HAPPY HOLIDAYS! The Newsletter of the Mackinac Center for Public Policy www.mackinac.org WINTER 2011 An Evening With the Mackinac Center: Celebrating Policy Entrepreneurs or practical reasons, politicians typically feel compelled to propose policies that are politicallyF acceptable to the public. For many pols, that’s an excuse to play it safe. This is sad, because politicians can still be entrepreneurs. Just as market entrepreneurs develop products that consumers never quite knew they wanted (think the iPad), political entrepreneurs can develop policies that voters Indiana Gov. Mitch Daniels addresses a crowd of nearly 600 at never quite knew they wanted. An Evening With the Mackinac Center. Enter Indiana Gov. Mitch Daniels, the of state lawmakers. Against the backdrop of a Mackinac Center’s keynote speaker on Nov. 14 beautifully decorated room and a beautifully in Lansing. Gov. Daniels, enthusiastically intro- served, Michigan-themed dinner, the assembly duced by Michigan Gov. Rick Snyder, headlined listened to thoughts on political boldness from an event that promoted policy entrepreneurial- ism in a Michigan market ripe for change. Govs. Snyder and Daniels, Mackinac Center President Joseph G. Lehman, and emcee and Nearly 600 people turned out to hear the message that evening at the Lansing Center, radio talk show host Frank Beckmann. Also including Michigan House Speaker James that night, four people were honored as models Bolger, Michigan Supreme Court Chief Justice of courage: policy entrepreneur and Mackinac Robert Young Jr., Michigan Supreme Court Center President Emeritus Lawrence W. Reed, CONTENTS Justice Stephen Markman and a contingent see “Daniels Event,” Page 6 2 The Government Isn’t Santa 3 SEIU Scandal Center Analyst Leads Charge Against 3 Government Contract Database Obamacare Exchange in Michigan 5 Event Horizon: Exploring the State’s Future n a Sept. 14 “Special Message on Health and should create the exchange. Ostensibly, a state- Wellness,” Gov. Rick Snyder told a statewide established exchange would provide greater state 8 101 Years of Giving audience,I “I urge the Legislature to enact control of health care policy and bring more 8 Turning Old Years Into New legislation creating the MI Health Marketplace predictability to Michigan’s insurance marketplace before this Thanksgiving.” than waiting for the federal government to create 9 High School Debate Workshops News reports said little about this “health mar- an exchange for Michigan instead. 10 Free-Market ketplace,” but in fact it was big news: The proposed But from a broader policy perspective, this Fundamentals state-level health exchange would administer one of seemingly sensible argument was ultimately 10 Payne Cartoon Obamacare’s key elements — insurance subsidies imprudent and wrong — a point seen with 11 Supplies and Demand for individuals earning up to 400 percent of the compelling clarity by Mackinac Center Senior 11 Web Pick-Ups Take poverty level. This subsidy is the source of the law’s Legislative Analyst Jack McHugh. McHugh Center Stories National $1 trillion-plus cost over the next decade. drove this comprehensive view of the exchange 12 MERC Goes ‘Kafka’ on Even for those opposed to Obamacare, home through relentless original reporting and U-M Graduate Students there were rational arguments why the state see “Health Care Exchanges,” Page 4 “I don’t venture forth very often — stick to my knitting, stay in my lane — but the Mackinac Center is an organization that I’ve admired a long time, and I decided to make an exception for that.” — Indiana Gov. Mitch Daniels, explaining his willingness to speak at the Center’s event President’S Message Board OF Directors D. Joseph Olson, Chairman Phil F. Jenkins Retired Senior Vice President Chairman, Sweepster Inc. and General Counsel, Amerisure Companies R. Douglas Kinnan Senior Vice President and CFO, Joseph G. Lehman, President Amerisure Insurance Government as Santa Mackinac Center for Public Policy Edward C. Levy Jr. Joseph J. Fitzsimmons President, Edw. C. Levy Co. Retired President, University Microfilms Rodney M. Lockwood Jr. hy is it that most people eventually abandon the President, Lockwood idea of Santa Claus … and yet so many never Dulce M. Fuller Construction Company, Inc. Owner, Woodward and Maple Joseph P. Maguire abandonW belief in an omnipotent government? Hon. Paul V. Gadola President, Retired U.S. District Court Judge Wolverine Development Corporation Santa Claus is magic. His toy sack never empties, he Kent B. Herrick President and CEO, Thermogy Richard D. McLellan Attorney, McLellan Law Offices traverses the globe faster than lightning, his reindeer never Richard G. Haworth Chairman Emeritus, tire, his elves never strike, and he’s never too fat for the Haworth, Inc. Joseph G. chimney. Awed by his powers, young kids approach the Jolly Lehman President One clutching wish lists that itemize the objects of their “unbridled avarice,” as a popular Christmas movie put it. Board of Scholars Dr. Donald Alexander Dr. Dale Matcheck And why not? Santa’s little supplicants are prodded by plenty of Western Michigan University Northwood University parental encouragement. No toy is beyond the ability of Santa’s elves to Dr. William Allen Dr. Paul McCracken Michigan State University University of Michigan (ret.) build. Nothing Santa gives to one child takes away from what he can give Dr. Thomas Bertonneau Charles Meiser to any other child. Plus Santa knows who’s been naughty or nice, so the Writer and Independent Scholar Lake Superior Dr. Brad Birzer State University (ret.) great toy distribution is bound to be fair in some cosmically satisfying Hillsdale College Glenn Moots Dr. Peter Boettke Northwood University way, with everyone getting what they deserve and probably a little bit George Mason University Dr. George Nastas III more. Who wouldn’t want to live in such a world? Dr. Theodore Bolema Marketing Consultants Anderson Economic Group Dr. John Pafford Too many adults treat government the way kids treat Santa. But Dr. Stephen Colarelli Northwood University government is not magic. Most adults expect government to provide at Central Michigan University Dr. Mark Perry Andrew Coulson University of Michigan - Flint least the basics of society like courts, police, defense, roads, mail, and Cato Institute Lawrence W. Reed Robert Crowner Foundation for Economic Education schools. Yet these so often seem beyond the reach of government that Eastern Michigan University (ret.) Gregory Rehmke we may seriously question whether some of them, like schools, should be Dr. Richard Cutler Economic Thinking/ University of Michigan (ret.) E Pluribus Unum Films entrusted to government at all. Dr. Jefferson Edgens Dr. Steve Safranek Ave Maria School of Law Many adults want government to cover everything under Santa’s Morehead State University Dr. David Felbeck Dr. Howard Schwartz flying sleigh. Their wish lists say, “subsidize my retirement, my big house, University of Michigan (ret.) Oakland University Dr. Burton Folsom Dr. Martha Seger a year’s worth of unemployment, my medicine, my college loans, my Hillsdale College Federal Reserve Board (ret.) electric car, my car company, my union, my bank, my bad decisions Dr. Wayland Gardner James Sheehan Western Michigan University (ret.) Deutsche Bank Securities in general, and my ethanol and solar companies.” But unlike Santa’s John Grether Rev. Robert Sirico Northwood University Acton Institute for the bottomless bag of toys, every subsidy government gives to someone must Study of Religion and Liberty Dr. Michael Heberling Baker College Dr. Bradley Smith be taken from someone else. For every happy kid there is another whose Capital University Law School Dr. Ormand Hook toy was ripped from his hands. Mecosta-Osceola Intermediate Dr. John Taylor School District Grand Valley State University Adults then may expect that only the deserving ones get the goodies, Robert Hunter Dr. Richard K. Vedder but the dilemma of fairness inherent in forced redistribution needs no Mackinac Center for Public Policy Ohio University Prof. Harry Hutchison Prof. Harry Veryser Jr. elaboration here. Let’s just say it takes a lot of magic government fairy Mason School of Law University of Detroit Mercy Dr. David Janda John Walter Jr. dust to make it all fair. Institute for Preventative Dow Corning Corporation (ret.) My point is not to ridicule those who want government to provide Sports Medicine Dr. William Wilson Annette Kirk Economic Consultant what they believe they deserve, which would be rude and especially out of Russell Kirk Center for Mike Winther Cultural Renewal Institute for Principle Studies season at holiday time. Rather, it is to confront the reality of an extremely David Littmann Dr. Gary Wolfram durable myth — government as Santa Claus — and to prevent belief in Mackinac Center for Public Policy Hillsdale College that fable from destroying our nation. Children may be sad to realize there’s no Santa, but Mom and Dad can usually ameliorate that disappointment. No one will rescue us when our collective “unbridled avarice” runs up a debt so high it can never be repaid. All the little children will be crying then. Belief in Santa is endearing in children. Belief in magic government is sad, tragic and destructive in adults. One of the greatest gifts we can give this holiday season is to help others confront the myth of magic government. By supporting the Mackinac Center, you are doing that, and I’m grateful. I 140 West Main Street, P.O. Box 568, Midland, Michigan 48640 989-631-0900, Fax 989-631-0964 www.mackinac.org [email protected] Mackinac Center IMPACT is a quarterly publication of the Mackinac Center for Public Policy, a nonprofit, nonpartisan, tax-exempt research and educational institute classified under section 501(c)(3) of the IRS code. MIchael D. JahR Editor DanIel e. MontgoMeRy Graphic Designer Mackinac Center IMPACT 2 Winter 2011 www.mackinac.org Family’s Forced Unionization Plight Draws National Attention obert and Patricia Haynes are “We’re just parents taking care of like most parents in many ways.