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Newsweek: The Presidential Mirage

Newsweek, of all publications, takes a hard look at the president’s economic recovery plan and finds it unrealistic. 

The prospect is that energy and health costs may rise without creating much gain in material benefits. That’s not economic “progress.” Rebating households’ higher energy costs (as some suggest) with tax cuts does not solve the problem of squeezed incomes. Given today’s huge and unsustainable budget deficits, some other tax would have to be raised or some other program cut.

And collective benefits?

What defines the “post-material economy” is a growing willingness to sacrifice money income for psychic income—“feeling good.” Some people may gladly pay higher energy prices if they think they’re “saving the planet” from global warming. Some may accept higher taxes if they think they’re improving the health or education of the poor. Unfortunately, these psychic benefits may be based on fantasies. What if U.S. cuts in greenhouse gases are offset by Chinese increases? What if more health insurance produces only modest gains in people’s health?

Obama and his allies have glossed over these questions. They’ve left the impression that somehow magical technological breakthroughs will produce clean energy that is also cheap. Perhaps that will happen; it hasn’t yet. They’ve talked so often about the need to control wasteful health spending that they’ve implied they’ve actually found a way of doing so. Perhaps they will, but they haven’t yet.

We cannot build a productive economy on the foundations of health care and “green” energy. These programs would create burdens for many, benefits for some. Indeed, their weaknesses may feed on each other, as higher health spending requires more taxes that are satisfied by stiffer terms for cap-and-trade. We clearly need changes in these areas: ways to check wasteful health spending and promote efficient energy use. I have long advocated a gasoline tax on national security grounds. But Obama’s vision for economic renewal is mostly a self-serving mirage.

Posted by Owen at 1711 hrs
Economy + Politics + Politics - General

1. Are you talking about the “We’re All Socialists Now” Newsweek?  That Newsweek?  Is this the “The Decline and Fall of Christian America” Newsweek?  That Newsweek?

   

   Posted by hsgbdmama on April 13, 2009 at 1726 hrs
   
   
   

2. We’re talking about Robert Samuelson here. This is pretty typical fare from him.

   Posted by .(JavaScript must be enabled to view this email address) on April 13, 2009 at 2034 hrs
   
   
   

3. We’re talking about Robert Samuelson here. This is pretty typical fare from him.

   And yet nothing to dispute his point of view…  now we’re all laughing at you Steve.  MF is probably thanking via email.

   Posted by .(JavaScript must be enabled to view this email address) on April 13, 2009 at 2132 hrs
   
   
   

4. The mainstream media wouldn’t do it. So we are trying to get your important messages to the American people. This post is a suggested read at, http://aresay.blogspot.com/ 4

   Posted by Aresay on April 14, 2009 at 0753 hrs
   
   
   

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