Fighting to Defeat the Education ‘Blob’

John Stossel writes that "while most every other service in life has gotten better, faster and cheaper, one of the most important things we buy — education — has remained completely stagnant, unchanged since we started measuring it in 1970."

Stossel goes on to convincingly state the case, including offering that unions are a big part of the problem. Judge for yourself with these comments:

When the Washington Post asked George Parker, when he headed the Washington, DC teachers union, why he fought a voucher program that let some kids escape failing government schools, he said, "As kids continue leaving the system, we will lose teachers. Our very survival depends on having kids in DC schools so we’ll have teachers to represent."

Albert Shanker, the teachers’ union president who, years ago, first turned teachers unions into a national political force, was even more honest. Shanker callously said, "When school children start paying union dues, that’s when I’ll start representing the interests of school children."

I told you Stossel did a good job. 

Stossel to Economic Club: Innovation Will Die as Government Grows

John Stossel, former ABC journalist and soon-to-be host on Fox Business Network, has won 19 Emmys for making viewers think. He did just that today as well, addressing nearly 950 attendees of the Economic Club of Indiana luncheon.

The key focus of today’s discussion was health care reform. Stossel notes his hesitation at referring to "Obamacare" as reform due to his contention that it won’t really improve anything. Prior to the speech, a video was shown in which he points out that Lasik eye surgery costs have dropped significantly over time in the free market, and tied that to the fact that the surgery is not covered by insurance (adding that costs of procedures that are covered have climbed over the same span).

"Obama says the current (health care) system is unsustainable, and he’s right," Stossel offered. "Medicare is $36 trillion in the hole."

Stossel referred to the program as a Ponzi scheme, adding, "We locked Bernie Madoff up for this."

He contended that though some may claim Europe has been successful with its government-oriented health care, the continent is reaping benefits of American innovation when it comes to procedures and technology.

"If you ask doctors what have been the most significant developments in the past 20 years… most are from the United States," Stossel said. "Europe is freeloading on American innovation. If the government gets more involved, the innovation will stop."

Additionally, he offered an indictment of community rating, quipping, "If they did that for car insurance, you’d be paying the same as Lindsay Lohan."

Possible solutions from Stossel included allowing insurance companies to offer different types of plans for different people, allowing those plans to cross state lines, and to promote tort reform (touting a "loser pays" system, something he claims the rest of the world already does).

When asked how he developed his "brand" as a libertarian and contrarian in the media, he claimed, "I think it comes from not going to journalism school. I just thought about what I would want to watch." 

For more from Stossel on these and other matters, see his July op-ed from Reason magazine and check your local listings for his new show.

Braly: Tackle Both Health Care Coverage and Costs

Angela Braly, CEO of the largest health insurance provider in the country in Indianapolis-based WellPoint, wanted to make two things clear during her Economic Club of Indiana speech today. At some point, the debate that is taking place in Washington and around the country has shifted from health care reform to health insurance reform — and it needs to shift back. Braly, in her remarks before a sellout crowd, said:

  • Inefficiencies in health care are driving up costs at an unsustainable rate
  • Current incentives are wrong in the traditional Medicare system with payment for quantity instead of quality — and she fears the same cost shifting that takes place now would occur in a public option plan
  • "We won’t solve the problem by only focusing on the insurance side of the equation."

Braly notes that Massachusetts has made progress in reducing the number of uninsured in its state, but that system costs have increased from $630 million in 2007 to an estimated $1.3 billion this year. The lesson for the federal level, she adds, is that coverage and costs must be tackled together.

An important topic that has been lost in the shuffle, Braly says, is malpractice reform. The fears of legal action "prevent more disclosure and communication about what might have went wrong. There are tests that are probably unnecessary and diagnostic tools used excessively because of the fears of medical malpractice." The arguments, however, have "fallen on deaf ears" on Capitol Hill.

The WellPoint leader opened her remarks by stating she is an advocate for reform, that all people should have insurance coverage and that insurers should offer coverage to all, including those with pre-existing conditions. But to make all of that possible, that shift in focus must take place. In answering questions, she defended her company’s 4.1% profit margin, said that WellPoint and the industry were prepared to continue to innovate and closed with her thoughts on one action item if she were leading the way in Congress.

"Focus on what is driving costs and how we can affect that. There are great discussions happening, but it doesn’t always make it to the bill." Earlier, she had ended her prepared remarks by saying about reform: "It won’t be easy, and it should not be quick."

Braly’s speech is available here and on the Economic Club of Indiana site. John Stossel of ABC News’ "20/20" is up next on October 6.

Lunch, Listen and Learn: Big Names on Economic Club Lineup

One venue, nine top-notch speakers. Congratulations to the Economic Club of Indiana program committee for putting together a very intriguing lineup for the 2009-2010 season.

A strong mix of Indiana leaders (Angela Braly, WellPoint, and Thomas Snyder, Ivy Tech Community College); former Hoosiers coming home (C-SPAN founder Brian Lamb and school reformer Kevin Chavous); more media giants (Steve Forbes, John Stossel and Gwen Ifill); and leaders in business (Patrick Michael Byrne of Overstock.com) and education/politics (Harvard economics professor Martin Feldstein).

All will be at the Indiana Convention Center for the monthly luncheon programs, starting with Braly on September 1. Not familiar with the Economic Club, an Indiana fixture for 35 years? Check out this excerpt from the organization’s 25th anniversary for some history on how it all got started and some of the big events over the years.

Fort Wayne area leaders, we’re not forgetting about you. John Norquist, former Milwaukee mayor and urban design/school reform authority, comes your way on August 28 to wrap up the inagaural summer series. Merrillville and Evansville enjoyed earlier visits from Scott Hodge (Tax Foundation) and Jim Morris (Pacers Sports and Entertainment and longtime civic leader), respectively.

Check out some or all of the upcoming events. Thought-provoking presentations are assured.

John Stossel, Freedom Enthusiast

If I were you, I’d go ahead and book my tickets now for the Economic Club of Indiana luncheon on October 6 at the Indianapolis Convention Center. The lunch will feature the musings of libertarian journalist/malcontent and winner of 19 Emmys John Stossel of ABC’s "20/20." Stossel, known these days as a champion of free markets (and owner of my second favorite TV mustache, next to that of PGA analyst Gary McCord), actually got his start as a consumer reporter.

Love him or hate him, he’ll probably make you think.

Here’s an excerpt from his blog today as he discusses ABC pulling his piece on health care reform in favor of more Michael Jackson coverage:

Here’s one blog comment, after I reported that ABC will hold my health care report in favor of more Michael Jackson coverage:

"Free market in action. See there Stossel? What’s not to like about that?
Posted by: jan | Jun 26, 2009 5:12:12 PM

p.s. Stossel. You’ve been hoisted on your own petard. Cheerio."

Jan is right. It’s the free market in action. 

Of course, maybe my bosses made the wrong choice.  Maybe more viewers would have tuned in for my health care report.  But the beauty of the market is that if they regularly choose wrong, they will go bankrupt. Networks better at giving the public what we want will take their business.   I’d rather have viewers vote with their remotes than have elites govern our choices, making sure we watch “serious” programming. 

Yes, I am sick of the coverage of Michael Jackson.  I hate it that ABC didn’t run my piece. Free markets sometimes encourage pandering to the masses. I still say, bless the market. The good outweighs the bad.

Free speech means rude obscenity and hate speech.  I treasure free speech too.

Stossel: Stop Hating the Business Community

Reason Magazine, which is just about my favorite publication going today, recently sat down with "20/20" taxpayer/consumer advocate John Stossel. During the interview, Stossel — and his awe-inspiring mustache — aptly articulate his confusion about why people in some circles find it necessary to constantly bash businesses:

This hatred of business — I’m not sure what that’s about. I used to think it was envy, that the college professor is angry that his slightly stupider roommate is making more money than he is because he’s in business. Then you think about the kings and queens of Europe. People didn’t hate them for all their wealth, and their wealth proportionately was vastly greater than now, but they hated the bourgeoisie. They gave them that nasty name. They hated the very people who sold them the things that they needed to make their lives better. What’s that about?

My best guess is that it’s the intuitive reaction that the world is a zero-sum game, that if he makes profit off you, you must’ve lost something. If you don’t study economics, that is how people think. I see why politicians think that way, because that’s how their world works. One wins. Somebody else has to lose. We have a lot of work to do to explain that free commerce doesn’t work that way, that everybody gains.

He also discusses his fondness for free market medicine and school choice, even promoting his web site, stosselintheclassroom.org. Though you may not agree with everything he says (and it’s not entirely G-rated), you can read the transcript of the Reason interview here. At the very least, it should make you think.