In the average state, Obamacare will increase underlying premiums by 41 percent. As we have long expected, the steepest hikes will be imposed on the healthy, the young, and the male. And Obamacare’s taxpayer-funded subsidies will primarily benefit those nearing retirement—people who, unlike the young, have had their whole lives to save for their health-care needs.
Just like this poor couple trying to buy a bed, we are finding out that Obamacare is a gigantic debacle, but “otherwise perfectly all right.” It’s health care, done by Monty Python’s Flying Circus. Look at the facts:
The Obama Administration is counting down the days and rounding up “navigators” to get Obamacare off the ground. (Those navigators, by the way, will get $58 for each person they sign up, on top of their hourly pay.) The big question: Is Obamacare going to work? Will it deliver better health to Americans? There are a lot of skeptics, including Forbes’ Paul Howard. Howard’s concern is that Obamacare is using mid-20th century assumptions about health and insurance in a 21st century world.
Washington’s view of health care remains deeply entrenched in mid-century assumptions about health and illness. Health care via industrial policy makes sense if illness is an Act of God to which all are equally vulnerable and a known quantity of health care can be delivered to everyone at a fixed price. If these assumptions are true, the largest payer – the government – can set the rules of the road, from which all (or almost all) benefit.
That was a reasonable picture of medicine well into the 20th century…when infectious diseases dominated U.S. deaths. But by 1950, heart disease and cancer had displaced infections as the nation’s most potent killers. (“Diseases of early infancy” was still the fourth-leading cause of death in 1950. By 2010, they had dropped off the table entirely.)
Alejandro Chafuen, president and chief executive officer of the Atlas Economic Research Foundation and board member of the Acton Institute, recently wrote a piece for Forbes.com discussing youth unemployment in the United States. According to the latest report, U.S. youth unemployment is at 16.2 percent which is more than double the adult unemployment rate. The unemployment rate for youth in Europe is currently at 24 percent. Chafuen asks, “Can we learn from the European experience?”
Using data compiled by the economic freedom indices of the Fraser Institute in Canada, and the Heritage Foundation, in the United States, we recently looked at how economic freedom, labor regulations, social spending, and regulatory climate, correlated with youth unemployment. Against our preconceptions, at least as shown with our simple static analysis, there were no convincing results. I will spare the reader the statistical jargon and graphs and focus on apparent contradictions. (more…)
Alejandro Chafuen, board member of the Acton Institute and a contributor to Forbes.com, has recently written an op/ed asking, “Will think tanks become the universities of the 21st century?” He says that “think tanks and the academy in all likelihood, were united at birth.” and that “Massive Online Open Courses, or MOOCs, are affecting universities as few other developments in the history of education. [He] would not be surprised if taking advantage of this technology some of the major think tanks, especially those with outstanding scholars on their staff, will soon develop into small boutique universities.” Chafuen also lists several U.S. think tanks that are working on university type programs, including Acton University:
- The Ludwig von Mises Institute, in Auburn, Alabama, has been hosting their Mises University since 1986. The one week course focuses on Austrian economics.
- Cato Institute has its Cato University, usually taking place at the end of July.
- A recent entrant to this market, the Acton University, organized by the Acton Institute, Grand Rapids, Michigan. Last year it attracted close to 800 students and professors from approximately 80 countries. It is the most international free society educational program in history.
- The Atlas Network hosts a Think Tank MBA course for talented intellectual entrepreneurs, as well as a “leadership academy” as an online course to help enhance think tank talent.
He concludes with this thought:
The new global scene and the new technologies are changing the optimum size of educational institutions. The lessons from Plato’s Academy, which took place in a garden grove near Athens, had an enormous impact on civilization. The evolving scene in higher education and the growth of think tanks will lead to new educational offerings that will have a major impact on the quality and quantity of policy studies and public policy education.
Unfortunately registration for Acton University is closed, but you can check out AU Online. The foundational courses are free!
Alejandro Chafuen, president and chief executive officer of Atlas Economic Research Foundation and board member of the Acton Institute, recently wrote a piece for Forbes.com about crony capitalism.
Chafuen used to spend his summers in Argentina, so he begins his article with a story about a friend from Argentina. Enrique Piana, known to his friends as “Quique,” was heir to “Argentina’s oldest and most respected trophy and medals companies.”
During part of the ’90s, the government of President Carlos Menem, and then-Minister Domingo Cavallo, had a policy for the importation of gold and exports of gold fabrications that amounted to a major subsidy for exporters. Attracted by the incentives, Quique, who had become CEO of his company, became a key player in a scheme whereby exporting overvalued gold-plated products netted them 30 million in subsidies for fake transactions. As it seems that none of the medals were sold at artificial value to true customers, the only victims here ended up being the Argentine tax-payers.
The scheme involved a “business” in the United States. As there is still substantial respect for rule of law in the United States, Quique was indicted, captured, and—after some months in a U.S. jail—extradited to Argentina. In his book, he lists the government officials who he claims knew about the scheme and who received bribes for his fraudulent activities. I will not mention them here. None of them were sentenced to jail. (more…)
Alejandro Chafuen, President of the Atlas Economic Research Foundation, is hoping that newly-elected Pope Francis will be able to sort out the misunderstandings of what “social justice” means in the Church today. In today’s Forbes, Chafuen suggests that “social justice” has too often meant (especially in places like the pope’s home country of Argentina) taking from the rich and giving to the poor.
Chafuen observes that the Jesuit order, to which Pope Francis belongs, has a long intellectual history when it comes to describing what social justice should be. (more…)
A new multifaceted initiative, called PovertyCure, provides abundant materials and resources for those who want to create lasting solutions to poverty. The program is founded on the conviction that each human person can be a source of great creativity. It highlights the incentives needed to unleash the entrepreneurial spirit that fills the developing world.
Chafuen also calls attention to PovertyCure’s focus on the big picture:
Many intellectual entrepreneurs and some of their donors and “angel investors” tend to be single-product champions. They focus on only one element in the road to reduce poverty, e.g., women rights, property titles, vaccines. This could lead to neglect of the fundamental problems that impede successful outcomes in their area of work… A fruitful dialogue among participants in PovertyCure can increase the chances that poverty or “human flourishing” programs will be structured with the proper incentives.
Instead of focusing on what we can do to solve poverty, the real question is how do people in the developing world create prosperity for their families and communities.
Learn more about PovertyCure, their network of over 180 organizations, and order the new PovertyCure DVD-Series, a 152-minute documentary-style series that challenges conventional thinking and explores the economic and theological foundations of human flourishing.