Showing posts with label Krugman. Show all posts
Showing posts with label Krugman. Show all posts

8/17/2009

Krugman on Healthcare

August 17, 2009
Op-Ed Columnist
The Swiss Menace
By PAUL KRUGMAN
It was the blooper heard round the world. In an editorial denouncing Democratic health reform plans, Investor’s Business Daily tried to frighten its readers by declaring that in Britain, where the government runs health care, the handicapped physicist Stephen Hawking “wouldn’t have a chance,” because the National Health Service would consider his life “essentially worthless.”

Professor Hawking, who was born in Britain, has lived there all his life, and has been well cared for by the National Health Service, was not amused.

Besides being vile and stupid, however, the editorial was beside the point. Investor’s Business Daily would like you to believe that Obamacare would turn America into Britain — or, rather, a dystopian fantasy version of Britain. The screamers on talk radio and Fox News would have you believe that the plan is to turn America into the Soviet Union. But the truth is that the plans on the table would, roughly speaking, turn America into Switzerland — which may be occupied by lederhosen-wearing holey-cheese eaters, but wasn’t a socialist hellhole the last time I looked.

Let’s talk about health care around the advanced world.

Every wealthy country other than the United States guarantees essential care to all its citizens. There are, however, wide variations in the specifics, with three main approaches taken.

In Britain, the government itself runs the hospitals and employs the doctors. We’ve all heard scare stories about how that works in practice; these stories are false. Like every system, the National Health Service has problems, but over all it appears to provide quite good care while spending only about 40 percent as much per person as we do. By the way, our own Veterans Health Administration, which is run somewhat like the British health service, also manages to combine quality care with low costs.

The second route to universal coverage leaves the actual delivery of health care in private hands, but the government pays most of the bills. That’s how Canada and, in a more complex fashion, France do it. It’s also a system familiar to most Americans, since even those of us not yet on Medicare have parents and relatives who are.

Again, you hear a lot of horror stories about such systems, most of them false. French health care is excellent. Canadians with chronic conditions are more satisfied with their system than their U.S. counterparts. And Medicare is highly popular, as evidenced by the tendency of town-hall protesters to demand that the government keep its hands off the program.

Finally, the third route to universal coverage relies on private insurance companies, using a combination of regulation and subsidies to ensure that everyone is covered. Switzerland offers the clearest example: everyone is required to buy insurance, insurers can’t discriminate based on medical history or pre-existing conditions, and lower-income citizens get government help in paying for their policies.

In this country, the Massachusetts health reform more or less follows the Swiss model; costs are running higher than expected, but the reform has greatly reduced the number of uninsured. And the most common form of health insurance in America, employment-based coverage, actually has some “Swiss” aspects: to avoid making benefits taxable, employers have to follow rules that effectively rule out discrimination based on medical history and subsidize care for lower-wage workers.

So where does Obamacare fit into all this? Basically, it’s a plan to Swissify America, using regulation and subsidies to ensure universal coverage.

If we were starting from scratch we probably wouldn’t have chosen this route. True “socialized medicine” would undoubtedly cost less, and a straightforward extension of Medicare-type coverage to all Americans would probably be cheaper than a Swiss-style system. That’s why I and others believe that a true public option competing with private insurers is extremely important: otherwise, rising costs could all too easily undermine the whole effort.

But a Swiss-style system of universal coverage would be a vast improvement on what we have now. And we already know that such systems work.

So we can do this. At this point, all that stands in the way of universal health care in America are the greed of the medical-industrial complex, the lies of the right-wing propaganda machine, and the gullibility of voters who believe those lies.

7/13/2009

Boiling Frogs

New York Times July 13, 2009
Boiling the Frog By PAUL KRUGMAN
Is America on its way to becoming a boiled frog?

I’m referring, of course, to the proverbial frog that, placed in a pot of cold water that is gradually heated, never realizes the danger it’s in and is boiled alive. Real frogs will, in fact, jump out of the pot — but never mind. The hypothetical boiled frog is a useful metaphor for a very real problem: the difficulty of responding to disasters that creep up on you a bit at a time.

And creeping disasters are what we mostly face these days.

I started thinking about boiled frogs recently as I watched the depressing state of debate over both economic and environmental policy. These are both areas in which there is a substantial lag before policy actions have their full effect — a year or more in the case of the economy, decades in the case of the planet — yet in which it’s very hard to get people to do what it takes to head off a catastrophe foretold.

And right now, both the economic and the environmental frogs are sitting still while the water gets hotter.

Start with economics: last winter the economy was in acute crisis, with a replay of the Great Depression seeming all too possible. And there was a fairly strong policy response in the form of the Obama stimulus plan, even if that plan wasn’t as strong as some of us thought it should have been.

At this point, however, the acute crisis has given way to a much more insidious threat. Most economic forecasters now expect gross domestic product to start growing soon, if it hasn’t already. But all the signs point to a “jobless recovery”: on average, forecasters surveyed by The Wall Street Journal believe that the unemployment rate will keep rising into next year, and that it will be as high at the end of 2010 as it is now.

Now, it’s bad enough to be jobless for a few weeks; it’s much worse being unemployed for months or years. Yet that’s exactly what will happen to millions of Americans if the average forecast is right — which means that many of the unemployed will lose their savings, their homes and more.

To head off this outcome — and remember, this isn’t what economic Cassandras are saying; it’s the forecasting consensus — we’d need to get another round of fiscal stimulus under way very soon. But neither Congress nor, alas, the Obama administration is showing any inclination to act. Now that the free fall is over, all sense of urgency seems to have vanished.

This will probably change once the reality of the jobless recovery becomes all too apparent. But by then it will be too late to avoid a slow-motion human and social disaster.

Still, the boiled-frog problem on the economy is nothing compared with the problem of getting action on climate change.

Put it this way: if the consensus of the economic experts is grim, the consensus of the climate experts is utterly terrifying. At this point, the central forecast of leading climate models — not the worst-case scenario but the most likely outcome — is utter catastrophe, a rise in temperatures that will totally disrupt life as we know it, if we continue along our present path. How to head off that catastrophe should be the dominant policy issue of our time.

But it isn’t, because climate change is a creeping threat rather than an attention-grabbing crisis. The full dimensions of the catastrophe won’t be apparent for decades, perhaps generations. In fact, it will probably be many years before the upward trend in temperatures is so obvious to casual observers that it silences the skeptics. Unfortunately, if we wait to act until the climate crisis is that obvious, catastrophe will already have become inevitable.

And while a major environmental bill has passed the House, which was an amazing and inspiring political achievement, the bill fell well short of what the planet really needs — and despite this faces steep odds in the Senate.

What makes the apparent paralysis of policy especially alarming is that so little is happening when the political situation seems, on the surface, to be so favorable to action.

After all, supply-siders and climate-change-deniers no longer control the White House and key Congressional committees. Democrats have a popular president to lead them, a large majority in the House of Representatives and 60 votes in the Senate. And this isn’t the old Democratic majority, which was an awkward coalition between Northern liberals and Southern conservatives; this is, by historical standards, a relatively solid progressive bloc.

And let’s be clear: both the President and the party’s Congressional leadership understand the economic and environmental issues perfectly well. So if we can’t get action to head off disaster now, what would it take?

I don’t know the answer. And that’s why I keep thinking about boiling frogs.

6/29/2009

Betraying the Planet

Betraying the Planet
By PAUL KRUGMAN
So the House passed the Waxman-Markey climate-change bill. In political terms, it was a remarkable achievement.

But 212 representatives voted no. A handful of these no votes came from representatives who considered the bill too weak, but most rejected the bill because they rejected the whole notion that we have to do something about greenhouse gases.

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.

To fully appreciate the irresponsibility and immorality of climate-change denial, you need to know about the grim turn taken by the latest climate research.

The fact is that the planet is changing faster than even pessimists expected: ice caps are shrinking, arid zones spreading, at a terrifying rate. And according to a number of recent studies, catastrophe — a rise in temperature so large as to be almost unthinkable — can no longer be considered a mere possibility. It is, instead, the most likely outcome if we continue along our present course.

Thus researchers at M.I.T., who were previously predicting a temperature rise of a little more than 4 degrees by the end of this century, are now predicting a rise of more than 9 degrees. Why? Global greenhouse gas emissions are rising faster than expected; some mitigating factors, like absorption of carbon dioxide by the oceans, are turning out to be weaker than hoped; and there’s growing evidence that climate change is self-reinforcing — that, for example, rising temperatures will cause some arctic tundra to defrost, releasing even more carbon dioxide into the atmosphere.

Temperature increases on the scale predicted by the M.I.T. researchers and others would create huge disruptions in our lives and our economy. As a recent authoritative U.S. government report points out, by the end of this century New Hampshire may well have the climate of North Carolina today, Illinois may have the climate of East Texas, and across the country extreme, deadly heat waves — the kind that traditionally occur only once in a generation — may become annual or biannual events.

In other words, we’re facing a clear and present danger to our way of life, perhaps even to civilization itself. How can anyone justify failing to act?

Well, sometimes even the most authoritative analyses get things wrong. And if dissenting opinion-makers and politicians based their dissent on hard work and hard thinking — if they had carefully studied the issue, consulted with experts and concluded that the overwhelming scientific consensus was misguided — they could at least claim to be acting responsibly.

But if you watched the debate on Friday, you didn’t see people who’ve thought hard about a crucial issue, and are trying to do the right thing. What you saw, instead, were people who show no sign of being interested in the truth. They don’t like the political and policy implications of climate change, so they’ve decided not to believe in it — and they’ll grab any argument, no matter how disreputable, that feeds their denial.

Indeed, if there was a defining moment in Friday’s debate, it was the declaration by Representative Paul Broun of Georgia that climate change is nothing but a “hoax” that has been “perpetrated out of the scientific community.” I’d call this a crazy conspiracy theory, but doing so would actually be unfair to crazy conspiracy theorists. After all, to believe that global warming is a hoax you have to believe in a vast cabal consisting of thousands of scientists — a cabal so powerful that it has managed to create false records on everything from global temperatures to Arctic sea ice.

Yet Mr. Broun’s declaration was met with applause.

Given this contempt for hard science, I’m almost reluctant to mention the deniers’ dishonesty on matters economic. But in addition to rejecting climate science, the opponents of the climate bill made a point of misrepresenting the results of studies of the bill’s economic impact, which all suggest that the cost will be relatively low.

Still, is it fair to call climate denial a form of treason? Isn’t it politics as usual?

Yes, it is — and that’s why it’s unforgivable.

Do you remember the days when Bush administration officials claimed that terrorism posed an “existential threat” to America, a threat in whose face normal rules no longer applied? That was hyperbole — but the existential threat from climate change is all too real.

Yet the deniers are choosing, willfully, to ignore that threat, placing future generations of Americans in grave danger, simply because it’s in their political interest to pretend that there’s nothing to worry about. If that’s not betrayal, I don’t know what is.

9/12/2008

Krugman on Campaign

http://www.nytimes.com/2008/09/12/opinion/12krugman.html?_r=2&hp&oref=slogin&oref=slogin

10/29/2007

Tell It, Krugman!

October 29, 2007
Op-Ed Columnist
Fearing Fear Itself
By PAUL KRUGMAN
In America’s darkest hour, Franklin Delano Roosevelt urged the nation not to succumb to “nameless, unreasoning, unjustified terror.” But that was then.

Today, many of the men who hope to be the next president — including all of the candidates with a significant chance of receiving the Republican nomination — have made unreasoning, unjustified terror the centerpiece of their campaigns.

Consider, for a moment, the implications of the fact that Rudy Giuliani is taking foreign policy advice from Norman Podhoretz, who wants us to start bombing Iran “as soon as it is logistically possible.”

Mr. Podhoretz, the editor of Commentary and a founding neoconservative, tells us that Iran is the “main center of the Islamofascist ideology against which we have been fighting since 9/11.” The Islamofascists, he tells us, are well on their way toward creating a world “shaped by their will and tailored to their wishes.” Indeed, “Already, some observers are warning that by the end of the 21st century the whole of Europe will be transformed into a place to which they give the name Eurabia.”

Do I have to point out that none of this makes a bit of sense?

For one thing, there isn’t actually any such thing as Islamofascism — it’s not an ideology; it’s a figment of the neocon imagination. The term came into vogue only because it was a way for Iraq hawks to gloss over the awkward transition from pursuing Osama bin Laden, who attacked America, to Saddam Hussein, who didn’t. And Iran had nothing whatsoever to do with 9/11 — in fact, the Iranian regime was quite helpful to the United States when it went after Al Qaeda and its Taliban allies in Afghanistan.

Beyond that, the claim that Iran is on the path to global domination is beyond ludicrous. Yes, the Iranian regime is a nasty piece of work in many ways, and it would be a bad thing if that regime acquired nuclear weapons. But let’s have some perspective, please: we’re talking about a country with roughly the G.D.P. of Connecticut, and a government whose military budget is roughly the same as Sweden’s.

Meanwhile, the idea that bombing will bring the Iranian regime to its knees — and bombing is the only option, since we’ve run out of troops — is pure wishful thinking. Last year Israel tried to cripple Hezbollah with an air campaign, and ended up strengthening it instead. There’s every reason to believe that an attack on Iran would produce the same result, with the added effects of endangering U.S. forces in Iraq and driving oil prices well into triple digits.

Mr. Podhoretz, in short, is engaging in what my relatives call crazy talk. Yet he is being treated with respect by the front-runner for the G.O.P. nomination. And Mr. Podhoretz’s rants are, if anything, saner than some of what we’ve been hearing from some of Mr. Giuliani’s rivals.

Thus, in a recent campaign ad Mitt Romney asserted that America is in a struggle with people who aim “to unite the world under a single jihadist Caliphate. To do that they must collapse freedom-loving nations. Like us.” He doesn’t say exactly who these jihadists are, but presumably he’s referring to Al Qaeda — an organization that has certainly demonstrated its willingness and ability to kill innocent people, but has no chance of collapsing the United States, let alone taking over the world.

And Mike Huckabee, whom reporters like to portray as a nice, reasonable guy, says that if Hillary Clinton is elected, “I’m not sure we’ll have the courage and the will and the resolve to fight the greatest threat this country’s ever faced in Islamofascism.” Yep, a bunch of lightly armed terrorists and a fourth-rate military power — which aren’t even allies — pose a greater danger than Hitler’s panzers or the Soviet nuclear arsenal ever did.

All of this would be funny if it weren’t so serious.

In the wake of 9/11, the Bush administration adopted fear-mongering as a political strategy. Instead of treating the attack as what it was — an atrocity committed by a fundamentally weak, though ruthless adversary — the administration portrayed America as a nation under threat from every direction.

Most Americans have now regained their balance. But the Republican base, which lapped up the administration’s rhetoric about the axis of evil and the war on terror, remains infected by the fear the Bushies stirred up — perhaps because fear of terrorists maps so easily into the base’s older fears, including fear of dark-skinned people in general.

And the base is looking for a candidate who shares this fear.

Just to be clear, Al Qaeda is a real threat, and so is the Iranian nuclear program. But neither of these threats frightens me as much as fear itself — the unreasoning fear that has taken over one of America’s two great political parties.

2/02/2007

Krugman Missing Molly

Published on Friday, February 2, 2007 by the New York Times
Missing Molly Ivins
by Paul Krugman

Molly Ivins, the Texas columnist, died of breast cancer on Wednesday. I first met her more than three years ago, when our book tours crossed. She was, as she wrote, “a card-carrying member of The Great Liberal Backlash of 2003, one of the half-dozen or so writers now schlepping around the country promoting books that do not speak kindly of Our Leader’s record.”
I can’t claim to have known her well. But I spent enough time with her, and paid enough attention to her work, to know that obituaries that mostly stressed her satirical gifts missed the main point. Yes, she liked to poke fun at the powerful, and was very good at it. But her satire was only the means to an end: holding the powerful accountable.
She explained her philosophy in a stinging 1995 article in Mother Jones magazine about Rush Limbaugh. “Satire ... has historically been the weapon of powerless people aimed at the powerful,” she wrote. “When you use satire against powerless people ... it is like kicking a cripple.”
Molly never lost sight of two eternal truths: rulers lie, and the times when people are most afraid to challenge authority are also the times when it’s most important to do just that. And the fact that she remembered these truths explains something I haven’t seen pointed out in any of the tributes: her extraordinary prescience on the central political issue of our time.
I’ve been going through Molly’s columns from 2002 and 2003, the period when most of the wise men of the press cheered as Our Leader took us to war on false pretenses, then dismissed as “Bush haters” anyone who complained about the absence of W.M.D. or warned that the victory celebrations were premature. Here are a few selections:
Nov. 19, 2002: “The greatest risk for us in invading Iraq is probably not war itself, so much as: What happens after we win? ... There is a batty degree of triumphalism loose in this country right now.”
Jan. 16, 2003: “I assume we can defeat Hussein without great cost to our side (God forgive me if that is hubris). The problem is what happens after we win. The country is 20 percent Kurd, 20 percent Sunni and 60 percent Shiite. Can you say, ‘Horrible three-way civil war?’ ”
July 14, 2003: “I opposed the war in Iraq because I thought it would lead to the peace from hell, but I’d rather not see my prediction come true and I don’t think we have much time left to avert it. That the occupation is not going well is apparent to everyone but Donald Rumsfeld. ... We don’t need people with credentials as right-wing ideologues and corporate privatizers — we need people who know how to fix water and power plants.”
Oct. 7, 2003: “Good thing we won the war, because the peace sure looks like a quagmire. ...
“I’ve got an even-money bet out that says more Americans will be killed in the peace than in the war, and more Iraqis will be killed by Americans in the peace than in the war. Not the first time I’ve had a bet out that I hoped I’d lose.”
So Molly Ivins — who didn’t mingle with the great and famous, didn’t have sources high in the administration, and never claimed special expertise on national security or the Middle East — got almost everything right. Meanwhile, how did those who did have all those credentials do?
With very few exceptions, they got everything wrong. They bought the obviously cooked case for war — or found their own reasons to endorse the invasion. They didn’t see the folly of the venture, which was almost as obvious in prospect as it is with the benefit of hindsight. And they took years to realize that everything we were being told about progress in Iraq was a lie.
Was Molly smarter than all the experts? No, she was just braver. The administration’s exploitation of 9/11 created an environment in which it took a lot of courage to see and say the obvious.
Molly had that courage; not enough others can say the same.
And it’s not over. Many of those who failed the big test in 2002 and 2003 are now making excuses for the “surge.” Meanwhile, the same techniques of allegation and innuendo that were used to promote war with Iraq are being used to ratchet up tensions with Iran.
Now, more than ever, we need people who will stand up against the follies and lies of the powerful. And Molly Ivins, who devoted her life to questioning authority, will be sorely missed.