Saturday, January 30, 2010

The issue is...

WSJ

Nonetheless, Mr. Brown is clearly sensitive—and a tad defensive—about his state's own universal health-care system. It now covers about 95% of the population; but it has also led to the nation's highest insurance premiums. It is driving hospitals towards bankruptcy and making it more difficult for people to see a doctor. Mr. Brown voted for the system in 2006 when it was proposed by then-GOP Gov. Mitt Romney. "Of course, it can be made better," Mr. Brown says today. "But it was bipartisan and it fit our local needs. We were being eaten alive by health-care costs." Universal coverage hasn't changed that, however.

Or NYT  Krugman

The nature of America’s troubles is easy to state. We’re in the aftermath of a severe financial crisis, which has led to mass job destruction. The only thing that’s keeping us from sliding into a second Great Depression is deficit spending. And right now we need more of that deficit spending because millions of American lives are being blighted by high unemployment, and the government should be doing everything it can to bring unemployment down.


In the long run, however, even the U.S. government has to pay its way. And the long-run budget outlook was dire even before the recent surge in the deficit, mainly because of inexorably rising health care costs. Looking ahead, we’re going to have to find a way to run smaller, not larger, deficits.

How can this apparent conflict between short-run needs and long-run responsibilities be resolved? Intellectually, it’s not hard at all. We should combine actions that create jobs now with other actions that will reduce deficits later. And economic officials in the Obama administration understand that logic: for the past year they have been very clear that their vision involves combining fiscal stimulus to help the economy now with health care reform to help the budget later.

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