The American Spectator : American Collectivism: A Record of Failure

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American Collectivism: A Record of Failure

And now we have an administration that intends to break all records.

The hype is always better than the real thing.

Boston’s Big Dig sounded like a half-decent project in the beginning. Approved in 1982 with a price tag $2.6 billion, it was completed, however, more or less, in 2005 at a price of $22 billion.

“More or less” because concrete panels loosened and crashed from the ceiling of a connector tunnel in 2006, the first full year of operation, killing 38-year-old car passenger Milena Del Valle, a mother of three. The family was awarded $28 million.

Medicare, similarly, was optimistically projected in 1967 to have an annual price tag of $12 billion by 1990. The actual 1990 cost? $98 billion.

Just the parking lot at the Kennedy Center (not the center itself or its whole shebang of theaters, lounges, offices, restaurants, etc.) had a cost estimate in 1998 of $28 million, reports Reason magazine in its March 2010 issue. The actual cost of the parking lot, completed in 2003? $88 million.

These estimates and actual costs aren’t even close, with final prices running eight and ten times off. But it works, just like fishing — camouflage the hooks with the right feathers and bangles and a striped bass thinks he’s at the Ole Minnie Buffet.

Now we’re getting the biggest hype yet, the idea that Obama and his various czarinas and central planners have the expertise to re-work a sixth of the U.S. economy so that we’ll somehow end up with universal health coverage, 30 million more people insured, and all done in a way that produces lower costs and higher quality while not adding a dime to the federal deficit.

It’s like everyone gets a shiny new Mercedes and somehow, simultaneously, the sticker price goes down, the quality goes up, and there’s no red ink.

Plus they’re saying that billions can be cut from Medicare without cutting anything that seniors are getting from Medicare.

I get the feeling that we haven’t learned much from our previous grand experiments. The list of failures in long.

During World War II, Franklin D. Roosevelt distorted the free market by implementing wage and price controls in order to prevent “profiteering” and fight inflation. Employers, in order to attract labor, switched from giving raises to providing health insurance.

Today, we’re paying a high price in the global arena for that government-created market distortion that produced the ongoing employer-based health system that consistently harms the ability of U.S. firms to compete against companies from countries that spread the costs of healthcare more broadly.

General Motors reports that healthcare costs add between $1,500 and $2,000 to the sticker price of every vehicle it makes. Bottom line, America’s employer-based healthcare is selling Hondas and killing Detroit.

On January 8, 1964, President Lyndon Johnson delivered his first State of the Union address, calling for an “all-out war on human poverty,” with special focus on black poverty and inner city revitalization. The following year, Sen. Daniel Moynihan sounded the alarm about the breakdown of the black family in his book The Negro Family: The Case for National Action. At the time, 1965, the black illegitimacy rate was 26 percent.

Today, $10 trillion later in federal spending on anti-poverty programs, the illegitimacy rate among blacks is 70 percent.

Most recently, seeking universal and equitable housing, the Carter and Clinton administrations passed legislation, with well-intended consequences, of course, that forced banks to make loans in lower income areas and to unqualified borrowers. The result was a massive expansion of high-risk subprime loans, a real estate bubble, a worldwide distribution of toxic assets, and the subsequent housing crash, financial panic and bank collapses.

And now, next up on the politicians’ fix-it list — healthcare. Just say No.

About the Author

Ralph R. Reiland is the B. Kenneth Simon professor of free enterprise and an associate professor of economics at Robert Morris University in Pittsburgh.

Letter to the Editor View all comments (148) | Leave a comment Leave a comment

MOS was 71331| 3.2.10 @ 1:36PM

While this posting takes you to a more interesting website than do the Chinese machine tool postings I've complained about earlier, it has absolutely nothing to do with discussing Prof Reiland's article. Will the webmaster please delete it?

Webmaster| 3.2.10 @ 5:53PM

Dude, I'm in the middle of something right now! I can't be deleting posts at the same time that I'm looking at fashion models in cheap, sexy lingerie. What am I, some multi-tasking machine? I'm just a country web-master, Jim, I mean, MOS was 71331.

Now, as soon as I clean my screen, get a cup of coffee and finish orderering my machine tool parts (thanks, poster!) from China, I'll look at this annoying post of yours.

Actually, the lingerie is connected via 6 degrees of connection to Mr. Reiland, albeit in a scenario involving Kevin Bacon in some kind of weird position.

Mr. Baiter, Spectator.org Webmaster

Alan Brooks| 3.2.10 @ 5:49PM

Frank Zappa, of all people, got it just so:
"the schools system is pure shit,
only thing matters is money, real estate, and labor control;
Communism is the best way to control labor.
But you can't complain because the world doesn't owe you anything; when you get angry you think the world owes you something-- but it doesn't.

But God gives you a sense of humor so you can laugh at the whole thing."

Charity in Truth| 3.2.10 @ 6:35AM

Silence never hurts the oppressor.
Keep saying NO:
Capitol Switchboard 202 224 3121
www.house.gov
www.senate.gov

Howard| 3.2.10 @ 7:35AM

It seems inevitable that whenever government is involved, things cost more and take longer to perform. And for our liberal friends the answer, is of course, more government.

Copyleft| 3.2.10 @ 8:35AM

Yeah, what has "collectivism" ever achieved, other than

*The 40-hour workweek
*Child-labor laws
*Workplace health and safety
*Cleaner air and water
*The Internet
*Rural electric service
*National highways
*The Centers for Disease Control
*Social Security
*Medicare

...and all that other unpopular, useless stuff? LOL!

Keep swinging, you're bound to get a hit someday.

dave| 3.2.10 @ 8:51AM

Yeah Copyleft, ALL of which could have been done better, and more efficiently, by the private sector - that's the point. There is no such thing as a "public good."

Baloney Guy| 3.2.10 @ 9:07AM

Copyleft: 40,000 or more people die each year on the nation's highways. Are you saying that's a success?

Vietnam Vet| 3.2.10 @ 11:00AM

Amen to that. There were about 58,000 US deaths in Vietnam over 11 years. That is 7.6 times the deaths on US roads per year than in Vietnam. 13,000 per year due to alcohol - double the yearly rate in Vietnam. Why does not Govt do something useful like put these people away for a very long time. Where is Hanoi Jane when you need her!

Dan Hirsch| 3.2.10 @ 10:38AM

"Copy left" What a funny name. Does this mean you just copy whatever you see on the left? It seems like it.

I'm not sure how collectivism got you the forty hour work week. It 's not law. Unions have negotiated a 40 hour work week and in most cases, where they have they eventually ended up losing jobs to more productive overseas workers.

Child labor laws were duly enacted by duly elected representatives. That's not the result of collectivism.

Workplace health and safety. If you have ever worked in a private business you would know that your workforce is a crucial part of your business. Having your people think you don't care about their health and safety causes them to leave, costing your business money. This has been obvious in every workplace I've been in the since the sixties. Profit promotes safety more than collectivism. Did Upton Sinclair have a committee when he wrote "The Jungle". I think not.

Cleaner air and water has come through those pesky duly elected representatives, their duly enacted legislation, and President NIXON's EPA. I don't recall the AFL-CIO, the Teamsters, or the UMW striking for reduced pollution. Do you?

Didn't Vice President Al Gore invent the Internet? Surely the VP with his carbon credit trading combine isn't a collectivist. He looks more like Mr. Potter from "It's a Wonderful Life."

By your "National highways" I believe you refer to the Interstate Highway system called for initially by President Eisenhower. Again duly enacted by the duly elected.

The Center for Disease control, again duly - duly. And are they so bright? Weren't we going to be digging mass graves for the victims of West Nile, oops, I mean swine, oops I mean H1N1 scares?

Social security and Medicare, both broke and again duly - duly.

Copy left, do you know anything that's true?

Please quiet until you have some true facts, you make me uncomfortable making such a fool of yourself!

Copyleft| 3.2.10 @ 10:54AM

Ahh, I see Dan is playing the "redefinition" game. If it was successful, it couldn't have come about from collectivism... because collectivism is always a failure!

In his example, anything created by government isn't collectivism at all! What do you say, Spectators? Is Dan's new definition a good one?

Dan Hirsch| 3.2.10 @ 10:58AM

Funnily named one, I see no facts in your response, only your redefining the facts I presented.

Just a couple of demonstrable facts would help you so much.

Copyleft| 3.2.10 @ 12:14PM

I've already provided the facts, Dan, which you've attempted to define away, using the curious technique of declaring that "anything done through government doesn't count as collectivism."

So the question now facing you is this: What DOES count as collectivism? Has any ever occurred throughout the history of America?

NavyBrat | 3.2.10 @ 1:12PM

"Has any ever occurred throughout the history of America?"

Why yes. The first attempt at collectivism damn near starved everyone in the Mass. Bay Colony during the first year or so. Of course, they saw the error of their ways & changed their system. We know this because they didn't all starve to death in the vain attempt to perpetuate the "collective."

fbom| 3.2.10 @ 11:05AM

Ah - the straw man commeth - deflect the conversation to 'ignore the man behind the curtin'.

Dan Hirsch| 3.2.10 @ 11:22AM

Mr. or Ms. "fbom,"

You also have a funny name. Can you not say what you say and take the chance to identify yourself?

Do you like to think you are behind the curtain?

Does that meaningless remark work at cocktail parties for you? Just what in the Sam Hill are you trying to say? Don't mumble and mutter, out with it. Did collectivism build internets, interstates, workplace safety, Medicare, and Social Security or didn't it?

How about a meaningful statement of your own opinion? Do you have one? Do you know it? Well?

Please don't assail my facts in this post, I have only asked questions.

fbom| 3.2.10 @ 12:24PM

Any fool can ask a question. Can you answer them without using another question? Or this is an eduction in Zen?

Ryan| 3.2.10 @ 11:15AM

How is he wrong?

Brubaker| 3.2.10 @ 12:04PM

Copyleft,

I see that you are, like all leftists, incapable of debating the facts. Instead, when the conversation doesn't go your way, you immediately revert to form and attempt to denigrate those with whom you disagree.

Dan Hirsch demonstrably is correct, and that clearly is more than you can handle. Better luck next time.

Tom| 3.2.10 @ 12:09PM

Dan,
If all it takes is a vote of our duly elected representatives to ensure something is not collectivism then the entire premise of this article is incorrect. Each and every example of wasteful inefficient spending mentioned by Mr. Reiland was voted for by duly elected representatives.

Federal law DOES specifically address the 40 hour work week. And it was largely driven by union interests. As were many workplace laws. Whether this is a good or bad thing is debatable but the historical record is clear.

Copyleft| 3.2.10 @ 12:16PM

Thank you, Tom. I'm surprised it took so long for someone to point out how desperate Dan's dodge had become.

Sorry, Dan, but you don't get to wave away all the benefits and successes of collectivism by saying "Oh, but that was GOVERNMENT--that doesn't count." It's a dodge, and even your fellow government-haters can't get behind you on that one.

Tom| 3.2.10 @ 12:16PM

I would debate whether some of the items you listed are indeed the product of collectivism but the more importants questions were they succesful, are they the proper role of the federal government, and could they have been better addressed by the private sector. In the context of this article using Social Security and Medicare as examples of successful collectivism borders on the silly since each program demonstrates the Mr. Reiland's central point: cost projections of government programs are consistently incorrect.

Copyleft| 3.2.10 @ 12:17PM

And THAT's a fair point, Tom. Yes, government waste and lack of accountability is a serious problem that deserves serious attention.

Whining that "collectivism is just a record of failure" isn't serious, and it deserves only ridicule.

Margie| 3.2.10 @ 5:49PM

Are you a product of the Universities, or were you just programmed from birth?

ben| 3.2.10 @ 6:16PM

Collectivism is oppression.
Any collective forces the individual to admonish their interests in pursuit of the "greater good". The problem with this is WHO gets to decide what is in the greater good? In a popular system like a democracy the majority decide what's in the greater good. But as Thomas Jefferson said, "A democracy is simply mob rule where 51% of the people can vote away the rights of the other 49%". All authoritarian societies enact their collectivism for the greater good as defined by the rulers. In either popular or authoritarian systems the average person is coersed into behaviors or actions others wish them to engage in - this is tyranny and oppression.
Our system of governance was designed on the principal of individual freedom as freedom can only exist individually. Our federal gov't was not designed as, nor intended to be a democracy, but thanks to the 16th and 17th amendments that's just what we've become. Our federal gov't was to be a constitutional republic, governed by the rule of law as laid out in the supreme law of this land the US Constitution. The representation of democracies was to be held strictly at the state level where the competition between the states for businesses, people and taxes served as the greatest check and balance on majority whims and state authority.
Any gov't must work collectively when dealing with such large populations, it is unrealistic to assume we can possibly govern any other way. This is why the constitution specifically limited the power of the federal government, and why state constitutions were written as well – to protect minority rights from majority whims.
The fact is, everyone one of us is in the minority in some way, whether it be ability, ambition, belief, etc. because everyone one of us is different. There is a vast diversity among humans. A diversity far greater than our races, genders, sexual orientations etc., as this diversity is manifest within these p-c segregations. A collective ignores this diversity and assumes we are all the same. This assumption of non-diversity is why collectives have never worked and why they never will.
The collectivist assumes they know better , and wishes to enact their better on others many times to “help” them. But no one, not even Einstein can know more about me than me, just as no one not even I can know more about you than you. The only thoughts we have, beliefs we hold, and needs we can recognize are our own. Therefore the only “greater good” any of us can define is our own. To force those thoughts, beliefs and needs onto others is to impose tyranny. I may wish to help others, but first I must recognize that I have no knowledge of or authority over anyone else. So the best I can do is offer my advice or assistance, leaving those I wish to help free to take or leave it. Any imposition of my advice or assistance is tyranny and can only be rationalized by assuming I know more about you than you do. My “greater good” may be anathema to yours, but in a collective one of us must win out. How do we decide who’s tyranny is best? Rather than decide who's tyranny we should enact for whatever reason, our founders wrote a system of governance that disabled the majority's and gov'ts ability to make those choices for us.
“The policy of the Amercian government is to keep its citizens free, neither restraining nor aiding them in their pursuits.” – Thomas Jefferson.

Bilwick| 3.3.10 @ 4:03PM

"Copyleft" is one of those people who, if by some happenstance they read ROAD TO SERFDOM, would interpret not as a warning, but a blueprint. "All right--a road to serfdom! That sounds great! How do we do that? Is it paved with yellow bricks!'

PoliticalRectum| 3.4.10 @ 2:47AM

collective you were born. do you know your real fathers name? you sure? didn't Al Gore invent all that stuff?

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Fishing Video Help » American Collectivism: A Record of Failure - Spectator.org links to this page. Here’s an excerpt:

…beginning. Approved in 1982 with a price tag $2.6 billion, it was completed, however, more or less, in 2005 at a price of $22 billion. “More or … Original Post By Google News Click Here For The Entire Article Related Posts Non-sustainable fish pulled from Loblaw’s shelves - Vancouver Sun (Mar 02, 2010) Michelin grants 3rd star to country auberge - The Sun News (Mar 02, 2010) Teachers…

Bill Hussein O'Stalin| 3.2.10 @ 9:23AM

Ironically, at a time when the nation's private sector job pool is shrinking, the number of government jobs continues to accelerate, particularly at the federal level, and mostly under Barack Obama.

While the President talks of establishing a commission on cutting the deficits he continues to expand the scope and size of government making his calls for a deficit commission nothing but a shell game.

Senator Bunning is getting excoriated by liberal media for his stand against further spending without cutting other spending but if you read the comments that follow many of those articles, many in the public are supportive of Senator Bunning's stand against more spending without corresponding cuts in federal spending.

That's precisely what PAYGO which was recently passed by the Congress was supposed to achieve. Instead it was just another shell game used to raise the debt ceiling while the collectivists planned all along to continue spending.

Senator Bayh, a Democrat, who recently announced his retirement, stated, "If I created one job in the private sector, it would be one more job then was created by the Stimulus."

One of the funded items in the budget gives 1,250,000 to a university professor to study how electric eels move.

In the meantime here's some educational reading for you.

Government work is one sector of our economy that is booming (besides pawnshops and bankruptcy lawyers). Rich Lowry noted the paradox: We suffer, and government workers prosper.

For most Americans, the Great Recession has been an occasion to hold on for dear life. For public employees, it's been an occasion to let the good times roll.

The percentage of federal civil servants making more than $100,000 a year jumped from 14 percent to 19 percent during the first year and a half of the recession, according to USA Today. At the beginning of the downturn, the Transportation Department had one person making $170,000 or more a year; now it has 1,690 making that.

The New York Times reports that state and local governments have added a net 110,000 jobs since the beginning of the recession, while the private sector has lost 6.9 million. The gap between total compensation of public and private workers has only widened during the downturn, according to USA Today. In 2008, benefits for public employees grew at a rate three times that of private employees.

Bill Hussein O'Stalin| 3.2.10 @ 9:25AM

Link to above italicized text.
http://www.americanthinker.com.....emplo.html

Becky| 3.2.10 @ 9:34AM

There is a proper role for government. If the things they do within constitutional parameters were as bad as the ones they do outside those parameters, we would be living in an unstable country. Come to think of it, the Post Office is mandated by the constitution, and they seem to have trouble making it work.

Anything in copyleft's list that is any good, came out of national security needs. Social Security and Medicare are not healthy institutions, and precisely the point of the article.

Pingback| 3.2.10 @ 10:47AM

Obama’s Budget Parlor Tricks: Been There, Done That | NewsReal Blog links to this page. Here’s an excerpt:

…you’ve seen it all before, you still hope that it’s really gonna be good this time. WRONG! As Ralph R. Reiland reminds us in today’s issue of The American Spectator ( American Collectivism: A Record Of Failure ), The President’s sleight of hand budget, promising gee-gaws and doo-dads for everyone, with no additional expense (heck, we’re gonna save money, this plan is so good!),…

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Half the Service at Twice the Price « The Republican Heretic links to this page. Here’s an excerpt:

…Home > Economics, Politics > Half the Service at Twice the Price Half the Service at Twice the Price Tue 02 Mar 2010 The Republican Heretic Leave a comment Go to comments Ralph Reiland at the American Spectator takes a look at the promises made by Obamacare as far as cost versus service, and compares them to the cost estimates of other government programs. The outlook is not too good, as every…

Richard| 3.2.10 @ 11:26AM

The problem is that a few engineer for a society these few cannot possibly understand. No few people can understand the myriad of social and economic interactions continually happening. Hence reality humbles the plans of every leftist using government to implement his scheme. How could it be otherwise? But the newly coined leftist believes will get it right this time!
The greatest evil results from men attempting to become God.

PoliticalRectum| 3.4.10 @ 2:43AM

people are so stupid. SO stupid. long as it isn't their money, voting for your own paycheck.....
stop believing that the right does not care about things. we slapped down slavery didn't we? Ask Byrd of Ole man Gore.. Al's dad, known racist types but they>> changed>>yuk yuk..

Cris Worth| 3.2.10 @ 12:26PM

Johnson fought two wars, War on Poverty - lost, costing trillions and counting, War on Vietnam -lost, costing billions and killing/maiming millions. He raided the Social Security trust fund - now bankrupt, to pay for both wars. Truman said Johnson did more damage to the Presidency than all presidents before him combined. ALL THE WAY WITH LBJ.

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The American Spectator : American Collectivism: A Record of Failure Mobile links to this page. Here’s an excerpt:

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Gary Hartpence| 3.2.10 @ 10:03PM

Let's ask Oldefarte.

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The American Spectator : American Collectivism: A Record of Failure Blog links to this page. Here’s an excerpt:

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Hershey Bears Down Bridgeport Sound Tigers, 6-3 – Minor League … | Hershey Bears AHL links to this page. Here’s an excerpt:

…27-27-3-6 during the 2009-10 campaign following the loss Read more: Hershey Bears Down Bridgeport Sound Tigers, 6-3 – Minor League … Related Blogs on Record The American Spectator : American Collectivism: A Record of Failure Standard Chartered Posts Record Income and Profits – Interviews … Cavs Attempt To Set Guinness Record For Most Snuggies | The Hoop … Related Posts…

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Hello world! Introduction « Bizop Review links to this page. Here’s an excerpt:

…Money from … Global Voices Online » Chile: Communication Failure Hot Air » Blog Archive » Another American media failure Patterns of Failure – The Daily WTF The American Spectator : American Collectivism: A Record of Failure Social Media – turning into a failure it didn't need to 1 Comment by Mr WordPress 01 Mar 2010 at 17:34 Hi, this is a comment. To delete a comment, just log in and view…

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Fresh Bilge » American Collectivism links to this page. Here’s an excerpt:

Fresh Bilge » American Collectivism Fresh Bilge seablogger ABOUT MEMOIRS NOVELS POETRY PHOTOS WEBLOG American Collectivism miscellany by seablogger This is a timely article as Obama tries once more to get the health horror through a hesitant Congress. 2:21 PM, Wednesday, 3 Mar 10 | No Comments Leave a comment » No comments yet. RSS feed for comments on this…

Ralph Novy| 3.3.10 @ 4:39PM

"illegitimacy rate"?

Your credibility became "illegitimate" as soon as you thoughtlessly deployed that phrase.

Learn.

Ralph

Thaddeus Romansky| 3.3.10 @ 6:01PM

I was curious if the dollar amounts quoted in the article had all been adjusted to reflect real values of the dollar? Take for example this statement, "Medicare, similarly, was optimistically projected in 1967 to have an annual price tag of $12 billion by 1990. The actual 1990 cost? $98 billion." In order for us to evaluate statement readers need to know that the figures being used are either in 1967 dollars, 1990 dollars, or 2010 dollars, right?
This would also make a difference in judging the veracity of Mr. Reiland's thesis would it not?
I am not asking this question with an answer already in mind. I really want to know so I can make up my mind.

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The Global Economy Unravels links to this page. Here’s an excerpt:

…operation of ideology. The result? The honorable character -- the courageous individual -- is subjected to gang rape. That is the condition of my beloved United States in this moment. American Collectivism: A Record of Failure The hype is always better than the real thing. Boston's Big Dig sounded like a half-decent project in the beginning. Approved in 1982 with a price tag $2.6 billion, it was completed,…

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Big Fun Over In Twogtown - nampion.com links to this page. Here’s an excerpt:

…and you know you’ve seen it all before, you still hope that it’s really gonna be good this time. WRONG! As Ralph R. Reiland reminds us in today’s issue of The American Spectator ( American Collectivism: A Record Of Failure ), The President’s sleight of hand budget, promising gee-gaws and doo-dads for everyone, with no additional expense (heck, we’re gonna save money, this plan is so good!), is just…

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