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Guest Blog: Why Earth Day is Bunk

Ok, the title is my interpretation, but Todd Myers from the Washington Policy Center lays out why it’s hypocrisy at best. There’s also a link at the bottom from Montana’s own Jim DeLong on the EPA’s regulatory overreach and the Supreme Court’s response…Carl

Earth Day Exposes the Ironies of the Left’s Trendy Environmentalism

On April 22, in cities across America, some environmental activists will celebrate Earth Day, claiming only increased government control can protect the environment. Those celebrations will expose a couple ironies.

First, many activists will arrive in a Toyota Prius, which has become the symbol of environmental consciousness. Ironically, however, the Prius is not a triumph of political planning but of the free market. In the 1990s, while California was requiring “zero-emission” vehicles, leaders at Toyota and Honda saw an opportunity to sell cars to people who want to spend less on gasoline, drive a car that emits less carbon dioxide, or both. Thus was born the hybrid vehicle. Even though it did not meet California’s regulation, it sold well, causing Golden State politicians to change the law.

Jumping on the bandwagon, politicians began to give preferences to hybrids. Politicians did not lead, but followed the innovation of the free market. Most Prius drivers, however, don’t know that history, and some will spend Earth Day opposing the free market policies that created the car they are so proud of.

Many activists on the left will also spend Earth Day complaining that people who see the benefits of the free market don’t care about the environment. A look at the national political map, however, tells a different story.

Across the country, the parts of the nation that most consistently support free market candidates are those surrounded by stunning natural beauty. The most vocal environmental activists — who are quick to lecture others about caring for nature — tend to live in cities, where nature has been thoroughly controlled, constrained and paved.

How, we should ask, can environmental activists get away with this? How can they continue to advocate top-down policies that don’t help the environment? How can those who live where nature has been subjugated lecture those who live in it and with it every day?

Environmentalism has become trendy and a way to show you are a good person, rather than actually helping the environment. Environmental activists and politicians choose government-mandated approaches not because they help the environment, but because the policies make them feel good about themselves and make them look good to others.

The strategy is as simple as the fourth-grade playground: Build up your own environmental credentials by tearing others down and calling names.

Rather than pointing out these ironies, however, free market conservatives often fall into the trap of arguing there are no risks to the environment, fitting perfectly into the stereotype imposed on them by the left. Some conservatives fear that by admitting they care about the environment, they must then endorse a range of left-wing policies they oppose.

In fact, a strong concern for the environment is part of believing in personal responsibility and the free market. Conservatives believe people have freedom, but must take responsibility for the impact they cause. If you commit a crime, you don’t get to blame society. A reason conservatives live near nature is that we love to hike, hunt, fish and marvel at the awe-inspiring natural beauty with which our nation is so blessed.

Finally, the free market is the greatest system for allocating scarce resources and doing more with less, both of which are at the heart of a true environmental ethic.

Rather than forcing behavior change, conservatives promote technological solutions that respect the freedom of individuals while reducing environmental impact. Rather than falling for the latest trendy environmental policy, conservatives demand that the government measure success or failure.

Better yet, we promote the creative competition that discovers options that we never imagined. As politicians spend billions on rail and buses that carry few people, the market is creating driverless, fuel-efficient cars that will more efficiently take people exactly where they want to go.

For energy efficiency, clean air, clean water and smart resource use, the free market combines prosperity and innovation to successfully protect natural resources.

April 22 may be a one-day event for some, but for those who embrace the free market and its push to do more with less, every day is Earth Day.

Todd Myers is director of the Washington Policy Center’s Center for the Environment. He is one of the nation’s leading experts on free-market environmental policy. Todd is the author of the landmark 2011 book Eco-Fads: How the Rise of Trendy Environmentalism Is Harming the Environment and is designated a Wall Street Journal Expert panelist for energy and the environment.

Reprinted by Permission.

And for another piece of the ‘environmentalism as religion’ saga, check out James DeLong’s piece describing the U.S. Supreme Court’s overreach on powers of the EPA.

Issues and Likely Outcomes of Pending U.S. Supreme Court Decision on PPACA

The U.S. Supreme Court (the Court) is about to proffer its decision on various issues relating to the Patient Protection and Affordable Care Act (PPACA). The following Q & A outlines the issues before the Court and likely outcomes:

 

Q: What is the actual name of the case and who is involved?

A: NFIB v. Sebelius. The NFIB stands for the National Federation of Independent Business and is the plaintiff in the case. The NFIB is joined by a couple individual citizens and 26 states through their Attorneys General. Montana’s Attorney General elected not to join the suit. The defendants in the case include U.S. Secretary of Health and Human Services Katherine Sebelius, U.S. Secretary of the Treasurer Timothy Geithner, U.S. Secretary of Labor Hilda Solis, and their respective agencies.

 

Q: When is the Court likely to rule on the case?

A: It could happen at any time. The Court has to clear its docket by June 30. This case is one of the most anticipated in American history. The U.S. Constitution created the Supreme Court for cases such as this to preserve the original intent by “checks and balances” on power. This case gets to the essence of the American Experiment in limited government, states’ rights and individual liberty.

 

Q: There’s talk that the Court may not even be able to rule on the case. Is this true?

A: Yes. The theory is that the Anti-Injunction Act (AIA) may regard the individual mandate to purchase healthcare insurance as a tax. If so, the AIA would call into question whether the Court has the jurisdiction to rule on the case prior to the 2014 effective date for the individual mandate. Legal experts predict that the Justices will unanimously reject application of the AIA to the case.

 

Q: What are the substantive issues before the Court?

A: There are four issues before the Court:

1. As mentioned, whether the Anti-Injunction Act strips the Court of jurisdiction in the case.

2. Whether the new law’s requirement that individual Americans must purchase and maintain federally-approved forms of health insurance starting in 2014 exceeds Congress’ powers under the Commerce and Necessary and Proper Clauses of the U.S. Constitution.

3. Whether the new law’s mandate to the states to expand Medicaid coverage to 133 percent of the federal poverty level exceeds Congress’ authority under the Spending Clause of the U.S. Constitution and thereby violates state sovereignty under the 10th Amendment, which of course stipulates that powers not expressly granted to Congress are reserved to the states.

4. If the Court strikes down one part of the new law – e.g. the individual mandate or the Medicaid expansion – whether any remaining part of the law can be “severed” and implemented.

 

Q: What are the likely outcomes?

A: There are three likely outcomes:

1. The Court upholds the law. This would mean that at least five of the nine members of the Court agree that the individual mandate and Medicaid expansion do not violate the Commerce, Necessary and Proper, or Spending Clauses of the U.S. Constitution. The entire law would go into effect in 2014. Justice Anthony Kennedy will be the swing vote, in particular on the constitutionality of the individual mandate. Justice Kennedy said during oral arguments that the individual mandate “changes the relationship of the government to the individual in a fundamental way.” He also suggested that a federal requirement to buy insurance is “unprecedented” and, therefore, the government has a “heavy burden” of justification.

2. The Court strikes down particular aspects of the law but leaves the remainder intact. There are several variations of this outcome. What would be most likely under this general outcome is the Court strikes the individual mandate and leaves the rest of the law in place. The employer mandate, Medicaid expansion, exchanges, new and increase taxes, and other provisions would move forward. This outcome would leave the Act’s major expenditure provisions in place but remove the primary means of funding those expenditures, requiring further action by Congress. The Court may also choose to sever the Medicaid expansion as a “coercive” use of federal power over the states.

3. The Court rules that the law is unconstitutional and nonseverable. If the individual mandate or the Medicaid expansion is struck down, the Court could argue that the remaining provisions no longer function “in a manner consistent with the intent of Congress.” This decision would also dismantle provisions of the new healthcare law that have already implemented, which would include exchanges and co-ops set up in the states. Congress and the health care industry have indicated they would act quickly in this case to salvage the Act’s most popular and economically sustainable provisions (e.g. children remaining on parents’ policies) pending further legislative actions.

 

Potential Scenarios on the SCOTUS ruling of the PPACA

The United States Supreme Court will rule within days on the constitutionality of president Obama’s Patient Protection and Affordable Care Act (PPACA). We’ve taken a look at what we feel are the three most likely outcome scenarios and attempted to unravel them.

But before we do that, let’s break down the four main issues that were argued before the Court:

1) Whether or not the federal Anti-Injunction Act is applicable to this case – This rarely-invoked Act is from the 19th century and basically states that a tax cannot be challenged in court until it has actually been assessed. Since the individual mandate’s penalties wouldn’t go into effect until 2014, the Supreme Court could not hear challenges to it until taxes are collected in 2015. Virtually all legal scholars and analysts agree it is very unlikely the court will find the Act applicable.

2) Whether the individual mandate is a tax – The individual mandate, also known as the “minimal coverage provision,” is the core of the PPACA. It requires that all individuals purchase health insurance regardless of their health, economic situation, or wishes. The question whether this mandate exceeds the constitutional limits of the “Commerce Clause”, which allows Congress’ regulate commerce between and among the states. While the federal government has routinely regulated terms of commerce, it has never before required it in order that it could regulate it.

3) Severability – If the Supreme Court rules some provisions of the PPACA unconstitutional, will the remaining portions stand, or must the whole Act be scrapped? The individual mandate is what funds the Act’s major provisions. Without out the Act becomes fiscally ruinous. Rather than the Supreme Court creating health care policy themselves, many argue that if they find the mandate unconstitutional they should allow congress to start over. The PPACA does not contain a severability clause, which some see as a simple oversight and others see as a fatal flaw.

4) PPACA’s Medicaid expansion constitutionality – As of now, the PPACA requires states to expand their Medicaid programs to cover more people, or risk losing all federal dollars for Medicaid. While federal dollars routinely come with restrictions, the states’ argument is that a threat of cutting off Medicaid dollars is too forceful, or “coercive” deeming it unconstitutional.

Potential Outcome #1: Court upholds the entire law

The Court concludes the individual mandate is not unconstitutional and the bill stands as written. The timeline for implementing exchanges and other provisions of the law continue as scheduled, pressing states that have not been complying with the law until after the Supreme Court ruling to scramble to get up to speed to meet the deadlines or risk the federal government entering into their states to enforce the law. States will need to comply with all of the law or risk losing all of their Medicaid funding, and ultimately this forces the states to take over the care of all those individuals that qualify. Furthermore, the precedent will be set giving the federal government the authority to order people into enter into a contract and/or purchase a product, and therefore fundamentally changing our system of government.

Potential Outcome #2: Court overturns a portion of the law

This is a very broad grouping of all the possibilities that could occur, but let’s point out the major portions that are most likely being focused on and their implications.

The Court invalidates the individual mandate, but decides to let the remainder of the bill stand. The question then turns to what portions of the bill are considered essential to the mandate. Community rating and guaranteed issued insurance reforms would most likely be removed. Insurers simply could not provide them without the funds the mandate would genererate. Without forcing consumers to buy insurance, the young and the healthy will continue to opt out. Without the removal of the community rating and guaranteed issue reforms, it will mostly likely result in the bankruptcy of many insurance providers, and ultimate death, of the health care industry.

Another portion of the law that could be struck down is the forced expansion of Medicaid. This would have serious impacts on the exchanges, as most of the insurance subsidies provided through them will likely be to newly Medicaid-eligible participants. The question of coercion has never been decided by the Court.

If only the individual mandate and/or the forced expansion of Medicaid are overturned, there are still many provisions remaining, such as the forced state exchanges and the employer mandate, to name just a few. The fate of these provisions will likely be decided by congress and the Executive in 2013.

Potential Outcome #3: Court overturns the entire law

Due to lack of a severability clause, if the Court invalidates the individual mandate, it could strike down the entire bill. It would deem that if indeed the individual mandate were struck down, the remaining provisions would no longer function “in a manner consistent with the intent of Congress”.

Yes, some people will be back where they were before the ACA for a short time, left without insurance, but this opens the floodgates for new, free-market based ideas to be presented to not only create actual permanent change and affordability for Americans, but to change the mindset and practices of insurance providers, as well.

 

For more resources on free-market based health care reform, please see the footnotes attached as well as the following:

• Arduin, Laffer, & Moore Econometrics. (2009). The prognosis for national health insurance: a Montana perspective. Montana Policy Institute. <http://bit.ly/LgEdjh>

• Issue Brief: Pitfalls of the Patient Protection and Affordable Care Act for Montanans. Montana Policy Institute.

• Montana Policy Institute – Free-Market Health Care Resource Page http://www.montanapolicy.org/main/page.php?page_id=37

• Patient Centered Reform Online <http://www.patientcenteredreform.com>