The United Free States of America

Artificial Stupidity

Thomas Sowell is a senior fellow at the Hoover Institute and author of The Housing Boom and Bust.

A woman with a petition went among the crowds attending a state fair, asking people to sign her petition demanding the banning of dihydroxymonoxide. She said it was in our lakes and streams, and now it was in our sweat and urine and tears.

She collected hundreds of signatures to ban dihydroxymonoxide — a fancy chemical name for water. A couple of comedians were behind this ploy. But there is nothing funny about its implications. It is one of the grim and dangerous signs of our times.

This little episode revealed how conditioned we have become, responding like Pavlov’s dog when we hear a certain sound– in this case, the sound of some politically correct crusade.

People are all born ignorant but they are not born stupid. Much of the stupidity we see today is induced by our educational system, from the elementary schools to the universities. In a high-tech age that has seen the creation of artificial intelligence by computers, we are also seeing the creation of artificial stupidity by people who call themselves educators.

Educational institutions created to pass on to the next generation the knowledge, experience and culture of the generations that went before them have instead been turned into indoctrination centers to promote whatever notions, fashions or ideologies happen to be in vogue among today’s intelligentsia.

Many conservatives have protested against the specifics of the things with which students are being indoctrinated. But that is not where the most lasting harm is done. Many, if not most, of the leading conservatives of our times were on the left in their youth. These have included Milton Friedman, Ronald Reagan and the whole neoconservative movement.

The experiences of life can help people outgrow whatever they were indoctrinated with. What may persist, however, is the lazy habit of hearing one side of an issue and being galvanized into action without hearing the other side– and, more fundamentally, not having developed any mental skills that would enable you to systematically test one set of beliefs against another.

It was once the proud declaration of many educators that “We are here to teach you how to think, not what to think.” But far too many of our teachers and professors today are teaching their students what to think, about everything from global warming to the new trinity of “race, class and gender.”

Even if all the conclusions with which they indoctrinate their students were 100 percent correct, that would still not be equipping students with the mental skills to weigh opposing views for themselves, in order to be prepared for new and unforeseeable issues that will arise over their lifetimes, after they leave the schools and colleges.

Many of today’s “educators” not only supply students with conclusions, they promote the idea that students should spring into action because of these prepackaged conclusions– in other words, vent their feelings and go galloping off on crusades, without either a knowledge of what is said by those on the other side or the intellectual discipline to know how to analyze opposing arguments.

When we see children in elementary schools out carrying signs in demonstrations, we are seeing the kind of mindless groupthink that causes adults to sign petitions they don’t understand or– worse yet– follow leaders they don’t understand, whether to the White House, the Kremlin or Jonestown.

A philosopher once said that the most important knowledge is knowledge of one’s own ignorance. That is the knowledge that too many of our schools and colleges are failing to teach our young people.

It takes a certain amount of knowledge just to understand the extent of one’s own ignorance. But our “educators” have given assignments to children who are not yet a decade old to write letters to members of Congress, or to Presidents, spouting off on issues ranging from nuclear weapons to medical care.

Will Rogers once said that it was not ignorance that was so bad but “all the things we know that ain’t so.” But our classroom indoctrinators are getting students to think that they know after hearing only one side of an issue. It is artificial stupidity.

I (Dave) would have to drink 42 grande drip coffees in quick succession to induce death by caffeine.

Disclaimer: This statement was acquired through brief caffeine research on the internet, but still an interesting thought.

An Indiana experiment that is reducing costs for the state and its employees.

By MITCH DANIELS

As Washington prepares to revisit the subject of health-care reform, perhaps some fresh experience from Middle America would be of value.

When I was elected governor of Indiana five years ago, I asked that a consumer-directed health insurance option, or Health Savings Account (HSA), be added to the conventional plans then available to state employees. I thought this additional choice might work well for at least a few of my co-workers, and in the first year some 4% of us signed up for it.

In Indiana’s HSA, the state deposits $2,750 per year into an account controlled by the employee, out of which he pays all his health bills. Indiana covers the premium for the plan. The intent is that participants will become more cost-conscious and careful about overpayment or overutilization.

Unused funds in the account—to date some $30 million or about $2,000 per employee and growing fast—are the worker’s permanent property. For the very small number of employees (about 6% last year) who use their entire account balance, the state shares further health costs up to an out-of-pocket maximum of $8,000, after which the employee is completely protected.

The HSA option has proven highly popular. This year, over 70% of our 30,000 Indiana state workers chose it, by far the highest in public-sector America. Due to the rejection of these plans by government unions, the average use of HSAs in the public sector across the country is just 2%.

What we, and independent health-care experts at Mercer Consulting, have found is that individually owned and directed health-care coverage has a startlingly positive effect on costs for both employees and the state. What follows is a summary of our experience:

State employees enrolled in the consumer-driven plan will save more than $8 million in 2010 compared to their coworkers in the old-fashioned preferred provider organization (PPO) alternative. In the second straight year in which we’ve been forced to skip salary increases, workers switching to the HSA are adding thousands of dollars to their take-home pay. (Even if an employee had health issues and incurred the maximum out-of-pocket expenses, he would still be hundreds of dollars ahead.) HSA customers seem highly satisfied; only 3% have opted to switch back to the PPO.

The state is saving, too. In a time of severe budgetary stress, Indiana will save at least $20 million in 2010 because of our high HSA enrollment. Mercer calculates the state’s total costs are being reduced by 11% solely due to the HSA option.

Most important, we are seeing significant changes in behavior, and consequently lower total costs. In 2009, for example, state workers with the HSA visited emergency rooms and physicians 67% less frequently than co-workers with traditional health care. They were much more likely to use generic drugs than those enrolled in the conventional plan, resulting in an average lower cost per prescription of $18. They were admitted to hospitals less than half as frequently as their colleagues. Differences in health status between the groups account for part of this disparity, but consumer decision-making is, we’ve found, also a major factor.

Overall, participants in our new plan ran up only $65 in cost for every $100 incurred by their associates under the old coverage. Are HSA participants denying themselves needed care in order to save money? The answer, as far as the state of Indiana and Mercer Consulting can find, is no. There is no evidence HSA members are more likely to defer needed care or common-sense preventive measures such as routine physicals or mammograms.

It turns out that, when someone is spending his own money alone for routine expenses, he is far more likely to ask the questions he would ask if purchasing any other good or service: “Is there a generic version of that drug?” “Didn’t I take that same test just recently?” “Where can I get the colonoscopy at the best price?”

By contrast, the prevalent model of health plans in this country in effect signals individuals they can buy health care on someone else’s credit card. A fast-food meal costs most Americans more out of pocket than a visit to the doctor. What seems free will always be overconsumed, compared to the choices a normal consumer would make. Hence our plan’s immense savings.

The Indiana experience confirms what common sense already tells us: A system built on “cost-plus” reimbursement (i.e., the more a physician does, the more he or she gets paid) coupled with “free” to the purchaser consumption, is a machine perfectly designed to overconsume and overspend. It will never be controlled by top-down balloon-squeezing by insurance companies or the government. There will be no meaningful cost control until we are all cost controllers in our own right.

Americans can make sound, thrifty decisions about their own health. If national policy trusted and encouraged them to do so, our skyrocketing health-care costs would decelerate.

Mr. Daniels, a Republican, is governor of Indiana.

Our contest is not only whether we ourselves shall be free, but whether there shall be left to mankind an asylum on earth for civil and religious liberty.
Samuel Adams