TotD 1: Trump is Right…Health Care is Complicated!

Unfortunately, this does not prevent people from trying to use government for it.

In a recent speech with state governors, President Trump admitted that implementing government health care is a tricky business and that Republicans are having a hard time pulling the plug. One would think that the wayward health care law, which is responsible for skyrocketing insurance premiums and deductibles, would be easy to ax. Even the standard issue, rose-colored glasses worn by Democrats cannot hide the fact that the bill has been a complete failure. Whence the trouble?

I remember when Obamacare was first rolled out to the public as a 20,000 page bill that nobody in our government seemed to have read. Nancy Pelosi clumsily explained that we would need to pass the bill in order to know what was in it. ended up costing three times what was expected and was launched months after the intended date due to mismanagement. I even remember when Obama said that Americans could keep their doctors, if they wanted. We know how that ended up.

Conservative and libertarian Americans flocked to Tea Party protests to oppose Obama’s attempts to expand socialized medicine, and today Americans cite “health care” and “dissatisfaction with government” as two of the largest issues facing the country. This was a healthy reaction but there were warnings that the law would be difficult to dislodge, if it was successfully passed. Wary observers may recall one Tea Party participant’s eloquent sign: “Keep your government hands off my Medicare!” The promise for free goods can corrupt even those Americans that are most suspicious of government.

During the campaign in 2016, Trump went so far as to say he was a “fan of the [individual] mandate” and that the more popular aspects of the law would remain. Today, Republican voters that oppose “socialized medicine” clamor to keep the parts of the bill that would help them personally. As Trump aptly put it: “People hate it…but now they see that the end is coming and they’re saying, ‘Oh, maybe we love it.’” “Repeal and Replace” has become “Rebrand and Re-neg.”

Programs like Obamacare are how government expansion occurs and persists in general. Government-sponsored goodies are as potent and addictive as heroin or cocaine, particularly when people are convinced that it is a right that they are owed. To fund the largess, the government raises taxes and imposes restrictions on businesses. Hard-done-by Americans organize into pressure groups to lobby for new handouts to mitigate the ruinous effects of the old handouts. By the end, a single entitlement thread has morphed into a regulatory spider-web.

This was done by design. Leftists for decades have known that Americans would reject explicit socialism, but would handily vote it in piecemeal if couched in the proper language.

Advocates for the free market were always aware that government health care would be a train wreck. What is one to expect when a gang of government bureaucrats, armed with their pens and the entitled screeching of their constituents, takes it upon itself to try to serve a complex, modern service to a population as large and diverse as the United States?

“You know, health care is a very complex subject,” Trump said. “If you do this, it affects nine different things. If you do that, it affects 15 different things.” Couldn’t agree more, Mr. President.

Is It The Duty Of The Government To Educate Its Citizens?

Government has no business in education and should get out of it.

This is an essay based on a motion debate that I performed in recently. My friend Chuck Braman and I defended the con side of the debate and argued that it is NOT proper for the government to get involved in education. We won the debate by swaying more audience members to our side, based on votes taken before and after our speeches.

The division of labor was such that Chuck addressed the ethical issues concerned with government involvement in education while I was tasked with providing the economic arguments. His powerful opening statement can be found here; I encourage anyone interested in this topic to give it a read! Below is an essay based on my speech.

Larry Elder makes the point that government education is similar to an item on a restaurant menu that not even the waitress would order. Roughly 11% of Americans send their kids to private school, but nearly 30% of parents who work in public schools do so. In urban areas such as Chicago, New York, San Francisco, and Cincinnati it hovers closer to 40%. To reiterate, these are government education providers choosing to send their kids to the competing private schools.

What about the government officials themselves? 37% of Representatives send their kids to private school. For US senators, that number is a staggering 45%. President Obama, himself a product of private education, made a big show of vetting DC public schools when he was elected. After all of the hullabaloo, he sent his daughters to the most elite private school in the capital. If government education is so great, why do its biggest advocates avoid it like tap water in Mexico?

The reason is that empirically, government education has been a total failure.

Consider the money, first. Over a 30 year time frame from 1970 to 2010, spending on education increased by 375% while test scores have stagnated. We spent a total of $934 billion on public education in 2013 alone. Overall, the US government spends about 7% of its GDP on education. That works out to a little over $15,000 per head, all in.


You would think that such figures would mean that we had a fairly educated populace, right? Think again.

The US administers the National Assessment of Educational Progress (NAEP) exams every 4 years. The test scores out of 500, and is meant to determine how proficient US students are in a variety of subjects. What does the performance look like on these tests for high school seniors, who have been through the rigmarole of twelve years of government schooling?

In history, 50% of seniors place below “basic” and a mere 12% are deemed either “proficient” or “advanced.” In science, 79% of seniors failed to show “proficiency.” In reading, 26% of seniors scored below the minimum. You read that correctly: nearly a quarter of the students that graduate from government education are, for all intents and purposes, illiterate! These stats are all well-documented here and here and here.

Further evidence of the ignorance borne by government schools can be observed in various polls and surveys. For instance, 42% of Americans think that the slogan “From each according to his ability, to each according to his need” appears in one of America’s founding documents. That is, they do not know the difference between the Constitution and the Communist Manifesto. Another poll demonstrated that 18% of millennials were not familiar with Soviet mass-murderer Joseph Stalin. The same poll showed that 32% did not know who Marx was. A frightening 42% were probably under the impression that Mao Zedong was an item you might order from a Chinese restaurant, since they were not familiar with the communist dictator and his oppressive regime.

In 2003, the National Assessment of Adult Literacy conducted by the US Department of Education found that 14% of adults scored below basic on the exam and qualified as “below basic,” making them virtually illiterate. That’s nearly 30 million people, 45% of which graduated from high school!

Far from being “the bedrock of our democracy”, the US Department of Education came into existence in 1979, during the Carter years. Before that, in 1940, the US had a literacy rate exceeding 97% despite the fact that the population had no more than an 8th grade education. Now, nearly 60% of graduating seniors in the US that enter community colleges require remedial education.

Why is the education system producing such abysmal ignorance, in spite of such high spending? The answer is that government is not suited to educating anyone, let alone impressionable children.

Education is another aspect of raising children. Americans expect that parents will shelter, clothe and feed their children without complete government control; why not allow for the same thing in education? In principle, there is no difference between a child with an empty mind and a child with an empty stomach: both needs ought to be served by the parents, not the state.

On most days, liberals and conservatives alike oppose monopolies and will ask the government to interfere in order to prevent their formation. However, the government education system is a monopoly that exercises absolute control over the quality of teachers and the material that is presented. There are no truly “private” schools since each one exists with government permission. Instead of viewing the parent as a client with needs to fulfill in a market setting, the school bureaucrats see parents as obstacles in their way.

The alternative to coercive, government education is voluntary education on the free market. Advocates for free market education do not trivialize its importance by asking to get government out; we hold that education is too important to let the government in. Free markets allow individuals to patronize those establishments that provide the best value for the cheapest price. This is the way to establish rational, objective standards in education. Government standards, on the other hand, are based on the arbitrary whims of bureaucrats rather than what is actually demanded in the market. According to the prevailing view, an Ivy League scholar with multiple degrees has less ability to teach than someone with a bachelor’s in education “bulletin board” design.

Compare education to another, relatively freer industry: technology. Today we carry within our pockets micro-machines that are more powerful than mainframes that took up entire rooms just 30 years ago! 81% of households below the poverty level have access to these miraculous devices. This technology was created not by government bureaucrats, but by entrepreneurs who sought to make a profit by providing value to paying customers.

What would a free market education look like, you may ask? Coercive government education dominates the industry today and renders this question difficult to answer. As in many industries, it is nearly impossible to know exactly what innovative solutions would be implemented, but there are glimpses that occasionally break through here and there.

The internet allows for low cost teleconferencing, recording and podcasting. People can get lessons on the go, or retake courses that they have trouble understanding. Students can view worked examples on YouTube as effortlessly as their parents can view movies on Netflix or Amazon. Indeed, there is a burgeoning industry for private tutoring which features companies such as Hooked on Phonics, Varsity Tutors, Coursera, Rosetta Stone, Khan Academy,, and many others. The trend is that technology is rendering government education largely obsolete and unable to compete.

Meanwhile, companies like Boeing, Apple, IBM and Google already teach summer workshops and seminars for students free of charge. If government were out of the picture, many tech companies would be able to invest in computer science academies that specialize in teaching the students how to use their best-selling products of today and program the  revolutionary products of tomorrow. It would be a win-win for the companies and the students, just as one would expect in a situation with no coercion. Tech would not only be the only industry that would benefit from such an occurrence, though it would certainly be among the first.

All of this, despite the fact that government continues to tax away our earnings in order to subsidize the compulsive government schools. One can only imagine what things would look like if the sacred cow were put to pasture and people were left free to innovate.

Many concerned people may ask: what about the poor? Would they not be able to receive an education if there were no government schools? The critics that take this line seem to forget the fact that most parents, even the poor, love their children and want to see them succeed. In fact, one could argue that the reason some parents may not be as involved in their kids’ education in the first place is because they have been taught by “education theorists” and government policy-wonks that they should stay out of the way and let the state handle it. But I digress.

We can derive solace that education in a free market would be cheaper, since government involvement creates artificial scarcity both by limiting the number of schools that come into existence as well as the limiting the number of educators via certification. Parents would also have less of their income taxed away and would therefore be able to direct more funds into education if they have kids, and this would include the poor. James Tooley and Pauline Dixon have found that even in third world countries, private educators are finding effective means of educating children at a lower cost than the government schools, and with better results.

If there remains a need for education among the poorest, there is always charity. Even with huge amounts of taxation, charities have given millions of dollars to families of low income. For instance, in NYC alone one charity (the Children’s Scholarship Fund) donated $525 million over the past 13 years alone. One can only imagine what that figure would look like if the government were not sapping over $900 billion a year from American taxpayers!

To the extent that a market is free is the extent to which individuals are free to offer value for value, without coercion or physical force. When man has the ability to invest and build without confiscatory taxation or hyper-regulation, he is free to unleash the power of his mind. Imagine what the education industry would like if we allowed the genius of a Steve Jobs, a Henry Ford, or a Thomas Edison to tackle the problem at hand: how to deliver high quality education at the lowest cost.

Education is not a privilege nor is it a right; it is a service, made possible by the effort of those with the ability and the will to provide it.