Government – Page 84 – artdiamondblog.com

How “Free” Government Health Care Works

“Michael Kellerman and daughter Jovi, 1, wait in line near 69th and Underwood for a flu shot Thursday morning.” Source of caption and photo: online version of the Omaha World-Herald article quoted and cited below.

Thousands turned out this morning for Douglas County’s first public clinic for H1N1 flu vaccinations.

The line ran out of the First United Methodist Church to the east, then down 69th Street before hooking west along Cass Street toward 72nd Street.
Police estimated that 4,000 people had gathered by 9:20 a.m.
Phil Rooney of the Douglas County Health Department said the turnout was no surprise.
“There hasn’t been a clinic this size done in the county or in the surrounding counties recently, so we were prepared for a very large crowd, and that’s what we’ve got,” he said.
He said 252 people were vaccinated in the clinic’s first hour. “The pace the first hour was slower than we wanted, so we’re trying to pick that up,” he added.

For the full story, see:
John Keenan and Rick Ruggles. “Long line for flu shots.” Omaha World-Herald online edition (Thurs., Nov. 5, 2009).
(Note: as far as I can tell, having checked several online e-editions for Nov. 5 and Nov. 6, this version of the article was never published in any of the print editions of the paper.)
(Note: at some point the title of the online version of this article was changed to “Flu shot seekers turned away.”)

Biofuels Fail to Meet Fed Industrial Policy Goal

(p. B10) In 2007, Congress set a national goal of creating an advanced biofuel industry, and established a quota for gasoline marketers to blend a modest 100 million gallons of such fuel into gasoline by 2010.
. . .

The industry is likely to miss Congress’s initial quota of 100 million gallons next year, acknowledging that it will make a few million gallons of the advanced fuel, at most. It could fall even further behind the 2011 quota, 250 million gallons. The quota eventually rises to 16 billion gallons by 2022.
The industry partly blames the credit crisis for its slow pace, but acknowledges that getting the conversion techniques to work is the biggest problem.
“It’s certainly turned out to be more complicated technically than people thought it would be,” said Brian Foody, the president and chief executive of Iogen, which hopes to build a large-scale facility.

For the full story, see:
MATTHEW L. WALD. “Industry Built From Scratch.” The New York Times (Thurs., October 15, 2009): B1 & B10.
(Note: ellipses added.)
(Note: the online version of the article is dated October 14th.)

Federal “Stimulus” Money Delays Omaha Road Work

“Work has been put on hold for this stretch of 132nd Street between Blondo Street and West Maple Road. Omaha officials say the stimulus funds will be worth the wait, but some nearby residents are upset about the slowdown.” Source of caption and photo: online version of the Omaha World-Herald article quoted and cited below.

We live near the still-two-lane stretch of 132nd pictured above, and were happy to read in the Omaha World-Herald early last spring that the city would be finishing the widening of 132nd, by widening the above stretch during the summer of 2009. As the summer progressed and widening did not, we became more and more puzzled.
Well, after you read the passages quoted below, you will ‘know the rest of the story’ as Paul Harvey used to say:

(p. 1A) The federal stimulus program, which was designed to accelerate roads projects around the country, instead put the brakes on widening a major Omaha thoroughfare.

The chance to grab $3.5 million in stimulus funds was worth delaying a widening project along 132nd Street between West Maple Road and Blondo Street, Omaha officials decided.
Work was supposed to begin last summer. Now the project between the Champions and Eagle Run golf courses won’t begin until next spring.
Preliminary work was begun in March, when utility lines were moved out of the way. Part of the street was closed for that work.
Area residents expected more crews to start work during the summer.
When nothing happened for months, a handful of residents in the nearby Sunridge neighborhood called the city. They com-(p. A2)plained that digging from the utility work was causing mud and rainwater to pool near the subdivision’s entrances off 132nd Street.
Resident Mary Ellen Pollard was surprised to find out that the widening work had been put on hold because of the stimulus program.
“I thought that stimulus package was for projects that were ready to go,” she said Monday. “If it was ready to go, why didn’t they proceed with it? . . . The barricades are up. Let’s go get it done.”
Plans change, public works officials said.
Meeting federal stimulus guidelines for environmental studies on the 132nd Street project, plus other planning and documentation requirements, took several months, City Engineer Charlie Krajicek said.
“We expected to have some work going this year, but it just didn’t work out,” he said.

For the full story, see:
Tom Shaw. “Stimulus slows 132nd St. work.” Omaha World-Herald (Tuesday October 6, 2009): 1A-2A.
(Note: the online version of the article is dated Weds., October 7 and has the slightly expanded title: “Stimulus Watch: Program slows 132nd St. work.”)
(Note: ellipsis in original.)

Source of map: online version of the Omaha World-Herald article quoted and cited above.

Health Care Incentives and Information Improve When Patients Are Payers

Nobel Prize winning economist Vernon Smith sees that the current health care system is an incentive and information “nightmare.” The third parties, who pay, have neither the incentive nor the information to reward the providers who do a good job. And patients, who have the information, do not have the power or incentives to reward those who do a good job. And since providers are not being rewarded for doing a good job, they will only avoid becoming cynical bureaucrats as long as they are mission-driven saints.
A better system, that goes a long way toward Smith’s “solution,” has been suggested by Susan Feigenbaum, who suggests that third parties provide payments directly to patients, who then may choose what services to buy from which providers.
Here is the core of Smith’s analysis:

(p. A11) The health-care provider, A, is in the position of recommending to the patient, B, what B should buy from A. A third party–the insurance company or the government–is paying A for it.

This structure defines an incentive nightmare.
. . .

I don’t know whether this problem has a solution. If it does, I think it requires us to find mechanisms whereby third-party payment is made to the patient, B, who in turn pays A, supplemented with any co-payment from B for services. Hence, from the moment B seeks services from A both know who is going to be paying A for what is delivered. A and B each has need for what the other brings to the table, and this structure carries the potential for nurturing the relationship between A and B. B is empowered to become better informed about the services recommended by various A’s that he might choose among, and the A’s might find it particularly important to build good reputations with B’s.

For the full commentary, see:
VERNON L. SMITH. “The ABC Dilemma of Health Reform; Third-party payment creates a big incentive problem.” The Wall Street Journal (Sat., OCTOBER 16, 2009): A11.
(Note: ellipsis added.)

Feigenbaum’s prescient suggestion for reform can be found in:
Feigenbaum, Susan. “Body Shop’ Economics: What’s Good for Our Cars May Be Good for Our Health.” Regulation 15, no. 4 (Fall 1992): 26-27.

George Shultz Sceptical of War on Drugs

George Shultz has a distinguished résumé. He was Dean of the University of Chicago business school, Secretary of the Treasury under President Nixon, and Secretary of State under President Reagan. Along with the late Milton Friedman, he is sceptical about the War on Drugs, and is willing to express his scepticism:

(p. A17) He has long harbored skepticism about interdiction as a solution to drug abuse in the U.S. Those doubts were prescient.
. . .
Mr. Shultz recalls what happened shortly after he left government, when his view that interdiction is not the solution came up after a speech to a Stanford alumni group.
Then, as now, he believed that we need to look at the problem from an economic perspective and understand what happens when there is high demand for a prohibited substance. When his comment hit the press, he says he “was inundated with letters. Ninety-eight percent of them agreed with me and over half of those people said I’m glad you said it, but I wouldn’t dare say it. The most poignant comment was from [a former member of the House of Representatives] who wrote and said I was glad to see your statement. I said that a few years ago and that’s why I’m no longer a congressman!”

For the full commentary, see:
MARY ANASTASIA O’GRADY. “George Shultz on the Drug War; The former secretary of state has long doubted the wisdom of interdiction.” The Wall Street Journal (Mon., OCTOBER 12, 2009): A17.
(Note: the online version of the article is dated Oct. 11, 2009.)
(Note: ellipsis added.)

“Recent Temperature Plateau” May Undermine Case for Global Warming

Source of graph: online version of the NYT article quoted and cited below.

(p. A10) The world leaders who met at the United Nations to discuss climate change on Tuesday are faced with an intricate challenge: building momentum for an international climate treaty at a time when global temperatures have been relatively stable for a decade and may even drop in the next few years.

The plateau in temperatures has been seized upon by skeptics as evidence that the threat of global warming is overblown. And some climate experts worry that it could hamper treaty negotiations and slow the progress of legislation to curb carbon dioxide emissions in the United States.
. . .

Underscoring just how little clarity there is on short-term temperature fluctuations, researchers from Britain’s climate change office, in a paper published in August, projected “an end to this period of relative stability,” with half the years between now and 2015 exceeding the record-setting global temperatures of 1998.
Whatever the next decade may hold, critics of global warming have lost no time in using the current temperature plateau to build their case.
“I think it supports the arguments of those who’ve said, ‘What’s the rush for policy on this issue?’ ” said Patrick J. Michaels, a climatologist affiliated with George Mason University and the Cato Institute, a group opposing most regulatory solutions to environmental problems.
. . .

A clearer view of whether the recent temperature plateau undermines arguments for dangerous climate change in the long run should come in a few years, as the predictions made by the British climate researchers are tested. Their paper appeared in a supplement to an August issue of The Bulletin of the American Meteorological Society.
While the authors concluded that there was a 1 in 8 chance of having a decade-long pause in warming like the current plateau, even with rising concentrations of greenhouse gases, the odds of a 15-year pause, they wrote, are only 5 in 100. As a result, the next few years of observations could tip the balance toward further concern or greater optimism.
Meanwhile, social scientists who study the way people understand and respond to environmental problems say it is not surprising that the current temperature stability has created confusion and apathy.

For the full story, see:
ANDREW C. REVKIN. “Plateau in Temperatures Adds Difficulty to Task of Reaching a Solution.” The New York Times (Weds., Sept. 23, 2009): A10.
(Note: the online version lists a date of September 21 and has the title as “Momentum on Climate Pact Is Elusive”, but the body of the article seems to be the same as the print version.)
(Note: ellipses added.)

Feds Spent $850,000 to “Green” Buildings, and then Tore Them Down

(p. 4A) WASHINGTON — The four drafty buildings had been fixtures of the Energy Department complex in Oak Ridge, Tenn., for more than half a century. They burned energy like 1950s sedans.

The buildings seemed like perfect candidates for a federal conservation retrofit program that relies on private contractors that receive a percentage of the money they save. A deal was struck in 2001. The contractor reworked lighting and heating systems, among other things, and began collecting payments.

The project was counted among the department’s “green” successes — until auditors discovered that the buildings had been torn down several years ago, and the government had paid $850,000 for energy savings at facilities that no longer existed.

The audit findings show the potential for waste and abuse at a time when the department is poised to launch billions of dollars more in stimulus spending on an unprecedented welter of green projects across the country.
. . .
The problems are not exclusive to Oak Ridge. The auditors, from the department’s inspector general’s office, also determined that $565,000 had been paid over six years under the same arrangement to a contractor in Texas for a highefficiency laundry that was no longer in use.

The department also paid out $3.4 million on another project without checking whether the conservation measures worked — and $160,000 for measurements that were never taken.

For the full story, see:
THE WASHINGTON POST. “Audit finds ‘green’ projects resulted in waste, abuse; The findings point to a need for oversight as the government readies stimulus projects.” Omaha World-Herald (Sun., Sept. 27, 2009): 4A.
(Note: ellipsis added.)

How Wilson and the Feds Turned “Only Influenza” into “The Great Influenza”

Here is the core of John Barry’s account of how President Woodrow Wilson, and his administration, turned what might have been an ordinary flu, into what, by some measures, was the worst pandemic in human history:

(p. 396) . . . , whoever held power, whether a city government or some private gathering of the locals, they generally failed to keep the community together. They failed because they lost trust. They lost trust because they lied. (San Francisco was a rare exception; its leaders told the truth, and the city responded heroically.) And they lied for the war effort, for the propaganda machine that Wilson had created.

It is impossible to quantify how many deaths the lies caused. It is impossible to quantify how many young men died because the army refused to follow the advice of its own surgeon general. But while those in authority were reassuring people that this was influenza, only influenza, nothing different from ordinary “la grippe,’ at least some people must have believed them, at least some people must have exposed themselves to the virus in ways they would not have otherwise, and at least some of these people must have died who would otherwise have lived. And fear really did kill people. It killed them because those who feared would not care for many of those who needed but could not find care, those who needed only hydration, food, and rest to survive.

Source:
Barry, John M. The Great Influenza: The Story of the Deadliest Pandemic in History. Revised ed. New York: Penguin Books, 2005.
(Note: ellipsis added.)

How Government Universal Health Care Works in India

“Amir Jahan found her health insurance wouldn’t pay for all of her $200 stomach surgery; she continues to work with an untreated tumor.” Source of caption: print version of the WSJ article quoted and cited below. Source of photo: online version of the WSJ article quoted and cited below.

(p. A14) PANIPAT, India — Amir Jahan can spin thick, white thread into magnificent cloth, but the 46-year-old weaver has been unable to unravel her health plan to pay for stomach surgery.

Under a health-insurance program introduced a few years ago, the Indian government has provided health-insurance coverage for the country’s hand-loom weavers, a group of 6.5 million workers, 60% of them female, who are mostly illiterate and invariably poor. Yet holding an insurance card hasn’t helped Ms. Jahan, who says the coverage only pays for minor ailments and not for major problems, such as the removal of a stomach tumor.
“The health care is all a sham,” Ms. Jahan says angrily. “I was refused treatment on grounds of huge expense. I won’t ever go to be humiliated again.”
Ms. Jahan’s health-care issues represent the problems that come with trying to provide insurance to India’s poor. Access to quality care remains a distant dream for many in this country of 1.1 billion.
Last year, the Indian government launched the National Health Insurance Program on (sic) promised health coverage of $700 per person for families earning less than $100 a year.
Holders of health cards have to register in their home states to access benefits, thereby precluding a large population of migrant laborers. Those who can get past the complex state-identification and qualification process often can’t cope with hospital bureaucracies.

For the full story, see:
VIBHUTI AGARWAL. “Indian Weavers Shun Health Plan.” The Wall Street Journal (Sat., Sept., 2009): A14.

Gallup Finds Highest Doubts of Government in Decades

(p. A23) If you want to know why Americans are so fearful of a government takeover of the health-care system, take a look at the results of a new Gallup poll on government waste released Sept. 15. One question posed was: “Of every tax dollar that goes to Washington, D.C., how many cents of each dollar would you say is wasted?” Gallup found that the mean response was 50 cents. With Uncle Sam spending just shy of $4 trillion this year, that means the public believes that $2 trillion is wasted.

In a separate poll released on Monday, Gallup found that nearly twice as many Americans believe that there is “too much government regulation of business and industry” as believe there is “too little” (45% to 24%).
Perhaps most significantly, in both of these polls Gallup found that skepticism about government’s effectiveness is the highest it’s been in decades. “Perceptions of federal waste were significantly lower 30 years ago than today,” say the Gallup researchers. Even when Ronald Reagan was elected president in 1980 with the help of the antigovernment revolt of that era, Americans believed only 40 cents of every dollar was wasted, according to Gallup.
. . .
Over the last decade, the federal government has become bloated and inefficient. Voters are on to the scam. Mr. Obama keeps calling federal spending an “investment,” but Americans apparently feel this is the worst investment they’ve ever made. They’ve come to regard Washington as a $2 trillion Bridge to Nowhere. They are right.

For the full commentary, see:
STEPHEN MOORE. “Our $2 Trillion Bridge to Nowhere; Americans believe Washington squanders half of every tax dollar.” The Wall Street Journal (Weds., SEPTEMBER 23, 2009): A23.
(Note: ellipsis added.)