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Wednesday, September 23rd, 2009

Mayor Bloomberg launched a health initiative last year aimed at reducing the city’s salt consumption leading to such memorable headlines as the New York Post‘s:

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The other New York rag, the Daily News, quoted Bloomberg on the new salt initiative:

People are eating too much salt, me included. After this, we can keep going. People don’t like to have somebody come in and tell them what to do, but afterward, if it turns out to be something that’s in their interest, they sure as heck say thank you.

Michael Barbaro of the New York Times though gets the real skinny a year after this initiative is launched: the Mayor himself “dumps salt on almost everything, even saltine crackers.” Barbaro apparently has been watching the mayor in dining situations closely – even counting the number of dashes of salt applied to his pizza: 6. (Salt on pizza?! Really?). This paragraph is representative of the piece:

But Mr. Bloomberg, 67, likes his popcorn so salty that it burns others’ lips. (At Gracie Mansion, the cooks deliver it to him with a salt shaker.) He sprinkles so much salt on his morning bagel “that it’s like a pretzel,” said the manager at Viand, a Greek diner near Mr. Bloomberg’s Upper East Side town house.

There’s nothing wrong with a man – who admits his own faults – attempting to curb unhealthy behavior. But the many micro-initiatives to make New Yorkers healthier do end up getting on my nerves in a manner that makes me more sympathetic to Jacob Weisberg’s Slate piece.

[Image by the Center for American Progress licensed under Creative Commons.]

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Posted in Criticism, New York City, Politics, The Opinionsphere | 2 Comments »

How the Problem of Health Care Undermines the Legitimacy of the Market-State

Thursday, July 9th, 2009

[digg-reddit-me]Philip Bobbitt and other use the term “market-state” to describe the next (and to some extent current) role of the state – in contrast to its previous historical roles. While throughout most of the 20th century, the state’s role was to provide basic services and goods to its people, by the turn of the century – starting in the late 1970s and early 1980s, the state’s role had evolved to providing opportunities to its citizens. The United States has been on the leading edge of this evolution – from Jimmy Carter’s first steps towards deregulation to the Ronald Reagan’s riding of this zeitgeist to power – as he ushered in an era of increasing deregulation and privatisation, and a reduction of all government interventions in the economy. In proposing that “Government is not the solution to our problem – government is the problem!” Reagan placed the Republican Party at the head of this evolution in the government’s role – making Democrats who opposed this seem out-of-touch.

But if a market-state’s success is judged by the extent to which it maximizes opportunities for its citizens – the problems of global warming and health care now threaten to undermine the legitimacy of America’s market-state. The problem in each case began long before the transition to the market-state – but in both, this transition escalated the scale of the problem and made it harder to manage. However, for this post, I’m only focusing on health care.

Coinciding with the deregulation of various industries and other market-state reforms that began in the early 1980s, health care costs began to grow substantially faster than other products and services in America (though without providing better results.) This growth in the costs of health care has created three problems that undermine America’s market-state:

  1. Given the government and state insurance plans for the poor and elderly, this growth undermined the fiscal solvency of the government overall.
  2. The rapid rise in costs has undermined the faith of many citizens in the market.
  3. The business model private health insurance companies have adopted creates extreme insecurity for citizens – thus dampening economic growth and the entrepreneurial spirit needed for a market-state to thrive. Paul Waldman describes the perversity of this model in The American Prospect:
  4. [T]he central pathology of our deeply pathological health-care system is that most of us have no choice but to get health coverage from an entity whose sole reason for being is to take our money and then try to avoid paying for our care when we get sick.

With prices increasing so rapidly and with people feeling less secure in their coverage and the government deficit exploding in the next fifty years, the sense of an impending crisis is palpable. The crisis in health care thus undermines the entire market-state model.

To date, most Repbulicans and right-wingers do not seem to have realized the scope of this problem – the extent to which it undermines the very legitimacy of the type of state they have been promoting. The best proposals that have been made from the right have focused on the ideology of anti-governmentism rather than a focus on the market-state expansion of citizen opportunity that was the true core of Reagan’s success. For example, John McCain, in a bold move, sought to overthrow the system of health care insurance as we know it – and to place the responsibility for paying for health care squarely on the shoulders of individual citizens – instead of the collective pools that spread out such risk, whether organized by employers or the government. This would hold down health care costs – because individuals would be constrained from making health decisions by the amount of money they had to spend. The theory behind this was that the increasing costs of health care stemmed directly from the fact that consumers were going to the doctor or hospital or otherwise using health care more because they did not bear the direct consequences of their decisions. Of course, being out of power and with their ideas generally unpopular with the public, Republicans have instead merely sought to minimize or deny the clear problems with health care and simply be obstructionist.

Alternately, liberals, progressives, Democrats describe health care as a place in which the market has simply failed. As Paul Krugman has recently pointed out, health care economists have long maintained that:

[T]he standard competitive market model just doesn’t work for health care: adverse selection and moral hazard are so central to the enterprise that nobody, nobody expects free-market principles to be enough.

Their are various solutions being worked out by the Democrats – to create regulations that prevent health insurance firms from maintaining their exploitative business model; to create a competitor to these firms that will operate on a different model to keep them honest; to link payment of health care to outcomes instead of time and services.

The great irony is that if the Democrats are successful in reforming health care, they will have legitimized the market-state which many on the left are suspicious of – but they will have done so by firmly rejecting the Republican dogma that the government is always the problem. As Bill Kristol wrote in his famous 1993 memo on Bill Clinton’s attempt at health care reform:

[T]he long-term political effects of a successful Clinton health care bill will be … worse … It will revive the reputation of the party that spends and regulates, the Democrats, as the generous protector of middle-class interests. And it will at the same time strike a punishing blow against Republican claims to defend the middle-class by restraining the growth of government.

Today,  it is only the Democrats who will be able to preserve the legitimacy of the market-state in the midst of this crisis.

[Image by FoxTongue licensed under Creative Commons.]

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Posted in Domestic issues, Economics, Health care, Political Philosophy | 19 Comments »

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