Tag Archives: healthcare

Six studies that show everything Republicans believe is wrong

The great 20th-century economist John Maynard Keynes has been widely quoted as saying, “When the facts change, I change my mind. What do you do, sir?” Sadly, in their quest to concentrate economic and political power in the hands of the wealthiest members of society, today’s Republicans have held the opposite position – as the evidence has piled up against them, they continue spreading the same myths. Here are six simple facts about the economy that Republicans just can’t seem to accept:​

1. The Minimum Wage Doesn’t Kill Jobs.

The Republican story on the minimum wage takes the inordinately complex interactions of the market and makes them absurdly simple. Raise the price of labor through a minimum wage, they claim, and employers will hire fewer workers. But that’s not how it works. In the early Nineties, David Card and Alan Krueger found “no evidence that the rise in New Jersey’s minimum wage reduced employment at fast-food restaurants in the state.” Since then, international, national and state-level studies have replicated these findings – most recently in a study by three Berkeley economists. Catherine Ruetschlin, a policy analyst at Demos, has argued that a higher minimum wage would actually “boost the national economy” by giving workers more money to spend on goods and services. The most comprehensive meta-study of the minimum wage examined 64 studies and found “little or no evidence” that a higher minimum wage reduces employment. There is however, evidence that a higher minimum wage lifts people out of poverty. Raise away!

2. The Stimulus Created Millions of Jobs.

In the aftermath of the 2007 recession, President Obama invested in a massive stimulus. The Republican belief that markets are always good and government is always bad led them to argue that diverting resources to the public sector this way would have disastrous results. They were wrong: The stimulus worked, with the most reliable studies finding that it created millions of jobs. The fact that government stimulus works – long denied by Republicans (at least, when Democrats are in office) – is a consensus among economists, with only 4 percent arguing that unemployment would have been lower without the stimulus and only 12 percent arguing that the costs outweigh the benefits.

3. Taxing The Rich Doesn’t Hurt Economic Growth.

Republicans believe that the wealthy are the vehicles of economic growth. Starting with Ronald Reagan in the 1980s, they tried cutting taxes on the rich in order to unleash latent economic potential. But even the relatively conservative Martin Feldstein has acknowledged that investment is driven by demand, not supply; if there are viable investments to be made, they will be made regardless of tax rates, and if there are no investments to be made, cutting taxes is merely pushing on a string. Thomas Piketty and Emmanuel Saez, two of the eminent economists of inequality, find no correlation between marginal tax rates and economic growth.

In fact, what hurts economic growth most isn’t high taxes – it’s inequality. Two recent IMF papers confirm what Keynesian economists like Joseph Stiglitz have long argued: Inequality reduces the incomes of the middle class, and therefore demand, which in turn stunts growth. To understand why, imagine running a car dealership. Would you prefer if 1 person in your time owned 99% of the wealth and the rest of the population had nothing, or if wealth was distributed more equally, so that more people could purchase your cars?

Every other country in the Organization for Economic Cooperation and Development has far lower levels of inequality than the United States. Since there are no economic benefits of inequality, why hasn’t the right conceded the argument? Because it’s based on class interest, not empirical evidence.

4. Global Warming is Caused by Humans.

Even as global warming is linked to more and more extreme weather events, more than 56 percent of Republicans in the current congress deny man-made global warming. In fact, the infamous Luntz memo shows that Republicans have actually created a concerted campaign to undermine the science of global warming. In the leaked memo, Frank Luntz, a Republican consultant, argues that, “The scientific debate is closing [against us] but not yet closed. There is still a window of opportunity to challenge the science.”

In truth, the science of global warming is not up for debate. James Powell finds that over a one year period, 2,258 articles on global warming were published by 9,136 authors. Of those, only one, from the Herald of the Russian Academy of Sciences, rejected man-made global warming. That one article was likely motivated by the Russian government’s interest in exploiting arctic shale. Another, even more comprehensive study, examining 11,944 studies over a 10-year period, finds that 97 percent of scientists accepted the scientific consensus that man-made global warming is occurring.

This is not an abstract academic debate. The effects of climate change will be devastating, and poor countries will be hurt the worst. We’ve already seen the results. Studies have linked global warming to Hurricane Sandydroughts and other extreme weather events. More importantly, doing nothing will end up being far more expensive than acting now. One study suggests it could wipe out 3.2% of global GDP annually.

5. The Affordable Care Act is Working

President Obama’s centrist healthcare bill was informed by federalism (delegating power to the states) and proven technocratic reforms (like a board to help doctors discern which treatments would be most cost-effective). Republicans, undeterred, decried it as Soviet-style communism based on “death panels” – never mind the fact that the old system, which rationed care based on income, is the one that left tens of thousands of uninsured people to die.

From the beginning, Republicans have predicted disastrous consequences or Obamacare, none of which came true. They predicted that the ACA would add to the deficit; in fact, it will reduce the deficit. They claimed the exchanges would fail to attract the uninsured; they met their targets. They said only old people would sign up; the young came out in the same rates as in Massachusetts. They predicted the ACA would drive up healthcare costs; in fact it is likely holding cost inflation down, although it’s still hard to discern how much of the slowdown was due to the recession. In total, the ACA will ensure that 26 million people have insurance in 2024 who would have been uninsured otherwise.

It’s worth noting that every time the CBO estimates how much Obamacare will cost, the number gets lower. Odd how we’ve never heard Republicans say that.

6. Rich people are no better than the rest of us.

Politicians on the right like to pretend that having money is a sign of hard work and morality – and that not having money is a sign of laziness. This story is contradicted by human experience and many religious traditions (Jesus tells a graphic story about a rich man who refused to help the poor burning in hell). But it’s also contradicted by the facts – more and more rich people are getting their money through inheritances, and science shows that they are no more benevolent than others.

More and more, the wealthy in America are second or third generation. For instance, the Walton family, heirs to the Walmart fortune, own more wealth than the poorest 40 million Americans. Thomas Philippon and Ariell Reshef have found that 30 to 50 percent of the wage difference between the financial sector and the rest of the private sector was due to unearned “rent,” or money they gained through manipulating markets. Josh Bivens and Larry Mishel found the same thing for CEOs – their increased pay hasn’t been correlated to performance.

If rich people haven’t really earned their money, are they at least doing any good with it? Studies find that the wealthy actually give less to charity as a proportion of their income than middle-class Americans, even though they can afford more. Worse, they use their supposed philanthropy to avoid taxes and finance pet projects. Research by Paul Piff finds that the wealthy are far more likely to exhibit narcissistic tendencies. “The rich are way more likely to prioritize their own self-interests above the interests of other people,” Piff recently told New York magazine. “It makes them more likely to exhibit characteristics that we would stereotypically associate with, say, assholes.”

Originally published on The Rolling Stone.

Six ways America is failing its people

Although the U.S. is one of the richest societies in history, it still lags behind other developed nations in many important indicators of human development – key factors like how we educate our children, how we treat our prisoners, how we take care of the sick and more. In some instances, the U.S.’s performance is downright abysmal, far below foreign countries that are snidely looked-down-upon as “third world.” Here are six of the most egregious examples that show how far we still have to go:

1. Criminal Justice

We all know the U.S. criminal justice system is flawed, but few are likely aware of just how bad it is compared to the rest of the world. The International Center for Prison Studies estimates that America imprisons 716 people per 100,000 citizens (of any age). That’s significantly worse than Russia (484 prisoners per 100,000 citizens), China (121) and Iran (284). The only country that incarcerates a higher percentage of its population than we do is North Korea. The U.S. is also the only developed country that executes prisoners – and our death penalty has a serious race problem: 42 percent of those on death row are black, compared to less than 15 percent of the overall population.

Over two and a half million American children have a parent behind bars. A whopping 60 percent of those incarcerated in U.S. prisons are non-violent offenders, many of them in prison for drug charges (overwhelmingly African-Americans). Even while our crime rate has fallen, our incarcerated population has climbed. As of 2011, an estimated 217,000 American prisoners were raped each year ­– that’s 600 new victims every day, a truly horrifying number. In 2010, the Department of Justice released a report about abuse in juvenile detention centers. The report found that 12.1 percent of all youth held in juvenile detention reported sexual violence; youth held for between seven and 12 months had a victimization rate of 14.2 percent.

2. Gun Violence

The U.S. leads the developed world in firearm-related murders, and the difference isn’t a slight gap – more like a chasm. According to United Nations data, the U.S. has 20 times more murders than the developed world average. Our murder rate also dwarfs many developing nations, like Iraq, which has a murder rate less than half ours. More than half of the most deadly mass shootings documented in the past 50 years around the world occurred in the United States, and 73 percent of the killers in the U.S. obtained their weapons legally. Another study finds that the U.S. has one of the highest proportion of suicides committed with a gun. Gun violence varies across the U.S., but some cities like New Orleans and Detroit rival the most violent Latin American countries, where gun violence is highest in the world.

3. Healthcare

A study last year found that in many American counties, especially in the deep South, life expectancy is lower than in Algeria, Nicaragua or Bangladesh. The U.S. is the only developed country that does not guarantee health care to its citizens; even after the Affordable Care Act, millions of poor Americans will remain uninsured because governors, mainly Republicans, have refused to expand Medicaid, which provides health insurance for low-income Americans. Although the federal government will pay for the expansion, many governors cited cost, even though the expansion would actually save money. America is unique among developed countries in that tens of thousands of poor Americans die because they lack health insurance, even while we spend more than twice as much of our GDP on healthcare than the average for the Organization for Economic Co-operation and Development (OECD), a collection of rich world countries. The U.S. has an infant mortality rate that dwarfs comparable nations, as well as the highest teenage-pregnancy rate in the developed world, largely because of the politically-motivated unavailability of contraception in many areas.

4. Education

The U.S. is among only three nations in the world that does not guarantee paid maternal leave (the other two are Papua New Guinea and Swaziland). This means many poor American mothers must choose between raising their children and keeping their jobs. The U.S. education system is plagued with structural racial biases, like the fact that schools are funded at the local, rather than national level. That means that schools attended by poor black people get far less funding than the schools attended by wealthier students. The Department of Education has confirmed that schools with high concentrations of poor students have lower levels of funding. It’s no wonder America has one of the highest achievement gaps between high income and low income students, as measured by the OECD. Schools today are actually more racially segregated than they were in the 1970s. Our higher education system is unique among developed nations in that is funded almost entirely privately, by debt. Students in the average OECD country can expect about 70 percent of their college tuition to be publicly funded; in the United States, only about 40 percent of the cost of education is publicly-funded. That’s one reason the U.S. has the highest tuition costs of any OECD country.

5. Inequality

By almost every measure, the U.S. tops out OECD countries in terms of income inequality, largely because America has the stingiest welfare state of any developed country. This inequality has deep and profound effects on American society. For instance, although the U.S. justifies its rampant inequality on the premise of upward mobility, many parts of the United States have abysmal levels of social mobility, where children born in the poorest quintile have a less than 3 percent chance of reaching the top quintile. Inequality harms our democracy, because the wealthy exert an outsized political influence. Sheldon Adelson, for instance, spent more to influence the 2012 election than the residents of 12 states combined. Inequality also tears at the social fabric, with a large body of research showing that inequality correlates with low levels of social trust. In their book The Spirit Level, Richard Pickett and Kate Wilkinson show that a wide variety of social indicators, including health and well-being are intimately tied to inequality.

6. Infrastructure

The United States infrastructure is slowly crumbling apart and is in desperate need for repair. One study estimates that our infrastructure system needs a $3.6 trillion investment over the next six years. In New York City, the development of Second Avenue subway line was first delayed by the outbreak of World War II; it’s still not finished. In South Dakota, Alaska and Pennsylvania, water is still transported via century-old wooden pipes. Some 45 percent of Americans lack access to public transit. Large portions of U.S. wastewater capacity are more than half a century old and in Detroit, some of the sewer lines date back to the mid-19th century. One in nine U.S. bridges (or 66,405 bridges) are considered “structurally deficient,” according to the National Bridge Inventory. All of this means that the U.S. has fallen rapidly in international rankings of infrastructure.

America is a great country, and it does many things well. But it has vast blind spots. The fact that nearly 6 million Americans, or 2.5 percent of the voting-age population, cannot vote because they have a felony on record means that politicians can lock up more and more citizens without fear of losing their seat. Our ideas of meritocracy and upward mobility blind us to the realities of class and inequality. Our healthcare system provides good care to some, but it comes at a cost – millions of people without health insurance. If we don’t critically examine these flaws, how can we ever hope to progress as a society?

Originally published on The Rolling Stone.