Martin Heinrich (D) vs. Nella Domenici (R)
New Mexico poses a problem for Republican candidates. No Republican has represented New Mexico since Pete Domenici retired in 2009. As we all know, that was a different Republican Party. But then again, the Democratic Party has changed a lot since then, too. Nella Domenici is Pete Domenici’s daughter. She has had a career as CFO of Bridgewater, a very large hedge fund.
Abortion
New Mexico has a very liberal law on abortion. Nella Domenici, Pete Domenici’s daughter, has pledged to honor that law by not voting for a national abortion ban, if she is in the Senate. Martin Heinrich points out that Republican control of the Senate virtually guarantees that the Majority Leader in the Senate will favor a national abortion ban. You don’t have to doubt the sincerity of Domenici’s promise to imagine that a Republican Senate, if combined with Trump as President and a Republican House, would result in legislation that restricts various reproductive rights but stops short of an outright ban. In addition, Domenici leans heavily on support of contraception to make abortion less common. Her arguments are good, but many Republicans are antagonistic to financial support for contraception through the ACA (Obama Care). I doubt that a Republican Senate would support her on this issue. I would give this issue to Heinrich, mostly because Domenici is handicapped by the (R) after her name.
Energy and Climate Change
Domenici, rightly, points out that dealing with environmental issues requires making tradeoffs between protecting the environment and protecting the economy. She plays the usual Republican trick of avoiding discussion of climate change and recasting the issue in terms of “clean” air and water. I don’t think it is possible to reasonably discuss the tradeoffs between protecting the environment and the economy if you treat climate change as something that cannot be named (e.g. Voldemort in Harry Potter). She blames Heinrich for the closure of a coal-fired power plant. Heinrich rightly points out that coal is now losing in the market place to other forms of energy, including natural gas, solar, wind, and more recently modular nuclear. I am no fan of the heavily regulatory approach adopted by the Democrats on this issue, but Heinrich and the Democrats get the nod for being willing to openly discuss it.
Election Denial
Domenici states unequivocally that Trump lost the 2020 election and condemns the events of January 6. On this she deserves credit, since so many of her party lack the courage to do so.
Shortage of Doctors in New Mexico
New Mexico has a particularly difficult time attracting and keeping doctors and other medical professionals. There are a number of reasons for this: the large proportion of the population on medicaid, the high caps on malpractice lawsuits, and the low level of assistance on the repayment of student loans. I am generally unsympathetic to claims of shortages in any market, since prices generally adjust to eliminate the shortages.
All of the problems generally cited for New Mexico’s doctor shortage could be adjusted for by changes in physician compensation, were it not for the outsized role of the government in the physician compensation system in New Mexico. New Mexico is a poor state with a large portion of the population living below the poverty line and eligible for Medicaid. This provides a nice illustration of why Medicare and Medicaid can work in a mixed system with a high proportion of the population on private insurance. The privately insured patients pay enough to physicians and hospitals to cover overhead (including malpractice insurance) and Medicare and Medicaid pay enough to cover the marginal cost of treating those patients. When the proportion of patients paying through Medicare or Medicaid becomes too large in relation to the private sector, physicians and hospitals cannot cover their fixed costs and they move or shut down. This is true in many places in the United States. New Mexico stands out only because of the high poverty rate. This is why “Medicare for All” is problematic. In a “Medicare for All” system that used existing standards of compensation, there would be a national shortage of physicians and hospitals that would require the rationing of care. Avoiding that shortage would require a dramatically more expensive system per patient, and overall. For a longer discussion of this issue, see the CIVPAC policy position on medical care.
Nella Domenici attributes the problem to the Democratic Party’s support from the Association of Trial Lawyers. This may be true in part, but the core of the problem is New Mexico’s high poverty rates and the Medicaid compensation system. A solution might be to tie physician and hospital compensation under Medicaid (and maybe Medicare) to the proportion of their patients that use government provided insurance. Neither candidate seems to have a handle on what to do about this issue.
Right to Work Laws
Right to Work laws limit the ability of unions to compel workers to join the union and pay dues in unionized companies. New Mexico is not a Right to Work state. In fact, New Mexico passed legislation, in 2019, that forbids local governments from enacting Right to Work laws. Martin Heinrich attacks Right to Work laws based on workplaces issues, like excessive overtime, that are now regulated by OSHA. Domenici defends Right to Work laws as necessary to attract new businesses to New Mexico. This is a state level issue over which U.S. Senators have limited impact, but pro-Union legislation is a hallmark of the Democratic Party and you can expect both of these candidates to follow the party line on this issue. I would, therefore, give this issue to Domenici. For a longer discussion of this issue visit the CIVPAC policy position on Labor Unions.
Immigration
This issue is important in New Mexico, but the debate between the candidates mirrors the national discussion. Domenici criticizes the Biden administration, and by association Heinrich, for their failure to limit illegal immigration. Heinrich criticizes Trump, and by association Domenici, for their reluctance to support the bi-partisan legislation to, belatedly, do something about the problem. This is a complicated issue but the mass deportation approach pushed by Trump, and by association Domenici, is both inhumane and economically disastrous for the United States, so I give the issue to Heinrich.
The Endorsement
This is an interesting contest because of some of the issues it raises. Absent Donald Trump, Domenici might be a reasonable candidate to consider. Sadly, this Republican Party is not her father’s Republican Party. I, therefore, endorse Martin Heinrich for the U.S. Senate from New Mexico.