Main FeedMember FeedCollege FeedConversations I'm FollowingIntel.Close
Romney's Transition Leader Favors Implementing Obamacare
Ben Domenech · Jun 3 at 3:25pm
One of the few Republicans in the country who's been tirelessly pushing for the implementation of Obamacare at the state level has been tapped to head Mitt Romney's transition team, should he become president.
Former HHS Secretary Michael Leavitt, and his consulting group Leavitt Partners, are the primary advocates within Republican circles for implementation of Obamacare's exchanges. It just so happens that his consultancy is one of the major beneficiaries of the taxpayer funded gold mine of hundreds of millions of dollars in exchange implementation grants. But that's a coincidence, of course.
Leavitt has said some relatively positive things about certain elements of Obama’s health reform law, suggesting earlier this year that “Obamacare” empowers the HHS secretary “to do certain things that are clearly aimed at trying to move us in the right direction.”
McKeown, who still works with Leavitt at his Utah-based health care consultancy, acknowledged that the former governor does not want to undo one key part of the controversial legislation.
“We believe that the exchanges are the solution to small business insurance market and that’s gotten us sideways with some conservatives,” he said.
The exchanges are not only a matter of principle for Leavitt — they’re also a cash cow.
The size of his firm, Leavitt Partners, doubled in the year after the bill was signed as they won contracts to help states set up the exchanges funded by the legislation.
Over the past year, Leavitt and his staff have repeatedly tangled with conservative and libertarian think-tanks and advocates who oppose him on this point, understanding that there is no such thing as a state run exchange under Obamacare, and that this represents the primary front for states in the battle against Obamacare's implementation. This hasn't stopped him from lobbying all over the country for it. Here's Leavitt speaking last year to the National Governors Association, urging them to implement while failing to disclose his financial stake in doing so.
Speaking to a bipartisan group of governors at the National Governors Association, the former Republican governor who served as secretary of health and human services in the Bush administration, called the exchanges where individuals and small businesses can purchase health plans “a very practical solution to a problem that needs to be solved.” He warned governors who are reluctant to move forward with their state-level exchanges that their intransigence will only empower federal regulators.
And he said the health care law that passed is a compromise that gives the states the flexibility they need.
“This is a profoundly important time for the states,” said Mr. Leavitt. “States need to lead.” ...
The federal law gives the states until January 2014 to set up their own exchanges, with federal oversight. If they fail to do so, their citizens will get access to a federal exchange.
But some Republican governors have been reluctant. They oppose the federal law and say they hope it will be repealed by a Republican president in 2013.
Mr. Leavitt urged them to get moving anyway... He urged the governors not defend their “partisan flags” over the interests of their states.
Thankfully, this has been a push that Leavitt has been losing. A host of Republican governors have turned back his appeal to implement (you can read my own case against exchange implementation here). In fact, their obstinate refusal to implement has become an item of support in the courts for overturning Obamacare. And now most Republican-led states are holding back to see what happens at the Supreme Court, as they should've done in the first place.
One can argue about the merits of an exchange absent Obamacare's rules, regulations, authority shifts, price controls, and taxpayer funded subsidies. But the overwhelming majority of conservative policymakers understand that Obamacare's exchanges are nothing more than delivery mechanisms for massive taxpayer-funded subsidies and bureaucratic regulations from Washington. What's more, states which avoid implementing exchanges may be able to avoid the implementation of Obamacare almost in its entirety.
Those who favor implementation have been rebuffed, and they don't like it. As Michael Cannon notes:
USA Today reports that groups like the American Legislative Exchange Council and the Cato Institute have had much success in discouraging states from creating Obamacare’s health insurance “exchanges.” Even the Heritage Foundation, which once counseled states to establish “defensive” Obamacare exchanges, now counsels states to refuse to create them and to send all exchange-related grants back to Washington.
In response, Obamacare contractor and self-described conservative Republican Cheryl Smith sniffs: "When you work at a think-tank, it’s really easy to come up with these really high-risk plans."
Except, there is no risk to states. The only risks to this strategy are that health insurance companies won’t get half a trillion dollars in taxpayer subsidies, and that certain Obamacare contractors won’t get any more of those lucrative exchange contracts.
Smith works for Leavitt Partners. So does David Merritt, who as recently as two months ago, was making the case that Republicans should ignore the positions of governors like Bobby Jindal and Rick Scott and implement exchanges. Neither, of course, notes their financial stake in doing so (but hey, it's a living).
What's most concerning about all of this is not that Romney selected one of the few Republicans in the country who backs implementation of Obamacare's exchanges. It's what the selection of Leavitt means as an indication of how Romney would potentially "fix" Obamacare if repeal proves impossible. According to Politico, "already, plugged-in Republicans from Washington to Salt Lake City are buzzing that Leavitt could make his own transition next January into the job of White House chief of staff or as a Valerie Jarrett-like personal counselor to a President Romney."
Should the Supreme Court strike down only a portion of Obamacare, it seems clear Leavitt would be a major voice in deciding how to replace it. And he is convinced that "exchanges are part of the future, no matter what."
UPDATE: Matt Lewis reached out to Team Romney for response, and they say not to worry.
Comment (49)· Quote
· UnfollowFollow (5)· Edit
EmailPages:
1
23Comment FiltersContributor Comments
show: all / none
Ben Domenech (1)
Member Comments
show: all / none
Sisyphus (5)
Macsen (1)
Ningrim (2)
libpastor (1)
Bryan G. Stephens (1)
Noesis Noeseos (5)
Scott Reusser (1)
Percival (1)
BrentB67 (3)
Funeral Guy (1)
...plus 15 others
James Gawron (1)
wmartin (6)
Fred Cole (2)
Mothership_Greg (1)
David Williamson (1)
Terrell David (1)
Bradley Ross (1)
Astonishing (1)
Bassett and Wilson (3)
James Of England (4)
Xennady (1)
Douglas (2)
ted trepanier (1)
R. Craigen (1)
Barfly (1)
Comment Popularity
10+ Likes (3)
5-10 Likes (5)
0-5 Likes (40)Comments (displaying 49 of 49):
show Sisyphus's comment (#1) ←
Joined
Jul '10Re: Romney's Transition Leader Favors Implementing Obamacare
Sisyphus
I told you so.
(Not you personally, of course, Ben.)
Edited on Jun 3 at 3:46pm
#1 ·Jun 3 at 3:44pm ·LikeUnlike (
Like (
· Quote
· Flag
· Edit
· Share· See in contextDirect linkshow Macsen's comment (#2) ←
Joined
May '11Re: Romney's Transition Leader Favors Implementing Obamacare
Macsen
I'm not going to panic. It's too nice a day. I'm going to hold my nose, vote for Romney, then reassess in January, or whenever the cabinet appointments are made, whether panic is necessary.
#2 ·Jun 3 at 3:48pm ·LikeUnlike (1) Like (1) · Quote
· Flag
· Edit
· Share· See in contextDirect linkshow Ningrim's comment (#3) ←
Joined
May '11Re: Romney's Transition Leader Favors Implementing Obamacare
Ningrim
This is the kind of thing conservatives have to push back hard and early on.
The GOP has to understand that business as usual is not acceptable.
A crony capitalist leading the transition team. Good grief.
#3 ·Jun 3 at 3:49pm ·LikeUnlike (16) Like (16) · Quote
· Flag
· Edit
· Share· See in contextDirect linkshow libpastor's comment (#4) ←
Joined
May '12Re: Romney's Transition Leader Favors Implementing Obamacare
libpastor
Ok, I've been encouraged about Romney lately, but this... not so much. The needle ticks down. Nevertheless, Romney's got my vote. This shows the need for conservative wins in the House and Senate. Here's hoping for a Supreme Court smack-down as well.
#4 ·Jun 3 at 3:50pm ·LikeUnlike (4) Like (4) · Quote
· Flag
· Edit
· Share· See in contextDirect link→ show Ben Domenech's comment (#5)
Re: Romney's Transition Leader Favors Implementing Obamacare
Ben Domenech
libpastor: Ok, I've been encouraged about Romney lately, but this... not so much. The needle ticks down. Nevertheless, Romney's got my vote. This shows the need for conservative wins in the House and Senate. Here's hoping for a Supreme Court smack-down as well. · 1 minute ago
I think it's just a reminder that Phil Klein is right.
#5 ·Jun 3 at 3:53pm ·LikeUnlike (2) Like (2) · Quote
· Edit
· Share· See in contextDirect linkshow Ningrim's comment (#6) ←
Joined
May '11Re: Romney's Transition Leader Favors Implementing Obamacare
Ningrim
I love the new media. Ben only has a few thousand twitter followers, but many of them have a microphone and influential connections in DC.
Matt Lewis of The Daily Caller got a response from the Romney campaign about these concerns.
It's just words, but at least there is a response with firm commitments to repeal.
#6 ·Jun 3 at 3:57pm ·LikeUnlike (2) Like (2) · Quote
· Flag
· Edit
· Share· See in contextDirect linkshow Bryan G. Stephens's comment (#7) ←
Joined
May '10Re: Romney's Transition Leader Favors Implementing Obamacare
Bryan G. Stephens
He gets elected and tells the rest of real conservatives to go suck lemons. Just watch.
Still have to vote for him over the other guy, though. Lessor or two evils.
Vote Team Romney: Driving America into Tyranny slower than the other Guy!
#7 ·Jun 3 at 4:05pm ·LikeUnlike (11) Like (11) · Quote
· Flag
· Edit
· Share· See in contextDirect linkshow Noesis Noeseos's comment (#8) ←
Joined
Jan '12Re: Romney's Transition Leader Favors Implementing Obamacare
Noesis Noeseos
John Derbyshire may not be the best liked person among some at Ricochet, but when he wrote We Are Doomed, he wasn't just frothing with uncivilized blather.
He came from a more rural part of England that in some ways resembled small-town America. Neighbors felt they shared a common culture, and they would look out for each other, help each other when they could. British socialism had not expanded so obscenely when he was a child. The insidious conspiracy between the mammary state and the nanny state had only begun to metastasize. But the cancer has only grown to maleficent proportions, fed by the two-stage virus.
So, we push aside Obama's stage-4 only to grasp Romney's virulence-lite. Marvelous! Awesome, even, considering that these seem to be the only two public choices available.
Whom the gods would destroy they first make mad.
Edited on Jun 3 at 7:20pm
#8 ·Jun 3 at 4:26pm ·LikeUnlike (4) Like (4) · Quote
· Flag
· Edit
· Share· See in contextDirect linkshow Scott Reusser's comment (#9) ←
Joined
May '10Re: Romney's Transition Leader Favors Implementing Obamacare
Scott Reusser
Take it up with Paul Ryan then, because state-based exchanges have been part of his Roadmap since the get-go. I haven't a clue whether such schemes are workable, but let's not suggest that since one element of a gazillion-page bill overlaps with some policy proposal of a Romney advisor, it means, QED, Romney is a stealth Obamacare supporter.
#9 ·Jun 3 at 4:28pm ·LikeUnlike (4) Like (4) · Quote
· Flag
· Edit
· Share· See in contextDirect linkshow Percival's comment (#10) ←
Joined
Mar '11Re: Romney's Transition Leader Favors Implementing Obamacare
Percival
And here I was feeling bad because I couldn't join in the thrill-up-the-leg fest on Friday.
#10 ·Jun 3 at 4:32pm ·LikeUnlike (6) Like (6) · Quote
· Flag
· Edit
· Share· See in contextDirect linkshow Sisyphus's comment (#11) ←
Joined
Jul '10Re: Romney's Transition Leader Favors Implementing Obamacare
Sisyphus
If we make it to 2016 without some form of ObomneyCare imposed on the republic, it will be because we sat on this squirming toad of a likely nominee the whole way and whacked him every time he moved in that direction. Of course, if he achieves reelection, we know what 2017 will bring.
#11 ·Jun 3 at 4:43pm ·LikeUnlike (4) Like (4) · Quote
· Flag
· Edit
· Share· See in contextDirect linkshow BrentB67's comment (#12) ←
Joined
May '12Re: Romney's Transition Leader Favors Implementing Obamacare
BrentB67
Gov. Romney is a great business leader with outstanding character, but things like this make me think he and/or his staff do not get it.
Admittedly I may be in the minority around here, but I don't think this election is going to be won with a rallying cry of pragmatic evolution. 2010 wasn't a marginal adjustment (although I concede it is hard to tell from what little the house of reps stands for) it was a statement about making a big course change.
Hiring a guy with a vested interest to implement a bastardized portion of Obamacare isn't a big course change, it is more of the same with a different guy behind the wheel.
#12 ·Jun 3 at 4:47pm ·LikeUnlike (5) Like (5) · Quote
· Flag
· Edit
· Share· See in contextDirect linkshow Funeral Guy's comment (#13) ←
Joined
Dec '10Re: Romney's Transition Leader Favors Implementing Obamacare
Funeral Guy
Good. Now I can stop pretending that I'm a "Go Romney" guy and return to my original thinking that he's a spineless tool who will sell out conservatives the day after his first nasty New York Times editorial.
#13 ·Jun 3 at 4:48pm ·LikeUnlike (10) Like (10) · Quote
· Flag
· Edit
· Share· See in contextDirect linkshow BrentB67's comment (#14) ←
Joined
May '12Re: Romney's Transition Leader Favors Implementing Obamacare
BrentB67
Bryan G. Stephens: He gets elected and tells the rest of real conservatives to go suck lemons. Just watch.
Still have to vote for him over the other guy, though. Lessor or two evils.
Vote Team Romney: Driving America into Tyranny slower than the other Guy! · 42 minutes ago
Nailed it.
Nobody is going to stay home over something like this, but just showing up and holding our nose isn't going to win this election. It is going to take 'willing to die for what Romney stands for' type enthusiasm.
There are more people on food stamps than live in Spain, as many people receive something from the fed gov't. as there are paying into it via income taxes and all of them are going to be fighting to keep what they have and keep Obama in office.
If Romney doesn't have equal passion supporting him and what he stands for as those that will turn out for the entitlement state then I think we are toast.
#14 ·Jun 3 at 4:51pm ·LikeUnlike (3) Like (3) · Quote
· Flag
· Edit
· Share· See in contextDirect linkshow James Gawron's comment (#15) ←
Joined
Dec '10Re: Romney's Transition Leader Favors Implementing Obamacare
James Gawron
Gentlemen,
Let's get clear about postulate no. 1. Obamacare is 100% complete toast. The mandate will be struck down by the Court. President Romney and the Republican House and the Republican Senate will repeal anything that's left.
We live in a society that still teaches Strict Darwinism (Krypto-Fascism) and Man Made Global Warming (Krypto-Bolshevism) as Science. Such a world can not be trusted with even more Statist control.
Regards,
Jim
#15 ·Jun 3 at 4:54pm ·LikeUnlike (2) Like (2) · Quote
· Flag
· Edit
· Share· See in contextDirect linkshow wmartin's comment (#16) ←
Joined
Apr '11Re: Romney's Transition Leader Favors Implementing Obamacare
wmartin
I guess this is what we're going to be all hysterical about for the next week or so.
#16 ·Jun 3 at 5:41pm ·LikeUnlike (2) Like (2) · Quote
· Flag
· Edit
· Share· See in contextDirect linkshow Fred Cole's comment (#17) ←
Joined
Nov '11Re: Romney's Transition Leader Favors Implementing Obamacare
Fred Cole
This is why the two parties craft the myth that you MUST MUST MUST hold your nose and vote for their candidate or else the sky will fall.
So it doesn't matter how odious Romney is, you have no choice.
#17 ·Jun 3 at 5:48pm ·LikeUnlike (1) Like (1) · Quote
· Flag
· Edit
· Share· See in contextDirect linkshow wmartin's comment (#18) ←
Joined
Apr '11Re: Romney's Transition Leader Favors Implementing Obamacare
wmartin
Fred Cole: This is why the two parties craft the myth that you MUST MUST MUST hold your nose and vote for their candidate or else the sky will fall.
So it doesn't matter how odious Romney is, you have no choice. · 5 minutes ago
I can't believe this group is going into such hysterics over some guy who will be performing the purely administrative task of overseeing the transition.
"Odious?!?" Geez...
#18 ·Jun 3 at 5:57pm ·LikeUnlike (0) Like (0) · Quote
· Flag
· Edit
· Share· See in contextDirect linkshow BrentB67's comment (#19) ←
Joined
May '12Re: Romney's Transition Leader Favors Implementing Obamacare
BrentB67
wmartin
Fred Cole: This is why the two parties craft the myth that you MUST MUST MUST hold your nose and vote for their candidate or else the sky will fall.
So it doesn't matter how odious Romney is, you have no choice. · 5 minutes ago
I can't believe this group is going into such hysterics over some guy who will be performing the purely administrative task of overseeing the transition.
"Odious?!?" Geez... · 1 minute ago
Because the man who is asking for our support to be the next President of the United States put this gentleman in the position for 'purely administrative task...'.
It isn't about Mr. Leavitt - it is about the person that thinks this is a good idea.
#19 ·Jun 3 at 6:00pm ·LikeUnlike (4) Like (4) · Quote
· Flag
· Edit
· Share· See in contextDirect linkshow Mothership_Greg's comment (#20) ←
Joined
Nov '11Re: Romney's Transition Leader Favors Implementing Obamacare
Mothership_Greg
Hey Ben, I'll just ignore this sentence:
One can argue about the merits of an exchange absent Obamacare's rules, regulations, authority shifts, price controls, and taxpayer funded subsidies.
and go ahead and pretend that you're arguing against the concept of exchanges. Also, I'll go ahead and ignore the conflict of interest aspect of this story wrt Leavitt. Thanks for trying, though!
#20 ·Jun 3 at 6:08pm ·LikeUnlike (0) Like (0) · Quote
· Flag
· Edit
· Share· See in contextDirect linkPages:
1
23
Would you like to comment on this Conversation?
Become a Member for $3.67 a month.
Join the Conversation
Already a member? Sign In
powered by
Custom Search
Web
.Contributor Feed
→ show Rob Long's comment (#)
Re: Fighting Mad in Colombia
Rob Long
Whoops. Corrected now. But for the record: I misspelled Colombia. But had it automagically fixed.
# ·
11 minutes ago ·LikeUnlike (0) Like (0) · Edit
· See in contextDirect link
Rob Long
Fighting Mad in Colombia
24 minutes ago
I have a friend who is doing interesting and dangerous work in Colombia, working with women who have become involved -- and are trying to get away from -- the terrorist organization FARC.
She's written a gripping piece for Foreign Affairs, under a pseudonym:
In the summer of 2009, during a lunch with a retired colonel of the Colombian army, I asked about his experiences fighting female members of the Revolutionary Armed Forces of Colombia (FARC), an insurgency that has plagued the country since the mid-1960s. Although the colonel did not say it was official policy to shoot women first during a firefight, he hinted that any sensible soldier would do so. Women, with their "Kamikaze-like" mentality, he said, were the most deadly combatants.
Talk about a powerful lede! She goes on:
Twenty-eight years old today, Athena is barely over five feet tall, compact, and attractive. Her body is never fully relaxed. Even when she sits down, her light eyes scan her surroundings. She always appears at the ready. She grew up with her mother, an older brother, and two younger sisters in an impoverished rural town. She does not describe her home life before she became a militant as abusive, although her brother regularly beat her whenever she "misbehaved." (Misbehavior included her refusal to obey commands to perform random demeaning tasks.) After one such beating, Athena ran away, and within a few weeks of her arrival in a neighboring village, a "kind, old man" named Paco approached her, offering "protection and fun" if she would come with him to la finca (the farm). Had he been making his pitch to a boy, he probably would not have played up physical security. Generally speaking, FARC recruits boys with the promise of a motorcycle, a cell phone, and cool clothes, all of which will help them get girls.
It's a powerful and deep look at what happens inside a terrorist organization -- how young people are recruited and how they're kept, often against their will.
She's a brave person, doing very dangerous stuff, and the article is really worth your time.
Show moreComment (3)· UnfollowFollow (0)· Edit
Email
→ show Diane Ellis, Ed.'s comment (#)
Re: Taylor Morris, American Hero
Diane Ellis, Ed.
The Great Adventure!: Diane - lest you think the limited number of posts on this indicates disinterest, let me say that this touched me deeply. And I promptly had to have everyone else in the house read it as well. · 25 minutes ago
Thank you. When Member bourbonsoaked sent me the link to the story yesterday morning, I read it and was very moved. I thought about it for 7 hours and told two friends about Taylor Morris before I could sit down and write a word about him. So I understand firsthand how a story like this can render people without words.
Show more# ·
48 minutes ago ·LikeUnlike (0) Like (0) · Edit
· See in contextDirect link
→ show Bill McGurn's comment (#)
Re: Re: Portrait of a President
Bill McGurn
Here's one of the photos I like:
Show more# ·
2 hours ago ·LikeUnlike (1) Like (1) · Edit
· See in contextDirect link
→ show Mollie Hemingway, Ed.'s comment (#)
Re: Romney Personally Advocated For Individual Mandate
Mollie Hemingway, Ed.
Tommy De Seno: Wall Street Journal scoop? You're being a bit generous there Mollie. Some of us have been talking about Romney's refusal to renounce individual mandates since the day he threw his hat in the ring.
I would rather have a Democrat in office promoting liberal policies than a Republican in office promoting liberal policies. You get the same government, but only one of them makes the rest of us look bad. · 4 minutes ago
Well, I think the personal involvement is important, since some suggested Romney was just following advisors. I also think the discussions about publicly shaming companies is worrisome.
As for the rest, that is part of something I wonder about -- with the memory of Bush's presidency still fresh. He advocated big government solutions but capitalists and free marketers got blamed for them.
Show more# ·
2 hours ago ·LikeUnlike (0) Like (0) · Edit
· See in contextDirect link
→ show Tommy De Seno's comment (#)
Re: Romney Personally Advocated For Individual Mandate
Tommy De Seno
Wall Street Journal scoop? You're being a bit generous there Mollie. Some of us have been talking about Romney's refusal to renounce individual mandates since the day he threw his hat in the ring.
I would rather have a Democrat in office promoting liberal policies than a Republican in office promoting liberal policies. You get the same government, but only one of them makes the rest of us look bad.
Show moreEdited 3 hours ago
# ·
3 hours ago ·LikeUnlike (1) Like (1) · Edit
· See in contextDirect link
Nancy Gibbs, Guest Contributor
The Presidents Club, Back Center Stage
3 hours ago
Hello Ricocheters! Nancy Gibbs here, also posting for the first time, along with my co-author Michael Duffy.
We’ve watched with particular interest how The Presidents Club has come out of the shadows these last few days. First came the White House reunion: 41, 43 and 44 all together for the unveiling of George W. Bush’s portrait last week, a moment of bipartisan camaraderie even as the two campaigns were hurling mudballs at each other. Meanwhile Bill Clinton, Obama’s unmatched but unbridled surrogate, was causing the White House all kinds of heartburn by calling Mitt Romney’s Bain record “sterling.” He was back on message last night, when he joined Obama for three New York fundraisers and faithfully declared the prospect of a Romney presidency “calamitous” for the country.
We’ll discuss the Clinton Challenge later: for the moment, it is President Bush I am more curious about. At the Club reunion last week, the protocols were generally honored: “It’s been said that no one can ever truly understand what it’s like being President until they sit behind that desk and feel the weight and responsibility for the first time,” President Obama said. “And that’s why, from time to time, those of us who have had the privilege to hold this office find ourselves turning to the only people on Earth who know the feeling. We may have our differences politically, but the presidency transcends those differences. We all love this country. We all want America to succeed. We all believe that when it comes to moving this country forward, we have an obligation to pull together.”
This was all but an echo of what Bush himself had said when he turned over the keys to Obama in January, 2009, with all the Club members standing by: “We want you to succeed,” Bush said. “Whether we're Democrat or Republican we care deeply about this country. All of us who have served in this office understand that the office itself transcends the individual.”
Which just makes me wonder: how will the Romney campaign handle the most recent Republican president—particularly this summer, as the conventions approach and the veepstakes loom and President Bush breaks silence with a new book about strategies for economic growth.
On May 15, the day Bush endorsed Romney, the campaign issued a press release touting the support of Texas Senator Kay Bailey Hutchison; Bush’s endorsement did not merit a mention. The first President Bush and son Jeb have been embraced; is W. radioactive? Or due for a revival? I’d love to hear your thoughts.
Show moreComment (11)· UnfollowFollow (2)· Edit
Email
James Pethokoukis
Why Paul Krugman and Larry Summers Are Wrong About America Needing Another Mega-Stimulus
3 hours ago
Here we spend again, I mean, “go” again.
Two of America’s leading liberal economists, Paul Krugman and Larry Summers, want Washington to start spending more—probably much, much more—to boost the sputtering U.S. economy. Extremely low interest rates, they argue, both allow government to borrow cheaply and signal a deep hibernation by bond market vigilantes unconcerned by federal debt levels.
Lots of potential reward with little potential risk—or so Krugman and Summers argue.
Their proposal raises many questions and issues:
1. How much? The 2009 stimulus cost $831 billion, not counting borrowing costs. Without it, according to the Congressional Budget Office, the unemployment rate today would be 0.1 to 0.8 percentage point lower. Using, charitably, the most favorable CBO estimate, we are talking about $100 billion per tenth of a percentage point. So how much is enough for Krugman and Summers, $800 billion? $900 billion? $1 trillion? Or is the sky the limit?
2. What would the money be used for? Summers says in his op-ed that it would be “amazing if there were not many public investment projects” that would pay for themselves by “expanding the economy’s capacity or its ability to innovate.”
First, I would like to vet that short list. Second, is a check from Washington the best way to make these supposed projects happen? Third, what happened to Summers’s famous admonition that stimulus should be “timely, targeted, temporary?” These projects would likely take some time to get going. And if you believe the economic forecasts from the Obama White House, the economy is—yet again—approaching a mini-boom: 3% GDP grow this year, 3.0% in 2013, 4.0% in 2014, 4.2 in 2015, 3.9% in 2016, 3.8% in 2017. Now, I don’t place much stock in those predictions from Summers’s old pals on Team Obama, but he just might.
3. Would the bond vigilantes really stay asleep? Krugman and Summers are preternaturally confident that another big step-up in U.S. indebtedness would have no effect on our ability to borrow. That’s a big assumption, argues AEI’s Desmond Lachman: “An important lesson that the U.S. should be drawing from the Greek experience is how mistaken it is to be guided by low market interest rates. Since it might be recalled that as late as 2009, when it should have been obvious to all that Greece’s public finances were on an unsustainable path, the Greek government was able to raise as much long-term money as it liked at a mere 0.2 percentage points above the rate at which Germany could borrow such money. It might also be recalled how quickly markets turned on Greece and how soon a country that had no difficulty in borrowing from the international capital market at unusually favorable terms found itself totally shut out from that very same market.”
And let’s also keep in mind that the last time Summers tried to outsmart financial markets he lost $2 billion for Harvard’s endowment fund.
4. Might not more debt actually hurt long-term U.S. growth? A new paper from Kenneth Rogoff, Carmen Reinhart, and Vincent Reinhart finds that very high debt levels of 90% of GDP are a long-term burden on economic growth that often lasts for two decades or more: “The average high-debt episodes since 1800 last 23 years and are associated with a growth rate more than one percentage point below the rate typical for periods of lower debt levels. That is, after a quarter-century of high debt, income can be 25% lower than it would have been at normal growth rates.”
5. What about taxes? One huge mistake the high-tax EU has made is making nearly half its austerity program come in the form of even higher taxes. Not only should the U.S. not be raising taxes, we should be cutting them. Our corporate tax is so high that cutting it to 25% from 35% might well pay for itself—not to mention boosting business and investor confidence.
The U.S. economy has been malfunctioning since 2006. Shouldn’t it finally be time to address the deep problems of an anti-growth tax code, economy-stifling regulations, and out-of-control spending?
Show moreComment (17)· UnfollowFollow (1)· Edit
Email
→ show Paul A. Rahe's comment (#)
Re: Romney Personally Advocated For Individual Mandate
Paul A. Rahe
Thanks, Mollie. Alas, this comes as no real surprise. If he is elected President, Romney may govern as a conservative. If, however, we are to judge by his record in the past, he will turn out to be just another managerial progressive. In the past, he has been a fervent supporter of the administrative entitlements state and no friend to individual liberty. Let's hope that he has learned a few things along the way or that he is enough of a chameleon to take his direction from us.
Show more# ·
4 hours ago ·LikeUnlike (2) Like (2) · Edit
· See in contextDirect link
Mollie Hemingway, Ed.
Romney Personally Advocated For Individual Mandate
4 hours ago
This Wall Street Journal scoop is not going to make many folks feel particularly enthusiastic about Mitt Romney Presidency. It's about the discovery of a few emails from the time Mitt Romney worked so hard to pass his controversial health-care law:
When Mitt Romney left office as Massachusetts governor, his aides removed all emails from a server computer in the governor's office, and purchased and carted off hard drives from 17 state-owned personal computers, according to a current state official.
But a small cache of emails survived, including some that have never publicly surfaced surrounding Mr. Romney's efforts to pass his now-controversial health-care law. The emails show the Republican governor was closely engaged in negotiating details of the bill, working with top Democratic state leaders and drafting early copies of opinion articles backing it.
Mr. Romney and his aides, meanwhile, strongly defended the so-called individual mandate, a requirement that everyone in Massachusetts have or buy heath insurance. And they privately discussed ideas that might be anathema to today's GOP—including publicly shaming companies that didn't provide enough health insurance to employees.
Mr. Romney signed the bill April 12, 2006, and that night sent an email thanking a top aide, saying the law would help "hundreds of thousands of people…have healthier and happier lives."
A few days ago, Ben Domenech wrote about how Romney had picked someone who has been tirelessly pushing Obamacare implementation at the state level to lead his transition team.
Here we see the type of ideas that are encouraged in the Romney inner circle, including some tactics that even Barack Obama might find heavy handed.
I know that Team Romney is telling advocates of increased liberty to not worry about what he'll do surrounding Obamacare, but this slow drip of scary information is not helping.
Show moreComment (40)· UnfollowFollow (3)· Edit
Email
→ show C.J. Box's comment (#)
Re: Don't Look Up, Buckaroos
C.J. Box
tabula rasa C.J.: If Obama stays in power you're not going to have to think up any central plot points again. The government will simply provide them to you (though they'll probably want to charge you a fee).
Honestly, if I used this kind of thing in a novel no one would believe it. They'd consider it too over-the-top. That's one of the painful realities about writing novels set in contemporary (Western) settings. It's necessary in plotting to dial things back or they'll be perceived as too reactionary.
Show more# ·
15 hours ago ·LikeUnlike (3) Like (3) · Edit
· See in contextDirect link
→ show Dave Carter's comment (#)
Re: "Sending Me Angels" A Medical Journey
Dave Carter
Doug Kimball: Dave:
Nothing like Delbert to keep you company on the road! Remember, no more pretending to be a camel and avoiding fluids while on the road. Get a "Trucker's Helper" (like the character Bert Reynold's used in "Semi Tough" when he cheated whuile trying to get "It".) Keep a water bottle at your side at all times. As a man who lives in the desert knows, the only way to keep kidney stones away is to drink and drink some more. · 26 minutes ago
As luck would have it, I have the movie Semi Tough in the truck. Not a bad idea, that. Thanks for that song too. That's hilarious!
Show more# ·
16 hours ago ·LikeUnlike (1) Like (1) · Edit
· See in contextDirect link
Rob Long
Weird Japan
17 hours ago
Japan, I think we can all admit, is often a weird place. Robots, giant lizards, odd comic books, that sort of thing.
But every now and then, they're both weird and cool:
A Segway, essentially, steered by the muscles in the posterior. You just kind of squirm your way along, if you get my meaning. From Yahoo! Autos:
No automaker keeps quite as many strange side projects afloat as Honda, which has everything from jet planes to walking robots underway in its engineering studios. On Tuesday, Honda revealed its plans for another company invention, a rolling stool it now calls the Uni-Cub which users steer by the seat of their pants. One can only hope for a racing version.
Designed to mimic the speed and height of walking, the Uni-Cub's lithium batteries power a trick wheel that can move any direction. Using sensors on the seats, riders simply shift their weight in the direction they wish to travel -- there's also a smartphone control app -- and the unit rides high so that the riders have eye contact with people not cool enough to glide around the office up to 3.7 miles on a charge.
Sign me up.
Show moreComment (29)· UnfollowFollow (4)· Edit
Email
→ show C.J. Box's comment (#)
Re: Don't Look Up, Buckaroos
C.J. Box
Wait a minute - are those Hellfire missiles under the wings?
I believe the are. But not to worry -- they're only fired when cowboys spit tobacco juice in areas not approved for that designated use.
# ·
17 hours ago ·LikeUnlike (4) Like (4) · Edit
· See in contextDirect link
Diane Ellis, Ed.
Taylor Morris, American Hero
17 hours ago
One month ago yesterday, 23-year old Taylor Morris lost all of his limbs in the line of duty. A Navy Explosive Ordinance Disposal (EOD) tech from Cedar Falls, Iowa, Taylor was serving out his first tour in the Kandahar province of Afghanistan. His job—surely one of the highest stress, highest risk jobs in the military—was to defuse bombs, disable mines, and to secure hazardous areas in advance of fellow troops so that they could do their job without being blown up.
But on May 3, 2012, Taylor stepped on an IED and nearly lost his life. Speaking to a reporter at The Chive, Taylor recounts his memory of the explosion:
As soon as I stepped on it, I knew. There was a moment, then I heard the blast. I felt the heat. I knew I had lost my legs. As I summersaulted through the air, I watched my legs fly off.
Taylor remained conscious through the blast, and though he could see that he was bleeding out fast, he called out to his team requesting that no one come to his aid until the area was completely cleared of mines. After the area was secured, the medic was able to administer battlefield trauma care and save Taylor's life.
A few days later, Taylor was transported to Walter Reed hospital in D.C., where he underwent and survived a four limb amputation.
His willingness to pay the ultimate sacrifice for his country and for his brothers-in-arms is more than enough to qualify Taylor Morris as one of America's great heroes. But that's not the part of his story that I find so inspirational and remarkable. Faced with a brutal situation in which most people would despair–and couldn't be blamed for doing so—Taylor has met his suffering with an incredible hope, humility, and courage.
His recovery in the few short weeks that have followed has been nothing short of miraculous. Over the weekend, Taylor's stitches were removed and he was fitted for prosthetics. He's already able to sit up and has begun the long, painful process of rehabilitation and physical therapy.
The other part of Taylor Morris's story that I find particularly moving has less to do with Taylor and more to do with his network of support that has rushed in to care for him. Family, girlfriend, friends have all been there to pray for and with him, encourage him, be with him. But beyond his immediate relations, a vast network of complete strangers has stepped up to do right by this American patriot. A few days ago, on May 31, the aforementioned website called The Chive told Taylor's story and called out for donations to provide for Taylor's dream lakeside cabin. The website set a goal of $30,000 which was met and exceeded within a matter of minutes. In a beautiful outpouring of generosity in response to an even greater generosity, complete strangers donated more than $230,000 over the span of a few hours to provide for a young patriot.
My thanks to Member "bourbonsoaked" for alerting me to the story. The Chive's story of Taylor Morris can be found here (but be forewarned that other stories on the site are definitely not Ricochet CoC compliant).
Show moreComment (10)· UnfollowFollow (1)· Edit
Email
C.J. Box
Don't Look Up, Buckaroos
18 hours ago
The entire congressional delegation from my neighboring state of Nebraska has written a letter to EPA Commissar Lisa Jackson to ask why it is -- and under whose authority -- the rogue agency has been using unmanned drones to spy on...cattle ranchers. That's right.
Under some mind-numbing interpretation of the Clean Water Act, the EPA has been sending up spy drones to count cows in feedlots in Nebraska and Iowa. And who knows what else they've been checking out? It's outrageous. I'll leave it up to the many sharp legal minds on Ricochet to explain -- or rail against -- this kind of encroachment.
Out here in the fly-over states, we are sometimes accused of being the embodiment of the "black helicopter crowd." Maybe there's something to that, since there are so many federal agencies running our land and lives. But when you find out the EPA has hundreds of armed federal agents and now they're using spy drones to intimidate ranchers... what is one to think?
Show moreComment (21)· UnfollowFollow (1)· Edit
Email
→ show Mollie Hemingway, Ed.'s comment (#)
Re: Wisconsin Is Not In The Bag!
Mollie Hemingway, Ed.
James Of England:
More is better. Winning, beating the recount threshold, 6% (the poll-based expectations), and 10% seem like landmark numbers, but the numbers really aren't transferable from one race to another in a firm way, so "not close" seems subjective. · 19 minutes ago
I covered a losing campaign in 2010 where some of its staff and volunteers were so convinced of victory that they shut down their GOTV operation in order to travel to the big city for the victory party. Their candidate lost.
What's most important in campaigns is to push hard, hard, hard until that last poll closes. Even if you think you're winning, you need to work to win by more.
Show more# ·
19 hours ago ·LikeUnlike (1) Like (1) · Edit
· See in contextDirect link
→ show John Grant's comment (#)
Re: Useful Readings on Progressivism and Contemporary Politics
John Grant
The early Progressives would reject some aspects of later Liberalism (e.g. gay marriage,sexual liberation, no-fault divorce, much of contemporary feminism). But their view of government's power to regulate was quite expansive. See the Progressive Party Platform of 1912 (linked in the original) for some examples.
Ross Conatser: A quote from TR's speech at the end of the Heritage piece caught my eye.
“if we do not have the right kind of law and the right kind of administration of the law, we cannot go forward as a nation.”
. . . . IMHO, they could not envision the world of NGO's, protected classes, and one-size-fits-all legal activism that exists today. Remember in the world of 1910, 20,000 workers per year died in the workplace (mostly coal miners). The Hatfield and McCoy feud was just cooling down. They were going after low hanging fruit.
I suspect that if you explained Title 9, or the Americans with Disablities Act, or Gay Marriage Curriculum for grade schools they would have laughed in your face because those things were so impossibly foolish as to not need consideration.
Consider it now. · 5 hours ago
Show more# ·
19 hours ago ·LikeUnlike (0) Like (0) · Edit
· See in contextDirect link
→ show James Lileks's comment (#)
Re: The Devil Votes Obama
James Lileks
I'll take political advice from a botoxed albino mantis when I take fashion advice from a politician.
# ·
19 hours ago ·LikeUnlike (7) Like (7) · Edit
· See in contextDirect link
→ show Mollie Hemingway, Ed.'s comment (#)
Re: The Devil Votes Obama
Mollie Hemingway, Ed.
My husband kept playing the original video invite to this dinner over and over and over and guffawing. It's hilarious.
Show more# ·
19 hours ago ·LikeUnlike (0) Like (0) · Edit
· See in contextDirect link..
© 2012 Silent Cal Productions Help • About • Contact • FAQ • Code of Conduct • Terms & Conditions • Privacy • Store • Site Map • DMCA
Welcome Visitor
Already a Member?
Please Sign In Become a Member to enjoy the full benefits of Ricochet:
Let your voice be heard! Join into the conversations-- or even start your own.Follow your favorite Contributors and fellow MembersRead Member-initiated conversationsKeep tab