deFUDdle

Back when I worked at IBM, if we didn't have the "winning" solution, our strategy was simple - we used FUD. It was brilliant, and worked more often than you might think. FUD = Fear, Uncertainty and Doubt. The idea was to push the customer's emotional buttons, poke holes, create scary what-ifs, do whatever it took to force a delay, redefine the problem, or whatever so that we were in a more favorable position.

The Republicans FUD skills are renowned. They are able to create a sense of tension in the electorate in ways that routinely befuddle Democrats. Take health care - they did a brilliant job of associating the reform bill with "bad for the economy" and "a perilous step towards socialism" - fantastic! First, I'm willing to bet that most of us don't even know the definition - according to Webster, socialism is a: a system of society or group living in which there is no private property; b: a system or condition of society in which the means of production are owned and controlled by the state.

Is there any real risk that America turns into a socialist country through health care reform? Hardly. There is no correlation between the government providing a service and the elimination of all private ownership, but it's a fabulous way to create FUD. The first people to oppose socialism are our much-vaunted Congress, who let's face it, enjoy private ownership of a lot of stuff, some of which was funded by special interests and the tax payers(!); they will do everything in their power to preserve the fruits of their avarice. So - socialism is an absurdity.

What about "bad for the economy"? Again - there are many ways to make numbers mean what you want. You only have to look at this NY Times article about law schools using misleading data to shore up their performance numbers (graduate employment rates, etc.) to help improve their rankings, and you can see how universities ("reputable" universities) will lie.

When it comes to the economy, there are two things that matter most - I want a good job, and I want to take home more money than I am now. But then here's one pretty diabolical piece of FUD: taxes are bad. Well... I don't think it's that simple. How much tax do you want to pay? As little as possible - right? Me too. Thus the resonance with the Republican push on lower taxes. It makes total sense - or does it?

Do my taxes really matter or is there more to this?? Put another way, the real question in my mind is: how do I maximize my net earnings? What I really care about is how much I take home at the end of the day, the nature of the deductions from my earnings are less important than the value I get for those deductions and whether the net amount I'm taking home is going up. <-- Does that make sense?

If it does, then it's not really about taxes is it? Why not make it about personal profitability? Profits being what you get to keep in your wallet after all your expenses are paid. So if there is a change to our economic system that costs me more in tax but lowers or eliminates another (bigger) salary deduction, and after all that I end up ahead, why should I care?

According to this (well worth a read), the American health care system is the most expensive in the world; in 2006, we spent more than $6,700 per person on health care, compared ~$3,500 for most Western nations. The cost is actually higher since every other Western country has universal health care, and about 10% of Americans don't have any coverage at all, so the $6,700 is actually closer to $7,500 per person.

Digging a bit deeper, 70% of Canadian health care costs are borne by the government vs. 46% in the US; the Canadian system costs about $3,700 per person (just about half of the US cost), and yet Canadians live longer and have a lower infant mortality rate - these are the two primary measures of national health care effectiveness.

Bottom line: Canadians spend $3,800 less per person for better health care. If you're American, you might think - yeah but my employer pays my share - what do I care? Well - if personal profitability is your goal, then you will know that you are paying EVERY penny of your medical insurance costs, whether it is in taxes, payroll deductions, a lower salary, or lower prices at the store. No matter how you cut it, the $3,800 difference DOES come from your wallet, and means those of us who live in the USA earn that much less every year, and die earlier to boot.

Even if the US decided to spend $4,500 per person (for every person), that's still a savings of $2,200 for each of us plus the knowledge that no-one gets left behind. Every person in this country gets access. Every person also gets to pad their wallets a bit, and rarely is that a bad thing!

But how to communicate this? It's a pretty complex analysis, and given the state of education in America, I'm not convinced that every voter is going to understand it. Think back to the last person that had a tough economic message to share with the populace - President Ronald Reagan in is first address to the nation from the Oval Office in 1981 - a brilliant speech.

If President Obama had addressed the nation in just this way - not talking to politicians and special interests as he did in his attempts, but talking to the American people, sitting in his office, and not standing in the House; if he had applied simple metaphors as Reagan did, perhaps each of us might have been able to look forward to an extra $2-3,000 in our wallets in 2011.