Madam Speaker, I would like to take this opportunity to read into the Record an insightful article by Dr. Uwe Reinhardt, one of the Nation's leading authorities on health care economics and a distinguished resident of central New Jersey.…
Madam Speaker, I would like to take this opportunity to read into the Record an insightful article by Dr. Uwe Reinhardt, one of the Nation's leading authorities on health care economics and a distinguished resident of central New Jersey. Dr. Reinhardt is known for his health care economics, but here he articulates the danger of what economists call the ``moral hazard'' we are currently facing with regard to Iraq.
Economists refer to moral hazard when people, insensitive to the costs of their actions, increase the costs to others. With regard to Iraq, we have a situation in which the vast majority of policymakers and the general public are utterly insulated from the human and financial costs of the war.
Dr. Reinhardt, as the father of a U.S. Marine, personally understands the angst that families feel every day about loved ones serving in harm's way. President Bush has taken to analogizing the war in Iraq to the American Revolution and, most recently, the Second World War. What follows is an opinion article written by Dr. Reinhardt that appeared in the Washington Post last month, in August, entitled ``Who is Paying For Our Patriotism?'' I will insert the entire article for the Record.
Dr. Reinhardt writes, ``President Bush assures us that the ongoing twin wars in Iraq and Afghanistan are worth the sacrifices they entail. Editorialists around the Nation agree and say that a steadfast American public was willing to stay the course.
``Should anyone be surprised by this national resolve, given that these wars visit no sacrifice of any sort, neither blood nor angst nor taxes, on well over 95 percent of the American people? At most, 500,000 American troops are at risk of being deployed to these war theaters at some time. Assume that for each one of them, some 20 members of the wider family sweat with fear when they hear that a helicopter crashed in Afghanistan, or that X number of soldiers or Marines were killed or seriously wounded in Iraq. It implies that no more than 10 million Americans have any real emotional connection to these wars.
``The administration and Congress have gone to extraordinary lengths to insulate voters from the money costs of the wars to the point even of excluding outlays for them from the regular budget process. Furthermore, they financed the wars not with taxes, but by borrowing abroad.''
Dr. Reinhardt continues, ``The strategic shielding of most voters from any emotional or financial sacrifice for these wars cannot but trigger the analogue of what is called `moral hazard' in the context of health insurance, a field in which,'' Dr. Reinhardt says, ``I have done a lot of scholarly work. There, moral hazard refers to the tendency of well-insured patients to use health care with complete indifference to the costs they visit on others. It has prompted President Bush to advocate health insurance with very high deductibles. But if all but a handful of Americans are completely insulated against the emotional and financial cost of war, is it not natural to suspect moral hazard will be at work in that context as well?
``A policymaking elite whose families and purses are shielded from the sacrifices war entails may rush into it hastily and ill-prepared, as surely was the case of the Iraq war. Moral hazard in this context can explain why a nation that once built a Liberty ship every 2 weeks and thousands of newly designed airplanes in the span of a few years now takes years merely to properly arm and armor its troops with conventional equipment.
``Moral hazard can explain why, in wartime, the TV anchors of the morning and evening shows barely make time to report on the wars, lest the reports displace the silly banter with which they seek to humor their viewers. Do they ever wonder how military families with loved ones in the fray might feel after hearing ever so briefly of mayhem in Iraq and Afghanistan.
``Moral hazard,'' he says, ``also can explain why the general public is also so noticeably indifferent to the plight of our troops and their families. To be sure, we paste cheap magnetic ribbons on our cars to proclaim our support for the troops.''
But at the same time we allow families of Reservists and National Guard members to slide into deep financial distress as their loved ones stand tall for us on lethal battle fields and the family is deprived of these troops' typically higher civilian salaries. We offer a pittance in disability pay to seriously wounded soldiers who have not served the full 20 years that entitles them to a regular pension. And our legislative representatives make a disgraceful spectacle of themselves bickering over a mere $1 billion or so in added health care spending by the Department of Veterans Affairs in a Nation with a $13 trillion economy.
When our son, says Dr. Reinhardt, then a Princeton graduate, decided to join the Marine Corps in 2001, I advised him, do what you must. But be advised
that, flourishing rhetoric notwithstanding, this Nation will never truly honor your service, and it will condemn you to the bottom of the economic scrap heap should you ever get seriously wounded.
Madam Speaker, I ask unanimous consent that the full article of Dr. Uwe Reinhardt, ``Who's Paying for Our Patriotism?'' appear at this point in the Record.
President Bush assures us that the ongoing twin wars in
Iraq and Afghanistan are worth the sacrifices they entail.
Editorialists around the nation agree and say that a
steadfast American public was willing to stay the course.
Should anyone be surprised by this national resolve, given
that these wars visit no sacrifice of any sort--neither blood
nor angst nor taxes--on well over 95 percent of the American
people?
At most, 500,000 American troops are at risk of being
deployed to these war theaters at some time. Assume that for
each of them some 20 members of the wider family sweat with
fear when they hear that a helicopter crashed in Afghanistan
or that X number of soldiers or Marines were killed or
seriously wounded in Iraq. It implies that no more than 10
million Americans have any real emotional connection to these
wars.
The administration and Congress have gone to extraordinary
lengths to insulate voters from the money cost of the wars--
to the point even of excluding outlays for them from the
regular budget process. Furthermore, they have financed the
wars not with taxes but by borrowing abroad.
Dr. Reinhardt continues:
The strategic shielding of most voters from any emotional
or financial sacrifice for these wars cannot but trigger the
analogue of what is called ``moral hazard'' in the context of
health insurance, a field in which I've done a lot of
scholarly work. There, moral hazard refers to the tendency of
well-insured patients to use health care with complete
indifference to the cost they visit on others. It has
prompted President Bush to advocate health insurance with
very high deductibles. But if all but a handful of Americans
are completely insulated against the emotional--and
financial--cost of war, is it not natural to suspect moral
hazard will be at work in that context as well?
A policymaking elite whose families and purses are shielded
from the sacrifices war entails may rush into it hastily and
ill prepared, as surely was the case of the Iraq war. Moral
hazard in this context can explain why a nation that once
built a Liberty Ship every two weeks and thousands of newly
designed airplanes in the span of a few years now takes years
merely to properly arm and armor its troops with conventional
equipment. Moral hazard can explain why, in wartime, the TV
anchors on the morning and evening shows barely make time to
report on the wars, lest the reports displace the silly
banter with which they seek to humor their viewers. Do they
ever wonder how military families with loved ones in the fray
might feel after hearing ever so briefly of mayhem in Iraq or
Afghanistan?
Moral hazard also can explain why the general public is so
noticeably indifferent to the plight of our troops and their
families. To be sure, we paste cheap magnetic ribbons on our
cars to proclaim our support for the troops. But at the same
time, we allow families of reservists and National Guard
members to slide into deep financial distress as their loved
ones stand tall for us on lethal battlefields and the family
is deprived of these troops' typically higher civilian
salaries. We offer a pittance in disability pay to seriously
wounded soldiers who have not served the full 20 years that
entitles them to a regular pension. And our legislative
representatives make a disgraceful spectacle of themselves
bickering over a mere $1 billion or so in added health care
spending by the Department of Veterans Affairs--in a nation
with a $13 trillion economy!
Last year kind-hearted folks in New Jersey collected
$12,000 at a pancake feed to help stock pantries for
financially hard-pressed families of the National Guard. Food
pantries for American military families? The state of
Illinois now allows taxpayers to donate their tax refunds to
such families. For the entire year 2004, slightly more than
$400,000 was collected in this way, or 3 cents per capita. It
is the equivalent of about 100,000 cups of Starbucks coffee.
With a similar program Rhode Island collected about 1 cent
per capita. Is this what we mean by ``supporting our
troops''?
When our son, then a recent Princeton graduate, decided to
join the Marine Corps in 2001, I advised him thus: ``Do what
you must, but be advised that, flourishing rhetoric
notwithstanding, this nation will never truly honor your
service, and it will condemn you to the bottom of the
economic scrap heap should you ever get seriously wounded.''
The intervening years have not changed my views; they have
reaffirmed them.
Unlike the editors of the nation's newspapers, I am not at
all impressed by people who resolve to have others stay the
course in Iraq and in Afghanistan. At zero sacrifice, who
would not have that resolve?