The Daily Caller

The Daily Caller

Sorry, Granny!

“They’ve been forced to start dreaming up new reasons to pull the plug on granny!” That was my first thought on reading David Brooks’ latest column.  Does Brooks argue that current Medicare spending is simply “unsustainable” if we want to maintain existing, vital programs we’ve come to depend on?  No. Medicare is the vital program we’ve come to depend on.  But, hey, you know, there’s this other big, somewhat vague potential new government program Brooks would like to start spending on–a ” menu” of policies designed to “spark reinvigoration” among the “missing fifth” of the male population that is not in the labor force.   

It will probably require a broad menu of policies attacking the problem all at once: expanding community colleges and online learning; changing the corporate tax code and labor market rules to stimulate investment; adopting German-style labor market practices like apprenticeship programs, wage subsidies and programs that extend benefits to the unemployed for six months as they start small businesses.

A few points:

a) As this post at Seeking Alpha suggests, withdrawal of men from the labor market is a real problem. But the most promising of Brooks’ suggested policies would not require massive new federal spending. Others are questionable or would pay for themselves if they worked.

Is the problem is too much labor market flexibility–reducing the incentive of firms to invest in workers (who are just going to leave)? Seeking Alpha actually agrees with left-winger Tom Geoghegan that it is. But isn’t inflexibility cheap? It seems more a matter of laws and culture than big Medicare-level federal spending.  (There might be nasty side effects, though, to in effect promoting job lock.)

Meanwhile, costly government training programs are a swamp of questionable effectiveness, at least when it comes to building up marketable skills and income. Maybe they’d work better if the goal were simply to get laid off union steelworkers out of retirement and heading off to a job–any job. (Whether dispirited 58-year-olds are the demographic group best positioned to “instigate dynamism” through entrepreneurship is another question. But you never know.)

Changing tax and labor rules to “stimulate investment” sounds like a surefire good thing. But if those changes work, they will presumably produce a bigger tax base and largely pay for themselves. (And how much in federal budget dollars do new “labor market rules” cost anyway?)

I’d add one more item to the menu: a neo-WPA to employ men and women at the very bottom rung  of the market, doing useful public jobs at a wage just below the private sector minimum. This would be cheaper than you’d think because not many men will show up for subminimum wage jobs. In any case, Brooks doesn’t mention it.

b) If you are worried about employing idle men without high school diplomas, a Brooks commenter notesone solution might be to dry up the supply of illegal immigrants who are now doing the jobs those unskilled Americans used to do. Brooks doesn’t mention this, perhaps because he favors passing an immigration amnesty before the flow of additional illegal immigrants is verifiably stanched. So I guess we have to cut Medicare instead! I mean, it’s obvious. Sorry, granny.

c) If the problem is too many people retiring when they could still work, the logical solution is to tighten up the rules and make it harder for them to retire, no? Not make it harder for them to stay alive by cutting back on medical spending. As for risk-taking: I find it easier to take business risks when I know my health care, at least, will be covered. How about you?

d) Echoing the WaPo editorial page, Brooks denounces Medicare demagoguery from both sides:

Republicans decry the technocratic rationing model as “death panels.” Democrats have gone into demagogic overdrive calling premium support ideas “privatization” or “the end of Medicare.”

The gravest problem with these two competing irresponsible, demagogic charges is that they are both true. Obama’s cost-cutting bureaucrats would “be empowered to make rationing decisions,” as Brooks himself declares. “Death panels” is just a pithy pejorative phrase for where, as cost pressures grow, that might plausibly lead (the last stop being something like Britain’s NICE board).  Meanwhile, the current Medicare system offers a virtual guarantee of services. If you substitute a mere subsidy for purchasing insurance, you are indeed ending Medicare and replacing it with something else. Maybe something pretty good, but not Medicare.

Brooks himself is guilty of a much deeper mendacity. He explains that there are ”basically two ways to cut back on the government health care spending”–rationing by bureaucrat or a Ryan-style shifting of risk to consumers. That’s BS. There is a third way, and a fourth way. The third way is keeping Medicare and its guarantee but paring back benefits for affluent recipients who could pay for treatment on their own (“means-testing”). The fourth way is keeping Medicare and its guarantee but adding various across-the-board co-payments and deductibles to discourage overuse.

But these alternatives wouldn’t require rationing care or plug-pulling. There’s your trouble!  If you read Brooks column as a whole–the inchoate, undissected reasons for big Medicare reductions (“doing something significant to invigorate the missing fifth”), the vague, untested ”menu” of alternative programs, the deceptive narrowing of potential cuts down to rationing vs. Ryan, it’s not hard to suspect that for Brooks the real causality runs the other way: He doesn’t want to pull the plug to help the “missing fifth.” He’s talking about the missing fifth because he thinks it might convince some people to pull the plug.

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  • waterfowl

    I remain amazed that there is a government agency in the UK acronymed NICE. It’s the National Institute for Health and Clinical Excellence; there seems to be a letter missing.

    But the bigger problem, obviously, is that someone has used that acronym before. I suppose the folks who decided on the acronym either hadn’t read C. S. Lewis’s That Hideous Strength, or else assumed that no one else had. NICE in that book is, well, not nice. And the book is set in Britain, and the first two words in its “NICE” are “National Institute.”

  • truebearing

    Why are Progressives so obsessed with finding ways to deny-care-to-death, or work to death, those who have been among the most productive citizens in the nation throughout their lives? They aren’t the ones who mismanaged everything they touched and squandered trillions on hare-brained initiatives, or more precisely, vote buying schemes. They aren’t the ones who existed as a parasitic load their entire lives. Why doesn’t Mr. Reinvigorate become Mr. Motivate, and find a way to light a fire in those losers?

    This “missing fifth” BS is highly annoying and troubling. Brooks wants to “reinvigorate” those who have worked for years, while people like himself contribute nothing but idiotic ideas and ideological echoes from Washington. I think he should strap on a tool belt and shinny his worthless ass up a telephone pole, in a thunderstorm, and finally contribute something worthwhile. I’ll chip in for his Depends.

    What about the “missing” workers from the Democratic constituencey, namely the potheads, gang bangers, and chronically uneducated, unemployable minorities? Why don’t we fix what makes them so useless to the nation’s weal? OH, that’s right, we’d have to have functioning schools, and that would mean booting the union’s ass out of education altogether. So instead the left wants to re-tread the retired, and get them working till they drop…..or are denied health care because they aren’t productive enough. Meanwhile the parasite class will continue to suck on the tit till it’s dry.

    May Brook’s lips be permanently welded to a dry tit.

    • ghostof76

      truebearing, would you like to make any guesses as to whether or not the “missing” workers from the Democratic constituency also happen to be the fastest growing segment of the population? lol. Think about the consequences of that statement if it is true.

      Oh, and if you think things are bad now, just wait until the 2020s. The number of 18-year olds entering the workforce will be declining at the same time that the number of new retirees will be peaking. (These stats are easily found on google. They are hard facts.) The only way to make up for the shortfall will be to keep the borders open and allow illegal immigrants to keep on coming.

      Births declined from 2000 to 2010 in America. This generation will be entering the workforce exactly when the boomers (whose births were increasing in the late 1950s and early 1960s) will be hitting retirement age. I’ve yet to see anyone discuss the consequences of this divergence in any depth. lol.

      • truebearing

        I am fully aware of the demographics and equally aware that you are a master of the non sequitur. Just because the number of people retiring is the fastest growing segment of the population doesn’t logically mean we need to leave our borders open and allow a flood of illiterate illegal aliens, with dubious legal histories, to flood the country. They don’t speak english, they are uneducated, and they will are only qualified for manual labor. We need people who are capable of doing more than pulling weeds and working deep fryers.

        To say we need to leave our borders open is idiotic, at best. We can allow for greater numbers of LEGAL immigrants, and we can allow the immigration from countries where people are educated and speak english. That will save massive amounts of money in education alone.

        Monolithic blocks of illiterate peasants from Mexico and South America may suit the Marxists and their sick schemes, but it does nothing for the long term health of this nation. Educated legal immigrants will be qualified for higher level jobs, which we will need to compete with Asia. We have enough fruit pickers for a few centuries.

        We have plenty of young people who need jobs, and until we straighten out the economy, which won’t happen if we heap even more parasites onto the system, we don’t need more competitors for the jobs that teach our youth how to work.

        Your argument seems a bit dependent on the virtues of illegal workers, which you failed to show had any benefit other than availability. Consider that the means conditions the end. When you have millions of people who don’t respect our laws regarding immigration, you are likely to see that lack of respect for our laws in other areas. Why not consider the benefits of legal workers first?

        You’re a little too quick to support the open border BS of Obama and Soros. I’m sure it’s just a coincidence.

        • ghostof76

          I wasn’t commenting on the efficacy (or lack thereof) of an open borders policy. Nowhere did I state it was good or bad. I was simply pointing out the options of dealing with a demographic inversion or an upside down pyramid scheme, which is what social security will be in 2025. The other option is of course to cut benefits in some fashion.

          There was no need to be so defensive. I thought that your original post was pretty funny and spot on. I live in an open-border state and can already see the future, which is getting dimmer rather than brighter.

          If socialism has been so successful, why is the government spending more than ever (as percent of overall budget) on these causes? We are getting virtually no payback for all of this so-called “compassion.” If socialism were doing what its proponents say it should be doing, it would be reducing dependency, not increasing it over long periods of time.

  • wellbasically

    1. A private Medicare would not be any better if the population of workers is not productive enough to support it. For instance if you have a medical savings account, and the stock market crashes, and workers aren’t producing as much, basically you are in as much trouble as the publicly insured, who are depending on tax revenues from productive workers.

    2. End-of-life decisions are much clearer for the family if the old person has an estate.