Opinion

Blame Socialism, Not Shinseki

Larry Kudlow Senior Contributor, CNBC
Font Size:

The VA problem is not Shinseki, it’s socialism. The Veterans Affairs health-care system is completely government run. It is a pure single-payer program. National Review editor Rich Lowry calls it “an island of socialism in American health care.” He is right. I’ve been arguing this all week.

So perhaps Democrats and Republicans will get together to sack VA secretary Eric Shinseki. But that won’t change a thing. In fact, it’s a distraction.

The long waits for treatment, with excessive delays resulting in as many as 40 deaths, are a tragically predictable outcome. This is the result of bureaucratic rationing, price controls, inefficiencies, and the inevitable cover-ups. It was the late James Buchanan, the Nobel Prize-winning economist, who taught us all about bureaucratic incentives in his seminal work on public choice.

So if Congress thinks it can find somebody who can tame the VA bureaucracy, it should go right ahead. But the statist VA health-care system, which in so many ways mirrors the government-run health-care problems in Britain, Europe, and Canada, must be completely changed.

We owe it to our brave veterans. Think of it on the eve on the Memorial Day, when we honor all of our veterans who fought bravely for our freedom. Returning vets today deserve an efficient health-care system, not this slip-shod failure. And the only way to do that is to deliver choice and market competition.

Market competition will control costs and more efficiently distribute services. Profit motive, not run-amok bureaucrats, will discipline the system. Better doctors and health specialists will be attracted to this profit-based system. And our veterans at long last will get the medical care they deserve.

Don’t tell me the problem is not enough government money. That is nonsense. Everyone should go read John Merline’s article in Investor’s Business Daily headlined “VA Health Spending Soars as Vets Decline.” Here are some of his numbers: From 2000 to 2013, VA outlays nearly tripled while the population of veterans declined by 4.3 million. And Medicaid-care spending, which consumes about 40 percent of the VA’s budget, has climbed 193 percent over those years, while the number of patients served by the VA each year went up only 68 percent.

In another informative article, John Fund, citing Michael Tanner of the Cato Institute, notes that 344,000 veterans’ care claims are now backed up and waiting to be processed, that it takes an average of 160 days for health-benefit approval, and that according to VA figures for 2012, veteran appeals face an average wait time of 1,598 days, or more than four years.

Study after study from the CBO and various inspectors general has been consistently critical of the VA operation. And as a Wall Street Journal editorial points out, various VA centers fudge their data.

For years President Obama has been talking about fixing the VA. But he never stayed with it. And now he says he’s angry and wants accountability. But he will never understand that the single-payer government-run system is the real problem.

Of course, the Paul Krugmans of the world and their leftist allies call VA health care a triumph of socialist medicine. But once again we find out that this triumph is a defeat and that socialism doesn’t work. As others have suggested, a system of government vouchers which permits veterans to choose their own health-care plans, especially private health-care plans, would be one giant step towards solving this problem.

Avik Roy points out that Republicans have not stood up for private-sector competition. And the Veterans of Foreign Wars has always opposed market choice and competition. But perhaps this is changing. Senators John McCain, Tom Coburn, and Richard Burr are putting forth a reform plan that will give veterans health-care choice for the first time.

And there’s another warning here. Contrary to the wishes of Senator Harry Reid and House Democratic leader Nancy Pelosi, Obamacare must not become a major step toward single-payer health insurance. Instead, Republicans should fight for thorough Obamacare reform. Get rid of the mandates. Institute real consumer choice. Stop the job-destroying tax and regulatory provisions. And let Americans keep their doctors and insurance plans.

This VA scandal is a reminder that government-run single-payer health care does not work. And it makes it clear that the entire system must be changed. We owe it to our veterans, and everyone else too.

PREMIUM ARTICLE: Subscribe To Keep Reading

Sign up

By subscribing you agree to our Terms of Use

You're signed up!

Sign up

By subscribing you agree to our Terms of Use

You're signed up!
Sign up

By subscribing you agree to our Terms of Use

You're signed up!

Sign up

By subscribing you agree to our Terms of Use

You're signed up!
Sign up

By subscribing you agree to our Terms of Use

You're signed up!

Sign Up

By subscribing you agree to our Terms of Use

You're signed up!
Sign up

By subscribing you agree to our Terms of Use

You're signed up!
Sign up

By subscribing you agree to our Terms of Use

You're signed up!
BENEFITS READERS PASS PATRIOTS FOUNDERS
Daily and Breaking Newsletters
Daily Caller Shows
Ad Free Experience
Exclusive Articles
Custom Newsletters
Editor Daily Rundown
Behind The Scenes Coverage
Award Winning Documentaries
Patriot War Room
Patriot Live Chat
Exclusive Events
Gold Membership Card
Tucker Mug

What does Founders Club include?

Tucker Mug and Membership Card
Founders

Readers,

Instead of sucking up to the political and corporate powers that dominate America, The Daily Caller is fighting for you — our readers. We humbly ask you to consider joining us in this fight.

Now that millions of readers are rejecting the increasingly biased and even corrupt corporate media and joining us daily, there are powerful forces lined up to stop us: the old guard of the news media hopes to marginalize us; the big corporate ad agencies want to deprive us of revenue and put us out of business; senators threaten to have our reporters arrested for asking simple questions; the big tech platforms want to limit our ability to communicate with you; and the political party establishments feel threatened by our independence.

We don't complain -- we can't stand complainers -- but we do call it how we see it. We have a fight on our hands, and it's intense. We need your help to smash through the big tech, big media and big government blockade.

We're the insurgent outsiders for a reason: our deep-dive investigations hold the powerful to account. Our original videos undermine their narratives on a daily basis. Even our insistence on having fun infuriates them -- because we won’t bend the knee to political correctness.

One reason we stand apart is because we are not afraid to say we love America. We love her with every fiber of our being, and we think she's worth saving from today’s craziness.

Help us save her.

A second reason we stand out is the sheer number of honest responsible reporters we have helped train. We have trained so many solid reporters that they now hold prominent positions at publications across the political spectrum. Hear a rare reasonable voice at a place like CNN? There’s a good chance they were trained at Daily Caller. Same goes for the numerous Daily Caller alumni dominating the news coverage at outlets such as Fox News, Newsmax, Daily Wire and many others.

Simply put, America needs solid reporters fighting to tell the truth or we will never have honest elections or a fair system. We are working tirelessly to make that happen and we are making a difference.

Since 2010, The Daily Caller has grown immensely. We're in the halls of Congress. We're in the Oval Office. And we're in up to 20 million homes every single month. That's 20 million Americans like you who are impossible to ignore.

We can overcome the forces lined up against all of us. This is an important mission but we can’t do it unless you — the everyday Americans forgotten by the establishment — have our back.

Please consider becoming a Daily Caller Patriot today, and help us keep doing work that holds politicians, corporations and other leaders accountable. Help us thumb our noses at political correctness. Help us train a new generation of news reporters who will actually tell the truth. And help us remind Americans everywhere that there are millions of us who remain clear-eyed about our country's greatness.

In return for membership, Daily Caller Patriots will be able to read The Daily Caller without any of the ads that we have long used to support our mission. We know the ads drive you crazy. They drive us crazy too. But we need revenue to keep the fight going. If you join us, we will cut out the ads for you and put every Lincoln-headed cent we earn into amplifying our voice, training even more solid reporters, and giving you the ad-free experience and lightning fast website you deserve.

Patriots will also be eligible for Patriots Only content, newsletters, chats and live events with our reporters and editors. It's simple: welcome us into your lives, and we'll welcome you into ours.

We can save America together.

Become a Daily Caller Patriot today.

Signature

Neil Patel