Archived Posts April 2011 - Page 4 of 4 | Acton PowerBlog

Blog author: lglinzak
posted by on Thursday, April 7, 2011

With the ongoing budget battle and the possibility of a government shutdown looming, the Acton Institute has released its “Principles for Budget Reform.” The Acton Institute developed four key principles to reforming the federal budget that will be important to not only providing a sound fiscal budget but a budget that also has a strong moral basis.

In addition to the four principles, readers can also find staff written commentaries that are related to each principle, additional articles written by Acton staff, related blog posts, video of Rev. Sirico discussing morality in the federal budget, and audio from a radio appearance made by Rev. Sirico talking about the “What Would Jesus Cut?” campaign.

As the federal budget process continues, the Acton Institute will continue to update its “Principles for Budget Reform” with the most up-to-date articles available.

To navigate to the “Principles for Budget Reform” webpage click here.

Blog author: lglinzak
posted by on Thursday, April 7, 2011

Rev. Sirico was recently quoted in an article by Our Sunday Visitor titled, “Unions, yes. But when the Church is the employer?” The article utilizes various historical examples to describe the relationship between United States Catholic Church leaders and institutions with their employees. The article seeks to demonstrate a strained relationship between Church leaders and their employees by citing historical examples, such as the 1949 gravediggers strike in New York.

When Catholic social teaching is discussed in the article, Rev. Sirico weighed in:

But Father Robert Sirico, president of the free-market think-tank, the Acton Institute, said there is a popular distortion about how Catholic social teaching views unions. Even in the 1949 gravedigger strike, Father Sirico said, Cardinal Spellman acted only after the union had already rejected a 3 percent raise offer. There were also 1,000 bodies waiting to be buried in the cemetery. “This should be a clear example of the legitimacy of breaking a strike,” he said.

Father Sirico said that if there is any problem in the Church institutions’ dealings with workers, it is that employees are often kept on even if their performance is deleterious to the mission. He said it is incumbent upon Church administrators to make efficient use of their money since the faithful has entrusted them with those resources.

Click here to read the full article.

To read more on Catholic social teaching on unions please click here to read Rev. Sirico’s Acton Commentary, “Catholic teaching’s pro-union bias,” which was also published in the Milwaukee Journal Sentinel on March 1, 2011.

Gas prices are not the only thing on the rise. As of yesterday, corn is at its highest level in three years at $7.60 a bushel and prices are not predicated to go down anytime soon. The United States government anticipates a shortage despite farmers’ intent to plant 5 percent more acreage of corn this year, a shortage is still predicted.

Reuters also indicates that rising corn prices will continue:

U.S. corn prices will keep rising to new highs over the coming months, a new Reuters poll has found, as demand from ranchers and ethanol makers proves better able to withstand record costs than many thought.

The forecasts will compound inflation concerns as higher feed costs filter through to beef and chicken prices. Analysts also warned that anything less than perfect growing weather for the spring crop could push prices even higher as traders fear tight conditions will extend well into next year.

As the article later states, the chances of having a perfect growing season with no weather related problems are very slim.

Reuters also asserts that food prices rose by 14 percent over the past three months which can be attributed to the rising use of ethanol and the ranchers demand for feed for livestock: “The rally has sharpened the focus on two imponderables: the price point at which livestock ranchers or ethanol makers will begin to cut back use, relieving demand pressures; so far, traders say there’s little evidence of this happening yet.”

Perhaps the United States should learn from China’s mistake. An article in the New York Times describes how the biofuel sector does affect the food supply and price, and how China’s ethanol use resulted in higher food prices:

It can be tricky predicting how new demand from the biofuel sector will affect the supply and price of food. Sometimes, as with corn or cassava, direct competition between purchasers drives up the prices of biofuel ingredients. In other instances, shortages and price inflation occur because farmers who formerly grew crops like vegetables for consumption plant different crops that can be used for fuel.

China learned this the hard way nearly a decade ago when it set out to make bioethanol from corn, only to discover that the plan caused alarming shortages and a rise in food prices. In 2007 the government banned the use of grains to make biofuel.

However, the article later explains that China is now using cassava, instead of corn. China may have not entirely learned their lesson as cassava is still a food crop used predominately in Africa and also in China during food shortages.

The article by the New York Times adequately closes with a quote from Olivier Dubois, a bioenergy expert at the UN’s Food and Agriculture Organization that gets at the root of the food and fuel argument: “We have to move away from the thinking that producing an energy crop doesn’t compete with food,” he said. “It almost inevitably does.”

Previous blog posts on ethanol, rising food prices, and the moral issues of the two can be found here, here, here, and here.

It has been over a year since the passing of the Affordable Care Act, and we are still discovering problems with it. Supporters claimed passing the bill will help everyone, especially the vulnerable. However, the Affordable Care Act ironically does just the opposite by placing the elderly in a very dangerous position. Dr. Don Condit, author of the Acton monograph a Prescription for Health Care Reform, explains how the Affordable Care Act negatively impacts the elderly and its violation of subsidiarity in this week’s Acton Commentary. Get Acton News & Commentary in you email inbox every Wednesday. Sign up here.

A Sugar Coating for the Bitter Pill of ObamaCare

By Dr. Don Condit

Remember Mary Poppins singing, “A spoonful of sugar helps the medicine go down in the most delightful way”?

If so, be concerned, because you or your parents are probably on Medicare – or will be soon — and last week the Department of Health and Human Services (HHS) proposed regulations for Accountable Care Organizations (ACOs).

The sugar-coated rhetoric in this announcement from HHS cannot disguise the bad medicine in this part of this part of the Affordable Care Act, which intends to bureaucratically cut as much as $960 million in Medicare spending over three years. This ObamaCare prescription  threatens patients, the physicians who care for them, and the common good. The only clear winners are the consultants and lawyers busy trying to decipher this 429-page tome of acronyms and encrypted methodology that will compromise the doctor-patient relationship and is contrary to the principle of subsidiarity.

Medicare beneficiaries will be “assigned” to 5,000 patient-minimum organizations to coordinate their care. While HHS Secretary Kathleen Sebelius talks about improvement in care, the politically poisonous truth is that Medicare is going broke and ACOs are designed to save money. The words “rationing” or “treatment denial” or “withholding care” are not part of her press release, but reading the regulations reveals intentions to “share savings” with those who fulfill, or “penalize” others who fall short of, the administration’s objectives. The administration’s talking points include politically palatable words which emphasize quality improvement and care enhancement when the real objective is cost control by a utilitarian calculus.

Physicians and other health care providers will find themselves in conflict with the traditional ethos of duty to patient within ACOs. Ever increasing numbers of doctors are leaving private practice and becoming employed by hospitals, due to a variety of challenges inherent in these uncertain times. The hospitals are the most likely recipient of bundled payments for caring for Medicare patients. Doctors will face agency conflicts between the time honored primary duty to patient, which may conflict with hospital administration, and ACO goals of fiscal savings. Medical care providers will receive incentives for controlling spending, and penalties if they do not. “No one can serve two masters” (Matthew 6:24). Not even physicians.

The physician’s ACO conundrum is illustrated in the language where these regulations proclaim that, “Providers should be accountable for the cost of care, and be rewarded for reducing unnecessary expenditures and be responsible for excess expenditures.” Yet the very next sentence stipulates that, “In reducing excess expenditures, providers should continually improve the quality of care they deliver and must honor their commitment to do no harm to beneficiaries.” (page 14)

The principle of subsidiarity guides policy makers to empower decision making and scarce health care resource allocation at the doctor-patient level. However, the Affordable Care Act moves in the opposite direction. It increases bureaucratic power and responsibility. This is not the antidote needed to reform health care in the United States. The complexity, cost, and confusion of implementing these ACO regulations defy comprehension. We can only hope ACOs will follow “just say no” HMOs into the historical ash heap of misguided health policy.

There is no question that significant – and scarce — health care resources are consumed in the Medicare population toward the end of life. ACOs intend to limit this spending — the government way. The Ethical and Religious Directives by the United States Conference of Catholic Bishops suggest a better path forward:

While every person is obliged to use ordinary means to preserve his or her health, no person should be obliged to submit to a health care procedure that the person has judged, with a free and informed conscience, not to provide a reasonable hope of benefit without imposing excessive risks and burdens on the patient or excessive expense to family or community. (32)”

The patient must be the focal point of concern. They, or their surrogate, with the help of their physician, need to become informed. They must also participate in the expense of their care, which will better allocate resources for the community than would more distant bureaucratic panels or regulation.

Furthermore:

A person may forgo extraordinary or disproportionate means of preserving life. Disproportionate means are those that in the patient’s judgment do not offer a reasonable hope of benefit or entail an excessive burden, or impose excessive expense on the family or the community (57).

Enabling all patients, with and without means, to “proportionally” participate in the cost of their care will better allocate scarce health care resources than further sugar-coated, and non-delightful, misguided administrative policies.

By the way, if you didn’t recognize the Mary Poppins song, that’s OK. Worry instead about your grandparents for now, and consider how your generation will counter-reform ObamaCare in the future.

Dr. Donald P. Condit, MD, MBA is an orthopaedic surgeon specializing in hand surgery in Grand Rapids, Michigan. After graduating with a BS in Preprofessional studies at the University of Notre Dame he attended the University of Michigan Medical School. At the Seidman School of Business of Grand Valley State University his emphasis of study was economics and the ethical allocation of scarce health care resources. With his family, he serves annually with Helping Hands Medical Missions in El Salvador. He also volunteers at Clinica Santa Maria and for Project Access, for the uninsured, in Kent County. He is the author of A Prescription for Health Care Reform and is a Clinical Professor of Surgery at Michigan State University.

 

Acton On The AirThis afternoon, Acton President Rev. Robert A. Sirico joined host Paul Edwards on The Paul Edwards Program (broadcasting live from the Acton Institute here in Grand Rapids today, by the way) to discuss some of the hot issues in the world of politics and economics, including the efforts of governors in Wisconsin and Michigan to address the fiscal issues faced by their states, and also giving a response to Jim Wallis’ question of what would Jesus cut? Listen via the audio player below:

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Blog author: lglinzak
posted by on Monday, April 4, 2011

Last week President Obama gave an address outlining his new energy policy. In light of the tragic events in Japan, the speech was much anticipated especially considering the president’s prior commitment to nuclear energy.

As expected President Obama continued advocating for a greener energy policy while continuing to push for the country’s independence from oil. However, the President’s speech, an article by Reuters points out, was “short on details on how to curb U.S. energy demand.”

Furthermore, the President’s call for a path towards greener energy and energy independence will not be easy. The New York Times appropriately states, “The path to that independence — or at least an end to dependence on the Mideast — could well be dirty, expensive and politically explosive.”

President Obama continues to voice his support for alternative fuels and green energy. He argued for energy from wind, solar, natural gas, biofuels, natural gas, and nuclear. However, as I have argued in the past, these alternative fuels have costly subsidies, unintended consequences, are not cost effective, and have proven to be largely inefficient (I address the unintended consequences of ethanol here, here, and here and the unintended consequences with wind turbines here).

The president is calling for more government regulation. He gave a glimpse of a new energy standard he is going to pursue this summer, “This summer, we’re going to propose the first-ever fuel efficiency standards for heavy-duty trucks. And this fall, we’ll announce the next round of fuel standards for cars that build on what we’ve already done” he said. In an economy that is looking to rebound from a recession, businesses do not need another costly government mandate forcing them to change their transportation fleet. Instead, the President should rely on the market. Businesses will upgrade their transportation fleet naturally through the market when it is efficient and more cost effective for them to utilize heavy-duty trucks that are more fuel efficient.

The president also stated that we need to look to other countries, such as Brazil, for oil. However, an article published by Real Clear Markets is very critical of the President’s pursuit of Brazilian oil:

Now, with a seven-year offshore drilling ban in effect off of both coasts, on Alaska’s continental shelf and in much of the Gulf of Mexico – and a de facto moratorium covering the rest – Obama tells the Brazilians:

“We want to help you with the technology and support to develop these oil reserves safely. And when you’re ready to start selling, we want to be one of your best customers.”

Obama wants to develop Brazilian offshore oil to help the Brazilian economy create jobs for Brazilian workers while Americans are left unemployed in the face of skyrocketing energy prices by an administration that despises fossil fuels as a threat to the environment and wants to increase our dependency on foreign oil.

Furthermore President Obama’s talk of expediting drilling permits is not wholly accurate. The Obama Administration has not been friendly to offshore domestic drilling since the BP disaster last year. As the above quoted article from Real Clear Markets explains, there has been a seven-year offshore drilling ban on Alaska’s continental shelf and in much of the Gulf of Mexico. That has not changed under the Obama Administration. The Heritage Foundation pointed out in February:

Putting aside calls from some who want to increase domestic exploration to areas in Alaska and elsewhere, President Obama has completely shut down the existing oil drilling infrastructure in the U.S. At least 103 permits are awaiting review by the Bureau of Ocean Energy Management, Regulation and Enforcement. The federal government has not approved a single new exploratory drilling plan in the Gulf of Mexico since Obama “lifted” his deepwater drilling moratorium in October 2010. Obama also reversed an earlier decision by his administration to open access to coastal waters for exploration, instead placing a seven-year ban on drilling in the Atlantic and Pacific Coasts and Eastern Gulf of Mexico as part of the government’s 2012-2017 Outer Continental Shelf Program.

As expected the president’s energy speech is not receiving much praise from the oil industry. Obama claimed that the oil industry is sitting on leases instead of using these for oil production. Ken Cohen, Exxon Mobile Corp.’s vice president of public and government affairs addressed the President’s claims and reflected on his speech in a Wall Street Journal article:

Said Mr. Cohen: “90% of the words sound relatively right in line with what you’d hear us say,” in terms of enhanced use of natural gas, increasing energy efficiency, more research and development and more domestic production. But the speech didn’t address policies that Mr. Cohen said are hampering oil development, such as opening areas that are off limits to the industry, and insisted on uneconomic mandates for renewable fuel. Moreover, the mention that oil companies are hoarding unexploited leases is off the mark, he said.

“The notion that there’s some economic incentive to sit on a lease is wrong,” Mr. Cohen said, particularly when oil prices are above $100 a barrel.

Despite the recent tragic events of Japan’s nuclear power disaster, it was relieving to see the president not call a halt to nuclear energy. While it will most likely take time for nuclear energy to rebound from the catastrophic events, the president looked at the situation pragmatically by continuing to voice support for nuclear energy while requesting a Nuclear Regulator Commission safety review to make sure all existing nuclear energy facilities are safe.

Despite the criticism, it is still important to keep in mind that we are all stewards of the Earth and need to take care of the planet God has given us. We do not get a replacement and we must see that future generations have a planet they can live in without problems created by our generation. The President’s call to not waste energy should be applauded, and advice we should all heed. However, as the United States continues to define its energy policy it is also equally important to keep in mind we are called to not just be environmental stewards, but also financial stewards. Our energy policy should be for the well-being of the planet but also economically feasible without being burdened with costly subsidies and unintended consequence.

Full text from President Obama’s speech can be found here.

The American Enterprise Institute also provides and insightful critique on the President’s speech which can be found here.

Blog author: hunter.baker
posted by on Sunday, April 3, 2011

While visiting my grandmother’s home for her 95th birthday a little evening television surfing brought us to House Hunters International. We observed with fascination as a couple living in New Orleans worked toward their move to the French countryside.

The husband was a professional trumpeter apparently making money on the side as a carpenter. The wife was identified as a dancer of some sort. While we heard the husband pop out a few bars of When the Saints Come Marchin’ In on a couple of occasions, the wife did not provide any sort of evidence of her spinning and twirling chops. They had a young son and seemed to have a friendly community of pals in the Big Easy.

During the episode, we discovered that the wife was French and that was part of the motivation for making the move to France, but the big draw, enthusiastically embraced by the husband, was that “Everything is free there!” He went on to mention health care as an example.

The first thing that comes to mind is that this young fellow needs an immediate short course in Robert Heinlein’s TANSTAAFL (There Ain’t No Such Thing as a Free Lunch). Someone is paying, my friend. Now, maybe it’s a rich guy. I don’t know. Does the rich guy owe this couple free healthcare? Or then again, maybe they will pay for it after all. Maybe they’ll pay in taxes. Maybe they’ll pay in other ways than money. Maybe they’ll pay with things like time and DMV-style inconvenience.

The second thing that occurs to me is that policymakers in France can’t be very happy with developments like this. A young couple with no certain way to make a living is moving to their country to take advantage of “free” things like healthcare. THAT’S GREAT NEWS!

The word “sustainability” applies to things other than the environment. :-)

In today’s Grand Rapids Press I respond to a previous piece by religion columnist Charley Honey, “Religious voices have a place in the state’s budget cut discussions.”

I Hope I Die Before I Get OldI argue in “Christ’s kingdom is bigger than the federal government” that there is a basic confusion from many religious voices in the budget debate about the primary role of the federal government, and make the point that Abraham Kuyper’s “famous quotation attributes the claims of lordship over ‘every square inch’ of the world to Christ, not to the government. To miss this critical distinction is to undermine the very basis of Kuyper’s comprehensive and variegated social thought. For Kuyper, there are important differences among the responsibilities of the government, the church, the family, schools and a host of other social realities.”

I also refer to last month’s conversation with Gideon Strauss of the Center for Public Justice on “A Call for Intergenerational Justice” (audio here). Be sure to check out the event later this month where I’ll be a panelist to discuss these issues along with Strauss, Jennifer Marshall, Ron Sider, Jonathan Merritt, and Ryan Streeter, “I Hope I Die Before I Get Old,” hosted by the American Enterprise Institute (the event will be streamed online for those fortunate enough not to live in or near the Beltway).

Richard Reinsch II has an excellent condensed summary of his book Whittaker Chambers: The Spirit of a Counterrevolutionary over at the Heritage Foundation. I really cannot praise Reinsch’s account enough. It is perhaps the best book I read in 2010.

I reviewed the book on the PowerBlog and in Religion & Liberty. We also featured Whittaker Chambers as the “In The Liberal Tradition” figure in the last issue of Religion & Liberty. In the write up, we included the citation to the 1984 Presidential Medal of Freedom posthumously awarded to Chambers by President Ronald Reagan. The citation reads:

At a critical moment in our Nation’s history, Whittaker Chambers stood alone against the brooding terrors of our age. Consummate intellectual, writer of moving majestic prose, and witness to the truth, he became the focus of a momentous controversy in American history that symbolized our century’s epic struggle between freedom and totalitarianism, a controversy in which the solitary figure of Whittaker Chambers personified the mystery of human redemption in the face of evil and suffering. As long as humanity speaks of virtue and dreams of freedom, the life and writings of Whittaker Chambers will ennoble and inspire. The words of Arthur Koestler are his epitaph: ‘The witness is gone; the testimony will stand.’

I encourage you to read Reinch’s summary. It is a fitting and informative tribute to one of the great minds of the 20th century.