The Public-Health Fallacy

The discussion at this otherwise-good Instapundit post is typical.

The discussion is misframed. The question isn’t whether a specific medical procedure is a good idea. The question is who gets to make the decisions.

This is a comment that I left on a recent Neo-Neocon post:

It’s the public-health fallacy, the confusion (perhaps willful, on the part of socialized-medicine proponents) between population outcomes and individual outcomes. Do you know how expensive that mammogram would be if every woman had one? The implication is that individuals should make decisions based on averages, the greatest good for the greatest number.
 
The better question is, who gets to decide. The more free the system, the more that individuals can weigh their own costs and benefits and make their own decisions. The more centralized the system, the more that one size must fit all — someone else makes your decisions for you according to his criteria rather than yours.
 
In a free system you can have fewer mammograms and save money or you can have more mammograms and reduce your risk. Choice. In a government system, someone like Kathleen Sebelius will make your decision for you, and probably not with your individual welfare as her main consideration.

Even in utilitarian terms — the greatest good for the greatest number — governmental monopolies only maximize economic welfare if the alternative system is unavoidably burdened with free-rider issues. This is why national defense is probably best handled as a governmental monopoly: on an individual basis people benefit as much if they don’t pay their share for the system as if they do. But medicine is not so burdened, because despite economic externalities under the current system (if I don’t pay for my treatment its cost will be shifted to paying customers) there is no reason why the market for insurance and medical services can’t work like any other market, since medical customers have strong individual incentive to get the best treatment and (in a well-designed pricing system) value for their money. The problems of the current medical system are mostly artifacts of third-party payment and over-regulation, and would diminish if we changed the system to put control over spending decisions back into the hands of patients. The current Democratic proposal is a move in the opposite direction.

Mathematics versus The Blob

(…and so far, the blob seems to be winning)

Here’s a New York Daily News article on mathematical ignorance among City University of New York students:

During their first math class at one of CUNY’s four-year colleges, 90% of 200 students tested couldn’t solve a simple algebra problem, the report by the CUNY Council of Math Chairs found. Only a third could convert a fraction into a decimal.

And here’s Sandra Stotsky, discussing some of the reasons for poor math performance in America’s schools:

But the president’s worthy aims (to improve math and science education–ed) won’t be reached so long as assessment experts, technology salesmen, and math educators—the professors, usually with education degrees, who teach prospective teachers of math from K12—dominate the development of the content of school curricula and determine the pedagogy used, into which they’ve brought theories lacking any evidence of success and that emphasize political and social ends, not mastery of mathematics.

Read more

The Separation of Scientific Powers

Rep. Edward Markey (D-Mass.) has flagged an Office of Management and Budget (OMB) decision urging the Environmental Protection Agency (EPA) to use test data from companies and other existing data in judging whether chemicals found in pesticides and plastics could disrupt the human endocrine system, which releases hormones.[source]

I suspect that the OMB is actually suggesting that the EPA use all scientific data regardless of source. US regulatory agencies have long suffered from “not invented here” syndrome in that they rather routinely reject valid scientific data that originates from any source outside themselves. For example, they often refuse to use data generated by European regulatory agencies even though the standards of those agencies are just as good as ours.

However, I think he has a point (echoing Adam Smith) that data is suspect when it comes from companies that have an economic incentive to downplay the dangers of their products. However, Markey and others like him do not see that the EPA and other regulatory agencies have the same kind of built-in conflicts of interest as companies do.

Since the EPA’s budget and scope of powers depend on the degree of environmental hazard believed to exist, the EPA has a built-in institutional bias towards exaggerating dangers that is every bit as strong as the bias of profit-driven companies to underplay dangers. Worse, as a political creation, the EPA is subject to ideological pressure from politicians, lobbyists and activists across the political spectrum.

We should divide the EPA, and every other regulatory agency, into two departments that are entirely separated all the way up to and including the level of cabinet secretary. One department would be responsible for regulation while the other will be responsible for doing the science upon which the regulation depends. We might even go so far as to create a Department of Science which would perform scientific research for all regulatory agencies. Only then could we be assured that the science upon which we base our regulations would not be contaminated by institutional biases one way or the other.

As the scope and power of government have grown, we have neglected the concept of the division of powers, even though the Founders and history judge this concept absolutely vital to maintaining freedom. Today, each regulatory agency is its own little fiefdom and many are far larger than the entire Federal government was even 80 years ago. Yet we’ve never applied the Founders’ wisdom about the separation of powers to these vast and powerful organizations.

We need to start doing so.