losing on all four counts, which is a shame because one of them — Proposition 77 — deserves to pass. Prop. 77 is designed to change the way in which California’s political boundaries are drawn. Currently, and like all but two states [Arizona and Iowa], California has its district borders set by politicians. This is hardly democratic, just look at the way DeLay rigged the Texas districts to ensure more Republicans in Congress, and helps reinforce voter cycnicism because incumbents protect their majorities not by working to earn votes, but simply by rigging their district boundaries. In other words it enables politicians to avoid the competition that democracy helps induce. Were American voters capable of seeing past their own mythology they would recognize that their country is not as democratic as it should, or could, be as a result of this rigging. Indeed if they saw another country’s voting districts drawn up in such a politicized way they would surely cry ‘corruption!’. Proposition 77 takes away the politicians power to rig districts by setting up an independent board to oversee re-districting. So much as I decry Arnold, I think he has this one right. Proposition 77 should pass. It will help California become a democracy.
Peter Radford / Economics / TABOR, tax reform, taxes /
TABOR amendments are cropping up around the country as various conservative groups try to follow through on their ‘shrink government no matter what’ policies. TABOR stands for ‘Taxpayer Bill of Rights’ and is a state level constitutional amendment that restricts the growth of state spending to a highly restrictive formula: population growth plus inflation. The problem with this is that once states start to have economic problems any formulaic policy eliminates their ability to spend money on projects or activities that might build infrastructure or otherwise help the state to recover, or grow at all. Tellingly the only state to adopt a TABOR clause, Colorado, has just voted to get rid of it. During the TABOR years Colorado dropped close to the bottom of all states in education spending and saw its number of children without health care coverage rise — from 15% to 27% of poor children. The vote to eliminate TABOR in Colorado is a major blow to people like Grover Norquist and the Cato Institute whose anti-tax mantra has been such a driving force behind the Republican surge over the past two or three decades. Kansas is a state in the process of considering a TABOR amendment of its own, and now the Colorado example is being used by progressive politicians and advocates there. Perhaps as the middle class starts to see the safety nets it relies on in hard times shreddded by the right wing the realization will set in that a balance needs to be struck, and the counter attack can begin.
I just don’t like the idea of TABOR-style constitutional restrictions on policy making: they handicap a state, and too often are merely a veneer to cover aggressive conservative attacks on the poor. We have enough class warfare being conducted by the Republicans in Washington — case in point the budget cuts now being discussed — we can do without it being constitutionally enshrined around the country at the state level.
Peter Radford / Economics, Politics / wages, Walmart /
Following up on my note yesterday about Walmart: Rep. Anthony Weiner, Sen. Ted Kennedy, and Sen. Jon Corzine recently introduced the Health Care Accountability Act in Congress, which would require states to disclose the names of large employers whose workers are on Medicaid as a result of the companies refusal to provide insurance benefits. The purpose of this, of course, is to make public the names of companies inflicting costs onto already stretched state budgets. This Federal legislative effort comes on top of the local effort in Maryland to force companies to provide health care insurance — which failed because the Governor, Republican Robert Erlich, caved in to intense lobbying from Walmart and vetoed the bill. Most recently was the leaked memo from Walmart describing how the company planned to cull ill or potentially costly employees from its payrolls so as to reduce health care expense. Clearly up until now Wal-Mart shows no sign of accepting that its behaviour is anti-social. So we need to push back.
As a society we have three ways to respond to ‘Walmarting’ — allow me to coin the phrase. One is to accept that companies can do anything they want, and we all just have to live with the consequences, however nasty they are. Second, we can oppose the company’s actions and try to get them to change [Walmart Watch and Wake Up Walmart are two organizations dedicated to this]. Or, third, we can accept that big companies will always be rapacious and use things like cutting benefits as a way to shore up profits, but realize that we can legislate to get a national health care system so that unethical behaviour by companies doesn’t mean that our fellow citizens have to suffer. Of course we’d all like to think that Walmart and others had some ethics, or social awareness, but they don’t. So I for one will use ‘Walmarting’ as a rallying cry for national health care, which taxes on Walmart profits will help pay for. I can see some neat justice in that.