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Posts Tagged ‘Abortion’

Maybe it’s my snarky sense of humor, but I greatly enjoy when statists accidentally promote free markets and small government.

It seems to happens quite a bit at the New York Times.

A New York Times columnist, for instance, pushed for a tax-hiking fiscal agreement back in 2011 based on a chart showing that the only successful budget deal was the one that cut taxes.

The following year, another New York Times columnist accidentally demonstrated that politicians are trying to curtail tax competition because they want to increase overall tax burdens.

In a major story on the pension system in the Netherlands this year, the New York Times inadvertently acknowledged that genuine private savings is the best route to obtain a secure retirement.

But it’s not just people who write for the New York Times.

The International Monetary Fund accidentally confirmed that the value-added tax is a revenue machine to finance bigger government and heavier tax burdens.

A statist in Illinois tried to argue that higher taxes don’t enable higher spending, but his argument was based on the fact that politicians raised taxes so they wouldn’t have to cut spending.

And a journalist at Mother Jones accidentally showed that lower levels of government spending are correlated with greater job creation.

Now we have something else to add to the list. Some advocates of federally subsidized abortion inadvertently and unwittingly have endorsed the notion that there shouldn’t be any taxpayer handouts to the nation’s largest abortion provider.

I don’t know if either Planned Parenthood or Congressman Bera are oblivious, entitled, or mendacious, but this retweeted quote really deserves some sort of prize. They obviously want to promote the status quo of federal subsidies for the organization, but the call to “take gov’t out of the exam room” accidentally makes the libertarian case that government money shouldn’t be involved.

What makes this especially amusing is that Congressman Bera is a doctrinaire statist, receiving an “F” on his spending record from the National Taxpayers Union.

Needless to say, both the Congressman and Planned Parenthood obviously do want the handouts. They simply don’t want any oversight or attention on how the money is spent. But it’s nice that they both inadvertently endorsed the right approach.

P.S. Let’s shift gears and look at another example of “gov’t” in action. I’ve previously written about the fiasco at the Veterans Administration. Not only did the bureaucracy maintain secret waiting lists, but they awarded themselves bonuses.

Well, we now have some data on the horrific consequences of the bureaucracy’s disgusting behavior.

The Department of Veterans Affairs’ Office of Inspector General on Wednesday confirmed that more than one-third of the people thought to be seeking eligibility for VA benefits are deceased, and said many of them have been dead for more than four years. …The OIG’s report…said 307,000 names on the VA’s list of pending enrollees were deceased. That’s 35 percent of the 867,000 people on the list as of last year.

Wow, many segments of the population that have been disadvantaged by Obamacare, including ones that deserve sympathy, such as children, low-income workers, and retirees, as well as those that don’t deserve much sympathy, such as congressional staff, IRS bureaucrats, and Harvard professors.

But I think we can safely say that America’s veterans clearly have suffered the most because of government-run healthcare.

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The Obama Administration is in a bit of hot water because it wants to coerce just about everyone – including a lot of religious institutions –  to provide health insurance policies that cover the cost of birth control and certain abortion-inducing drugs.

The White House already has tried to defuse the controversy by shifting the coverage mandate from insurance buyers to the insurance companies, but everyone with an IQ above room temperature realizes that is a meaningless cosmetic change.

Regardless of how one feels about abortion or birth control (or even how one feels about religion), this is a bad policy. Decisions about what  sort of insurance to provide shouldn’t be the result of a one-size-fits-all government mandate.

Yes, the Administration’s religious intolerance is unseemly, but it is also symptomatic of why government intervention in the health sector is the underlying problem.

John Cochrane, an economist at the University of Chicago (and an Adjunct Scholar at Cato!) addresses the economic issues in a Wall Street Journal column. Here are some key passages.

Insurance is supposed to mean a contract, by which a company pays for large, unanticipated expenses in return for a premium: expenses like your house burning down, your car getting stolen or a big medical bill. Insurance is a bad idea for small, regular and predictable expenses. There are good reasons that your car insurance company doesn’t add $100 per year to your premium and then cover oil changes, and that your health insurance doesn’t charge $50 more per year and cover toothpaste. You’d have to fill out mountains of paperwork, the oil-change and toothpaste markets would become much less competitive, and you’d end up spending more. …Doubling the number of wellness visits and free pills sounds great, but who’s going to pay for it? There is a liberal dream that by mandating coverage the government can make something free. Sorry. Every increase in coverage means an increase in premiums. If your employer is paying for your health insurance, he could be paying you more in salary instead.

For all intents and purposes, Professor Cochrane is explaining the economics of third-party payer, which occurs when government intervention undermines the ability of markets to promote efficiency and low prices.

He also delves into the moral issues and explains that the only solution is to get the government out of health care.

Our nation is divided on social issues. The natural compromise is simple: Birth control, abortion and other contentious practices are permitted. But those who object don’t have to pay for them. The federal takeover of medicine prevents us from reaching these natural compromises and needlessly divides our society. The critics fell for a trap. By focusing on an exemption for church-related institutions, critics effectively admit that it is right for the rest of us to be subjected to this sort of mandate. They accept the horribly misnamed Patient Protection and Affordable Care Act, and they resign themselves to chipping away at its edges. No, we should throw it out, and fix the terrible distortions in the health-insurance and health-care markets. Sure, churches should be exempt. We should all be exempt.

I’ve explained four principles that should guide policy makers as they try to put the toothpaste back in the tube and restore free markets to healthcare.

And I’ve cited a real-world example of how the system would work if the third-party payer crisis was fixed.

We can implement free-market reforms, though they won’t be easy. Or we can keep on the current path, lose more of our freedom, and eventually have life-and-death decisions controlled by bureaucrats.

Should be an easy choice.

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Regardless of what one thinks about abortion, it is preposterous for the federal government to be subsidizing the procedure. Yet that is what happens thanks to annual subsidies of as much as $363 million for Planned Parenthood.

Defenders of Planned Parenthood sometimes claim that federal money doesn’t actually pay for abortions, but that’s a silly assertion. Money is fungible, so if taxpayers are keeping an office open and lights on, it means they are subsidizing all of an organization’s activities. But that’s not the point. Even if Planned Parenthood didn’t perform abortions, it should not receive any money from taxpayers. Last time I checked, family planning was not listed in Article I, Section VIII, as one of the functions of the federal government.

This is not a “pro-life” or “pro-choice” issue. Indeed, it also would be wrong for the federal government to subsidize groups that counsel against abortion. Or abstinence groups. Or any other organization dealing with reproductive issues. The federal government shouldn’t be involved, period.

Kathryn Jean Lopez of National Review makes all the right points in her column about how this is an issue that should unite social conservatives, fiscal conservatives, Tea Party folks, and libertarians.

It’s a question that we might see play out on Capitol Hill in the coming months as the new majority seeks to make the late pro-life congressman Henry Hyde proud, by defunding Planned Parenthood and prohibiting taxpayer funding of abortion. …“Ending taxpayer funding of abortion and getting Planned Parenthood’s hand out of the pocket of taxpayers are clearly crossover issues,” says Tony Perkins, president of the Family Research Council. “Social conservatives as well as fiscal conservatives can generally agree that the government has no business being in the business of funding or subsidizing abortion.” …Thomas J. Gaitens of Florida…goes out of his way to make clear that “the Tea Party movement has been purposeful in not getting into social issues, as not to dilute the fiscal, constitutional, and liberty focus; we do, however, see many ways we can impact this debate and remain steady with our positions.” …Gaitens absolutely agrees that such a person could naturally sign on to both the “No Taxpayer Funding for Abortion Act” and nixing further grants to Planned Parenthood. Taxpayer funding for abortion — whether direct or through organizations such as Planned Parenthood — serves, he says, as “a prime example of government overreach.” …An excellent question for social conservatives, fiscal conservatives, and plain old voters is the one Chuck Donovan of the Heritage Foundation poses: “Why are U.S. taxpayers borrowing money at a record rate to, in part, provide grants to an organization, Planned Parenthood, which raised $388 million more than it spent from 2002 to 2007?”

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A major problem with America’s healthcare system, both before and after Obamacare, is the fact that consumers very rarely spend their own money when obtaining healthcare. Known as third-party payer, this problem exists in part because government directly finances almost 50 percent of healthcare expenditures. But even a majority of supposedly private healthcare spending is financed by employer-provided policies that are heavily distorted by a preference in the tax code that encourages insurance payments even for routine expenses. According to government data, only 12 percent of healthcare costs are financed directly by consumers. And since consumers almost always are buying healthcare with somebody else’s money, it should come as no surprise that this system results in rising costs and inefficiency. This is why repealing Obamacare is just the first step that is needed if policymakers genuinely want to restore a free market healthcare system (all of which is explained in this 4-minute video).

Unfortunately, many people think that market forces don’t work in the healthcare system and that costs will always rise faster than prices for other goods and services. There are a few examples showing that this is not true, and proponents of liberalization usually cite cosmetic surgery and laser-eye surgery as examples of treatments that generally are financed by out-of-pocket payments. Not surprisingly, prices for these treatments have been quite stable – particularly when increases in quality are added to the equation.

I just ran across another example, and this one could be important since it may resonate with those who normally are very suspicious of free markets. As the chart from the Alan Guttmacher Institute shows, the price of an abortion has been remarkably stable over the past 20-plus years. Let’s connect the dots to make everything clear. Abortions generally are financed by out-of-pocket payments. People therefore have an incentive to shop carefully and get good value since they are spending their own money. And because market forces are allowed, the cost of abortions is stable. The logical conclusion to draw from this, of course, is that allowing market forces for other medical services will generate the same positive results in terms of cost and efficiency.


None of this analysis, by the way, implies that abortion is good or bad, or that it should be legal or illegal. The only lesson to be learned is that market forces control costs and promote efficiency and that more government spending and intervention exacerbate the third-party payer crisis.

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