razma766's Blog

A Political Romance

Here is a letter I recently sent to the Midland Daily News:

Imagine the excitement of wealthy health industry executives as they watch the progression of the healthcare bill through the political system. These executives have been paying lobbyists large sums of money in an attempt to pass healthcare reform and it’s all about to pay off. If the bill passes, it will require every single American to have health insurance resulting in a large increase in the demand for their health services.

An even larger increase in demand will result from a lack of rationing from the consumers. Under healthcare reform, consumers will have access to as many healthcare services as they can get their hands on at no additional costs to themselves. To top it off, a credible third party with deep pockets (government) will pick up the tab for all additional expenses. In short, health reform will offer guaranteed payments and increased revenues to already wealthy individuals working within the healthcare industry.

Some may read the paragraphs above and say that I have it all wrong; healthcare is a human right and the reform is all about helping those who are not fortunate enough to provide for themselves. If this is the thought passing through your mind, you are likely an extremely kind hearted individual who is unknowingly endorsing the plans of special interests. In order to understand why this is true, it is important to be able to distinguish between the actual political process and the theatrical performances that follow.

The actual political process goes something like this – Special interests have a strong desire to extract money from the public purse. Unfortunately, extracting money from the public purse is a tricky process – No one ever approaches the government and says “I need $1 million dollars because I’m a good person and I deserve it.” Besides, special interests are much too sophisticated for such a request. Instead, they pay lobbyists and politicians (through campaign contributions) to ask for the same thing in a slightly different way. As soon as the payments have been made, the theatrical performances ensue. All of a sudden, lobbyists and politicians are saying “We need to pass bill X to protect the middle class.” What remains unmentioned is the $1 million that ends up in the pockets of special interests as a result of bill X.

The benefits of bill X are then mentioned in the media which excites regular citizens, causing a few of them to become activists. These activists are generally the kind hearted individuals mentioned earlier who unknowingly become the frontmen for special interests. The activists then go out on the streets and inform other people of the bill’s merits. Once the bill passes into law, the special interests pocket a portion of the loot for themselves and distribute the remainder to the political party and politicians who helped pass the bill. When another opportunity presents itself, a portion of the loot is spent to hire more lobbyists to begin yet another cycle.

This cycle will continue until the public at large stops romanticizing over the theatrical performances of politicians and realize what actually happens within the political system. With this knowledge, the endorsement of healthcare reform by several prominent politicians will be “no more surprising than that a hog would gorge itself when presented with a trough of food and be about as appetizing to watch.”*

Kurt Bouwhuis

*Andrew P. Morriss, Letter to the Financial Times, Oct. 14, 2008.

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Market “Impossibilities”

Here is a letter I recently sent to the Lansing State Journal:

In his recent letter, James W. Perkins claims that “The health-care system does not belong in the free enterprise arena, where one checks prices, then decides to buy or not to buy because the item can be done without. With health care, not treating the condition can lead to worse health or death – that’s not a free enterprise decision. Leaving crucial, desperate, life or death health concerns in the hands of those who are in profit making businesses is not wise” (“Market can’t run health,” November 25).

Changing a few words in his statement revels why such a statement is faulty. “Growing food does not belong in the free enterprise arena, where one checks prices, then decides to buy or not to buy because the item can be done without. With the food industry, not eating can lead to worse health or death – that’s not a free enterprise decision. Leaving crucial, desperate, life or death health concerns in the hands of those who are in profit making businesses is not wise.”

Kurt Bouwhuis

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Politics and Theatre

Here is a letter I recently sent to the Midland Daily News:

John Burke writes in his recent letter that: “[U.S. Rep. Bart Stupak should] also remember that health care reform is a moral issue in itself. That thousands are dying every year because of the lack of affordable health care is also a call to provide help "to the least of these" (Matt 25:40)” (“Stupak Admired,” Nov 18).

I agree 100% that thousands of people dying every year due to lack of health care is awful.  Unfortunately, it does not logically follow that government is the most effective tool for alleviating this problem.  Even if it were possible to accurately communicate the desires of the public to congress, it is highly unlikely that congress would fulfill the desires of the public over the desires of special interest groups. 

The current health care proposals are no exception.  Although health care reform has been sold to the public as a solution to the suffering illustrated above, behind the scenes, it is nothing more than a power grab by big businesses that have effectively used special interest groups to rig government policy in their own favor at the expense of American consumers.

Kurt Bouwhuis

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Thoughts Out of Balance

Kurt Bouwhuis, Mackinac Center Intern

Here is a letter I recently sent to the New York Times:

In his recent op-ed, Paul Krugman expresses great concern over the growing trade deficit between the U.S. and China (“World Out of Balance,” Nov. 15).  A simple example reveals why such concerns are pointless.

Suppose an American businessman decides to trade with China.  He loads American cargo valued at $200,000 onto his ship and exports it to China.  When the ship arrives in China, he sells all of his goods for $250,000 generating a profit of $50,000.  He then uses all of his proceeds to purchase Chinese cargo valued at $250,000.  He loads the cargo onto his ship and brings it back to the U.S.  The net result of this profitable transaction is a trade deficit of $50,000 for the U.S. 

There is, however, a simple way to convert the $50,000 trade deficit into a trade surplus of $200,000 — sink the returning ship and all of its Chinese cargo in the middle of the ocean before it reaches the U.S. port – the import will be nonexistent and our trade balance will gain all that the oceans have swallowed.

Kurt Bouwhuis

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Kids in a Candy Store

Here is a letter I recently sent to the Midland Daily News:

Dana Saxton is troubled by Granholm’s proposal to slash the agricultural extension program (Support Extension, November 12).  She lists several benefits, and concludes by stating: “We need to act now! If we don't act, we will regret it for a long time… Don't let this happen!  Support MSU and 4-H. Contact your government representatives now!”

Amongst the lofty benefits of the program, Dana fails to make even a single mention of the costs.  Lacking any idea of its cost, she then urges her readers to contact their representatives in support of the program.  This is akin to entrusting a child with his parent’s credit card at the local candy store.

Kurt Bouwhuis

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