Category Archives: Economy
Retractable Debt Ceiling
The House voted to retract the debt ceiling with no restrictions and the Senate approved about 5 minutes later.
Unemployment Liberation
War is peace, freedom is slavery, and unemployment is liberation.
A new Congressional Budget Office report says ObamaCare will cost the economy 2.3 million jobs. Lower income workers will have a “disincentive to work”, as CBO Director Douglas Elmendorf put it.
“By providing subsidies that decline with rising income (and increase with falling income), and by making some people financially better off, the Affordable Care Act will create an incentive for some people to work less,” the report states.
The White House has embraced this. Jason Furman the chairman of the Council for Economic Advisers calls it freedom from “job lock”.
Unemployment Liberation Update:
University of Chicago Economist Casey Mulligan thinks that’s nuts:
I don’t know what their intentions are,” he says, choosing his words carefully, “but it looks like they’re trying to leverage the lack of economic education in their audience by making these sorts of points.
I can understand something like cigarettes and people believe that there’s too much smoking, so we put a tax on cigarettes, so people smoke less, and we say that’s a good thing. OK. But are we saying we were working too much before? Is that the new argument? I mean make up your mind. We’ve been complaining for six years now that there’s not enough work being done. . . . Even before the recession there was too little work in the economy. Now all of a sudden we wake up and say we’re glad that people are working less? We’re pursuing our dreams?
Bipartisan Farm Bill
Congress got something done last week. It passed a bipartisan, 10 year, trillion dollar farm bill.
The farm bill includes insurance against “adverse price movements”. Isn’t that what the credit default swaps were supposed to do for subprime loans before the great recession?
Bipartisanship on Farm Bill
It’s all too much for the editors of National Review who note that:
Many crop prices are near all-time highs, and if they drop as expected, new loss-protection programs could — likely will — cost billions more than the CBO calculates.
In an even rarer case of bipartisanship the Washington Post editorial board agrees:
Supposedly necessary to secure the nation’s food supply at a time of record farm income and epidemic obesity, this federal largess flows almost regardless of how much money its recipients already have.
The Post then calls on President Obama to use his pen to veto the bill.
More Bipartisan Farm Bill Update:
Bloomberg reports the Senate threw out a requirement that members of Congress would have to publicly report if they receive federally subsidized crop insurance.
Health Care from Hell
Insurance companies thought they had a deal made in ..well I’m not sure. They were promised millions of new customers by the Affordable Care Act. But then the website went bad, policy holders lost their policies, and patients lost their doctors. President Obama began a divine re-write of the health care from hell law in ways that imposed unexpected costs on insurers. Now it looks like taxpayers will be condemned to a bailout.
Family Doc Squeeze
ObamaCare will put the squeeze on your family doc if he works for himself. So says Marc Seigel says in this WSJ piece.
