The budget: An “immoral document”
This Web only Speakout has not been edited.
Brian T. Schwartz
Sunday, April 6, 2008
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A “moral document.” This is what Colorado House Democrats called their budget ("State budget clears House,” March 27), which expands government-run children’s health insurance. This moral grandstanding is typical of the anointed, who support expanding Medicaid and the State Children’s Health Insurance Program (SCHIP) — and it’s nonsense. There’s no compassion or virtue in spending other people’s money taken by force.
If a thug forces you to donate to charity, does that make either you or the thug virtuous or compassionate? What if this charity unfairly competes with voluntary charities, fosters dependency of recipients, encourages people to stop buying private insurance, and is run by a government that makes insurance expensive in the first place? All of these apply to Medicaid and SCHIP, which are government-run charities.
Advocating for government-run charities doesn’t make one compassionate, as there’s no compassion in forcing others to comply with another’s notion of virtue. Unlike voluntary charities, not “donating” to a government charity through taxes lands you in prison.
Compulsory donations to government charities are unfair to voluntary charities. Every dollar the state extorts from taxpayers for SCHIP or Medicaid is one less dollar for a voluntary charity.
Forced giving is also disrespectful and intolerant. By forcing us to fund causes others think are important, it thwarts our freedom of expression and ability to support causes we judge to be worthwhile.
Unlike government charities, voluntary charities have strong incentives to be effective. Since they compete with other charities for donations, they must convince potential donors that their cause is worthwhile. Government charities need not persuade.
We know the cost of not “donating": prison.
If each Colorado adult funded Medicaid and SCHIP equally, we’d each pay almost $1000 per year. If you had $1000 to donate to a medical charity, which would you choose? Would you choose SCHIP, or a voluntary charity like Rocky Mountain Youth Clinics, which provides primary care to infants, kids, and teens?
Might SCHIP or Medicaid deserve your donations? Downloading Cato Institute studies “Sinking SCHIP” and “Medicaid’s Unseen Costs” could provide guidance. SCHIP covers non-needy families: more than half of eligible children already have private insurance. The National Bureau of Economic Research reports that “For every 100 children who are enrolled in public insurance, 60 children lose private insurance.” Both Medicaid and SCHIP ensnare recipients in a low-wage trap: aversion to seeking higher-paying jobs for fear of losing “benefits.” This keeps people on their backs and dependent on government, instead of being independent and self-sufficient. As “entitlement” programs, they send adults the message that they are entitled to have children — even if they cannot afford to raise them.
Too bad you have no choice; it’s your hard-earned income after all. But government could provide such choice — by allowing its programs to compete more fairly with voluntary charities. One method is a dollar-for-dollar tax credit for donations to non-government charities that assist families with the medical and insurance expenses.
Taxpayers who prefer Medicaid and SCHIP to non-government charities can continue to fund them. The threat of lost tax revenue would give Medicaid and SCHIP strong incentive to effectively and efficiently assist families in need and foster their independence.
Empowering taxpayers to choose allows for true compassion, which is absent when we are forced to give. Taxpayers could compare non-profits with tools like Charity Navigator and GuideStar.org. GuideStar envisions “an increasingly efficient nonprofit marketplace where donors seek out and compare charities, monitor their performances, and give with greater confidence; nonprofit organizations pursue more effective operating practices, embrace greater accountability, and enjoy lower fund-raising costs; and society benefits from a more efficient, generous and well-targeted allocation of resources to the nonprofit sector.” So drop the “you’re a bad person for opposing government charity” rhetoric and rise to this challenge: If Medicaid and SCHIP are so good, why not let them compete fairly with other charities, and let individual taxpayers decide for themselves?
Brian T. Schwartz, Ph.D., submitted the free-market proposal to the Blue Ribbon Commission on Healthcare Reform.
Comments
Posted by jay on April 6, 2008 at 3:41 p.m. (Suggest removal)
I say put it to the voters...the vast majority of whom support the dems plan to cut corporate welfare, out of control defense spending and other republican boondoggles in order to shore up the support for the children of america.
Posted by bdaviet on April 6, 2008 at 9:08 p.m. (Suggest removal)
I have been on Medicaid all my life. Now Mr. Schwartz just in the last six months of 2006 Medicaid spent upwards of $56,000 on my care. I have a heart transplant and am grateful for every day. I think uneducated greed-mongers like you should learn the facts about the problems surrounding Medicaid, or would you just prefer that people as sick as me stop clogging up the line at your local Starbucks.
The fact is that some form of government healthcare is needed for those that can't afford it. I agree that the current Medicaid system is severely flawed but not because its taxpayer funded it you so worriedly explain.
The real problem is that there is no real bridge or fallback system in place for those with health problems who do want to work and be contributing citizens. I have a degree in Broadcasting and have "worked" as a music journalist for over fifteen years. Of course due to Medicaid I can only be paid a very small amount and not allowed to save any of it.
This is because the schmucks that have ran this country have never sat down and figured out a way for those dependent on Medicaid, long term or not, to earn money that could be used to contribute to their own healthcare. In my case I would practically have to be a rock star to afford my medical bills and the cost of living. Am I dependent on Medicaid? Yes, but if allowed I would give my share. I have the potential to make $30 to $40 dollars an hour with my education. Now that's decent but my medicine bills alone are about $2000 a month, not including the three or four Medical appointments I have a month. It’s the government, who pitifully reimburses healthcare providers pennies to the dollar and the mighty pharmalogical companies that are really stealing you precious money Mr. Schwartz.
The fact is Medicaid forces people to live at or below the poverty line to get their lifesaving services. Its a hell of a trade, one that I think often turns people to crime, destroys lives and causes low self esteem that promotes problems like alcohol dependence and depression, both of which I’m currently being treated for on Medicaid’s dime, despite the fact that I have been sober for some time. Of course these rules are designed to feed more money into the “system” by creating problems that would not exist in many cases if people were allowed to be independent and feel secure about their healthcare.
As for you Mr. Brian T. “the Schwartz in NOT strong with this one” Schwartz, I suggest you look into Medicaid reform, unless you support mass genocide for disabled people, and learn the real facts behind the Medicaid crisis. As for now when I can’t afford my medicine because of Medicaid cuts I know whose house I’m going to rob first. I’ll leave you a copy of Medicaid’s eligibility rules as compensation.
Posted by infidel91 on April 9, 2008 at 2:44 p.m. (Suggest removal)
"As for now when I can’t afford my medicine because of Medicaid cuts I know whose house I’m going to rob first."
Robbing taxpayers in person, rather than anonymously relying on faceless bureaucrats to do it for you, would at least be a more honest expression of your belief in your entitlement to the property of others.
Posted by LFC on April 12, 2008 at 1:35 p.m. (Suggest removal)
bdaviet-
You make an argument for yourself. But I don't feel that you are letting out your whole story, you are giving us a small part of your life to justify your spending of tax payers money. What is the whole story? If you worked a 40 hour week at $30/hour, that would give you $4800 before Taxes, and I am sure you can write some of your bills off so that you can keep a good deal of that. Even if they take $800/month taxes that still gives you $2000/month after your medical bills. Is this possible for you to do?
bdaviet, please don't think I am calling you personally a free loader. I am not. I think Medicaid has its place in our society, but not nearly the amount that it is being abused by many. Life is about choices, and alot of people make bad choices and then want others to bail them out. Should I have to pay someones bills because they had too many children (it is called birth control), drank too much, smoked too much, ate too much Mcdonalds, lived a life of high risk...i.e. too many sex partners, and now they have HIV. I mean is that right bdaviet?
It is amazing to see homes that I have been in seeing children running around in worn out clothes, kitchen an absolute mess, and empty alcohol bottles sitting on top of their 52" brand new TV. How did they afford that!!?? I can't! These people tell say they have medicaid and want to go to the hopital for a cough. So they get a free handout and go out and buy big screen tv's. Who is holding those people responsible? It seems that they feel it their right to get the free handout and they have no incentive to get up and go get themselves a better life. I mean if someone was giving me stuff for nothing, why would I want to work?
Like I said bdaviet, I think there is a place for medicaid, but those should be very special circumstances. Like for people who really CAN'T work. I say if you can make $4800/month or more and get off Medicaid do it! Sure it may be tough! But you would be standing on your own two feet, and that is a great feeling! It puts pride in a person's heart. Like I said I don't know your story. You gave me a small part, so please take no offense by what I have said.
I am just one American that is tired of free handouts. I want people to stand up and take responsibility for their lives, even if it is hard. But right now it is my opinion that we are becoming a nation that is losing it's way.
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