Free Markets, Free People

Bruce McQuain

CBO, Entitlments, Health Care Reform and the Deficit

One more time into the breach. The CBO has issued a warning to Congress about entitlement spending. Again. Here’s a key paragraph:

Almost all of the projected growth in federal spending other than interest payments on the debt comes from growth in spending on the three largest entitlement programs–Medicare, Medicaid, and Social Security.

Most of you know that Medicare and Medicaid have an unfunded future liability of 36 trillion dollars. That’s about 3 times the annual total GDP of the US economy. And they are the very same type of “public option” program – i.e. government insurance – that the left says is so very necessary and crucial to real “health care reform”.

In other words, the left’s argument is that adding at least 47 million (presently uninsured), plus the possibility of adding 119 million who are shifted to the public option from private insurance (private insurance, btw, doesn’t have any effect on the deficit whatsoever since we, the private sector, are paying for it) will somehow make the deficit picture better?

I’m obviously missing something here.

With the public option, we’re adding a new entitlement (47 million who presently supposedly can’t afford insurance, meaning taxpayers will subsidize theirs). Assuming it is set up originally to be paid for by premiums, at some point, like Medicare and Medicaid, and every other government entitlement program I can think of, it will pay out more than it takes in. How can it not? It is a stated “non-profit” program and it will include subsidies. At some point, another revenue stream is going to be necessary as it burns through the premiums with its payouts.

Well, say the proponents of government involvement in your health care, we’re going to save money by doing preventive health care. Yes, preventive care is the key to lower costs because a healthier population is one which visits the doctor less. While that may seem to be at least partially true (you’d think a healthier population would, logically, visit the doctor less) the part that is apparently missed when touting this popular panacea is the cost of making the population healthier (and the fact that the assumption of less visits isn’t necessarily true) doesn’t cost less – it costs more:

If health care providers can prevent or delay conditions like heart disease and diabetes, the logic goes, the nation won’t have to pay for so many expensive hospital procedures.

The problem, as lawmakers are discovering to their frustration, is that the logic is wrong. Preventive care — at least the sort delivered by doctors — doesn’t save money, experts say. It costs money.

That’s old news to the analysts at the Congressional Budget Office, who have told senators on the Health, Education, Labor and Pensions Committee that it cannot score most preventive-care proposals as saving money.

So with that myth blown to hell, we’re now looking at a government plan which will add cost to the deficit by subsidizing the insurance of 47 million and (most likely) many more, plus a plan to use a more costly form of medicine as its primary means of giving care.

But, back to the entitlement report – or warning. The CBO says that unless entitlements are drastically reformed (that means Medicare, Medicaid and to a lesser extent, Social Security) we’re in deep deficit doodoo:

The most frightening findings in this report are the deficit and debt projections. In this year and next year, the yearly budget shortfall, or deficit, will be the largest post-war deficits on record–exceeding 11 percent of the economy or gross domestic product (GDP)–and by 2080 it will reach 17.8 percent of GDP.

The national debt, which is the sum of all past deficits, will escalate even faster. Since 1962, debt has averaged 36 percent of GDP, but it will reach 60 percent, nearly double the average, by next year and will exceed 100 percent of the economy by 2042. Put another way, in about 30 years, for every $1 each American citizen and business earns or produces, the government will be an equivalent $1 in debt. By 2083, debt figures will surpass an astounding 306 percent of GDP.

The report also finds high overall growth in the government as a share of the economy and of taxpayers’ wallets that provides an additional area of concern. While total government spending has hovered around 20 percent of the economy since the 1960s, it has jumped by a quarter to 25 percent in 2009 alone and will exceed 32 percent by 2083. Taxes, which have averaged at 18.3 percent of GDP, will reach unprecedented levels of 26 percent by 2083. Never in American history have spending and tax levels been that high.

Here’s the important point to be made – these projections do not include cap-and-trade or health care reform.

Got that? We’re looking at the “highest spending and tax levels” in our history without either of those huge tax and spend programs now being considered included in the numbers above. Total government spending, as a percent of GDP is now at an unprecedented 25%. And they’re trying to add more while this president, who is right in the middle of it, tells us we can’t keep this deficit spending up forever.

Fair warning.

~McQ

Honduras – Where Was The World Before The “Coup”?

That’s Glenn Garvin of the Maimi Herald’s question:

For weeks, Zelaya — an erratic leftist who styles himself after his good pal Hugo Chávez of Venezuela — has been engaged in a naked and illegal power grab, trying to rewrite the Honduran constitution to allow him to run for reelection in November.

First Zelaya scheduled a national vote on a constitutional convention. After the Honduran supreme court ruled that only the country’s congress could call such an election, Zelaya ordered the army to help him stage it anyway. (It would be ”non-binding,” he said.) When the head of the armed forces, acting on orders from the supreme court, refused, Zelaya fired him, then led a mob to break into a military base where the ballots were stored.

His actions have been repudiated by the country’s supreme court, its congress, its attorney-general, its chief human-rights advocate, all its major churches, its main business association, his own political party (which recently began debating an inquiry into Zelaya’s sanity) and most Hondurans: Recent polls have shown his approval rating down below 30 percent.

In fact, about the only people who didn’t condemn Zelaya’s political gangsterism were the foreign leaders and diplomats who now primly lecture Hondurans about the importance of constitutional law. They’re also strangely silent about the vicious stream of threats against Honduras spewing from Chávez since Zelaya was deposed.

Warning that he’s already put his military on alert, Chávez on Monday flat-out threatened war against Honduras if Roberto Micheletti, named by the country’s congress as interim president until elections in November, takes office.

I think Garvin’s question is a good one. If you have someone who continues to pursue activities which are clearly not constitutional, and instead is doing everything within his power to subvert said constitution, what do you do?

Well perhaps have the military arrest him and throw him out of the country is not the first action which comes to mind, granted. However, in Honduras, unlike here, the military does have a law enforcement function. That may not be ideal (because of exactly the perception it leaves) but that’s the case. Perhaps, in retrospect, the best thing that could have been done is have civilian law enforcement arrest Zelaya, keep him in the country and put him on trial. Bottom line – it seems his removal was justified based on his actions.

What the world seems to be objecting too most is the method of his removal while ignoring the reasons.

And then, as Garvin points out, we have the thug in Venezuela threatening Honduras while everyone remains silent:

”If they swear him in we’ll overthrow him,” Chávez blustered. “Mark my words. Thugetti — as I’m going to refer to him from now on — you better pack your bags, because you’re either going to jail or you’re going into exile.”

No one denouncing the coup seems to be bothered by Chavez’s threats. In fact, it could be argued that the reaction of the US has green-lighted Chavez and his followers to intervene in some way, to include militarily. Not that Chavez or the Venezuelan military are competent enough to actually do that, but it certainly wouldn’t surprise me now if they tried.

Zelaya was trying to follow Chavez’s template and somehow manage a constitutional change to a permanent presidency through bypassing the constitutionally mandated process and claiming a popular mandate instead. Even his own party didn’t support his attempt and the congress, dominated by that party, passed a law making what Zelaya was attempting illegal. Zelaya attempted it anyway, making what Zelaya was doing a criminal offense.  The Supreme Court of Honduras ruled against Zelaya.  The Attorney General apparently enforced the law.

Here, we’d call that the “checks and balances” working.  There, the result is apparently a “coup”.

The point? In reality, this is not at all a cut-and-dried “military coup” as it is being portrayed. It wasn’t a disgruntled group of military officers who decided to take the law into their own hands and to change the government because they don’t like the form or direction in which it was heading. Instead a rather broad based coalition of politicians, to include those in his party, and other institutions such as the congress (legislative branch) and Supreme Court (judicial branch), found his criminal behavior to be unacceptable and decided to take what they considered to be legal action to prevent a rogue politician from any further attempts at violating the law.

They removed him from office.

And, unlike its reaction to the brutality on display in Iran, the world had an immediate knee-jerk fit.

We now have Venezuela threatening Honduras without a peep from the OAS or the US. We have the OAS now giving Honduras 3 days to reinstall Zelaya or else (what the “else” is is anyone’s guess). We have the president of Argentina sticking her nose into the affair. And we have the showdown tomorrow as Zelaya, in the company of the UN, OAS and Argentine president, reentering Honduras in a bid to retake office. Honduras has said Zelaya will be arrested if he reenters.

Why was there such a rush on the part of the US to denounce this? If sitting back for 10 days and assessing the situation in Iran before speaking was such a good idea as the administration claims, why wasn’t the same true in Honduras? As the facts come out, it seems that it isn’t what it is being characterized as.

If all of the world’s concern is focused on the “democratic process”, where was that concern last week as the now ex leader of Honduras tried to subvert the constitution and claim a mandate by means it prohibited?

Nowhere to be heard. The world was quite content, it seems, to let another declared leftist permanently install himself as a virtual dictator in a Latin American country. But let that country try to enforce it’s constitution, and all hell breaks loose.

~McQ

US Troops Withdraw From Iraqi Cities

Voluntarily as a part of the agreement signed last year by the Bush administration.

Wow.

I think this is the first time I’ve mentioned Iraq at all for months. That in itself is quite amazing.

In 2006 most people were waiting for the Iraqi version of the last helicopter leaving the US embassy in Saigon.  Now, we’re turning over the vast majority of the security work in Iraq to the Iraqis as the people of Iraq celebrate the handover.

Trust me – no one is anymore pleased to be heading out of the cities than US troops.  And for the opponents of the war, it’s pretty hard to deny the success that has been built on the surge and the change in strategy implemented by the Bush administration.

In fact, Obama really hasn’t had to do a thing except accept the plan that administration left in place and execute it.

But …

There’s always a “but”. But that doesn’t at all means everything is smooth sailing and unicorns and rainbows are now in Iraq’s future. Instead it means that for the most part, the Iraqi state is functional and at least minimally able to take care of its own security. It also will probably mean, in the absence of US military might, that some of the old players will again try their hand at fomenting violence in a bid to reestablish their agendas for Iraq.

This still remains a red letter day for Iraq, however. And it also is a red letter day for the region. The question is will they continue to make progress or will we see sectarianism and the violence that usually accompanies it reemerges as US troops withdraw.

There are going to be horrific acts of violence in Iraq for a while. That is just the nature of the beast as the last of the dead-enders do their thing. What we have to hope for is the progress to this date continues, Iraqis think of themselves as Iraqis first (and whatever religious sect or ethnic group second) and work toward a stable and democratic Iraq.

Everyone I’ve talked too who’ve been there since the surge, to include Michael Yon, are very encouraged by what they’ve seen and experienced.

Best of luck to the Iraqi people – it is pretty much now theirs to make or break. We’ll soon see how badly they want what they have.

~McQ

Krugman Endorses “Carbon Tariff”

Paul Krugman came out today for “border adjustments” (tariffs) on goods from countries who aren’t participating in economy killing CO2 emissions control taxation.

His argument:

If you only impose restrictions on greenhouse gas emissions from domestic sources, you give consumers no incentive to avoid purchasing products that cause emissions in other countries; as a result, you have an inefficient outcome even from a world point of view. So border adjustments here are entirely legitimate in terms of basic economics.

Actually they’re “entirely legitimate” if you swallow the premise Krugman is pushing here, namely that CO2 is a “pollutant” and its restriction is a “legitimate” reason for imposing taxes on both your own economy and the goods coming from another economy which doesn’t agree with the premise. And, of course, this ignores the probable reaction countries hit with this tariff might have.

Krugman then attempts to justify such a “border adjustment” by claiming such a move is probably legal under “international law”:

The WTO has looked at the issue, and suggests that carbon tariffs may be viewed the same way as border adjustments associated with value-added taxes. It has long been accepted that a VAT is essentially a sales tax — a tax on consumers — which for administrative reasons is collected from producers. Because it’s essentially a tax on consumers, it’s legal, and also economically efficient, to collect it on imported goods as well as domestic production; it’s a matter of leveling the playing field, not protectionism.

And the same would be true of carbon tariffs.

What he sort of dances around when he claims this will “level the playing field” is all products, regardless of their origin, will see dramatically increased pricing. The point of the tax is to hopefully steer consumers to domestically produced products which are produced under government approved conditions rather than those from countries like China and India which aren’t playing the game the US wants them to play. Not only will the consumer here be asked to pay for the CO2 offsets imposed on domestic industry, but they will have to pay for offsets for foreign producers as well when the VAT cost is passed on in the price of the goods.

The thinking, obviously, is that if prices are the same, US consumers will buy US goods instead of, say, Chinese goods. The problem, of course, is much of what we consume isn’t made here anymore. So the result would be the US consumer would end up paying higher prices for goods produced in China with no change in behavior by China.

Additionally, China will view this as a protectionist measure, whether the WTO thinks it is “legal” or not. China will simply claim that the US, as a rich country and large “polluter”, should be doing more than they are doing in terms of emissions control, and impose its own “WTO legal” VAT in response. Same with any other country targeted by the US for a tariff.

This is, frankly, an invitation to a trade war. Krugman can wrap his protectionist argument in whatever legality he’d like, but the fact remains most countries effected will view it as an attempt to limit trade and react accordingly. And, of course, by Krugman’s own admission, it is you who will be paying the tariff cost for China and India if this is ever passed into law.

~McQ

Obama Immediately Slams Honduras

But not Iran.

Hmmm. And even saying anything about Iran could be considered “meddling” in the internal affairs of another country, per the Obama administration, but apparently working actively within Honduras to stop what it characterizes as a “military coup” isn’t meddling.

Confusing foreign policy.

An interesting aspect of the Honduran “coup”, per Fausta is:

-Tuesday last week the Honduran Congress, led by members of his own party, passed a law preventing the holding of referendums or plebiscites 180 days before or after general elections.

– The Honduran Congress, led by members of his own party, named a commission to investigate Zelaya. The Commission found (my translation: If you quote it, please credit me and link to this post)

Zelaya acted against the mandates of legal and electoral laws, the Public Ministry, the National Congress, the Attorney General, and other institutions of the State, which had declared the poll illegal.

Additionally, the court weighed in:

Indeed, Honduras’ La Prensa states that (My translation: If you use this, please credit me and link to this post)

An official statement of the Supreme Court of Justice explained that the Armed Forces acted under lawful grounds when detaining the President of the Republic, and by decommissioning the materials to be used on the illegal poll which aimed to bring forth Executive Power against a judicial order.

Other sources verified that the president of the Congress, Roberto Micheletti, will assume the presidency of the republic in a few hours.

Honduran president Manuel Zelaya was detained this morning by the military in compliance with an order of the courts of law.

I’ve also seen a report that the new president, Roberto Micheletti, is of the same party as Zelaya.

As I said this morning I’m not a Honduran Constitutional expert – but our Constitutional expert-in-chief seems to have it all figured out. I think the “why” should be obvious:

Analysts said quick criticism of the coup by Obama and Clinton on Sunday pleased Latin American countries bitter about the long history of U.S. intervention in the region.

Despite Obama’s claim that this would set a “terrible precedent”, the State Department still hasn’t yet made a determination that an actual “military coup” has actually taken place:

Despite Obama’s comments, Secretary of State Hillary Clinton said the administration was not formally designating the ouster as a military coup for now.

Such a designation could force the U.S. leader to cut off most aid to Honduras. Under U.S. legislation, no aid — other than for the promotion of democracy — may be provided to a country whose elected head of government has been toppled in a military coup.

“We do think that this has evolved into a coup,” Clinton told reporters, adding the administration was “withholding” that determination for now.

The stated reason is they want to leave room for negotiations with “the goal of restoring democratic order in Honduras”.

What isn’t clear, however, is whether or not what happened wasn’t a result of “democratic order” and legal. For instance:

Jason Steck, writing at Real Clear World Blog, explains

what is happening in Honduras may be an example of a coup that is not only legal, but mandatory

because, in Honduras’s case, the military has been endowed with a role in maintaining democratic governance; this time their task was to delivery Zelaya safely out of office and into the airplane to Costa Rica.

If this all ends up being constituitonally legal,  it will be interesting to see how Obama backs off his previous statements or whether, instead, he continues to characterize the arrest of Zelaya as a “coup” to play to the leftist crowd now “pleased” with his initial reaction.

Regardless, I’m less than impressed with Obama’s reaction to world events in Iran, North Korea and now Honduras.

~McQ

Sotomayor Overturned? (Update)

From Twitter a minute ago:

NYT NEWS ALERT: Supreme Court Rules for White Firefighters in Affirmative Action Case

This could give new legs to the opposition of Sotomayor’s nomination.

Again, developing …

UPDATE:  The Washington Post confirms.

New Haven was wrong to scrap a promotion exam because no African-Americans and only two Hispanic firefighters were likely to be made lieutenants or captains based on the results, the court said Monday in a 5-4 decision. The city said that it had acted to avoid a lawsuit from minorities.

The ruling could alter employment practices nationwide, potentially limiting the circumstances in which employers can be held liable for decisions when there is no evidence of intentional discrimination against minorities.

I’d say that’s a fairly significant ruling and certainly the opposite of what Sotomayor held. Of course, if Sotomayor was on the court right now (and hadn’t had to recuse herself for hearing the case in a lower court) she wouldn’t have made any difference since David Souter, the justice she’s slated to replace, voted in the minority.

More here.

~McQ

Honduras

It seems what has happened in Honduras is being characterized by most as a “military coup”. However Fausta, who has been following it all very closely, seems not to be sure that is the case. Instead she and some others are characterizing it as the military enforcing the orders of the Supreme Court and Congress.

Not being a Honduran constitutional expert or even really knowing whether that is legally permissible under their constitution, I’ll leave it to others to decide what the action really is. However, from Fausta, some background info that will get you into the picture. It is all about a referendum which President Manuel Zelaya wanted to hold concerning his term in office which is constitutionally limited to one term. Zelaya wanted to be able to serve another and decided a referendum would do to make that happen. The Supreme Court of Honduras declared such a referendum illegal. Zelaya essentially told them to pound sand (a very Jacksonian reaction):

Background on the referendum, which Zelaya insisted on in spite of it having been declared unlawful:

* When the armed forces refused to distribute the ballots, Zelaya fired the chief of the armed forces, Gen. Romeo Vásquez, and the defense minister, the head of the army and the air force resigned in protest.

* Yesterday the Supreme Court ordered by a 5-0 vote that Vásquez be reinstated.

* Honduras’s Supreme Electoral Tribunal ordered authorities to pick up all the ballots and electoral material, which were held by the country’s air force.

* The country’s Attorney General requested yesterday that Congress oust Zelaya.

* The courts have declared the referendum unlawful. Last Tuesday the Congress passed a law preventing the holding of referendums or plebiscites 180 days before or after general elections. Congress has also named a commission to investigate Zelaya.

This is the first coup in Honduras since 1982 when a democratically elected civilian government came to power .

So the question remains, was the military acting on its own or under the orders of some other constitutional body that had the legal right to order the removal of the president? It may turn out that both sides acted unconstitutionally and illegally. However it should be noted that the Honduran Attorney General had weighed in on the situation:

The attorney general had already made clear that the referendum was illegal, and he further announced that he would prosecute anyone involved in carrying it out.

So it is conceivable that the military was acting under the AG’s orders.

What Zelaya was trying to bypass is this provision in the Honduran Constitution:

Title VII, with two chapters, outlines the process of amending the constitution and sets forth the principle of constitutional inviolability. The constitution may be amended by the National Congress after a two-thirds vote of all its members in two consecutive regular annual sessions.

Apparently, at the moment, all is calm and quiet in Honduras. The Congress has accepted a “letter of resignation” from Zelaya which Zelaya (who is in Costa Rica) says he didn’t write. The Congress has also voted to make their head the new president.

Reaction has been swift and negative. The OAS said it would refuse to recognize the new government. President Obama said he was “deeply concerned” and called on Hondurans “to respect democratic norms, the rule of law and the tenets of the Inter-American Democratic charter”, whatever that means.

It certainly seems that at least one party was trying to circumvent the “rule of law” in this case. Whether the others who removed him were remains to be seen. But the Obama administration is sticking by its one-note foreign policy song:

“We think this can be resolved through dialogue,” said the senior administration official.

Meanwhile, Hugo Chavez, with all his new Russian military equipment is rattling sabers in Venezuela as he sees a part of his Bolivarian Socialist revolution go astray. Of course the first knee-jerk reaction is to blame it on the US. In fact the Obama administration claims to have tried to stop the “coup” when it learned about it (some might see that as “meddling” in the “internal affairs of another country”).

Venezuelan President Hugo Chavez, blamed “the Yankee empire”, and threatened military action should the Venezuelan ambassador to Honduras be attacked; President Evo Morales of Bolivia described Mr Zelaya’s removal as “an assault on democracy”.

Of course both Chavez and Morales have stagemanaged similar assaults on their own Constitutions and managed to pull them off to their advantage.

As Drudge would say – developing …

~McQ

Podcast for 28 Jun 09

In this podcast, Bruce, Michael, and Dale discuss the situations in Honduras and Iran, and the cap-and-trade energy bill.

The direct link to the podcast can be found here.

Observations

The intro and outro music is Vena Cava by 50 Foot Wave, and is available for free download here.

As a reminder, if you are an iTunes user, don’t forget to subscribe to the QandO podcast, Observations, through iTunes. For those of you who don’t have iTunes, you can subscribe at Podcast Alley. And, of course, for you newsreader subscriber types, our podcast RSS Feed is here. For podcasts from 2005 to 2007, they can be accessed through the RSS Archive Feed.

Paul Krugman – Climate Expert (UPDATE – Krugman Calls Skeptics “Traitors”)

Bumped to the top for obvious reasons.

Here’s a perfect example of why Paul Krugman should stick with writing about economics:

One of the favorite arguments of climate-change deniers is “but it was warmer in the late 90s.” In fact, the odds are good that I’ll get that argument from George Will on This Weak tomorrow. I basically know the answer: temperature is a noisy time series, so if you pick and choose your dates over a short time span you can usually make whatever case you want. That’s why you need to look at longer trends and do some statistical analysis. But I thought that it would be a good thing to look at the data myself.

So here’s the data he chose:

temptrend

Anyone know what happened prior to 1850?

A little thing called the “Little Ice Age”, remember? And before that? Yup, the Medieval Warm Period. So what did that look like?

2000_Year_Temperature_Comparison

So what are the two things you notice right away? Well, one is “cycles”. In fact, if you go back even further you’ll see the same sorts of cycles repeated through out our planet’s history. Looking at data from 1850 in the context of climate change history is to use an eyeblink of data for comparison (coming out of the depths of a centuries long planetary cold spell). It is a classic misuse of limited data in an attempt to support a point of view.  It certainly can’t be called “science”.

And secondly, our temperature now isn’t much different than in the 1000’s (not to mention there is much debate as to whether the temperature measurements of today are even accurate), with a very small population relative to today and with no industry, no burning of fossil fuel, and no worries about “green house gasses”. How in the world can that be?

Meteorologist Augie Auer said it best:

“It is time to attack the myth of global warming,” he said.

Water vapour was responsible for 95 per cent of the greenhouse effect, an effect which was vital to keep the world warm, he explained.

“If we didn’t have the greenhouse effect the planet would be at minus 18 deg C but because we do have the greenhouse effect it is plus 15 deg C, all the time.”

The other greenhouse gases: carbon dioxide, methane, nitrogen dioxide, and various others including CFCs, contributed only five per cent of the effect, carbon dioxide being by far the greatest contributor at 3.6 per cent.

However, carbon dioxide as a result of man’s activities was only 3.2 per cent of that, hence only 0.12 per cent of the greenhouse gases in total. Human-related methane, nitrogen dioxide and CFCs etc made similarly minuscule contributions to the effect: 0.066, 0.047, and 0.046 per cent respectively.

“That ought to be the end of the argument, there and then,” he said.

“We couldn’t do it (change the climate) even if we wanted to because water vapour dominates.”

Yet the Greens continued to use phrases such as “The planet is groaning under the weight of CO2” and Government policies were about to hit industries such as farming, he warned.

“The Greens are really going to go after you because you put out 49 per cent of the countries’ emissions. Does anybody ask 49 per cent of what? Does anybody know how small that number is?

“It’s become a witch-hunt; a Salem witch-hunt,” he said.

And Krugman seems to be trying out for head inquisitor. There are the numbers Mr. Krugman. Why not try crunching those instead of selectively picking the data that supports your point of view. You wouldn’t stand for that in the economic world. Why should we put up with it from you when you talk about science?

UPDATE: Yeah, no inflammatory language here:

And as I watched the deniers make their arguments, I couldn’t help thinking that I was watching a form of treason — treason against the planet.

Quite an argument, isn’t it – “disagree with me and the “consensus” and you’re committing “treason against the planet?”

You have to wonder, would disagreeing over economic policy be “treason against the economy” in Krugman’s wacky world?  How desperate are you when you have to resort to name calling like “traitor” over a policy dispute?

UPDATE II: Irony alert Ezra Klein referring to the Krugman chart above which begins at the end of the period known as the “Little Ice Age”:

Paul Krugman has a nice response to the variant of global warming denialism favored by the statistically illiterate.

Who is “statistically illiterate” here, Mr. Klein?

~McQ

Axelrod Floats A Healthcare Middle Class Tax Trial Balloon

Over the years, one of the purposes the sunday news shows have come to serve is a venue from which to launch political trail balloons and see how well they float.

Some get shot down immediately. Some take flak but survive. And other sail right on through with very little notice. David Axelrod appeared on “This Week” with George Stephanopoulos and launched one concerning taxes and health care. Axelrod first said that Obama still believes taxing health benefits is not the way to pay for health care (although during the ABC informercial, he essentially said that if it happened, it would be a compromise (and obviously not a show stopper for him)).

Stephanopoulos pushed a little harder on funding through taxation:

I pressed Axelrod on whether Obama will draw a line in the sand and veto any bill that funds health care reform with tax hikes for people making under $250,000 a year — despite a pledge Barack Obama made during the 2008 presidential campaign not to raise taxes on the poor and middle-class.

“One of the problems we’ve had in this town is that people draw lines in the sand and they stop talking to each other. And you don’t get anything done. That’s not the way the president approaches us. He is very cognizant of protecting people — middle class people, hard-working people who are trying to get along in a very difficult economy. And he will continue to represent them in these talks,” Axelrod said.

“But they’re also dealing with punishing health care costs, and that’s something that we have to deal with.”

Classic. He could have simply said “we’re open to compromise and if that’s what it takes to pay for it, then yes, we’ll raise taxes on the middle class in a New York minute.”

But instead he had to do the “we’re here to protect the middle class, but …” and then tell us how they really weren’t there to protect them in this particular case.

So to those of you who believed Obama when he said that 95% of Americans won’t see their taxes raised by a single dime – well, that’s no longer necessarily the case – if you let this trial balloon float away unimpeded (not that it will matter really – if they pass health care it has to be paid for somehow and there is no possible way only the richest 5% are enough to pay for that boondoggle).

~McQ