There Is No Plan

potus has his brain in gear.

There are an awful lot of liberals breathing easier after the release of President Obama’s first budget. Krugman, who had been as close to castigating the President as any columnist on the left was almost unequivocally supportive. The budget’s focus on healthcare and education as key to our long term economic revival as well as boosting the middle class in a meaningful and intelligent way is a great starting point for recalibrating American economic and social policy. It sets up a battle royal with the Republicans, and will put Obama’s political savvy on the line. Rahm Emmanuel will also get battle-tested for the first time. Convincing Blue Dog Democrats of the need for a fundamental shift away from Reaganomics and its terrible legacy will be tough, but Obama is starting to display the calm under fire that suggests it can be done.

It’s been mentioned before on this blog, but you’ll be hearing an awful lot about The Two Ladies of Maine, Susan Collins and Olympia Snowe. At least one of them is required to beat the inevitable GOP filibuster.  Maine’s two senators are about to become the most important people in the history of the state. They are sure to drive a hard bargain as they together become the last vestige of Obama’s short dalliance with bipartisanship.

let's hope the ambulance is coming because there is no time to waste

In today’s NYT, Paul Krugman wonders why we haven’t heard more about major healthcare reform in the first few days of the new administration. His concern is that the economic crisis will only make the oncoming healthcare catastrophe that much more severe. It’s a very good point. Krugman surmises that perhaps solving the economic meltdown is dominating the agenda to the exclusion of almost everything else.

But Krugman doesn’t go far enough. What he fails to mention is that solving the healthcare crisis will, over the medium term, will dramatically help overcome America’s deep economic weaknesses.

It goes like this. Regardless of the plan adopted, and it’s most likely to be a build on Obama’s idea of offering a competitive government plan that will release the grip on our healthcare held by profiteering private insurance companies, the new system will have a very significant downward pressure on healthcare costs. Read the rest of this entry »