The Optional Revolution

“Just when I thought I was out, they pull me back in.”
~ Michael Corleone, The Godfather, Part III

After the public option – that is, a health insurance plan run by the federal government - had been pronounced dead in August, Senate Majority Leader Harry Reid (D-NV) exorcised the Public Option demons yesterday by supporting an “opt-out public option,” a policy scheme that out-floats the infamous Balloon Boy.  Surely, the “Angriest Man in DC” award must go to Senator Max Baucus (D-MT), who worked tirelessly for months to develop a health care bill without a public option, only to see it re-emerge in sheep’s clothing.  The problem was, his bill amounted to a tax increase (or a hefty fine) and was not guaranteed to draw down insurance premiums.  After a week of closed door meetings, the opt-out public option seemed most viable to the Democratic Majority.

This was an evolution of Tom Daschle’s idea for an “opt-in” plan.  That, however, must have been too easy for states to avoid, and the “opt-out” idea was born.  Nerds who run to C-SPAN Radio will remember that Senator Carper (who took Joe Biden’s Delaware seat) introduced the opt-out public option three weeks ago in committee, but it was voted down in riveting fashion.  Now, the idea is back, and stronger than ever.

On the face of it, the optional option looks good for you liberty-lovers:  with the evocation of the 10th Amendment, states decide whether or not they want to participate in the federal plan.  Progressives also welcome the re-introduction of the public option at any cost, as they (honestly) believe that government will re-introduce choice and competition (no, they really believe that).  Trying to strike a bipartisan deal, Harry Reid had this to say about the idea yesterday:

“I’ve concluded – with the support of the White House, Senators Dodd and Baucus – that the best way to move forward is to include a public option with the opt-out provision for states.  The public option, with an opt-out, is the one that’s fair.”

There’s that 4-letter F-word again: fair.  Historically, in the pursuit of fairness, ignorance seeps in.  So let’s look at this logically (shudder to think).

Precipitous Fallout

Libertarians and conservatives (collectively deemed “Right Wing Extremists” by our Department of Homeland Security) automatically disapprove of the public option, whether optional or not, and for good reason.  As Dwight Eisenhower astutely warned us, ”Every step we take towards making the State our Caretaker of our lives, by that much we move toward making the State our Master.”  Alive today, Secretary Napolitano would surely have this extremist under 24-hour surveillance.

Americans realize an inescapable trend exists in which our entitlement programs and deficits grow contingently.  Furthermore, options offered to states irresponsibly and with little regard to the budget are never refused.  For example, Medicare is an opt-out public health care plan, but no state opts out of it.  Individuals, in turn, cannot opt out of the plan, either.  Also, remember that while certain governors did not want to accept the extensions to Unemployment Compensation included in the Stimulus Bill, they did it anyway.  That’s because the feds can offer plans the private sector cannot, with two inherent advantages:  1) they write the rules for the private sector and 2) print money to make up for losses.  So, rightly, the Right wants to avoid being burned thrice in this regard.

An opportunity exists, however, to blow up this whole deal with demands for fiscal responsibility.  Instead of refusing the optional public option, may I suggest it be demanded, with unwavering caveats. In the pursuit of fairness, demand that it be paid for in the states that want it, and demand that it be tax-neutral for non-participating states.  This defines fairness:  states should get different tax codes according to their participation in the federal plan.  It can be no other way.

So, let’s have it out.   If this is where we’re going, let’s do it.  Forcing these provisions will separate states fiscally according to their ideology, force states to reckon with their priorities, and ultimately determine which states value individual responsibility, and which states are willing to sacrifice personal liberty for safety.  Tax rates will affect the productivity of businesses within states, and Americans can then adjust themselves accordingly to the state of their choosing.  Nothing in this life is free, and it’s about time we all realized it; woe be it to a Congress that taxes one state at the behest of another.  It’s time for those who love liberty to draw a line in the sand, and for statists to render unto Caesar what is Caesar’s.

“The democracy will cease to exist when you take away from those who are willing to work and give to those who would not.”
~ Thomas Jefferson