Some Thoughts on Obamacare

Since the Supreme Court is taking up the Patient Protection and Affordable Act this week, I thought I’d rumble on about it for a bit.  There’s a nearby post of my rumblings on one aspect of the Act, the HHS contraceptives and abortion mandate, nearby.

As Adam White, of The Weekly Standard, points out,

Ordinarily, judges decide cases by applying the text of laws and the precedents laid down in previous cases. But the Supreme Court is no ordinary court, and the cases that it chooses to decide are not ordinary ones. Cases in which the lower courts disagree; cases of utmost national importance; cases for which there is little precedent or the written law is ambiguous​—​this is the Supreme Court’s daily fare.

Indeed.  However, for the Supreme Court, the text of the law can flow only from these sources: the supreme Law of the Land—our Constitution—and the law, here PPACA, as Congress wrote it and the President signed it.  Moreover, the Supreme Court can use that lesser law in its rulings only after finding that law to be constitutional—proper and necessary (not to the law’s purpose, but to effectuate one or more of Art I, Section 8’s enumerated Congressional powers).  If the law is not both proper and necessary, then the Court cannot use it in its ruling but must strike it down instead—and that, generally, becomes the substance of the Court’s ruling.

This is the sum of the present case before the Court: is the Individual Mandate part of PPACA constitutional, and by extension can PPACA without the Individual Mandate survive: is the Individual Mandate both proper and necessary.  Also informing the Court’s ruling, though, are secondary precedents, prior rulings by the Court in similar controversies.  These rulings are secondary precedents because they can only (legitimately) come into play after due consideration of what the Constitution actually says on this matter and then only after due consideration of the law itself—PPACA.

The present case rests on whether the Commerce Clause allows Congress to regulate individual entry into transactions, or whether such decisions can only be made by the individuals involved and only in accordance with the individuals’ own imperatives.  Next, the PPACA as an implementation of that regulation must be both a proper means of implementation—i.e., in conformance with the Constitution—and necessary—i.e., the most efficient and least intrusive means of effecting that regulation.

White goes on make a case for PPACA’s impact on the very structure of our governmental system, and the erosion, if not elimination, of the federalism system we have now, should PPACA be upheld.  In my meager post, I want to stay with the narrower questions: PPACA’s relationship with the Commerce Clause, the Necessary and Proper Clause, and individual liberty.

Commerce Clause argument

The Commerce Clause was well understood to regulate commerce solely among the several States and to regulate only the commerce of a product in being, explicitly excluding the original production of that product, regardless of the purpose of producing it (e.g., for interstate trafficking).  Thomas Jefferson made this point in his February 1791 Opinion… letter to President George Washington concerning the constitutionality of a national bank:

For the power given to Congress by the Constitution does not extend to the internal regulation of the commerce of a State, (that is to say of the commerce between citizen and citizen,) which remain exclusively with its own legislature; but to its external commerce only, that is to say, its commerce with another State, or with foreign nations, or with the Indian tribes.

Plainly, the Commerce Clause was not intended to enable the Federal government to reach inside any State to regulate trafficking, either the State’s internal commerce, or any individual’s commerce, any more than could the government reach inside any of the other Sovereign entities of the clause.

Nor was the clause intended to empower the Federal government to control in any way that inter-State trafficking.  The Federal government was only to regularize, or make uniform, the methods by, and the framework within which, the States with their aggregated trade might engage in commerce with each other and with other Sovereign powers.  Moreover, the trade in question consists in the commercial interactions themselves; it does not include the behavior of engaging in those transactions.  What was regularized was the exchange, and regularization does not include dictating behavior to Sovereign entities, including (Sovereign) individual citizens.

Finally, health insurance, explicitly, is not interstate commerce: the 50 states all have their own mandated requirements concerning what coverages must be included in policies and what range of premiums can be charged for those policies.  And more to the point, those policies cannot be sold in across state boundaries.  PPACA plainly violates all of this, reaching as it does inside each state to require its citizens to obey a Federal mandate to engage in trade at all.  Thus, PPACA fails the Commerce Clause test and is unconstitutional.

Necessary and Proper Clause argument

The “necessary and proper” phrasing of this clause requires that laws, to be legitimate, must be required for the goal to be achieved; further, they cannot be just for any legislative or “worthwhile” desire.  Chief Justice William Howard Taft made this clear the “Child Labor Tax Case” [emphasis mine]:

It is the high duty and function of this court…to decline to recognize or enforce seeming laws of Congress, dealing with subjects not entrusted to Congress, but left or committed by the supreme law of the land to the control of the States.  We cannot avoid the duty even though it require us to refuse to give effect to legislation designed to promote the highest good.  The good sought in unconstitutional legislation is an insidious feature because it leads citizens and legislators of good purpose to promote it without thought of the serious breach it will make in the ark of our covenant or the harm which will come from breaking down recognized standards.

Under the limited government of our social compact, if there are two laws that can be considered, the less intrusive, the less restrictive, one must be the one chosen; the less extensive law meets the need and does not attempt to do more.  Further, to be a proper Law, even if it were the only means of achieving a Congressional goal—necessary—that Law must be strictly fit and suitable: it must satisfy one of the enumerated powers.

Again, PPACA fails.  It is not proper because it’s unconstitutional under the Commerce Clause.

Quite apart from that, though, it’s not necessary because there are a myriad of other, less intrusive, means of addressing the claimed problem of too high, and increasing, health care and health insurance costs.  One method, for instance, would be to regularize the commerce of health insurance across state lines, beginning with allowing that in the first place, thereby allowing competition in this trafficking to bring down costs.  Related to that step is the framework step of requiring policies of differing companies that cover similar conditions to describe those coverages in similar terms, thus to ease consumer understanding.  Related, also, would be the step of disallowing government price-fixing of insurance coverage, including allowing the insurance companies to charge risk-based premiums—which will increase coverage of, among other things, preexisting conditions thus allowing price competition to bring down prices.  And this is just a sample of alternative, less intrusive, less restrictive laws.

Individual liberty argument

The Individual Mandate, by itself, takes away our freedom of choice.  No longer can we choose, for instance, not to buy health insurance and roll the dice on our health—no matter how foolish some might think such a choice.  Instead, Government presumes to choose for us—for our own good: we must buy.  Supporters claim that, since we all will consume health services at some time in our lives, those of us who do so while uninsured are freeloading off those who are insured.  This, though, is a dishonest canard.  There are many cases—my own included—where uninsured consumers pay their own way, entirely, out of their own resources.  And in my case, it was not done out of an abundance of wealth: my family was a bit above the then Federal Poverty Guideline in current income when we paid cash, from our own carefully husbanded-against-the-eventuality resources, for my wife’s biopsy and her subsequent bilateral mastectomy.

The loss of freedom extends far beyond the mere loss of choice concerning health insurance.  If the Federal government can require, under the Commerce Clause or any other rationale, an individual to buy health insurance, then that government can require that same American to buy another product, also (a particular automobile, perhaps).  That government can require that American to not buy yet another product (a firearm, perhaps).  And more generally, that government can require that American to buy, or not buy, on the government’s schedule and at the government’s dictated price.  We will have lost all of our freedom, and all of our control over our own property with this single Act.

What is the limiting principle, the principle that keeps this law from being utterly boundless?  There is no such limit.

Finally, those who argue that Wickard, and the like, will require the Supreme Court to uphold the PPACA must also explain why Brown erroneously did not uphold Plessy, and they must justify an act of naked Federal coercion, at gunpoint, to reverse Dred Scott.

In a just world, the Individual Mandate can only be struck down as unconstitutional. And since the Government has made the Individual Mandate an integral part of PPACA, explicitly eschewing any severability, PPACA must be struck down in its entirety.

“Free” Contraceptives and Abortions

As the Supreme Court takes up the Patient Protection and Affordable Care Act this week, I want to talk a bit about a small aspect of that Act that’s also been in the news lately—the mandate to provide free birth control and pregnancy “correction” services.  I’ll have some ramblings on the PPACA itself in a nearby post.

The original Health and Human Services mandate was that employers would be required to provide contraception and abortion health insurance coverage at no additional cost to their employees.  After the hue and cry over this assault on religious freedom—too many faith-based employers exist—President Obama “compromised” by putting the mandate off onto these employers’ insurance companies.  Of course this ignores all those faith-based employers that self-insure, but enough is enough—the Progressives have accommodated, now it’s on the rest of us to compromise by sitting down and shutting up.

The Wall Street Journal, in a recent editorial, talked about the economic aspect of this adjusted mandate, focusing on the still free part of the services.  The WSJ asked

Insurers are banned from charging higher premiums for extra benefits, so out of what mists will the necessary dollars materialize?

Health and Human Services claims that

Actuaries and experts have found that coverage of contraceptives is at least cost neutral, and may save money, when taking into account all costs and benefits for the issuer.

These must be the same actuaries and experts that assured Congressman Henry Waxman (D, CA) that PPACA itself wouldn’t be raising the cost of health insurance, so how dare AT&T, et al., announce just such cost increases in their SEC filings?

On the other hand, goes the argument, faith-based employers can simply hire insurers to run benefits and then directly pay their workers’ bills.  In this way, religious organizations will pay for the contraception and abortion coverage with only a token middle man.   But this is just a cynical sophistry.  Whether paying directly or through a “token middle man,” these organizations are still being forced to pay for a violation of their teachings and their conscience.

And this brings me to a larger problem with this mandate, the reduction on individual freedom that it represents.  Ann Patchett, in another op-ed in The Wall Street Journal, argues with a straight face that

If you are a Catholic, as I am, and birth control is covered in the insurance plan of the Catholic institution that employs you, you still don’t have to use it.

This is certainly true.  But she ignores the critical aspect of this: “you,” woman or man, must still pay for it.  Even though it violates your conscience, your religious teaching, to do so.

She goes on, with a justification all too common among Progressives:

If you are galled by the idea of paying for the birth control of people you do not know, people who might be using it to have wanton sex, stop and make a list of all the other troubling ways your tax dollars are spent. Contraception will probably not make the top 10.

Thus, because others have done wrong, or in this case because there are already a lot of misuses of our tax dollars, it’s OK to commit this wrong.  There’s an interesting logic.  Furthermore, this bit of argument carefully elides the loss of choice: no longer can a woman or a man choose to buy, or not to buy, contraception or abortion.  Now we all must buy them.

Finally, the argument also carefully elides a larger loss of freedom: the freedom of religion and conscience.  Now men and women of faith must violate their religious teachings, their conscience—not of their own free will (and the Progressives have made much of their non sequitor that vast hordes of Catholic women use contraception and even (gasp!) get abortions), but from government fiat.  Government supplants conscience, Government supplants God.

The Regulation of America

We’re becoming a severely regulated country, and it’s coming on the heels of President Obama’s promise to

find rules that put an unnecessary burden on businesses [and] fix them

which he made in his 2011 State of the Union address and which he committed to writing in his Executive Order 13563 the week prior, which requires all executive branch agencies to “identify and consider regulatory approaches that reduce burdens.”

This also is symptomatic of what’s wrong with our present administration.

This exchange between Congressman Corey Gardner (R, CO)  and EPA Assistant Administrator Mathy Stanislaus at a House Environment and the Economy Subcommittee hearing demonstrates just how seriously Obama and his agencies take his promises:

Corey: Is it standard procedure for an economic analysis to ignore the impact on jobs?

Stanislaus: Well, we didn’t do a direct analysis, again we sought—

Corey: So you did not do a direct economic analysis?

Stanislaus: Well we did do an economic analysis on [various areas]

Corey: But not a cost on jobs?

Stanislaus: Not directly.

The entire five minutes of the video consists of variations of this exchange wherein Corey kept trying to pin down Stanislaus on whether the EPA satisfies its statutory requirement to do a jobs impact analysis as part of its rules economic analysis and Stanislaus’ constant evasion and finally admission that the EPA does not.  The rules, as rules, are more important than working Americans, more important than their effects on our country.

As the Heritage Foundation points out, since January 2009, 106 new “major” regulations have been enacted, costing us $46 billion, plus almost $11 billion more in implementation costs: Obama has become the biggest regulator in American history.  Dodd-Frank has generated the most regulations, and with the CFPB, these are the least accountable.  The EPA, though, is enacting the most expensive, with just four rules costing us $4 billion per year.  And this is before the closure of gasoline refineries in the Northeast—which will force New York, for instance, to import expensive foreign gasoline to make up the shortfall—and electric power generating plants throughout the already economic and employment challenged rust belt—which will drive up power costs for those hard-pressed businesses and citizens.

On the financial side beyond Dodd-Frank, the government is reaching directly inside our businesses to dictate to them what they can and cannot do with their own business assets.  Illustrative of this is the Federal Reserve Bank’s decision to not allow Citibank to return capital to its owners through increased dividends and stock buy-backs.  The Fed said Citi couldn’t handle it.  The Fed said that, not the bank’s owners.  The bank’s owners said otherwise but were casually overruled.

There’s a rather naked conflict of interest here for a government as prone to expand our national debt as this one is.  As Alex Pollock, resident fellow at the American Enterprise Institute, and past president and CEO of the Federal Home Loan Bank of Chicago, points out:

…governments promote loans to governments. They have an obvious self-interest in promoting loans to themselves and to other governments they wish to help or influence.  Banks are extremely vulnerable to pressure from governments—the more regulated they are, the more vulnerable.  Employees of government bureaucracies have an incentive to encourage loans to their political employers—an inherent conflict of interest.

But never mind about petty conflicts of interest.  It’s this way because the Progressives don’t believe we’re able to take care of our own affairs.  Instead, we must be told what to do, have our courses of action limited—for our own good—by our Betters.  And for their political gain.

2nd Amendment and the Fifth Circuit

The Wall Street Journal‘s Law Blog has a description of an egregious gun rights case.  It seems that, when Errol Houston was arrested in New Orleans in 2009 on drug and firearm charges, the police seized a properly registered gun that he had.  So far, so good—when the police arrest someone, they’re allowed to disarm him, too.  However, when the charges were dropped, the city refused to return his weapon to him.  He sued for the return, and amazingly, the district court found for the city.  Even more amazingly, the Fifth Circuit upheld the ruling, with this…logic…written by Judge Rhesa Hawkins Barksdale:

Just as some regulation of speech–e.g., of obscenity and defamation–is “outside the reach” of the First Amendment, so, too, is some regulation of firearms outside the reach of the Second.  The right protected by the Second Amendment is not a property-like right to a specific firearm, but rather a right to keep and bear arms for self-defense.

Houston has not alleged defendants prevented his “retaining or acquiring other firearms.”  Therefore, he has not stated a violation of his Second Amendment right to keep and bear arms.

Judge Jennifer Walker Elrod dissented.  In addition to pointing out the degree of legality of the majority opinion, violating as it does the Supreme Court’s prior rulings in similar cases (vis., District of Columbia v. Heller and McDonald v. City of Chicago), she also correctly explains the nature and meaning of the 2nd Amendment:

In the context of other enumerated constitutional rights, an equivalent per se exception for particular exercises of the right at stake (so long as other exercises of that right are permitted) would be intolerable.  Consider, for example, a court holding that the Free Speech Clause affords no protection against the government preventing the publication of a particular editorial in the New York Times because there are plenty of other newspapers that might publish the piece.  Or consider a court holding that the Fourth Amendment is inapplicable to the unreasonable seizure of a specific automobile so long as the government does not prevent the owner from borrowing, renting, or purchasing a replacement vehicle.  These examples should suffice to show the absurdity of courts recognizing categorical exceptions for each particular exercise of those rights.  In carving out such an exception from the Second Amendment, today’s majority impermissibly treats the Amendment as a “second-class right.”

Judge Elrod is right that the accessibility of alternatives is irrelevant—those alternatives are not the item itself, and the item itself remains the legitimate property of the owner.

Both the majority and Judge Elrod miss a larger point, though: the “right of the people to keep and bear Arms” is, indeed, a property right, but it is a different and more fundamental kind that that alluded by Judge Barksdale and accepted by Judge Elrod.  This property is one flowing from the endowment imbued in us by our Creator, a property of our being.  As such, Judge Elrod is right, but she doesn’t go far enough.  It is the regulation of our endowed rights that is the exception, not the possession of this or that particular item in a realization of one or more of those rights.

A Risk to Federalism

It always starts from the best of intentions.  The Senate is unhappy with the lack of uniformity of driving laws governing teenage drivers across the States, so it wants to impose national standards.  Specifically, the Senate wants to use a two-year, $109 billion highway bill currently under consideration as the, umm, vehicle for imposing national standards for teenager cell phone use while driving and for teenage driver licensing requirements, among others.  The thinking seems to be that the Feds got away with this concerning minimum drinking ages, so they can do it again in this area.

But the Feds didn’t, entirely, get away with it concerning drinking ages.  In South Dakota v. Dole, the case concerning the imposition of a national minimum drinking age, the Supreme Court ruled (not entirely correctly) that

[T]he relatively small financial inducement offered by Congress here – resulting from the State’s loss of only 5% of federal funds otherwise obtainable under certain highway grant programs – is not so coercive as to pass the point at which pressure turns into compulsion.

Thus, to comply with the Court’s ruling, the Senate’s use of the spending bill—or any other means—to obtain State acquiescence with the Feds’ national standard must be done carefully.

I claimed above that the Court got Dole only partially right.  Under the Federalism structure of our nation, the Federal government cannot (not just may not) force the States, individually or as a group, to do very much at all.  This is clear from Article I, Section 8; Article I, Section 10 [sic]; and the 9th and 10th Amendments.  Mandating national standards for matters that are internal to the States (vis., the rules by which a State’s citizens might drink, or drive, or etc. within that State) is prohibited by our Constitution.  The Court plainly understood this with its Dole ruling.

However.

The Court’s understanding falls short, as demonstrated by that phrase pass the point at which pressure turns into compulsion.  It waffled on where to draw that line.  It had to waffle, because that line cannot be drawn.  It is the nature and purpose of “pressure” to get the target of the pressure to comply.  The first iota of pressure has as much compulsory content as the last iota that pushes to total over that line to a compulsion that even a Supreme Court can recognize.

The President can use his bully pulpit quite legitimately—and Presidents often do, beginning with Teddy Roosevelt—to jawbone with his target audience to get this or that issue handled “his way.”  So can the Senate, or the House, or the Congress as a whole.  There is, though, a not very fine line between remonstrating, on the one hand, and forcing (or “pressuring” for) compliance—compulsion—on the other.  Putting such jawboning into legislation goes far beyond mere argument and becomes an attempt at compulsion, albeit with a cotton glove.

The greater risk is not to our teenagers, or fellow travellers, from their driving habits, but to the Federal nature of our nation from a central government imposing uniformity on things that properly are within the…province…of our States.  That greater risk includes the risk to our teenagers’ welfare.

On the other hand, this might be a fine opportunity for the States to set a powerful precedent.   This might be the place for the States to start saying, “Done and done.  Keep your Federal highway dollars.  We no longer wish to have your Federal hands in our State pockets.”