Punishing Ambition and Rewarding Stagnation

In New Mexico the basic governing technique has been to ignore the consequences of incentive structures. If one simply examines the Medicaid programs around the nation, New Mexico stands out as one of the saddest examples of what happens when dependency on government is actually encouraged through mindless punishment and subsidies. Years ago New Mexico established the eligibility for Medicaid at 235% of the federal poverty line. Supposedly the logic of a more liberal definition of "poverty" was that it would enable those well above the actual line to grab more "free" federal dollars. In effect, many New Mexico citizens were actually encouraged by our state elected officials (using matching state and federal taxpayer dollars) to become permanent dependents of the Medicaid system.

Anyone with a lick of sense can see that our incentives are in exactly the wrong places when it comes to behaviors. It would seem that our legislature has not had a lick of sense. Accordingly, these days efforts by individuals and families to gradually break free of Medicaid benefits by improving their job skills will actually result in the LOWERING of their living standards. In New Mexico, when a person attempts to climb out of poverty, their first experience is to no longer qualify for the huge government giveaways they could enjoy without the burdens of ambition and effort.

Medicaid recipients are human beings not voting units. They react predictably to incentives. If they can remain eligible for a higher handout rate by simply languishing and stagnating they will do so. Why is stagnation ENCOURAGED by the incentive structures in New Mexico? Common sense would dictate that people who are at the bottom of the job skill ladder should never be punished with lower living standards for successful attempts to increase their job skills. Taxpaying citizens of New Mexico are funding these ridiculous programs through state and federal income taxes. If these structures trouble you, once again you must contact your elected officials and begin the steady drumbeat of discussion. Only a complete paradigm shift by voters that creates the pressure of change on the culture in Santa Fe and Washington will suffice. If voters want a change from encouraging government dependency to rewarding the setting higher goals and aspirations they will now have to fight for it.

Punishing Ambition and Rewarding Stagnation