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This is all supply side common sense. But what does one do in a time of significant economic weakness like recession or depression? Or a major War?
Supply side doesn't work too well in these instances. Businesses don't start or expand when consumers are not spending. And then it becomes a viscous cycle and on down.
And in times of major War, there has to be central spending before the private side gets into the business of producing all the necessary materiel of War.
So in many cases it is consumers that create, help create or sustain current jobs. And when people are poor and not spending, there can be central moneys and assistance to improve on that. The private sector then gains when those folks spend this new money. The private sector can then possibly add jobs, expand or create new or more businesses as a recession so improves.
So you should see that there are times when new central moneys are income, and consumers create jobs. This is the demand side of the whole deal. And is probably much more important in a recession.
War is another example where businesses and jobs are create through new central moneys.
You need to look at both supply and demand side. Especially in relation to the current health and state of any given economy.
Sure there is waste and fraud, but they exists within the private sector HC apparatus as well.
So, is there more fraud and waste in Medicare vs private plans? And I think there is, but not so much more in proportion. Medicare as compare to the privates is just too easy as far as ordering testing and treatments and such without needing any central approval. And this can only encourage waste.
And then finally, the benefits with Medicare are enormous. On a per capita basis seniors are much more typically in need of HC services, and then reap so much more relative benefits from HC as compared to the rest of our younger and more healthy population.
If health insurance companies announce big premium increases on policies for 2015, I hope regulators, lawmakers and the media will look closely at whether they are justified, especially in light of recent disclosures of better-than-expected profits in 2013, rosy outlooks for the rest of this year and soaring CEO compensation.
Almost all of the publicly traded health insurers reported big increases in revenue and profits last year. The big winners have been the top executives of those companies, led by Mark Bertolini, CEO of Aetna, the nation’s third largest health insurer. Bertolini’s total compensation of $30.7 million in 2013 was 131 percent higher than in 2012.
Waste and abuse is everywhere, public and private. Never understand this belief that the private sector generally does thing more efficiently since the private sector works tirelessly to stifle competition.
I didn't say it's only Wall ST people who invest. I said the "prime beneficiaries. But you probably knew that already and think it's a clever argumentation technique to create strawmen.
The vast majority of money made through capital gains is made by a tiny, tiny percentage of people. The vast majority of people in this country...who have income... that income comes from work, not capital gains. If cutting capital gains does not create jobs..which it doesn't...then there's no point in it being the #1 (basically, the only..) bullet point in a political parties platform that is supposed to stimulate "job growth". Cutting capital gains is not going to stop the hemorrhaging of quality American jobs.
Someone having a $100K 401K plan doesn't change that fact, so before you go there.....don't. It's a fallacy. I know, next is "but pension pans are invested in the stock market also!!!" The record is skipping. Who do capital gains cuts MOSTLY benefit?
Also, 401K withdrawals are taxed as income anyway, so that shouldn't even be part of the equation.
Of course it benefits them the most, they have more money, but going after the evil rich guy also hurts the middle class in this case, and it doesn't really result in increased revenue.
Well, there is a "line" somewhere in the middle. There must be demand, and at the same time, businesses must be able to afford to operate. Where that line is... well that's what people argue about on both sides - to the extreme. I'll take the economic middle ground, where actual common sense lies.
Yes, that liberal . . . .Nobel Prize winner in economics. What's that? Anybody can win Nobel Prize, look at Obama with his Peace prize?! Krugman was also named the second most influential economist in the world by The Economist.
A summa cu m laude graduate of Yale and Ph.D. from MIT. A professor at Princeton. He's got more street cred than anyone you will quote as expert economists.
Sorry to list all that, but I wanted to preempt the dumb ad hominem attack that certain demographic is so fond of.
Mick
Sorry, but anyone who promotes the idea that we can find our way back to prosperity if only we are willing to waste enough money...got no street cred. Krugman's day job now is being a hyper-partisan political hack.
Well, there is a "line" somewhere in the middle. There must be demand, and at the same time, businesses must be able to afford to operate. Where that line is... well that's what people argue about on both sides - to the extreme. I'll take the economic middle ground, where actual common sense lies.
Well it seems there are quite a few conservatives that can't understand or appreciate the need for welfare and are against it all together. I think most pragmatic folks can understand you need to have a balance, but we are experiencing inequality reminiscent of the late 19th/early 20th century that led to the progressive movement domestically and communism abroad.
Who ever said there was a problem with capital investment though? The fed does more to influence that than capital gains tax does. I see no reason why capital gains should be treated any separately than income.
Also, if medicare/medicaid is good, then we should extend it to the rest of us ie socialized medicine. It seems to be working better from what I've seen than the crappy US system. I think in other countries though they pay for medical school as well though correct?
Yes, that liberal . . . .Nobel Prize winner in economics. What's that? Anybody can win Nobel Prize, look at Obama with his Peace prize?! Krugman was also named the second most influential economist in the world by The Economist.
A summa cu m laude graduate of Yale and Ph.D. from MIT. A professor at Princeton. He's got more street cred than anyone you will quote as expert economists.
and the only reason Clinton did it was because of a republican controlled congress.
I just don't get the world in which conservatives inhabit.
Forget this naive philosophical outlook from conservatives about how the economy is supposed to work.
Look, there is ample data about how the economy does under Democratic and conservatives Presidents.
This an objective fact, under Democratic Presidents the economy grows more than under conservatives.
Job growth, GDP growth, wage growth, stock market, etc.
It is a lie that conservatives have some secret to make the economy grow faster.
It is a belief that has no basis in reality.
All one had to do is look at Mr Kudlow's predictions about the economy to see that.
Mr Kudlow was screaming about exploding interest rates, the dollar being worthless, Chna owning all our debt because of the stimulus and QE, none of his predictions came true. He has been wrong about every thing.
conservatives really do live in a fantasy world where they believe they have a secret knowledge of economic growth, yet History and reality says conservatives have no such secret and the economy doesn't perform better under their stewardship.
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