Fiscal Health Care Reform: The Publics Option

Nancy Pelosi, Harry Reid, and Barack Obama continue to spend, spend, spend away money we don’t have.  With the public option now firmly established in the current Senate version of the health care bill, Election 2010 comes to mind.

Kick the bums out.

I love democracy.

(Biretta Tip: Glenn Foden of NewsBusters)

13 Responses to Fiscal Health Care Reform: The Publics Option

  • Give me an alternative to Republicans, and I’ll happily comply. Let’s not forget that the borrow-and-spend mantra was begun by Mr Reagan, and continued by both Bushes, especially the last one.

    Lucky thing for the GOP that in our political system, you might be in last place, but you’re never more than one election from ascendancy.

  • Borrow and spend began with Reagan Todd only if Reagan’s name is spelled Franklin Delano Roosevelt. Roosevelt’s Depression deficits, not including World War II, peaked at 5.4% of gdp. Obama’s deficit this year was 7.2% gdp. During Reagan and the first Bush the deficits averaged 4.3% gdp. Both parties have done a lousy job since the onset of the Great Depression of balancing tax receipts and spending, with the exception of Eisenhower and for a few of the Clinton years due to the dot.com bubble, and we are all going to be paying a high price for this for a very, very long time.

  • Running a deficit during a war of national mobilization, a banking crisis, or an economic depression is not unreasonable. During nearly all of Mr. Roosevelt’s tenure, the country was either producing below capacity (and had latent unemployment of such a level that public expenditure might actually be ‘stimulating’) or engaged in a war global in scope. Please note, the Roosevelt Administration did make a serious attempt to balance the federal budget in 1937.

    What has been troublesome has been the inability (since 1960) of the political class to balance the federal budget over the course of any one of the seven business cycles which have run their course since that time. We have had a few balanced budgets near business cycle peaks.

    It is not that difficult to manage. You have to fix your expenditure stream at where your revenue stream would be if the economy were producing at mean capacity. They do not do it because they just don’t feel like it.

  • Let’s not forget that the borrow-and-spend mantra was begun by Mr Reagan, and continued by both Bushes, especially the last one.

    Todd, you are of an age to recall that during a period of economic expansion lasting ten years and featuring improvements in real domestic product a mean of 4% per annum, the administration and Congress balanced the budget just once. Name the political party which had majorities in the upper and lower chamber of Congress during that entire period, and held the presidency for eight of those ten years.

  • When was the last time anyone heard of Congress raising our debt limit to aproximately 2 Trillion dollars. With our debt cost apprroaching 50% of our national income, and the new health bill
    and more stimulus spending to come..some thoughs..the
    government takes money from someone, it has none of its own, and giving money to others has to come from those who work for a living. When those who work for a living realize that if they didn’t and then the government would care for them, then what is their incentive to work and that is the begining of any nation to fail..the fact is that you can not mutiple wealth by spending it and dividing it.

  • I should have added that Medicare’s chief actuary states that Medicare under the proposed bill would spend 35.8 Trillion from 2010 to 2019. Wonder where the money is going to come from?

  • “Name the political party …”

    I would love to see national politics turned on its head, and some degree of sanity restored to foreign and economic policies.

    That either major party will effect that change is a vain hope. Given an alternative to an incompetent, lawless GOP, I’d prefer to hold my nose and take my chances with the current status quo. If nothing else, seeing the Republicans whine in defeat is more entertaining than the alternative.

    Seriously, I do think 2010 and 2012 will be an outlet for much anger if the job market doesn’t perk up. The feds borrowing money isn’t news; it’s been SOP for the last three decades. But unemployment is a crusher right now. The federal deficit? That’s just a useful tool for partisans. As of right now, it still means nothing, and either party is as much to blame as the other.

    Now let’s get back to Obama’s one-child policy.

  • I do not think it will be all that amusing if the U.S. Treasury suffers a failed bond sale. When the ratio of public debt to domestic product comes to exceed 0.9, the willingness of participants in the bond market to buy your scraps of paper diminishes considerably. And that won’t mean ‘nothing’.

    Quite a number of us have had occasion to assess what causes you to hold your nose.

    http://amywelborn.typepad.com/openbook/2005/11/settlement_in_s.html

  • Excellent research, Art. With the change in topic to Catholics behaving badly, I’ll accept your concession on my point that major party politics are bad news for economic good sense. I’m really curious about one point. Stocks are up forty-some percent and the Christmas bonuses for bankers are rolling through the economy. Just what is it that the GOP would have done differently? Mr Bush and the Fed starting the bailout to the tune of a third of a trillion last Fall. Would Mr McCain have ended all that?

    Now can we please get back to the secret Muslim/socialist takeover?

  • Stocks are up forty-some percent and the Christmas bonuses for bankers are rolling through the economy. Just what is it that the GOP would have done differently?

    I am not making any concessions, Todd.

    Counter-factual speculation is usually idle.

    Barney Frank was one of the obstacles to implementing debt-for-equity swaps to recapitalize the bulge bracket banks and in general casino bankers like Robert Rubin have more intimate relations with the elites of the Democratic Party; however, it is true that debt-for-equity swaps for these institutions and for Fannie Mae and Freddie Mac were also rejected for obscure reasons by Mr. Paulson and his camarilla.

    I have a suspicion a Republican Congress and Administration would have told the United Auto Workers to pound sand. They’d have had to accept a pre-packaged legislated re-organization or the corporations would have had to trudge through the standard proceedings of the U.S. Bankruptcy Court, not to mention the ministrations of the Pension Benefit Guaranty Corporation. It would have been a good deal less sweet for General Motors’ legatees.

    As for the stimulus, by what accounts have appeared in the newspapers, it appears to have been an omnibus of programs Democratic members of Congress have had on their wish lists for some years. A Republican Congress and Administration would likely have preferred a legislated tax cut.

    There is quite a bit of dispute between economists as to the actual value of the multipliers associated with public expenditure in these circumstances, which is to say a dispute about the degree to which public spending crowds out private spending (one macroeconomist who has written on the subject has said recently that crowding out vitiates the effect of public spending so long as unemployment rates are below 12%). A suspension of payroll tax collections could have been implemented rapidly and would have dispensed a disproportionate share of its largesse to the segment of the population with the highest propensity to consumption, thus having the most impact toward the goal of maintaining aggregate demand. There was the anxiety that the demand for real balances was so intense last year that such would simply be added to people’s stock of cash reserves. The results of monetary policy innovation since then indicate that that concern was misplaced. I do not think the Republican caucus would have favored a payroll tax cut over an income tax cut.

    I think the Republicans, given a free hand, might have put the kibosh on scheduled increases in the minimum wage. The labor market would be in less parlous condition for a’ that.

    The Republicans likely would not have pissed away valuable time on a tar baby like Mr. Obama’s medical insurance proposal.

    I have no clue about what sort of mortgage modification plan might have been drawn up by a Republican Administration.

    So, we did not get debt-for-equity swaps, we got fleeced by the United Auto Workers, the Democratic Party got to do $787 bn in favors for their friends, we priced a good many low wage workers out of the market, we were saddled with a means-tested mortgage modification program that encouraged people to restrict their earnings, and we have had no action as yet on a revised architecture for the banking system or a general plan for working out underwater mortgages because Congress has wasted so much time debating a non-acute problem. It is possible that a Republican Congress and Administration could have done a worse job. It is also possible that I am Marie of Roumania.

  • “It is possible that a Republican Congress and Administration could have done a worse job. It is also possible that I am Marie of Roumania.”

    Ouch! Give it up Todd! You are batting way out of your league with Art. (When it comes to economics, so would I if I tangled with Art!)

  • No, president is can solve these problems. There is more going on behind the scene that we can’t see. Why don’t movie stars like Oprah and Jolie and many other people in the US try to help but stand and watch our country go down and stand before the camera with six kids from all around the world. Im sorry Oprah im black and I may just have to mail her. Why do people from out of the country get free education but not homeless vets? Or just homeless people?. And Obama is making it worse sending troops because he just gonna piss off those people and that’s the last thing we need here in America along with a race war. America is fake, why would anyone believe any presedent. Denmark, France are happy countries with healthcare but they pay a lot in taxes, not many people want to do that in America. America is not use to change. Change is easier for an eastern countries philosophy speaking.

  • “I am not making any concessions, Todd.”

    Then on the next thread we find ourselves conversing, I suggest you stick to your expertise, as Donald terms it, and set aside the desperate historical research.

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