The horizon is not so far as we can see, but as far as we can imagine

Tag: TrumpCare

That Tax Cut Talking Point

(MANDOS POST – YOU KNOW THE DRILL)

The Republicans are working hard to pass an amendment to the ACA called the AHCA. Assuming it succeeds, which I wouldn’t take for granted, it would take Obamacare, with all the latter’s deficiencies and faults, and make it even worse. Meaning: It will probably kill a lot of people through health care denial due to pre-existing condition denials and the reinstatement of lifetime coverage limits. If they fail to pass it, it would be because Obamacare is designed to make itself hard to retract; as Obamacare contains the bare minimum required to improve the status quo ante, anything significant they take away from it renders it unworkable. If it passes, it would be because they had decided that it was the closest to the status quo ante that they could achieve.

The status quo ante was terrible, but contrary to the beliefs of many, it wasn’t “unsustainable” in some sort of fundamental way. It could be contained by gradually excluding more and more people from insurance coverage, and therefore, down the line, care. This is not a debate about health care, but about how to pay for health care.  It is about austerity, and the status quo ante was ultimately just a slow ratcheting-up of austerity. (Yes, I know, Obamacare is a ratcheting-up of austerity, but it is a slower one.)

One of the talking points against the AHCA is that it appears to be designed to give the rich a tax cut. However, the tax cut is, in proportion to many of its beneficiaries, quite small, even as it dwarfs the incomes of many. It’s not a giveaway that in itself should raise the political passions of its beneficiaries. Many of them won’t spend it or won’t notice the effect on their lives or wealth planning. Even the insurance industry is skeptical of key portions of the bill, and they’re not prone, as they say, to altruism.

The Republicans have invested a lot of political capital in the idea of undoing Obamacare. Instead of that small a tax cut, if they were rational political actors, they could easily have come up with a bill that targeted large swathes of their constituencies for a substantial improvement in their (bad) standard of coverage, even if they wanted to target Democratic constituencies for tribal reasons. They could have done this without even instituting single payer (aka public monopsony) and ruining their constituents among the insurance and corporate medical sector. It doesn’t appear that this is on order.

The picture only makes full political sense if you see the cutting of health insurance coverage as a political goal in itself, if not some kind of fundamental ideological “end.” Or for the symbolic appearance of trading coverage for a token tax cut, in a way that is likely to create further damage to the US economy. And that successful Republican politicians think that they can expel millions of people from the ability to pay for health care, including their own constituents, is a sign both of the significance of that symbolic appearance and the cultural limits of the US health insurance debate.

If Trumpcare Fails

Update: And, they have pulled the bill. Now Trump needs to get a win. (Note: This would have been a loss if it had actually passed, though Trump may not realize that.)

It will be for the best for both America and Trump. The original deal was bad, and the deal that Ryan and Trump have negotiated would have been disastrous–literally worse than no bill at all.

This is true for Americans, who would have worse quality care, along with less, more expensive coverage; and it is true for Trump, who promised something better and whose marginal followers will know he betrayed them. Indeed, polls have shown a collapse of Trump’s approval ratings since the first viewing of the draft bill.

If Trump is pushing for a vote when he knows he doesn’t have the vote, perhaps there’s some dim idea of that fact in there. A bad deal, as Trump knew in the 1980s, is worse than no deal at all.


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Trump Couldn’t Buy Coverage Like This

All the semi-scandals don’t add up to one cover like this.

As for Trump’s program, I am so far largely unimpressed, not as a matter of ideological opposition, but of pragmatics. His health care plan is bad, and will hurt people who voted for him in ways they will notice: increased cost, less health care, and more suffering and death. It’s not the sort of chintzing which can be waved off.

So far he has no solid stimulus proposal (and such as the one he had was, it wasn’t very good). He  hasn’t acted on free trade, beyond cancelling the TPP, which wasn’t in effect anyway. His proposed cuts to the non-military budget will have a negative trickle down and will not be good for the economy. Bannon’s okay with that, he has an ideological desire to destroy the post-WWII state, but Trump needs his people to feel good.

The one perhaps clever thing Trump has done is his asked for a 54 billion dollar increase to the military budget. Jobs created this way will tend to go to Trump supporters and communities. If you’re dedicated to slashing the rest of the bureaucracy, this is an excellent offset.

Well, it could be, depending on how many jobs it produces. The dollars/job correlation on defense funding is pretty lousy, and if I were Trump/Bannon I’d be leaning hard on the Pentagon to spend this in ways which will actually produce jobs, whether directly in the military, outsourced, or manufacturing.

Much remains undetermined, but so far Trump’s made only one potentially smart economic move. Let’s wait and see, within a couple months we should have a fuller picture and thus a better idea of his likely fate.


The results of the work I do, like this article, are free, but food isn’t, so if you value my work, please DONATE or SUBSCRIBE.

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