|
August 1, 2006 | By Nathaniel Ward
Heritage takes on the hysterical left
One way Heritage distinguishes itself from other organizations is through its work to spread conservative ideas and counter liberal propaganda in the media—and every day we’re reminded how important this job is. Yesterday, Heritage Senior Research Fellow Ariel Cohen was the voice of reason on Fox News, where he faced off against a representative of the leftist ANSWER coalition. A radical anti-war organization that calls for President Bush’s impeachment, ANSWER is friendly with Communist regimes like Cuba and North Korea and does not believe Hezbollah is a terrorist organization.
The doughnut hole arrives
“The calls are starting to come in from shocked or angry seniors,” The Washington Post reports. “They have just learned that their Medicare drug plans are maxing out on early coverage and that they must now spend $2,850 from their own pockets before coverage will resume.”
The New York Times has more: “Tens of thousands of Medicare beneficiaries who signed up for prescription drug coverage are paying monthly premiums, but Medicare is not paying any of their drug costs because they have reached a gap in their coverage.”
This really shouldn’t be news. Heritage has been warning about this particular design flaw, one of many in the costly and inefficient government-run Medicare prescription drug entitlement, for years. As health expert Ed Haislmaier wrote in early 2005, “the beneficiary must pay entirely out-of-pocket for the next $2,850 of drugs, after the first $2,250.”
It’s worth pointing out that before Congress decided it could better handle seniors’ health care than seniors themselves, roughly 75 percent of that age group had some form of drug coverage.
Fix Medicare or make it worse?
Liberals are drawing the wrong lessons from this problem. Several proposals have been put forth to close the funding gap—and spend even more taxpayer money on the drug program. But the government is already projected to spend almost $40 billion on the drug entitlement just in 2006. Over the long run, current projections suggest the drug benefit alone will add $8.7 trillion in unfunded liabilities. Is throwing even more money at the problem really going to solve anything?
Instead of making things worse by increasing dependence on wasteful government programs, Congress should discard the current prescription drug program entirely. Instead of perpetuating another entitlement program, Congress should:
- Focus on helping only those who need assistance buying drugs by reinstating the drug discount cards that were abandoned last year and allowing unspent subsidies to carry over year-to-year, just like funds in a Health Savings Account.
- Enact means testing for all parts of Medicare to ensure money is not spent on those who do not need as much assistance.
- Establish a new consumer-based health plan for those retiring after 2011, allowing those with private coverage to keep their plans after retirement.
These are just the bare-bones of a reform, though. I encourage you to read The Heritage Foundation’s comprehensive recommendations for Medicare reform.
World Bank President Paul Wolfowitz speaks Monday to an audience at The Heritage Foundation about ways to combat Third World poverty.
Encouraging unemployment
The House of Representatives last week approved a 40 percent increase in the minimum wage, a move which will increase the cost of doing business for firms that employ low-wage workers. Businesses with many such workers will be forced to choose between higher labor costs and reduced profits. This will inevitably result in job losses for those the higher wage is intended to help, the working poor.
Minimum wage hikes have other unintended effects, Heritage economist James Sherk notes. An increase “is intended to reduce poverty, but it does not. Instead it encourages teenagers to drop out of school and reduces low-income workers’ future job prospects and earnings. Good intentions are not enough.”
In another paper, Sherk points out what liberals seem determined to ignore: minimum-wage jobs are entry-level jobs, and most of these workers earn raises quickly. “Minimum wage jobs do not trap low-income workers in poverty,” he writes. “They are the first step on a career path of upward mobility.” Raising the minimum wage, though, ensures that many of them will not be hired in the first place—removing any prospect for upward mobility.
The Chicago Unemployment Act of 2006
Here’s a real-life example of how raising the minimum wage backfires. Chicago’s city council last week passed a minimum wage law that would double the cost of labor for large businesses. Targeted at “box stores” like Wal-Mart, the “living wage” legislation would increase the minimum wage in the city from $6.50 per hour to $10 per hour plus $3 in benefits.
Just like Maryland’s pointless health care law which singled out Wal-Mart (overturned by the courts last week), the bill will cause large businesses to cut payrolls, reduce their operations in the city and reconsider future investments in Chicago. A Wal-Mart spokesman has already said the company would “redirect our focus on our suburban strategy,” which hurts not just urban consumers but urban workers as well. This law is aimed squarely at those it is intended to help, the urban poor, who will face the double blow of lost jobs and higher prices.
An opportunity for young conservatives
Each summer, more than 60 young conservatives serve as interns at The Heritage Foundation. Working directly with our research analysts, policy-makers and professional staff, Heritage interns gain valuable experience even as they gain a firmer understanding of conservative principles.
Heritage intern Heather Hart describes her experiences this summer: “Walking up the steps to the Supreme Court for a meeting with Justice Clarence Thomas sounds like something that only high-powered attorneys and well-connected politicians get to do. But I had this amazing opportunity in only my third week as an intern at The Heritage Foundation.”
In other news
- Heritage expert Robert Rector is in Southern California this week to testify before a House of Representatives “field hearing” on border security and illegal immigration.
- Cuban dictator Fidel Castro underwent intestinal surgery yesterday and turned over power to his brother Raul, the country’s defense minister. Responding to rumors that the Communist tyrant may be near death, President Bush said yesterday that he would ensure Cubans understand “there’s a better way than the system in which they’ve been living under.”
- Israeli forces continue their advance into Lebanon in their quest to root out Hezbollah terrorists. Over the weekend, a rocket attack on the town of Qana allegedly killed dozens of civilians, though Israel’s military says the story seems a bit fishy; some bloggers wonder if it wasn’t staged.
- The New York Times reports that Iran’s government is worried it could lose out in the Israel-Hezbollah war.
- Documents released by the Pentagon indicate that the Guantanamo Bay detainees aren’t exactly model prisoners. Reports indicate that the prisoners attack guards and hurl foul mixtures at them.
Coming up at Heritage
To attend these or any other Heritage Foundation events, RSVP at Heritage’s events website. Or you can watch these events live online at Heritage.org. All times are Eastern.
- On Wednesday, August 2 at noon, Heritage hosts a discussion of communism’s bloody legacy and its continued power over a fifth of the world’s population.
- On Thursday, August 3 at 3:00 pm, Assistant Secretary of Homeland Security Stewart Baker will look at the failures of the 1986 immigration reform and how we can avoid making the same mistakes again.
Nathaniel Ward is the Editor of MyHeritage.org—a website for members and supporters of The Heritage Foundation.
Sign up to get this e-mail
Fill out the form below to receive this e-mail product and more from MyHeritage.org as soon as it's released
|
Send this article to a friend 
Respond to this article 
Print this article 
Send via AOL Instant Messenger 
Send via Yahoo Instant Messenger 
Digg this 
Add to del.icio.us
Furl this
Send to a Friend |
Increase Font Size