Frum believes American cannot revert to Reaganism because our problems are different now, and then proceeds to do exactly that. While he also realizes that Republicans must offer the middle-class a better deal, he proceeds to support policies that have failed or repeatedly been rejected.
Frum correctly points out that Democrats' have consistently pushed more spending for education - a policy that has failed. However, Frum's recommendation - charter schools, have not proven effective either. American spending on both public education and health care (covered next) approximately double that of other nations - reaching wasteful levels that undermine our economy. What is needed is an approach that both encourages greater parental and pupil involvement, and less spending as well.
Frum also prescribes increased competition within health care. However, current competition within health care creates major INCREASES in administrative costs via higher marketing, rate-setting, contract negotiation, new enrollee evaluation (pre-existing conditions), etc. Moreover, enrollee turnover largely erases value from prevention efforts such as smoking cessation and obesity prevention.
Frum then claims higher U.S. drug prices create incentives for drug development in the U.S. - forgetting that most drug development monies come from government, and that both drug research and production are now moving to lower-cost Asia. He also asserts that competition between (confusing) Medicare drug-plans have reduced costs, and somehow forgets the enormous savings foregone via prohibition of government negotiating drug prices.
Frum correctly points out that Americans should assume greater responsibility for their health (and education), but offers no mechanism for encouraging this. More importantly, he ignores the wide regional variations in medical care with no corresponding impact on health - a MAJOR opportunity to both improve outcomes and reduce costs.
Moving to pensions, Frum predictably supports privatizing Social Security - hardly an attractive option when the market has just fallen nearly 50%, and the risks associated with often expensive investment options are only partially understood by investment bankers themselves.
Frum hits his nadir on economic issues - beginning by attacking the political viability of a regressive flat tax, and then proposing a minor variation of such. He complains about Sarbanes-Oxley making American stock markets less attractive than foreign ones (laughable in comparison to the current subprime mortgage debacle, and our only too recent plethora of 2001-era accounting fraud), proposes lower tariffs (and even greater outsourcing of American jobs), and reducing illegal immigration (absolutely). Finally, he infers that improving pupil achievement (desirable in itself) will have a substantial impact on the trade deficit (vs. Chinese workers earning $100/month laboring 13 hours/day for six or more days/week (plus all the noodles they can eat and free 12/room quarters).
Bottom Line: Republicans will not improve their attractiveness unless they improve the effectiveness of their recommendations, and that will not happen until they become much better informed and less loaded with philosophical baggage.