A Second Look Rotating Header Image

Paul Krugman

A Second Look | Krugman Attacks Senate Over Health Care, Gives Obama a Break

The next thing you know, Paul Krugman will be attacking Paul Krugman – probably from the left! It would go something like, “Krugman is not liberal enough!”

At least it’s not Obama this time.

Anyway, his attack today is not without some justification. There are some old, pasty, white men in the Senate that has taken so much money for so long from big pharma and big medicine that they have forgotten little you and me, the voters. Krugman mentions a couple of these guys in his article today in the opinion section of the NY Times. He mentions two by name, Senators Ben Nelson and Kent Conrad, but there are more than just those two, maybe enough to kill the public health care plan – even enough to kill it using the reconciliation process.

via Op-Ed Columnist – Health Care Showdown – NYTimes.com.

America’s political scene has changed immensely since the last time a Democratic president tried to reform health care. So has the health care picture: with costs soaring and insurance dwindling, nobody can now say with a straight face that the U.S. health care system is O.K. And if surveys like the New York Times/CBS News poll released last weekend are any indication, voters are ready for major change.

The question now is whether we will nonetheless fail to get that change, because a handful of Democratic senators are still determined to party like it’s 1993.

And yes, I mean Democratic senators. The Republicans, with a few possible exceptions, have decided to do all they can to make the Obama administration a failure. Their role in the health care debate is purely that of spoilers who keep shouting the old slogans — Government-run health care! Socialism! Europe! — hoping that someone still cares.

The polls suggest that hardly anyone does. Voters, it seems, strongly favor a universal guarantee of coverage, and they mostly accept the idea that higher taxes may be needed to achieve that guarantee. What’s more, they overwhelmingly favor precisely the feature of Democratic plans that Republicans denounce most fiercely as “socialized medicine” — the creation of a public health insurance option that competes with private insurers.

He chides the Republicans for doing “all they can do to make the Obama administration a failure”, but he forgets that he himself has done plenty to achieve that same goal as I have railed about here, and here, and here, and more. Krugman is constantly finding fault with the Obama administration and, in effect, is doing just as much or more damage to Obama than the Republicans because his base, all you good readers out there, just gush over Paul Krugman.

This time he’s yelling at some Senators for not being progressive enough, and maybe, just maybe this time he might be on the right track.

What the balking Democrats seem most determined to do is to kill the public option, either by eliminating it or by carrying out a bait-and-switch, replacing a true public option with something meaningless. For the record, neither regional health cooperatives nor state-level public plans, both of which have been proposed as alternatives, would have the financial stability and bargaining power needed to bring down health care costs.

Whatever may be motivating these Democrats, they don’t seem able to explain their reasons in public.

Senator Ben Nelson

Senator Kent Conrad

Thus Senator Ben Nelson of Nebraska initially declared that the public option — which, remember, has overwhelming popular support — was a “deal-breaker.” Why? Because he didn’t think private insurers could compete: “At the end of the day, the public plan wins the day.” Um, isn’t the purpose of health care reform to protect American citizens, not insurance companies?

Mr. Nelson softened his stand after reform advocates began a public campaign targeting him for his position on the public option.

And Senator Kent Conrad of North Dakota offers a perfectly circular argument: we can’t have the public option, because if we do, health care reform won’t get the votes of senators like him. “In a 60-vote environment,” he says (implicitly rejecting the idea, embraced by President Obama, of bypassing the filibuster if necessary), “you’ve got to attract some Republicans as well as holding virtually all the Democrats together, and that, I don’t believe, is possible with a pure public option.”

Honestly, I don’t know what these Democrats are trying to achieve. Yes, some of the balking senators receive large campaign contributions from the medical-industrial complex — but who in politics doesn’t? If I had to guess, I’d say that what’s really going on is that relatively conservative Democrats still cling to the old dream of becoming kingmakers, of recreating the bipartisan center that used to run America.

It is my opinion that these old, pasty, Democrats have lived in the DC bubble so long that the only contact they have with outside interests are the well paid lobbyists that continually speak congenially with these Senators in the hallways of Congress and over business luncheons. It has gone on for so long that these lobbyists have become their friends and have given them huge, overly-generous campaign contributions.

The lobbyists have been SCREAMING against the public health care plan, so loudly in fact that all the Senators hear now is how wrong the plan is and how unfair it would be to compete with the insurance industry. They aren’t really scared of being “driven out” of the market as the AMA has said recently, but they are terrified of the competition that would cram down their huge profits, their gravy train.

This makes me wonder why “we the people” can’t organize a lobby to counter the corporate greed. It’s a fantasy, I suppose. But it would be nice to have an organization, like say Move On, to have well paid lobbyists roaming the halls of Congress pressing the flesh and pushing the progressive agenda. We could hire some lobbyists who are passionate about the liberal side and could be most effective by getting close to Senators and Congressmen, instead of just sitting back and hurling spit wads at the President.

Maybe we could hire Paul Krugman!?

Share

A Second Look | Obama Officials Think Krugman Is Naive: Newsweek’s Evan Thomas

via Obama Officials Think Krugman Is Naive: Newsweek’s Evan Thomas.

Newsweek’s Evan Thomas, who has the big cover story on the rather prickly relationship between the White House and Paul Krugman, offered a rather

Economist Paul Krugman

surprising insight into the relationship between the two.

Speaking to MSNBC on Monday, the longtime magazine scribe said that the Obama administration is not “too crazy about Krugman” (no surprise, considering how much criticism Krugman has laid on the White House’s economic policies) and that, in private, they “think he is naive.”

Krugman is smart. I wish he was smart enough to realize the difference between Barrack Obama and John McCain. Krugman is attacking Obama from the left saying that government spending isn’t enough and that certain “too big to fail” banks should be nationalized. I guess he thinks that the right doesn’t bitch enough.

But from conversations I’ve had [Sam Stein] with the administration, I’m not sure if it is entirely true. Krugman does levy some of the harshest critiques at the president’s policies — critiques that sting both because of who Krugman is and where (professionally and philosophically) he comes from. The White House, however, has consulted with him on many matters — though not all. Krugman, for his part, told Newsweek that “the White House has done very little by way of serious outreach.”

Moreover, officials in the executive office view him not as naïve but rather as someone who happens to come from “a different ideological perspective.”

True. If John McCain were in office he would dismiss Krugman as a looney liberal and a socialist and be done with him. At least Obama listens to him. Some.

_____________________________________________

P.S.  A.I.G. is not a bank. It is an insurance company. They insured TRILLIONS of dollars worth of toxic assets. They got in way over their heads.

Share

A Second Look | Op-Ed Columnist – Financial Policy Despair – NYTimes.com

via Op-Ed Columnist – Financial Policy Despair – NYTimes.com.

By PAUL KRUGMAN
Published: March 22, 2009

Over the weekend The Times and other newspapers reported leaked details about the Obama administration’s bank rescue plan, which is to be officially released this week. If the reports are correct, Tim Geithner, the Treasury secretary, has persuaded President Obama to recycle Bush administration policy — specifically, the “cash for trash” plan proposed, then abandoned, six months ago by then-Treasury Secretary Henry Paulson.

Paul Krugman

President Obama has always said that a good idea is a good idea no matter who produces it. I’m not defending Bush, but I am defending Obama. If you can take the good parts of a plan, throw away the parts that are detrimental, then add your own ideas, then you can produce a better product. By partially owning A.I.G., and enticing both public and private investors to back the securities,  the government can offer new ways to increase their stock value.

…It’s as if the president were determined to confirm the growing perception that he and his economic team are out of touch, that their economic vision is clouded by excessively close ties to Wall Street. And by the time Mr. Obama realizes that he needs to change course, his political capital may be gone.

Krugman is Mr. Doom. He is playing into our fears similar to the way Bush, Cheney, and that whole cabal did for so many years. I’m tired of the pessimism. Let’s look at what will work instead of what might go wrong. His plan is not much different than what the President is already doing:

It goes like this: the government secures confidence in the system by guaranteeing many (though not necessarily all) bank debts. At the same time, it takes temporary control of truly insolvent banks, in order to clean up their books.

That’s what Sweden did in the early 1990s. It’s also what we ourselves did after the savings and loan debacle of the Reagan years. And there’s no reason we can’t do the same thing now.

Instead of taking control of insolvent banks, Predident Obama is wanting these banks to come out of the crises under thier own staem. The government already owns 80% of A.I.G.. Is it worth it to completely buy them out? What would that fix?

Share
You are protected by wp-dephorm: