Origin and Rise of Compulsory Medicine
by Melchior Palyi
hat tip: Mises Daily
Wednesday, March 31, 2010
[Excerpted from chapter 2 of Compulsory Medical Care and the Welfare State (1950)]
Obligatory health insurance started moderately enough — in Prussia. Compulsion under a law of 1845 was left in the hands of municipal administrations, with no government subsidy involved and no contributions from employers. The antisocialist law of 1878 suppressed many of labor’s voluntary associations for sickness benefits. The next step was the governmentalization of the associations’ functions.
Bismarck’s Objectives
It was no mere accident that the ideological forefathers of Nazism, Adolf Wagner and Eugen Dühring, happened to be the “brain trusters” behind Bismarck’s “nationalistic socialism to end international socialism,” using his own terms. When, on January 1, 1884, his compulsory sickness scheme went into operation it literally started a new era — a new age in the history of welfarism.
Bismarck’s role in modern history is rarely spoken of nowadays. Undoubtedly, his political and administrative “genius” has shaped history down to our times. His revolutionary innovation in welfare policy was preceded five years before, in 1879, by the imposition of a protective tariff that started Europe’s internecine commercial warfare which endures to this day. And it was followed by the introduction in 1889 of universal military service covering even the middle-aged manhood. This started a rearmament race leading into total wars with the objective of annihilating entire nations.
The shrewd Iron Chancellor — the dictator in constitutional disguise, quoting M.J. Bonn’s epigram[1] — meant to kill several birds with one stone when he embarked on his program of appeasing labor. The reason, announced in the November 17, 1881, message of Kaiser Wilhelm I, to offer something positive to labor, not merely the repression of socialists by police force, may have been born of genuine worry over the unrest of the working classes due to the long depression that had engulfed Europe since 1875. But the true motive has been pointed out in the penetrating Bismarck biography (Vol. III, pp. 370–71) of Erich Eyck:
To his mind the State, by aiding the workers, should not only fulfill the duty ordered by religion, but it should obtain in particular a claim on their thankfulness, a gratitude that was to be shown by loyalty to the government and by loyal progovernment votes in elections.
In other words, it was the old-fashioned attempt of the monarchy to ally itself with the plebs against the “aristocracy” in between the two. However, the social-insurance legislation did not stop the Marxists from returning in increasing parliamentary strength. The attempt to subdue the socialist movement by appeasement ended in a political fiasco.
Dates That Destroyed America
by Chuck Baldwin
Posted on Mar 24, 2010
hat tip: Chuck Baldwin Live
Passage of the so-called “health care reform” bill in the House of Representatives this past Sunday, March 21 (I won’t even address the inferred unconstitutionality of Congress doing business on the Lord’s Day. See Article. I. Section. 7. Paragraph. 2.) drove yet another stake into the heart of America. For all intents and purposes, it is the health of the United States that is in dire need of healing. In fact, the US has been on extended life-support for decades. With its condition being rendered critical, and absent major surgery, its days are numbered. The passage of this bill only serves to further weaken an already frail Constitution.
In fact, this one may prove to be the fatal blow. Lady Liberty may never recover.
The decision by Congress to socialize medicine in the US ranks among the most draconian, most egregious, most horrific actions ever taken by the central government in Washington, D.C. This bill rocks the principles of liberty and constitutional government to the core. It changes fundamental foundations; it repudiates historical principle. Oh! The same flag may fly on our flagpoles, the same monuments may grace our landscape, and the same National Anthem may be sung during our public ceremonies, but it is not the same America. The Congress of the United States has now officially turned America into a socialist state.
On March 23, 2010, President Barack Obama signed the health care bill into law, and as such, this date–along with March 21–joins a list of dates that have each inflicted unconstitutional, socialistic, and sometimes even tyrannical action against the States United and have, therefore, contributed to the destruction of a free America.
Politics Cannot Be Fixed
by D.W. MacKenzie
Hat tip: Mises Daily
Friday, March 12, 2010
There have been many complaints recently about the way Washington works — or rather its recent failures to efficiently implement Obama’s policy priorities.
Paul Krugman compares the present state of American politics to the gridlock that afflicted 17th-century Poland. Use of the Liberum Veto froze the Polish parliament (the Sejm). Now senators are holding up new legislation in America. Many others have added complaints about special-interest groups and an alleged need for public financing of elections.
Evan Bayh cites partisanship and gridlock as reasons for his departure from the Senate. Bayh claims that it was easier to serve the public “in the old days.” Generally speaking, there is a feeling among many that the legislative process can and ought to work better, and that elected officials can and should do a better job of serving the public.
While critics of the status quo in Washington are no doubt sincere, there are good reasons to see their views as naïve. Ideology does influence the way many senators vote. According to one study, voter preferences are a minor influence on how senators vote, except for senators who face strong opponents in upcoming elections.[1] In highly competitive politics, politicians must ignore more ideological and extreme viewpoints in favor of the centrist positions that Bayh favored. It is, however, quite normal to lack competition in a two-party system. There is a lack of competition in many areas of American politics, but this is normal.
Grading Free Market Capitalism and “The Invisible Hand”
Hat tip: Washington’s Blog
Saturday, February 27, 2010
Free market capitalism is based on the idea that “the invisible hand” of the market will create the best possible outcome for the most people.
But as I noted a couple of weeks ago, the man who came up with idea of the invisible hand did not believe in unrestrained free market capitalism:
Americans have traditionally believed that the “invisible hand of the market” means that capitalism will benefit us all without requiring any oversight. However, as the New York Times notes, the real Adam Smith did not believe in a magically benevolent market which operates for the benefit of all without any checks and balances:
Smith railed against monopolies and the political influence that accompanies economic power …
Smith worried about the encroachment of government on economic activity, but his concerns were directed at least as much toward parish councils, church wardens, big corporations, guilds and religious institutions as to the national government; these institutions were part and parcel of 18th-century government…Smith was sometimes tolerant of government intervention, ”especially when the object is to reduce poverty.” Smith passionately argued, ”When the regulation, therefore, is in support of the workman, it is always just and equitable; but it is sometimes otherwise when in favour of the masters.” He saw a tacit conspiracy on the part of employers ”always and everywhere” to keep wages as low as possible.
