Day: May 26, 2011

A number of economists tell us if we can cut spending it will lead to a better environment for job creation in America

John Boehner, Speaker of the House.
Exactly what number of economists would that be, John? One? Two? Because the vast preponderance of economists, at least those located anywhere on the Earth think otherwise. And you don’t have to throw your lot in with a bunch of pointy-headed intellectuals either, because that’s an experiment that’s been tried. In fact, they’re trying it right now in the UK and, hey presto!, it’s costing jobs not creating them. And the UK’s experience is far from being an outlier in this regard. Cutting government spending to “create” jobs is something that’s never been shown to, you know, work. Ever.

Robert Reich: The Republican Death Wish

Oh hell yes:

robertreich:

Can we be clear about that budget problem? It’s driven not by Medicare. It’s driven by the same relentlessly soaring health-care costs that are pushing premiums through the roof and causing middle-class families to shell out more and more money for deductibles and co-payments.

Some features of Obama’s new healthcare law will slow the rise — insurance exchanges, for example, could give consumers clearer comparative information about what they’re getting for their insurance payments — but the law doesn’t go nearly far enough.

That’s why Democrats should be saying this: We need to allow anyone to sign up for Medicare. Medicare is cheaper than private insurance because its administrative costs are so much lower, and it has vast economies of scale.

If Medicare were allowed to use its potential bargaining leverage over America’s hospitals, doctors, drug companies, and medical providers, it could drive down costs even further.

And it could force the nation’s broken health-care system to do something it must do but has resisted with a vengeance: Focus on healthy outcomes rather on costly inputs. If Medicare paid for results — not tests, procedures, drugs, and hospital stays, but results — it could give Americans better health at lower cost.

Emphasis added to point out that this is exactly what Democrats need to be saying. The steadily rising cost of Medicare is only indicative of the problem, it is not the problem. Never was, never will be. Paul Ryan wants to “solve” the issue by simply setting an amount that the government will pay and then telling anyone who can’t meet the difference to kindly go die in the streets.

Democrats, on the other hand, want to solve the problem by solving the problem. And how does the GOP respond? By trying to undo the ACA and any other cost-containment measure. By trying to end Medicare. And, of course, by redirecting the money harvested from the end of Medicare to the richest of the rich. Who so desperately need it.

Robert Reich: The Republican Death Wish

Mediscare

The Medicare Trustees put the projected shortfall at 0.79 percent of payroll, which is approximately 0.27 percent of GDP over the program’s 75-year planning horizon. By comparison, the increase in annual spending on the military between 2000 and 2011 was more than 1.6 percentage points of GDP. This increase in spending did not cause serious harm to the economy, therefore increased spending of one-fifth this size will presumably not be a major problem.

Mediscare