Wednesday, November 19, 2014

All of the legislative incentives favor state intervention and deception - How else will the Grubers of the world get rich?

Gruver Ocare payday was at least $1.5 million.


For all the cursing of congressional gridlock, one of the greatest sources of Washington’s evils may be the bias in favor of doing something.
As voices chime in from the major media, from K Street, and from party leadership for the new Republican Congress to do something, it’s worth pausing, taking a breath, and looking at the recent problems caused by this urge — and the less-than-noble incentives that sometimes drive it.
The Beltway media’s predominant bias is that, for every issue, Washington politicians should do something. The simplest explanation for this bias: it gives reporters something to write about. Inaction is bad for readership.
Democratic politicians’ uncontrollable urge to do something is tied up with their view of government’s role as the champion of justice, the wise arranger of the economy and shaper of culture.
But there’s a deeper motivation to do something, and the Republican leadership shares it: When government takes a more active role in the economy, it creates private-sector employment opportunities for the policymakers — and for their advisors, like Obamacare architect Jonathan Gruber.
Gruber, the MIT professor who won almost $400,000 in contracts from the Obama administration in a non-competitive contract process, came into the spotlight again this month when a new video surfaced in which he admitted that “lack of transparency” was crucial to passing Obamacare.
My colleague Byron York pointed to a more interesting Gruber detail: After the bill passed, Gruber won hundreds of thousands of dollars in contracts with state governments setting up the exchanges under Obamacare.
Gruber, then, had to mislead Americans (or maybe just their senators) in order to pass Obamacare, and that opened a gusher of lucrative contracts for him. There is no doubt that Gruber sincerely thought the country needed health-care reform. But still, his financial interest in the bill ought to have raised some skepticism about the numbers he was peddling.

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