Current attacks on the Food and Drug Administration for not regulating e-cigarettes enough remind us of an inconvenient truth. In the minds of public health activists and many medical experts, the state is to adult citizens what parents are to their children. This fiction has even been consecrated by a century-old legal principle.
The Wall Street Journal of yesterday (“Researchers Say FDA Has Fallen Down on E-Cigarette Testing”) reports that the current attacks against the FDA are of two sorts:
The Food and Drug Administration has come under fire for not moving quickly to address the health risks of e-cigarettes, but outside the public spotlight it is also under attack for not prioritizing study of whether those vaping products may well be an important way to reduce deaths from traditional smoking.
For some, the FDA is not regulating enough; for others, it’s regulating too much or, at least, not intelligently. The WSJ story shows the FDA as a complex bureaucracy whose right hand ignores what the left hand is doing. The contemporary student of bureaucracy, who knows that bureaucrats pursue mainly their personal interests like anybody else, will not be surprised by policy inconsistencies.
Another interesting fact is the apparent conflict, within the FDA, between some economists and a harder regulating wing. As I explained in a recent Reason Foundation paper, those economists want to incorporate consumer preferences (by way of the “consumer surplus”) in cost-benefit analyses of smoking and vaping, as required by standard economic theory, while the hard regulating wing denies any value to most consumer demand (see “Consumer Surplus in the FDA’s Tobacco Regulations, with Applications to Nicotine Reduction and E-Cigarette Flavors,” June 2019).
To simplify a bit, the hard regulators think that government should protect consumers against themselves like parents protect their children by making choices in their stead. This idea corresponds to the mainstream approach in the public health movement. What is more surprising, perhaps, is that a legal principle going back to the 19th century (in America at least, although a European influence is likely) precisely claims that, in some matters (which have expanded with time), government is the parent and its subjects are the children. Indeed, the legal doctrine has a name: parens patriae, which means “parent of the country.”
This theory is explained in a major textbook of public health law: Lawrence O. Gostin and Lindsay F. Wiley, Public Health Law: Power, Duty, Restraint, Third Edition (Oakland CA: University of California Press, 2016). A few quotes from the book are revealing:
From a constitutional perspective, there exist historic wellsprings of state authority to protect the common good: the police power to protect the public’s health, safety, and morals, and the parens patriae power to defend the interests of persons unable to secure their own interests.
In the United Sates, the parens patriae function belongs primarily to state and local governments. It is traditionally invoked in two contexts: to protect individuals who are unable to protect themselves because they are incapacitated, and to assert the state’s general interest and standing in communal health, comfort, and welfare, safeguarding collective interests that no individual, acting alone, has the capacity to vindicate.
The Supreme Court has recognized the states’ broader parens patriae capacity in the context of quarantine, sanitation, protecting the water supply, and preventing air and water pollution. In recent years, many state and city governments have acted in their parens patriae capacity in litigation against industries that produce and distribute harmful products.
The parental government must be just toward its wards. Gostin and Wiley repeat a mantra of today’s theory of public health:
The idea of social justice is a core value of public health and is foundational of public health law.
As the federal government has gradually replaced, or tried to replace, state governments as the loving mother and severe father of the country, it has extended its public health reach, recently encompassing e-cigarettes, which are legally deemed to be “tobacco products.” Creative laws!
READER COMMENTS
Phil H
Nov 28 2019 at 11:52am
There are a couple of terms used in philosophy that I think are helpful: thick and thin. A thick concept is a fully-fleshed out version of a concept, with lots of connotations; a thin concept is just the bare denotation only. So the thin concept of a parent might be biological; the thick concept of a parent would include love, care, and responsibility.
This is relevant because I think the thick concept of a state is a bit like a parent; a thin conception does not have those parent-like features. And a state goes from being a thin state to a thick state just by doing more. As the state takes on incrementally more roles, it becomes thicker, and more parent-like.
So why does the state take on more? Libertarians often seem to portray the state as rapacious and grabby, but that doesn’t look to me like it reflects reality. Since the post-WWII settlement, has the state got much bigger in W. Europe and N. America? It looks more to me as though the state takes on new responsibilities when it has to; when markets fail. Why the NHS? Because the market wasn’t working. Why Obamacare? Because the market wasn’t working. Where the state *can* retreat, it retreats, e.g. telecoms privatization. Where it must, it advances, and becomes more like a parent.
Pierre Lemieux
Nov 28 2019 at 2:33pm
Interesting comments, Phil. But I think your assumption that the state responds to people’s demands is questionable. One simple reason is that not all people direct the same demands to the state. So, as de Jasay says, “When the state cannot please everybody, it will choose whom it had better please.” This insight is why de Jasay’s theory is “an unavoidable theory of the state.” For an indication of the growth of the state since WWII, see http://object.cato.org/sites/cato.org/files/serials/files/regulation/2014/12/regulation-v37n4-3.pdf.
Nick R
Nov 28 2019 at 3:46pm
Yes, and Phil, I don’t think you demonstrated that the state “had to” take over any of the functions it did take over. Your formulation seems tautological–the fact that the government launched a program demonstrates that the program was needed. To argue that successfully you would have to show that alternatives were not or could not work.
Historically the government got involved in health care not because of a need. On the contrary, it started in WWII when health insurance became a deductible fringe benefit for employees–because of government imposed price and wage ceilings. Health insurance was a way of attracting workers without raising salaries–which was constrained or prohibited. In other words, the government’s role ramped up because of prior government policy. That led to the dysfunctional health care system we have today because health consumers (all of us) no longer made decisions based on prices reflecting costs, since we were insulated by the intermediation of employer-provided insurers. Do you think all the free health care in Eastern Europe and the Soviet Union before the collapse “worked”? And how well did Obamacare “work”? How well does the NHS “work”?
And by the way, what if government programs don’t work? Do we ever dismantle them and return that sector to the private sphere? Of course not. The diagnosis is always “not enough money” and the solution “more money” (and taxes). Is public education working well, measured by educational outcomes of American students? How well have the three dozen anti-poverty programs worked to reduce poverty over the last 50 years? (By many measures they haven’t made a dent, while social dysfunction among the poor has exploded.) Do you think a third of the corn crop is going into ethanol production because gasoline worked so badly, or maybe because the agricultural lobby is powerful?
In short, the fact that a government program exists is hardly persuasive evidence that it came into being because no better alternative was possible.
Phil H
Nov 28 2019 at 8:48pm
Hi, Nick. You’re right, I certainly didn’t give enough evidence there to back up my argument. And I recognise the argument you make: that it’s past government dysfunction that leads to the next incremental expansion of government. That’s the model that I was calling “grabby government”. I can’t deny that it happens, but it’s not fast. Remember how long Obamacare was in the making? Clinton tried and failed, and Obama had to end up copying a Republican model to get it passed. That is the state as a whole takes a long time to perform these “grabs”.
And at the same time, changes in the other direction are real. It’s simply not true that government programs always ratchet bigger. Recently Scott Sumner posted here about how unemployment benefits have been scaled back. In the UK, the NHS started out including all health, but dentistry was soon dropped. I mentioned telecom privatisation; in Europe many key industries were privatised in the late 20th century. And in the private realm, the government has tried to remove itself from our sex lives. Just this year, the British government tried to intervene again with an internet porn ban, but I hear that it’s basically failed. These are real state retreats!
You ask did the NHS work – yes, on its own terms, it did. And Obamacare worked – it got approximately 20 million more people insured, last I saw. Perhaps those are the wrong indicators to be looking at. That’s a reasonable argument. But in the terms of the debate that existed, these programs didn’t fail.
Nick R
Nov 29 2019 at 3:36pm
While some individual programs might rise and fall, how can it be controversial to state that in the aggregate, social programs rise? The War on poverty started in the 1960s at a cost of a few billion, and now runs to over a $1 trillion annually. Here’s a post describing that saga: https://www.manhattancontrarian.com/blog/2019-11-25-no-amount-of-disastrous-failure-can-kill-the-fantasy-of-a-government-directed-great-society
Thomas Sewell
Nov 30 2019 at 7:00pm
Leaving aside the rest of your post, I’d take issue with two of your factual claims:
The ACA didn’t “copy a Republican model”. The two usual claims for this reference:
Someone at Heritage’s mention of the long-standing idea that to drop pre-existing conditions you’d need an insurance mandate. See https://usatoday30.usatoday.com/news/opinion/forum/story/2012-02-03/health-individual-mandate-reform-heritage/52951140/1
Pointing to Massachusetts similar law, passed by a Democratic legislature overriding vetos by Romney.
The NHS dropped dentistry (and other benefits) in the first few years because when the NHS was instituted its costs greatly exceeded what it’s proponents had claimed. They had to drop coverage to attempt to limit the financial bleeding (no pun intended). Massive cost/spending increases after implementing a single-payer government plan has been the normal experience for every country which has tried it. There’s no reason to believe the U.S. would be different and lots (based on current programs costs) to believe it would be even worse.
Phil H
Nov 30 2019 at 7:48pm
Thanks, Thomas. I did not know that about the Massachussets law. I will look into it. On the NHS – I agree! Companies fail and retreat when they run out of money. And that’s the mechanism by which the state retreats as well. You’re right that dentistry was dropped because it proved too expensive. What I’m saying is that this demonstrates that state programs often shrink, too. It’s a counterexample to the claim that the state always advances.
Thaomas
Nov 30 2019 at 8:59am
In what sense did ACA not “work? It enabled millions of people to have the same more or less kind of health insurance that people with jobs with “good” employers have, subsidized by the rest of us. Some people do not like the transfers but that’s not “not working.”
Jon Murphy
Nov 30 2019 at 10:46am
Yes. Just because “I don’t like the outcome” doesn’t imply a failure. And yet, that is precisely the argument you make with CO2.
Thaomas
Dec 1 2019 at 6:39pm
I do not believe I have ever characterized the “no revenue neutral tax on CO2 emissions” (AKA “carbon tax”) as “not working. ” I merely claim that the cost benefits analysis of a carbon tax relative to current policy is positive (and will get more positive as current policy drifts toward less efficient instruments.
My remark was an attempt to find out what the writer meant by “not working.”
Thomas Sewell
Nov 30 2019 at 7:12pm
The view that the ACA is a “failure” is most likely held by three groups:
The group that believes it didn’t fulfill President Obama’s promises regarding it, i.e. that you can keep your Doctor and your Plan if you want to, that it will reduce health insurance costs for families by $2500, etc… That group probably feels betrayed if they supported the ACA in the first place.
The group who wants government single-payer/medicare for all. The prominent politicians running for President on this platform presumably believe the ACA model needs to be replaced, although they may consider it a success in it’s failures by driving their Party’s discussion further toward more government control.
The group who wants more individual choice and less government involvement and control in health care and insurance. The ACA obviously hasn’t accomplished that, including via the simple expedient of lowering choice/competition by driving health insurance companies out of various markets.
Jon Murphy
Nov 30 2019 at 10:45am
Be precise. What were the market failures here.
Deregulation is few and far between. There are countless regulations on the books that remain even though markets have changed (indeed, these regulations are often demanded to be enforced stronger because the market is working better than the regulations. Eg, regulations on Uber).
Phil H
Nov 30 2019 at 8:26pm
I’m not that keen on the phrase “market failure”. Markets can fail, but often the market is just doing its own thing; the problem is that it isn’t doing what we wanted it to do. The failure that drove the NHS and ACA was lack of access to healthcare. In the case of the ACA, that was explicitly operationalised as the number of uninsured people. And, yes, I know that there’s data suggesting the ACA hasn’t improved healthcare outcomes, which means that maybe that wasn’t the right indicator.
Deregulation – I agree with you on this. It is the distinctive feature of the state that it is the last resort. It’s what you use when markets aren’t getting the job done. It’s also retentive, as you say – the state often doesn’t let go of old regulations, and that can cause problems. But to say it *never retreats* is plainly false.
Jon Murphy
Nov 30 2019 at 9:58pm
“We” or “You”? You’re making a normative claim. This is common in collective action problems, where an individual projects his own desires onto the group as a whole. Indeed, all of welfare economics is susceptible to this problem.
Besides, just because a market isn’t doing what you (or “we” or whatever pronoun you want to use) does not qualify a market failure in any sense of the term. The market doesn’t provide me with a sports car for $5, which is what I (or “we” if we want to include the millions of people who would love a sports car at $5) want it to do. That does not mean the market has failed or government should step in.
And here you singlehandedly undermined the case for the ACA and NHS being government solutions.
Jon Murphy
Nov 30 2019 at 10:05pm
Here is a short list of things that the market does that “we” don’t want it to do, but is not a market failure:
-Prices of oranges rising after a frost in Florida
-Prices of oranges falling after a bumper year in Florida
-Prices of gasoline rising after an increase in demand for SUVs
-Prices of gasoline falling after fracking came about
-Prices of essentials rising after a natural disaster
-Prices of essentials falling once the shock of the disaster has passed
-A competitive store opening up down the block
-A competitive store not opening up down the block
All of these things are undesirable by some “we.” None of them are market failures. None of them justify government intervention. As de Jasay says: “When the state cannot please everybody, it will choose whom it had better please.”
The door you open does not lead to market failure, but rather government failure.
Phil H
Dec 1 2019 at 11:36am
I agree with all of that – that’s exactly why I said I don’t like the term market failure.
I don’t think the US healthcare market was failing in 2010. But its market outcome left 40+ million people in the USA without health insurance, and the “we” that decided they didn’t like the market outcome was Congress.
Jon Murphy
Dec 1 2019 at 3:00pm
Which leads to the question: why did you use it? You’re the one who defined market failure as a reason for government to step in, but now you’ve backed away from it so far as to include anything as a reason to give government a reason to step in with your vacuous phrase “we don’t like…”
Note how far you’ve strayed from your original claim of “It looks more to me as though the state takes on new responsibilities when it has to; when markets fail. ”
Originally, you stated a precise case where government can step in. But now you’ve broadened it to be any area where Congress (or, more accurately, some majority of Congress) decides they do not like the outcome. This is precisely the sort of mission-creep de Jasey and others warn against. This is precisely the mindset Pierre warns against.
Phil H
Dec 1 2019 at 9:04pm
I’m sorry, I had completely forgotten I used the word fail in that initial post. I used it as a shorthand, but you’re right, I shouldn’t have.
Jon, ultimately, the problem here is that you appear to regard the constitution as invalid. The “we” that I refer to is the state, as defined in the USA by the constitution. You say it’s “vacuous” if “Congress…doesn’t like” something. I don’t think that. The constitution doesn’t think that. The law *can’t* think that. And plainly the vast majority of people who live in democracies don’t think that.
I get that you think the state should limit its action more and respect the market. But I’m going to need more argument to shift my view. (The problems with the ACA are exactly the kind of argument that will do it!) You simply asserting that the state’s will to legislate is vacuous is… begging the question.
Nick Ronalds
Nov 28 2019 at 2:21pm
Fascinating post, Pierre, and the principle of “parens patriae” is a new one for me. Not particularly reassuring, however, and your post touches on how easily a nice-sounding principle can veer into destructive paternalism, or get hijacked by some alliance of baptists and bootleggers.
JK Brown
Nov 29 2019 at 1:43am
–Popular Law-making: A Study of the Origin, History, and Present Tendencies of Law-making by Statute, Frederic Jesup Stimson (1910)
Muller is still a landmark case. Yet, I can’t see how any feminist could read the decision and not be offended. The tragedy is that in the intervening years, women were not lifted to equality with men but rather men, especially poor, working class men, have been reduced to the women’s “ward of the state” status with minimum wage, hours of work, etc. laws.
To whit, Stimson’s observation on the free man’s control of his person and personal activities is now superseded:
Pierre Lemieux
Nov 29 2019 at 4:30pm
JK Brown: Thanks for the reference. I cannot find it in pdf but there is a text version on gutenberg.org. Stimson was a Harvard professor of law.
JK Brown
Dec 3 2019 at 2:33pm
Pierre, sorry for the delay in my reply. I found it at the Internet Archive in various formats.
I recommend looking at Stimson’s discussion of The Statute of Laborers and subsequent legislation. The Statute was a fixing was maximum wage due to the Black Death in the 13th century. The follow-on Statute of Richard II enacted some features we still see in labor practices, like references. Other follow-on legislation from the Statute of Laborers follow what is known in economics when wages are fixed, prices for necessaries have to be fixed and adjusted by law.
Stimson mentions that trade unions felt the Statute of Laborers was moot during Elizabeth I’s reign but not repealed until the mid-19th century. This is likely accurate if you look at population recovery which seemed to eliminate the labor shortage during Elizabeth I’s reign.
It is interesting how much of our practices in labor and elsewhere are rooted in the Middle Ages.
Thaomas
Nov 30 2019 at 9:10am
I think this is not a good conception of what a state is for. I see it as a way to do some things collectively that can be better done that way than individually. Diners could sue restaurants that serve unhealthful food because of dirty kitchens. Arguably city health inspectors can do the job better and cheaper than a bunch of court cases. Of course any specific activity or proposed activity should be analyzed to ensure that it actually has a net positive of benefits over costs. And for dealing with externalities in which negotiation between agents and victims is not feasible like CO2 emissions, there is no alternative but the state. No concept of “loving care” is helpful in this analysis.
Jon Murphy
Nov 30 2019 at 10:42am
I suggest you review pretty much all the literature on externalities since 1960. Focus primarily on Coase, Buchanan, Dahlman, and Ostrom. There are countless examples of externalities where prima facie it looks like negotiation is not possible, and yet alternatives to the state that solve the problem emerge readily.
And yet, the state is a poor means for accomplishing this. Firms do a much better job. Now, we can analyze the state as a firm (which is the basis of a lot of work I do), but we must be careful as treating a state as a collective action solver as it possesses a unique ability: force. This is why public choice analysis is so important
Jon Murphy
Nov 30 2019 at 11:46am
Another quick point. If your statement here is literally correct, that negotiation is impossible or not feasible, then it is impossible to set a Pigouvian or revenue-neutral tax. It’s impossible to do a cost-benefit analysis.
Remember: costs and benefits only emerge from market transactions. If there are no market transactions, there is no data on costs and benefits as the individuals are never faced with that option. Therefore, one cannot “ensure that it actually has a net positive of benefits over costs,” not for any technical reason, but because the information simply does not exist!
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