Categories
free trade & free markets national politics & policies too much government

Attacking Wage Employment

I don’t know what the optimum ratio of employees to independent contractors would be. No one does. But we can be pretty certain that the current skewing of the economy towards less wage employment and more independent contracting by Obamacare is not a good thing.

You see, “one consequence” of the health reform package, writes economist David Henderson on EconLog, “is an increase in contracting out to avoid the 50-​person threshold.”

Now, if there were a general shift towards part-​time employment and professional contracting as a result of businesspeople and workers appraising their advantages on the open market, we’d just note this with interest or a shrug and say, “whatever the market decides.”

After all, people might substitute wage contracts for performance contracts (or vice versa) for reasons given by Nobel Laureate R.H. Coase, who figured out why firms exist at all: contracting out isn’t costless. It takes time to negotiate each deal, each task, etc. My friend Dr. Henderson will correct me, I hope, if I’m wrong, but employing labor full-​time — by bundling numerous tasks together — is usually easier and cheaper than seeking out specialists and consultants for each task you want done.

In recent years we’ve seen a rise in consulting professionals, in part because the Internet has reduced the costs associated with working from a distance. But today’s switch to independent contractors (as well as to part-​time employment) is a result of Obamacare raising the cost of keeping full-​time employees. Of course businesses will seek to … economize.

And we know such substitution is suboptimal because people are doing it under duress, the threat of force behind Obamacare.

This is Common Sense. I’m Paul Jacob.

Categories
government transparency national politics & policies

The Latest Legislative Land Mine

The most prescient thing ever said about the Patient Protection and Affordable Care Act, commonly called Obamacare, was articulated by then-​Speaker of the House Nancy Pelosi: “we have to pass the bill so that you can find out what is in it.”

The medical reform package is quite the hodgepodge. Actually reading the whole thing makes taking on Middlemarch, War and Peace, and In Search of Lost Time a course of light entertainment.

The latest revelation from its thousands of pages? A passage prohibiting doctors from asking their patients questions about guns in the home.

The Washington Post reports that many gun control groups are incensed at the power of the NRA to limit their ability to “collect information”:

Physician groups and public health advocates say the cumulative effect of these restrictions undercuts the ability of the White House and lawmakers to make the case for new laws, such as an assault-​weapons ban, in the face of opponents who argue that there’s no evidence such measures are effective. Advocates for regulating guns lament that reliable statistics are limited in part because physicians and health researchers who could track these patterns are being inhibited.

Considering the quality of previous doctor-​led sociological studies into gun usage — and really, this is not a medical problem but a complex, society-​wide issue far beyond the competence of medical training to comprehend — the prohibition might really best be described as a defense of scientific method.

But the big issue here is not the politics of “research.” It’s that a health care reform package passed nearly three years ago contains hot potatoes such as this, and we are only discovering them now.

Nancy, you were all too disastrously correct.

This is Common Sense. I’m Paul Jacob.

Categories
responsibility too much government

Is Pregnancy a Lifestyle Disease?

Two stories courtesy of Reason’s Hit and Run startled me into thinking about the strange issues that come up when you put government in charge.

Peter Suderman covered another Supreme Court review of Obamacare, featuring Liberty University’s claim that Congress overstepped its authority in mandating employer coverage of specific insurance features, and that the contraception/​abortion mandate violates religious freedom.

Then I scrolled down to read Rachel Moran on one conservative British MP’s daring call for “patients suffering from so-​called ‘lifestyle diseases,’ such as type II diabetes, [to] pay for their own prescriptions rather than claim free or subsidized drugs.” The Tory MP has a point:

[W]e have got to have an affordable system that rewards individual responsibility. If you want to have doughnuts for breakfast, lunch and dinner, fine, but there’s a cost.

Trouble is, as we learned last Saturday, the whole point of the modern welfare state is to take away folks’ responsibility by removing negative consequences, the costs, from risky behavior.

Here in America, we’re headed that direction. The responsibility for one’s own contraceptive purchases is being shifted (by the Democrats’ healthcare reform law) from individuals and couples to employers, via government — putting the monetary burden onto all citizens, via higher insurance payments.

The religious freedom aspect of the constitutional challenge is a red herring. More basic? Individual freedom and personal responsibility. But those aren’t exactly guaranteed in the Constitution, and politicians haven’t found a way to get elected in enough numbers on the issue of returning responsibility back into the system.

So we’re left in a world where it makes perverted sense to call pregnancy a “lifestyle disease.” And subsidize its prevention.

This is Common Sense. I’m Paul Jacob.

Categories
ideological culture

Predictable Prescription

President Obama loves a laugh line he uttered during his convention speech and is now on tour with it, using it to stoke up his campaign whistle stops.

Obama told us that Republican policy amounts to this: “Have a surplus? Try a tax cut. Deficit too high? Try another. Feel a cold coming on? Take two tax cuts, roll back some regulations and call us in the morning.”

Obama is correct that tax cuts don’t magically cure behemoth deficits or leviathan debt. And, frankly, Republicans are often as loathe as Democrats to cut — really cut — government spending.

But it’s not as if Obama were the Lone Ranger when it comes to hacking away at the federal octopus, constantly proposing only balanced budgets and demanding shutdowns of federal agencies and programs. No. Obama, like so many in DC, demands ever higher spending, ever higher taxes, ever more regulations — as exemplified by Obamacare. The president demonizes as Darwinian dastards all who support even vanishingly small reductions in projected increases in spending.

If the GOP plays a one-​note tune of tax cuts, ad infinitum, the Democrats’ have their own long-​playing record spinning around and around: the idea of government as the solution to every problem. But whatever “fiscal irresponsibility equivalence” exists between Republicans, who want to cut taxes in the face of trillion-​dollar a year deficits, and Democrats, who want to keep spending more, the underlying issue remains whether we need more government or less.

Take less government, less spending, lower taxes, and call me on election morning.

This is Common Sense. I’m Paul Jacob.

Categories
media and media people national politics & policies political challengers

The A‑Word

The n‑word got dropped on MSNBC’s The Cycle this week. The show’s co-​host [No First Name] Touré called Mitt Romney’s use of the word “angry” to describe some of the rhetoric coming out of the White House as “the ‘niggerization’ of Obama”:

“You are not one of us, you are like the scary black man who we’ve been trained to fear.”

Naturally this led to a battle between Touré and conservative co-​host S.E. Cupp. She took particular issue with the fact that Touré admitted that VP Joe Biden‘s “chains” comments were divisive, but is now calling Romney a “racist” for saying the Obama campaign is “angry.”

“Do you see how dishonest that is?” she asked.

Good question. But here’s a better one: Doesn’t talk of race and code-​words obscure the real issue here, anger?

Romney shouldn’t be calling for the Obama administration to be less angry. He should be angry himself, and castigating the president and his crew for being angry at the wrong things.

We should be angry at the continuation of wars, foreign (the Middle East) and domestic (on psychoactive drug use), to the detriment of fiscal stability as well as our civil liberties.

We should be angry that the nation’s pension system has been systematically stripped of its surpluses for 77 years — by politicians in Washington.

We should be angry that federal (along with state) policy has interfered with medicine to such an extent that the most idiotic ideas around — nationalization/​socialization — almost seemed plausible to a sizable minority of Americans.

We should be angry that the Democrats pushed through yet another expensive entitlement, “Obamacare,” while the rest of the federal government sunk further into insolvency.

And yes, we should be angry that our leaders can’t stick to decent issues.

This is Common Sense. I’m Paul Jacob.

Categories
free trade & free markets national politics & policies too much government

A Fraudulent Pill to Swallow

If you’re like me, you often rub up against common opinion and find little sense in it — or, as I like to put it, popular opinion with the common sense bled out of it.

On Monday I reported on an anti-​Obamacare lawsuit against the federal government for mandating the purchase of medical insurance that included “free” contraceptive drugs (including “morning after pills”). I took on the obvious problems, but neglected to mention that it’s not insurance.

I guess you can call turnips “rainbows” and politicians “angels,” but, based on accepted meanings of terms, it is not “insurance” when benefits include regular maintenance or common preventive (“prophylactic”) products.

One doesn’t insure against dandruff by buying a policy that provides you with “free” shampoo or against sunburn by purchasing a policy that offers free SPF50 sunscreen. One doesn’t insure against obesity with insurance that provides “free” healthy foods according to This Diet or That Diet.

For instance, it would be absurd to have an insurance policy to pay for one’s vitamins.

In a sense, the vitamins are the insurance. Think of them as a separate, medicinal form of insurance, which you pay for at purchase.

Same for contraception.

One buys insurance for unexpected and irregular needs. Calling Obamacare’s “contraception benefit” mandate “insurance” is a fib.

Much of what we think of as insurance actually amounts to confused (and confusing) methods of savings (at best) or a confidence game to get some people to pay for the regular goods and services other folks use (at worst). By force and fraud.

The force is the government mandate. The fraud is calling this whole program “insurance.”

This is Common Sense. I’m Paul Jacob.