A Theme for McCain's Pudding
Here's how to tie together the campaign's assortment of ideas: a reform agenda for the 21st century.
May 26, 2008, Vol. 13, No. 35 • By YUVAL LEVIN
Republicans, meanwhile, having never been quite at home with the original purposes and ends of some of these institutions, aren't thinking constructively about reforming them (though there are a few exceptions, most notably Newt Gingrich). There has, of course, been debate about the structure of the military and immigration, and Republicans are increasingly thinking creatively about health care as well. But the conservative response to the Bush administration's Medicare prescription drug plan, for instance--a plan that for the first time introduced market incentives into Medicare and quickly proved the power of incentives to reduce costs and improve quality--shows that the right is still fighting the last war and failing to recognize an opportunity to roll back the most egregious elements of the welfare state, by planting conservative principles deep in enemy territory. Conservatives have a chance to fundamentally alter some of the assumptions behind our large public agencies of regulation, governance, and welfare.
The right is well suited to the task of such reform. The overarching lesson of our failing institutions is not that government has failed to reach far enough into American society, but that life in the 21st century is more complex and less predictable than our 20th-century institutions can readily fathom. The answer is not to expand government so it can rescue people from themselves--which is the underlying premise behind just about every plank of Hillary Clinton's and Barack Obama's platforms--but to make the institutions dynamic and flexible enough to advance the causes of economic growth, cultural vitality, and national security.
"A disposition to preserve and an ability to improve" was Edmund Burke's definition of the statesman two centuries ago, and it remains the hallmark of conservatism. While American conservatives have sometimes liked to think of themselves as revolutionaries (or radical counter-revolutionaries), the most significant accomplishments of the conservative movement have actually been targeted reforms that turned existing institutions to conservative ends. The Reagan "revolution" gave us a tax code better suited to entrepreneurship and growth. The Gingrich "revolution" gave us a welfare system with incentives geared toward encouraging independence and initiative. Conservative reform of urban law enforcement, and early efforts at reform of local education (through school choice), have improved what we have, rather than rejecting it. Reform, not revolution, is the conservative path to supporting strong families and free markets.
A reform agenda would be especially well suited to John McCain, as he himself seemed to see in 1999. McCain's conservatism is not fundamentally ideological. He is not especially interested in political "issues" or in abstract ideas about individual rights or the role of government. Rather, he is moved by large challenges and great exertions, and by the imperative of meeting America's commitments. He is a conservative because he believes the right has a more responsible attitude toward meeting these commitments, and is more likely to keep Americans (as individuals and as a nation) strong enough to do great things.
This makes for an awkward marriage between McCain and the conservative movement, but it is a coupling with more opportunities for joint efforts than the two sides realize. Rather than pretend McCain is a traditional movement conservative or that conservatism is a nonideological honor code, the two should seize an opportunity to work together for their rather different ends, with McCain giving voice to the aims and the urgency of reforms, and conservatives offering him the means. They should seek to reform our governing institutions in ways that would turn them to the cause of America's working families (which are the source of America's strengths), and should understand that cause in terms of upwardly mobile aspiration, not bitter and angry desperation.
McCain should paint a picture for the public of the moment we are in: confronted on the one hand with a justified crisis of confidence in our institutions and on the other with proposals from the Democrats driven by a set of liberal ideological commitments that would exacerbate the problem by carelessly expanding government. The cure for what ails us is not change that is simply more of the same--more bureaucracy, a further takeover of the private and domestic spheres that in the name of offering relief steals away more and more of our independence and initiative. The cure, rather, is to plant in the architecture of our largest public institutions the conservative commitments to individual freedom and initiative, to the centrality of parenthood and the family, and to the cause of American strength in the world.
A REFORM AGENDA
A McCain reform agenda would begin with an effort to help give American families more say over the institutions they rely on most directly.
America's health care system is a product of 20th-century labor policies, and it is struggling to keep up with 21st-century medicine. It puts too many incentives in the wrong places and creates needless uncertainties and tensions. The care is not itself a problem: It is for the most part advanced, high quality medicine, and those with access to it are very happy with it. The problem is that access to insurance coverage is a function of a tax policy grounded in World War II-era employment laws. Many Americans in our modern economy no longer fit the model--not because they are oppressed or put upon, but because they are pursuing prosperity in different ways. Small business employees, the self-employed, freelancers, and those who change jobs frequently find themselves at constant risk of losing health coverage.
The answer is not a program of government subsidies that slowly drives consumers into public insurance--which is what Senators Clinton and Obama propose--and which would create an even less responsive system than the one we now have. (This would replace a slowly decaying 20th-century model with an essentially bankrupt 20th-century model.) The answer is, rather, to treat individuals as individuals, create incentives for cost containment in the private sector, and help the uninsured find private coverage.
To his credit, McCain has already put forward a plan along these lines, which begins gently to separate insurance from employment and to introduce market incentives to contain costs--but he needs to make a concerted effort to explain it and show why it is preferable to the Democrats' approach. The failure of American health coverage is the preeminent domestic concern in this election year, and conservative health care reform is the key to McCain's reform agenda.
Tort reform is another natural issue for McCain, as a companion cause to his health care reform. The existing medical liability regime pits trial lawyers--an unpopular Democratic interest group--against doctors and nurses, and it increases the cost of health care for all. Conservatives have long advocated some modest but meaningful reforms of medical liability, and McCain would be wise to draw on those ideas and make the issue a prominent cause in the coming months.
Democratic politicians have chosen to deny the looming crisis in Social Security and to blithely ignore the even larger and more complicated disaster facing Medicare. McCain has argued for comprehensive Social Security reform in the past and should do so again with renewed vigor. Here again, Republicans have an answer at the ready: a plan for personal accounts for future recipients that leaves those age 55 and over untouched. It is a vital reform in desperate need of a champion to make its case.
Medicare, unfortunately, is a much bigger problem. But the design of the prescription drug benefit passed in 2003 offers a model. As James Capretta has argued, Medicare should be gradually transformed from an open-ended entitlement into a defined-contribution program, which provides individuals with a preset amount (based on average insurance costs in their area) toward the purchase of private or public insurance. Individuals would choose what specific plan to purchase, so plans would compete for their business. Such an approach would not only begin to reverse Medicare's disastrous fiscal course, it would also help contain costs in the larger health care sector (since Medicare's open-ended reimbursement is responsible for a significant portion of health care cost inflation). No politician has had the courage to address Medicare's fiscal troubles. McCain could do so as part of a broader appeal for reform and insist that to ignore the problem is a disgraceful dereliction of responsibility to the future.
McCain also can become a more forceful booster for school choice. The failure of many urban schools, and the underperformance in many rural and suburban schools, is a function of a deeply sclerotic and counterproductive bureaucracy, working in tandem with a powerful union (another Democratic constituency) that resists any hint at reform. Directing his attention to urban schools that underprivilege students who are seriously underprivileged to begin with, McCain should make a case for targeted choice programs, which have worked in a few fortunate cities in the past decade. He can make it clear to middle-class parents that their children's schools need not change if they are working, but that other children desperately need to be given a chance to escape from failing schools.
Tax reform is also a way of supporting lower- and middle-class families while encouraging economic growth. McCain should seek not only to remove unneeded burdens on businesses--as he has already declared his desire to do--but also (and especially) to remove unfair burdens on parents. A major expansion of the child tax credit, applied against payroll as well as income taxes--as proposed by Ramesh Ponnuru and Robert Stein--would be the ideal centerpiece of a McCain tax reform. McCain has made gestures in this direction, but should make this a prominent proposal. It would clearly signal that his agenda is aimed at middle- and lower-class families. And McCain's entire reform platform should be directed to the stresses and concerns of these families.
The housing and credit crisis afflicting the American economy also provides an opportunity to take a fresh look at key elements of the government's role in regulating credit markets and corporate governance. McCain is well suited to take on Wall Street's excesses without attacking its core strengths. The key is not more regulation, but smarter and leaner regulation, which removes unnecessary burdens from businesses but protects America's large new investor class--which did not exist when many of our regulatory institutions were born. It is also time to consider fundamental reforms of the federal reserve system.
As he addresses the institutions that touch the lives of American families, McCain should propose a reform of the federal government itself. He might begin with comprehensive budget reform, promising to work with Congress to redesign the annual federal budget process, with its 11 separate fiefdoms, its inability to produce an orderly budget on time, and its endless opportunities for mischief, waste, and fraud.
McCain could also call for a thorough reappraisal of federal regulatory agencies, beginning with the Food and Drug Administration. The FDA is over a century old and has not been able to keep up with dramatic changes in both technology and the world economy, particularly the globalization of the supply chains for food and medicine. The contamination of pet food resulting from improper practices by a Chinese supplier last year was a loud and clear warning: A similar (and far more terrifying) disaster in the human food supply is easily imaginable under today's regulatory regime. The FDA needs more than new resources; it needs a top-down redesign. Other safety and regulatory agencies, like the FAA, have also shown serious strain in the last few years and require a rethinking.
The failure of America's immigration system, meanwhile, is a problem McCain knows all too well. Rather than raise again the prospect of legal status for illegal aliens, however, McCain might focus on two more urgent priorities: control of the southern border and reform of the legal immigration system. America's immigration laws were written in the mid-1960s and only barely revised since. The system they created is too heavy on family-based immigration and too light on sensible labor-based immigration. It is also almost entirely lacking in any formal elements of assimilation and integration. It needs to be thoroughly redesigned to combine secure borders with open arms and economic benefit with common sense.
Perhaps most important, McCain should propose a comprehensive national security reform agenda. He is well-versed in the need to restructure American diplomacy and to reform the military, the intelligence community, and our homeland security agencies. He has already begun to talk about some reforms of America's foreign policy apparatus (particularly public diplomacy), and even about some reforms to global institutions, seeking to replace the mid-20th-century United Nations with a 21st-century league of democracies. The last few years have offered no shortage of lessons for reforming the organization of the Armed Forces and revisiting the joint command structure, which is showing real strain. The intelligence community, meanwhile, is showing not strain but signs of systemic failure. The Bush administration began some efforts at reform through the creation of a director of national intelligence, but vigorous work is sorely needed. In pursuing both military and intelligence reform, moreover, McCain has a particularly rich storehouse of conservative reform ideas to call upon.
There is also a powerful cautionary lesson to draw on. The Department of Homeland Security is the first prominent example we have of a major 21st-century reform, and it is mostly a negative example. It demonstrates that reform must consist of more than moving existing boxes around on an organizational chart and creating vast new structures to house largely unreformed old institutions. Institutional reform is not only about efficiency; it must also be directed to a reappraisal of ends and a careful honing of means.
A CAMPAIGN FOR REFORM
These are, to be sure, mere chapter headings for a campaign agenda. But in many of these areas the McCain campaign has already offered proposals, which it now could tie together under a common narrative. That narrative ought to revolve around the challenges that call for reform, and the need for reforms that build on America's strengths, rather than exacerbating its troubles. Such an approach would suit McCain. He could show his grasp of the challenges we face and his confidence in America's future. He could drive home the point that what we need is not more government but a government better suited to the times and to the concerns of the American family.
Obviously such an immense reform agenda could not be accomplished by any single president, and particularly not in the exceedingly difficult political circumstances McCain would likely face if he won in November. But by advancing an ambitious agenda--one that if anything is too heavy on specifics--McCain could provide a sensible and coherent explanation for the generalized anxiety of the American public today and a road map toward addressing it head on.
McCain would also be providing conservatives with a new way of thinking about the challenges they confront as a governing party rather than a counterrevolutionary one and a new vocabulary for making the case for limited-but-effective government, for freedom and individual responsibility, and for American values. Precisely such reforms have been among the greatest gifts the conservative movement has given America. A renewed program of energetic conservative reform would bear similar benefits in years to come.
Yuval Levin is the Hertog fellow at the Ethics and Public Policy Center and senior editor at the New Atlantis magazine.