Greg Mankiw has produced a Post which is almost essential to be Read by Everyone. First, I must say that I do not support the Wyden-Bennett bill, please read all his provided links. Splintering Contributors or Providers will never lead to universal health care. Paying for the system by Tax Exemptions which the Majority do not pay Now, can only lead to an underfunded system from the Start. I will not comment on the revenue-neutrality of the bill, because I do not believe in the general Concept initially, and know that any eventual universal system must have a universal tax allocated for it. Greg also places too much emphasis on bi-partisanship, when the Divide is not between Parties, but between Those willing to Pay, and Those Not; a Subject which is already quite bi-partisan. I would undertake to control the Expense of the health care system, and do so with a viable Single-Payer system; where the edicts of the Purchaser could not be ignored or evaded. The health care industry has to make a Profit indeed, but it is an idiocy for it to be the leading growth sector in the economy; it having to be funded by the rest of the economy. Full Disclosure–I just received a medical premium increase of 11% Saturday; I would rather be taxed!.
I have read this thing, and realize I must distance myself from Mike Shedlock. Bernanke may be a failure as Fed Chairman, though his only real Crime may be a lack of originality. Revelation of much of the data anywhere would have only deepened the Recession, without bringing satisfaction to Anyone. Ben’s first mistake, from which he could never Recover, was to save the Investment Banks in the first place. Once this Step was taken, there was no going back, or actual alteration of policy. The entirety of the Investment banks should have been in Bankruptcy Court within the first month of trouble, and forced the traditional banking system back to the fore. The current organization aids no one but the previous Violators of banking regime, and current Proposals from the Fed ensure extreme bureaucracy in both Investment and Commercial banking. I would seriously suggest sending Ben down to the Minors again, but doubt that the new Hitter will be able to make a .300 Average. You should not mix Government and Business–especially Banking.
You should read this article to understand How Europe is reacting to the Crisis, and the options open for policy alteration here. Most of Europe wants to balance Public outlays, raise Taxes, and cut down Public expenditures. They tend to adopt the ideation that the Recession must be felt, with the economy reacting to that impact, before the Crisis will dissipate. I am of like belief. The glutton must eat the lean Meals, as well as the Bounty. The economy has lost its major share of Profits, and there should be no Protection from that loss; whether it takes the form of Government support, or release from Taxation. This is the only method that future growth can be ascertained as Real. lgl