Should-Read: Scott Lemieux: Hacktacular!

Should-Read: Scott Lemieux: Hacktacular!: “The New York Times has given op-ed space to Avik Roy, so he can prove that you can’t spell ‘reformicon’ without ‘con’… http://www.lawyersgunsmoneyblog.com/2017/06/hacktacular-30

…Roy’s answer to the CBO analysis that 22 million people would lose insurance under the BCRA in order to fund a massive upper-class tax cut is quite simply pathetic:

It’s likely that, if the Senate bill passes, more Americans will have health insurance five years from now than do today. The Congressional Budget Office believes that solely because Republicans would repeal the A.C.A.’s individual mandate, by 2026, more than 15 million fewer people will buy health insurance, regardless of what senators do to direct more financial assistance to the poor and the vulnerable. That’s not a flaw in the Senate bill; it’s a flaw in the C.B.O.’s methods…

The flaw in the CBO’s analysis is that… it’s scoring the bill being proposed by Senate Republicans, as opposed to some hypothetical bill passed by a future Congress that would provide more generous subsidies for the poor rather than brutalizing the poor to pay for an upper-class tax cut. It’s embarrassing that Roy would type this s— and it’s embarrassing that the Times would publish it.

And now, the punchline:

Roy emails back:  “As a matter of policy, I don’t discuss with the press my conversations with policymakers.” So, if you’re curious whether he helped write the plan he has been touting in a number of op-eds and interviews, Roy isn’t saying, but “yes” seems like a fairly safe assumption.

I dunno, maybe the Times should make him answer this question before it publishes his feeble propaganda as if it was serious analysis?

Hacktacular Lawyers Guns Money Lawyers Guns Money
Hacktacular Lawyers Guns Money Lawyers Guns Money


Jonathan Chait: Defenses of Senate’s Health-Care Plan Pathetically Dishonest: “The task of giving an intellectual sheen to this facially absurd message has fallen upon Republican health-care adviser Avik Roy… http://nymag.com/daily/intelligencer/2017/06/defenses-of-senates-health-care-plan-pathetically-dishonest.html

…who has sold the Senate bill in an enthusiastic media blitz…. Currently… insurance plan[s]… cover… 70 percent of your expected medical expenses. The Republican plan would cover just 58 percent of expenses. The difference comes out of customers’ pockets in the form of higher deductibles, which would rise from $3,500 a year on average to $6,300 a year. This, argues Roy, would create a “thriving, consumer-driven individual insurance market.” Sure, Democrats may complain, but “Republicans have a different view of what a safety net should look like.” In fact, rather than argue for higher deductibles, Republicans have spent the last several years insisting deductibles are already too high. The excessively high deductibles on the exchanges have constituted the GOP’s most popular talking point. (To take one example out of jillions: GOP senator Johnny Isakson: “Most of those 20 million got bronze policies with a great big deductible and not much insurance.”)…

Right-wingers do have a vision of a system with high-deductible insurance. They like it because they believe people would make shrewd decisions about what medical care to buy and what to skip, bringing down costs. Honest conservatives (like Ross Douthat) admit that, to make a system like this work, Republicans would need to give low-income people generously-funded medical-savings accounts, from which they could draw to pay their costs. The Senate bill doesn’t do that. It just sticks poor people with medical bills they can’t possibly cover.

The second defense of the Senate bill is even more sweeping. Throwing people off Medicaid will not harm them, argues Roy, because it is “a program that researchers have shown has health outcomes no better than being uninsured.”… As Benjamin Sommers, Atul Gawande, and Katherine Baicker point out in a new article in the New England Journal of Medicine, there are lots of studies about the effects of Medicaid…. People benefit from having health insurance…. Roy’s tactic of cherry-picking… is exactly the kind of rhetorical contortion necessary to justify a plan lacking any widespread public support.

Update: Roy emails back: “As a matter of policy, I don’t discuss with the press my conversations with policymakers.” So, if you’re curious whether he helped write the plan he has been touting in a number of op-eds and interviews, Roy isn’t saying, but “yes” seems like a fairly safe assumption.

Should-Read: Scott Lemieux: No Vote on TrumpCare In June

Should-Read: Scott Lemieux: No Vote on TrumpCare In June: “This really is important… http://www.lawyersgunsmoneyblog.com/2017/06/no-vote-trumpcare-june

…Facing a rebellion within their own ranks, Senate Republican leaders on Tuesday postponed a vote to overhaul the 2010 Affordable Care Act until after the July 4 recess…. Five Senate Republicans said they could not support a move to bring up the bill this week…. Lawmakers will be exposed to a barrage of lobbying in their home states in the coming days. The current proposal by Senate Majority Leader Mitch McConnell (R-Ky.), which would make deep cuts to the Medicaid program while rolling back many of the existing law’s insurance mandates and tax increases, has come under attack from both the left and right…

Delay is bad for Republicans—if McConnell had the votes, they’d be voting. This doesn’t mean he can’t get them—he might—but he doesn’t have them now. The pressure needs to be kept up.

The complete inability of the Republicans to do policy might actually save the ACA. I assume McConnell and the rest of the Gang of 13 expected to backload enough cuts to get the CBO uninsured number under 20 million, and using this to get the media to use the House bill rather than the status quo as a baseline, and presto a “the Senate bill is much less mean!” narrative. But the numbers were so close they couldn’t do that. If the arguments being made by conservative “intellectuals” are any indication,  they genuinely don’t seem to understand that poor people don’t have any money and hence aren’t going to buy and maintain plans with insanely high deductibles. Again, it’s entirely possible that the same process that played out with AHCA will play out here. But passage is not inevitable…

Must-Read: Tara Golshan, Dylan Scott, and Jeff Stein: We asked 8 Senate Republicans to explain what their health bill is trying to do

Must-Read: http://vox.com gave eight Republican senators as much rope as they wanted…

Nobody wanted to say: “this Reconciliation Bill is imperfect, but it keeps the ball rolling, and after Trump signs it the real bipartisan bargaining will commence…”

Nobody wanted to say: “I will be primaried and may lose if I cannot say: ‘We in the senate did our job and passed ObamaCare repeal and I was there pushing when it happened…”

And it appears that nobody had given any thought to how they were going to answer substance questions from reporters. Which, I suppose, tells us a lot about how often anybody other than http://vox.com tries to get senators to answer substance questions:

Tara Golshan, Dylan Scott, and Jeff Stein: We asked 8 Senate Republicans to explain what their health bill is trying to do: “Vox asked GOP senators to explain their hopes for it. Who will benefit from the legislation? What problems is this bill trying to solve?.. https://www.vox.com/policy-and-politics/2017/6/16/15810524/senate-ahca-explain-please

…“All of them,” Sen. John McCain said in an interview, not an uncharacteristic response of his Republican Senate colleagues. Over the course of the past week, Vox asked eight different Republican senators to explain the affirmative case for the bill. They rarely answered directly, at least not on the bill’s policy merits. Sometimes, a senator could identify a desired outcome, like “lowering premiums” or “stabilizing marketplaces.” But they rarely could explain the mechanism through which they planned on achieving that outcome.

How will Republicans lower premiums? “It’s working together and coming up with a bill that does do that,” Sen. John Boozman of Arkansas said. What tool will bring stability to Obamacare’s volatile exchanges? “By bringing certainty to the insurance market,” Sen. Chuck Grassley of Iowa said. What new policy will lead tax cuts to lower premiums? “It’s teetering because the exchanges are failing,” Sen. Roger Wicker of Mississippi explained. Read for yourself. Here are the transcripts of our eight interviews with Republican senators.


McCain on the problems this bill is trying to solve: “They’re trying to get to 51 votes”

Tara Golshan, Vox: Generally, what are the big problems this bill is trying to solve?

John McCain: Almost all of them. They’re trying to get to 51 votes.

Tara Golshan: Policy-wise. What are the problems in the American health care system this is trying to solve — and is the bill doing that right now?

John McCain: Well, it’s whether you have full repeal, whether you have partial repeal, whether you have the basis of it. It’s spread all over.

Tara Golshan: But based on the specifics of the bill you have heard so far, is it solving the problems in the health care system?

John McCain: What I hear is that we have not reached consensus. That’s what everybody knows.

Tara Golshan: Right, but outside of getting the votes. From what you hear of the actual legislation being written is it solving the problems you see —

John McCain: It’s not being written. Because there’s no consensus.

Tara Golshan: But generally speaking, what are the big problems it is trying to solve?

John McCain: You name it. Everything from the Repeal caucus, which as you know they have made their views very clear — Rand Paul, etc. And then there are the others on the other side of the spectrum that just want to make minor changes to the present system. There’s not consensus.


Sen. Chuck Grassley says AHCA will bring certainty to the market because insurers will “know what the government policy is”

Jeff Stein, Vox: I want to ask a very broad question: What do you think this health care bill will accomplish that will improve America? What’s the positive case for this bill?

Chuck Grassley: Well, I can tell you what it’s going to do for Iowa. We are one of those states that in a couple of weeks if [the insurer] Medica pulls out we’ll have 94 of our 95 counties won’t have any insurance even for people who have the subsidies. That’s what we have to concentrate on now.

Jeff Stein: How do you think the bill will fix that problem?

Chuck Grassley: Well, by bringing certainty to the insurance market. They don’t have that certainty now.

Jeff Stein: By bringing certainty to the insurance market. What certainty?

Chuck Grassley: What?

Jeff Stein: What do you mean by certainty?

Chuck Grassley: Well, they can’t even file. They have to check the rates real high if they don’t know what the government policy is. And so the certainty is that passing a bill gives the health insurance companies certainty.

Jeff Stein: Wouldn’t not passing a bill also do that?

Chuck Grassley: No, it. Well, yeah — it gives them certainty that you’ll have a lot higher rates than if you pass the bill.

Jeff Stein: So you’re saying [the bill] will lower the rates?

Chuck Grassley: Um, if you’re talking about lowering the rates from now down, no. The rates could be way up here. [Points to sky] And if they — if we get a bill passed, it maybe wouldn’t go up or would go up a heck of a lot less than they would without a bill.

Jeff Stein: By “rates,” are you talking about premiums?

Chuck Grassley: Yeah, premiums. … I’m sorry I have to go.


Sen. John Boozman on the mechanisms to bring down premiums: “It’s working together and coming up with a bill that does do that”

Jeff Stein: What do you think this health care bill will accomplish? How will it help people in America with their health insurance?

John Boozman: Well, right now when I go back to Arkansas — we’ve got so many people in Arkansas, premiums have gone up 128 percent in the past four years. We have all kinds of people in a situation where if they’re fortunate enough to afford the premium, they’ve got $5 to $10,000 deductibles. And so hopefully we’ll deal with some of those problems

Jeff Stein: How does this bill do that?

John Boozman: Well it makes it such that it’s more affordable. So that’s really what we’re working through now. We don’t have a bill yet; we’re working hard to come to an agreement so we can solve some of those problems.

Jeff Stein: Why will this bill reduce premiums? How will it lead to the outcome you’re describing?

John Boozman: Well, again, like I said, that’s what we’re working through here. I’m not going to negotiate the bill now. We’re in a situation where that is the outcome. I know that the course we’re going down is simply not sustainable. The other problem we’ve got is that premiums were held down through the election; the premiums, in my state, the increase will be at least 20 to 25 percent. That’s what the insurance commissioners are telling me. I think we’re on an unsustainable course.

Jeff Stein: But I’m curious why you believe this bill will fix that problem? What’s the mechanismfor fixing it?

John Boozman: It’s working together and coming up with a bill that does do that. Because we’re in a situation with Obamacare that, again, we don’t have a sustainable product.

Jeff Stein: Why is cutting Medicaid necessary?

John Boozman: I’m not going to argue with you. Who do you represent?

Jeff Stein: Vox-dot-com. It’s a website. I’m just trying to understand how the bill works. That’s it.

John Boozman: Well, we don’t have a bill. That’s what we’re working on. The reason we’re working really hard to come up with a bill is to solve some of the problems of Obamacare. Because of the problems I outlined we have a lot of people in a situation with increased premiums, increased deductibles. If you’re an Arkansan you have a $5,000 deductible, you really don’t have insurance. You have catastrophic insurance and after that it’s not such that you don’t have everything paid for — it’s probably an 80-20 match after that. So these are real problems that affect real people. We’re trying to come up with a solution that makes things more affordable. We come up with a bill, and then Health and Human Services — [Secretary of Health and Human Services] Dr. [Tom] Price is working hard — the bill that was written, Obamacare, the way it was written, they have a lot of flexibility. We’re looking for ways to put more flexibility in the system. We have a bunch of counties next year that simply won’t only not have limited competition; they’re going to be in a situation where … there…

Jeff Stein: I know the bill isn’t done, but what do you think in the general Republican overhaul — what do you think Obamacare is doing right now that isn’t allowing these problems to be taken care of? What is your hope for what the Republican bill will do to change the problem you’re identifying?

John Boozman: I think Obamacare, the problem with it is there is nothing in it to drive down and contain costs. That was the problem we had going into health care when we were trying to fix it, was affordability.

Jeff Stein: So you think this will drive down costs. How?

John Boozman: Again, that’s what we’re trying to work through. Identifying the solutions that will work.


Sen. Roger Wicker of Mississippi: AHCA “will encourage more freedom”:

Jeff Stein: What do you think this health care bill would solve?

Roger Wicker: What do I think of the health care bill in general?

Jeff Stein: What problems do you think it would take care of in America.

Roger Wicker: Oh, goodness. Well. It will, well, encourage more freedom by eliminating mandates at the individual level and the employer. It will cut taxes. It will moderate prices for premiums and inject some competition that is sadly lacking. And it will save money. It will rescue a system that is teetering on the brink.

Jeff Stein: How will it rescue a system teetering on the brink? Because you think the tax cuts will allow for premiums to come down? How?

Roger Wicker: It’s teetering because the exchanges are failing. They’re not acting as they were intended. And, as a result, insurers are dropping out. There are counties with no option.

Jeff Stein: I want to understand why you think the bill will help the marketplaces.

Roger Wicker: For the reasons I’m giving you. A very comprehensive answer, I think.


Sen. Lisa Murkowski of Alaska is frustrated. “I want greater access and lower costs. So far, I’m not seeing that happen.”

Dylan Scott, Vox: What do you want this health care plan to achieve?

Lisa Murkowski: I want greater access and lower costs. So far, I’m not seeing that happen.

Dylan Scott: How confident are you that the plan under discussion would do that, compared to Obamacare?

Lisa Murkowski: This is the big issue as I’m talking to folks back home. I continue to hear stories of great frustration. Increasing premium costs. Increasing share of deductibles. Decreasing access. They know what they don’t like. They know what they do like. They do like the fact that they have gotten coverage for preexisting conditions. They do like the fact that they’re able to keep their kids on [their insurance]. There’s some positives and then some bad things. When you ask Alaskans about their stories and what they want, they need increased affordability. Because we are slammed in every category, with premiums and the cost of care. Everything. They wanted decreased costs, increased access.

Dylan Scott: Are you seeing provisions in the plan that’s being discussed that would achieve that?

Lisa Murkowski: The plan the House laid down does not help Alaska. It does not help decrease their costs, and it does not help increase their access. So the question is whether or not what is being built on the Senate side is going to better reflect that. My hope is that it will. I can’t show to my constituents back home anything concrete because we don’t have anything. We’ve been talking about ideas. But for instance, if you are going to eliminate Medicaid expansion or even if you’re going to wind down Medicaid expansion, that’s not increasing access. I think the requirements that I’m looking for and my constituents are asking for are pretty basic. My task is going to be to make sure that those basic asks are met.

Dylan Scott: Do you have any specific metrics in mind? How do you evaluate whether a plan is going to lower costs or increase access?

Lisa Murkowski: It was pretty easy for the state to run the numbers under the House-passed bill. As the president was quick to point out the other day, the situation in Alaska is that we’ve seen a 203 percent increase in premiums. That speaks to the imperative of why you need to repeal and replace the [Affordable Care Act]. But what needs to be shared is that if the House-passed bill were actually going to play, the increase to Alaskans, for a 50-year-old male earning $50,000 a year, he would see his premiums hike by 500 percent. So it’s all a matter of scale. I don’t know what it is that will actually come forward. This has been part of my frustration. What’s the Senate bill going to look like? I don’t know. I’ve got people calling my office, I’ve got people coming online to protest. They’re saying, “Don’t vote for this!” Well, what is this? We don’t know what this is yet.

Dylan Scott: I know some senators have tried to say you’re starting from scratch and building your own plan. But it seems like in a lot of important ways, the Senate is really just tinkering with and trying to rework the House plan.

Lisa Murkowski: But again, I don’t know that. Because none of us have actually seen language. Is it the framework of the House-passed bill and then we’re filling in our own details? I don’t know. We just don’t know. My constituents expect me to know, and if we had utilized the process that goes through a committee, I would be able to answer not only your questions but my constituents’ questions.


Sen. Ted Cruz of Texas says “the most important objective” is to lower premiums:

Dylan Scott: Stepping back, what is the most important thing for this bill to achieve? How is it going to make things better?

Ted Cruz: The most important objective in repealing Obamacare is to lower health insurance premiums. The biggest reason so many millions of people are frustrated and angry with Obamacare is that it’s caused premiums to skyrocket, making health insurance unaffordable. That is a problem the federal government caused and we need to fix that.

Dylan Scott: Do you think you can lower premiums for everyone, though? Because obviously there are some policies that could lower premiums for some people but might not for others.

Ted Cruz: Under Obamacare, the average family’s premiums have increased over $5,000 a year. Every week, when I go back to Texas, I hear from Texans who say, ‘I can’t afford health insurance for my family.’ That is an enormous problem and it is the direct legacy of the failed policy of Obamacare.

Dylan Scott: So the idea is that it needs to average out to a premium decrease, even if some people might see higher premiums?

Ted Cruz: We should work toward giving consumers more choices, more options, more competition, and as a result lower prices that are more affordable.


Sen. Shelley Moore Capito of West Virginia says “people are hurting here.” Will GOP bill help? “That’s the goal.”

Dylan Scott: What do you want this bill to achieve and how do you think it’s going to improve health care in America?

Shelley Moore Capito: First of all, we’ve got to stabilize the market of the places that have no coverage for the individual market, whose premiums are skyrocketing, whose deductibles are through the roof. This is a real phenomenon. Somehow we’ve lost sight of the fact that people are hurting here and if we don’t act relatively quickly, the whole system could collapse.

Dylan Scott: So how do you evaluate, what metrics do you use to evaluate whether it achieves that or not?

Shelley Moore Capito: It’s simple. It’s the affordability, protect people with preexisting conditions, protect people with Medicaid. Try to figure out the differences between the Medicaid expansion states and the ones that didn’t expand Medicaid. These are the same principles we’ve been talking about because they’re better principles than what the ACA is giving us.

Dylan Scott: Are you confident that the Republican bill would do that in a way Obamacare has not?

Shelley Moore Capito: That’s the goal.

Dylan Scott: Right. But do you feel confident that it actually will?

Shelley Moore Capito: Unless I’m confident we can do that, I don’t know how we can move forward in good conscience.


Sen. Rob Portman of Ohio: “I’m not suggesting premiums will go down, but they won’t go up as much”

Dylan Scott: To step back a bit on this debate, what fundamental goal do you want this legislation to achieve? How is it going to improve health care?

Rob Portman: We’ve got to fix a real problem, which is that the Affordable Care Act has not worked in a couple really fundamental respects. One is you do have insurers who simply cannot operate in this market, so they’re pulling out and they’ve been losing money for some time and cost-shifting onto the employer-based plans and other private plans. So it’s already been a problem. Now they’re at the point where they feel as though they can’t make enough money to stay out of bankruptcy, so they’re leaving. My state just got hit with 20 of those counties, but other states have been dealing with this. So that’s obviously one of the big issues and that’s because this thing is not structured properly. The second, and a more fundamental one, for everybody I represent, it’s the cost of health care. Premiums and copays and deductibles have skyrocketed compared to what was promised.

Dylan Scott: You guys have gone beyond stabilizing the market, into overhauling Medicaid, reworking the financial assistance. How confident are you that this plan will really achieve those goals?

Rob Portman: I think we can help stabilize the market and have some impact on the cost increases. I’m not suggesting premiums will go down, but they won’t go up as much. On Medicaid, you’re right, that’s a whole different issue. There was expansion in the ACA, but the Medicaid system itself continued as before. That’s a separate issue, which is where I’m focused, to make sure we aren’t pulling the rug out from under people.

Equity, efficiency and education spending in the United States

Teacher Margarita Hernandez, second left, leads a group of preschoolers with an outdoor art project at a Head Start Program in Hillsboro, Ore.

Many studies of the long-term effects of pre-kindergarten programs in the United States find that they improve outcomes for those pre-K kids later in life, yet the effects on educational outcomes seem to fade out over the course of the next 13 years.  A child might get a boost to their academic outcomes early in their kindergarten and elementary school career, but the benefits dissipate as they go through high school.

What might be behind this fade-out effect? A potential answer comes from a new paper that also offers some insight into a key tradeoff in economics between equity and efficiency.

The new paper, released today as part of the Equitable Growth Working Paper series, is from economists Rucker C. Johnson of the University of California-Berkeley and C. Kirabo Jackson of Northwestern University. The two researchers seek an answer to a seemingly important question: Are educational investments made at different points in a child’s life complementary? To put this another way: Does education spending during kindergarten through grade 12 build on the returns from education spending earlier in life?

Johnson and Jackson look at the interaction between increases in Head Start funding and increases in K-through-12 education spending and examine how that spending affects outcomes later in life for low-income children. Because they are looking at what they believe are exogenous changes to spending for both programs, the economist interpret their results as showing a causal impact.

Johnson and Jackson find that there are complementarities between these two kinds of educational spending. When an area has higher levels of spending on Head Start, higher levels of K-through-12 spending will have more of an impact on outcomes than a similar increase when spending on Head Start is lower. And it works the other direction as well—increases in Head Start spending will improve outcomes more in areas where K-through-12 spending is already high. This complementarity result may partially explain some of the fade-out for pre-kindergarten programs. It’s hard to maintain the gains from Head Start if the primary and secondary schools the child attends next aren’t well funded.

But beyond the specific policy result, the paper also offers an illustration where the trade-off between equity and efficiency doesn’t seem to exist, at least when it comes to some aspects of education spending. Because spending on Head Start programs has more power when subsequent spending on primary and secondary schools is high, the redistribution of funds when K-12 spending is already high will not only improve equity but efficiency as well. According to Johnson and Jackson, “for a district that spent $5,000 per-pupil (about 20 percent above the average [national] spending level)” on primary and secondary schools, “the marginal dollar spent on Head Start led to between 2 and 4 times the improvement in adult outcomes as that spent on K-through-12 education.” In short, money could be taken from these programs, given to spending on Head Start and the result would be higher average adult outcomes and a more equitable distribution as well.

We aren’t sure how strong the tradeoff between equity and efficiency is throughout the U.S. economy. In fact, that’s a question that Equitable Growth is quite interested in. But if the research by Johnson and Jackson holds up, then we may have found a very powerful example where the tradeoff doesn’t exist at all. A better understanding of this relationship is something policymakers and researchers should be very interested in.

Should-Read: Ben Zipperer and John Schmitt: The “high road” Seattle labor market and the effects of the minimum wage increase: Data limitations and methodological problems bias new analysis of Seattle’s minimum wage increase

Should-Read: Ben Zipperer and John Schmitt: The “high road” Seattle labor market and the effects of the minimum wage increase: Data limitations and methodological problems bias new analysis of Seattle’s minimum wage increase: “Jardim et al. (2017), looks at the first two stages of a phased-in set of increases that will eventually take the minimum wage in the city to $15.00 per hour… http://www.epi.org/publication/the-high-road-seattle-labor-market-and-the-effects-of-the-minimum-wage-increase-data-limitations-and-methodological-problems-bias-new-analysis-of-seattles-minimum-wage-incr/

…The authors… find large job losses associated with these first two rounds of increases, in which the minimum wage for most workers rose from $9.47 per hour to $11.00 per hour in April 2015 and then to $13.00 per hour in January 2016…. The estimated employment losses in the Seattle study lie far outside even those generally suggested by mainstream critics of the minimum wage (see, for example, Neumark and Wascher [2008])…. Indeed all of the research cited by the authors implies much smaller and even no employment changes in response to wage increases similar to those experienced so far in Seattle…. The study implausibly finds employment changes due to the minimum wage in parts of the labor market where there should have be none. The study’s own estimates inaccurately imply the minimum wage caused large gains in the number of jobs paying above $19.00 per hour… well above the wage range where the $13.00 minimum wage should be having measurable effects…. The study excludes… all multi-location businesses… bias[ing] their results toward showing job loss if there has been a shift in employment from small, single-location establishments toward larger firms with multiple locations…

Should-Read: David Brooks: The G.O.P. Rejects Conservatism

Should-Read: David Brooks is wrong, I think, in his claim that the current crop of Republican politicians have no vision of American society. I think they do have a vision.

David Brooks: The G.O.P. Rejects Conservatism: “”There is a structural flaw in modern capitalism… [a] gigantic trend [that] widens inequality, exacerbates social segmentation, fuels distrust and led to Donald Trump… https://www.nytimes.com/2017/06/27/opinion/the-gop-rejects-conservatism.html

…Conservative intellectuals were slow to understanding the seriousness of this structural problem, but over the past few years they have begun to grapple with the consequences. Basically, many conservative intellectuals have come to terms with income redistribution… at the local level… us[ing] market-friendly mechanisms, like child tax credits, mobility vouchers and wage subsidies. But the intent is the same: to give those who are struggling more security and opportunity. Conservative redistribution extends to health care… plans, from places like the American Enterprise Institute, us[ing] tax credits or pre-funded health savings accounts or some other method to give middle- and working-class people coverage, while reducing regulations and improving incentives….

Republican politicians could have picked up one of these plans when they set out to repeal Obamacare. They could have created a better system that did not punish the poor. But there are two crucial differences between the conservative policy johnnies and Republican politicians:

First, conservative policy intellectuals tend to have accepted the fact that American society is coming apart and that measures need to be taken to assist the working class. Republican politicians show no awareness of this fact.

Second, conservative writers and intellectuals have a vision for how they want American society to be in the 21st century. Republican politicians have a vision of how they want American government to be in the 21st century… that government should tax people less… that open-ended entitlements should be cut. The Senate health care plan would throw 15 million people off Medicaid… the program that covers nearly 40 percent of America’s children.) Is there a vision of society underlying those choices? Not really…. The current Republican Party has iron, dogmatic rules about the role of government, but no vision about America.

Because Republicans have no governing vision, they can’t argue for their plans. Health and Human Services Secretary Tom Price came to the Aspen Ideas Festival to make the case for the G.O.P. approach. It’s not that he had bad arguments; he had no arguments…. Because Republicans have no national vision, they seem largely uninterested in the actual effects their legislation would have on the country at large. This Senate bill would be completely unworkable because anybody with half a brain would get insurance only when they got sick. Worse, this bill takes all of the devastating trends afflicting the middle and working classes—all the instability, all the struggle and pain—and it makes them worse….

This is not a conservative vision of American society. It’s a vision rendered cruel by its obliviousness. I have been trying to think about the underlying mentality that now governs the Republican political class. The best I can do is the atomistic mentality described by Alexis de Tocqueville long ago:

They owe nothing to any man, they expect nothing from any man; they acquire the habit of always considering themselves as standing alone, and they are apt to imagine that their whole destiny is in their own hands. Thus not only does democracy make every man forget his ancestors, but it hides his descendants and separates his contemporaries from him; it throws him back forever upon himself alone and threatens in the end to confine him entirely within the solitude of his own heart.

What is their vision? It seems to me to be one in which the rich take what they can, and distract their base by giving them people to hate. It is, I think, the vision that populist Joe Bailey (himself racist as —-) wished he could have argued against, and that at the end of his career he passed down to the young Sam Rayburn who at the end of his career passed it down to Lyndon Johnson who told it to us in New Orleans in 1964 http://www.bradford-delong.com/2017/03/lee-atwater-lyndon-johnson-sam-rayburn-and-joseph-bailey.html:

When Mr. Rayburn came up as a young boy of the House, he went over to see the old Senator…. He was talking about economic problems. He was talking about how we had been at the mercy of certain economic interests, and how they had exploited us. They had worked our women for 5 cents an hour, they had worked our men for a dollar a day, they had exploited our soil, they had let our resources go to waste, they had taken everything out of the ground they could, and they had shipped it to other sections. He was talking about the economy and what a great future we could have in the South, if we could just meet our economic problems, if we could just take a look at the resources of the South and develop them. And he said:

Sammy, I wish I felt a little better. I would like to go back to old __. I would like to go back down there and make them one more Democratic speech. I just feel like I have one in me. The poor old State, they haven’t heard a Democratic speech in 30 years. All they ever hear at election time is “n—–, n—–, n—–!

The problem with David Brooks is that it has long been thus—it is the curse of Richard Nixon and Barry Goldwater.

Must-Read: Tierney Sneed: 5 Points On The Brutal CBO Score Senate Republicans Must Overcome

Must-Read: Tierney Sneed: 5 Points On The Brutal CBO Score Senate Republicans Must Overcome: “The new score offers Senate GOPers nowhere to hide… http://talkingpointsmemo.com/fivepoints/senate-repeal-bill-cbo-score-politics

…It certainly doesn’t make the Senate bill “far superior,” as Sen. Susan Collins (R-ME), a key vote for leadership, promised…. The Medicaid numbers look bad for moderates…. Even the premium decreases aren’t an entirely happy story…. The lower premiums are largely just a result of shifting towards plans with higher out-of-pocket costs…. Rural areas are still a challenge under the Senate bill…. The Senate bill doesn’t grapple with the underlying issues that make rural regions low-competitive areas for insurers, and the less generous tax credits stand to only exacerbate the problem. This section should catch the attention of Sens. Lisa Murkowski (R-AK) and Shelley Moore Capito (R-WV)…. GOP leaders have $200 billion to play with in their final round of deal-cutting… and still hit the $119 billion savings target of the House bill that makes their legislation eligible for reconciliation…

Reducing inequality through dynamic complementarity: Evidence from Head Start and public school spending

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Authors:

Rucker C. Johnson, Associate Professor at the Goldman School of Public Policy, University of California, Berkeley
C. Kirabo Jackson, Associate Professor in the Department of Human Development and Social Policy at the School of Education and Social Policy, Northwestern University


Abstract:

We explore whether early childhood human-capital investments are complementary to those made later in life. Using the Panel Study of Income Dynamics, we compare the adult outcomes of cohorts who were differentially exposed to policy-induced changes in pre-school (Head Start) spending and school-finance-reform-induced changes in public K12 school spending during childhood, depending on place and year of birth. Difference-in-difference instrumental variables and sibling- difference estimates indicate that, for poor children, increases in Head Start spending and increases in public K12 spending each individually increased educational attainment and earnings, and reduced the likelihood of both poverty and incarceration in adulthood. The benefits of Head Start spending were larger when followed by access to better-funded public K12 schools, and the increases in K12 spending were more efficacious for poor children who were exposed to higher levels of Head Start spending during their preschool years. The findings suggest that early investments in the skills of disadvantaged children that are followed by sustained educational investments over time can effectively break the cycle of poverty.

ACA Repeal “Strong Opposition” Letter

We have sent our letter, and Sarah Kliff is on it!

Sarah Kliff: 6 Nobel Prize–winning economists announce opposition to Senate health bill: “Forty economists, including six Nobel laureates, sent a letter Monday to Senate Majority Leader Mitch McConnell (R-KY) outlining their opposition to the Better Care Reconciliation Act, the Senate bill to repeal and replace Obamacare… https://www.vox.com/policy-and-politics/2017/6/26/15873980/economist-nobel-prize-oppose-senate-repeal

…“At a time when economic change is making life more difficult for all but the relatively well-to-do, denying people to access health insurance is a giant step in the wrong direction,” the letter reads. “The goal should be to hold down health costs and increase access to affordable, quality health coverage for all. Unfortunately, the Better Care Reconciliation Act threatens reduced coverage and higher costs for those who continue to have it.”

Nobel Prize-winning economists Peter Diamond, Oliver Hart, Daniel Kahneman, Eric Maskin, Daniel McFadden, and Al Roth signed on to the letter, alongside 34 other economists.

One of the notable dynamics of the Senate debate is there are plenty of experts and advocacy groups coming out against the bill, but quite few speaking in its favor (although a handful do exist). This is quite different from the Affordable Care Act debate, where Democrats were keen to line up outsider experts like those signed on to this letter to speak favorably of their policy proposals.


And here we are:

ACA Repeal “Strong Opposition” Letter https://assets.documentcloud.org/documents/3877474/Economist-Opposition-Letter-AHCA-6-22-2017.pdf

Senator Mitch McConnell
317 Russell Senate Office Building Washington, DC 20510

Senator Chuck Schumer
322 Hart Senate Office Building Washington, D.C. 20510

Dear Senator McConnell and Senator Schumer:

We write to express our strong opposition to the Senate bill to repeal the Affordable Care Act (ACA). The ACA has provided high quality, affordable health coverage for millions of previously uninsured Americans and helped to slow the growth of health care spending.

Clearly, the ACA is not perfect. Each of us has ways we would like to see the ACA reformed. But the Senate bill, crafted in secret and released without hearings, addresses none of these concerns. Rather, the Senate bill would narrow coverage, and by driving relatively healthy people from the market, raise premiums for those who remain.
Based on our reading of the bill, we believe that the Better Care Reconciliation Act would reduce coverage nearly as much as the House bill that the Congressional Budget Office estimated would take coverage away entirely from 23 million Americans and narrow coverage for millions more. At a time when economic change is making life more difficult for all but the relatively well-to- do, denying people to access health insurance is a giant step in the wrong direction.

The Senate bill will expose millions to increased out-of-pocket health care costs. It would base tax credits on a plan with greatly increased cost sharing and deductibles that could run to $12,000 per family or more. Far from improving Obamacare, the Senate bill would reduce assistance for the millions of people who buy coverage through the state and federal marketplaces. Many now eligible for tax credits would be denied them entirely. States would be allowed to opt out of regulations that allow less healthy people to buy insurance at reasonable rates.

The savings from slashing health subsidies and coverage would go largely to bestowing tax cuts on upper income tax filers. The richest 0.1 percent of tax filers would receive tax cuts averaging over $200,000 per return.

We call on Congress to work on legislation to improve the health delivery system, in general, and The Affordable Care Act, in particular. The goal should be to hold down health costs and increase access to affordable, quality health coverage for all. Unfortunately, the Better Care Reconciliation Act threatens reduced coverage and higher costs for those who continue to have it.
Signed,

Henry J. Aaron, Stuart Altman, Susan Athey, Barry Bosworth, Karen Davis, Brad DeLong, Gary Burtless, Anne Case, Amitabh Chandra, Philip J. Cook, Janet Currie, David Cutler, Leemore Dafny, Peter Diamond, Ezekiel J. Emanuel, Martin Gaynor, Sherry Glied, Claudia Goldin, Richard G. Frank, Jonathan Gruber, Oliver Hart, Vivian Ho, Jill R. Horwitz, Daniel Kahneman, Lawrence Katz, Ilyana Kuziemko, Frank Levy, Peter H. Lindert, Eric S. Maskin, Daniel McFadden, Thomas G. McGuire, Ellen Meara, Alan Monheit, Daniel Polsky, James B. Rebitzer, Michael Reich, Meredith Rosenthal, Al Roth, Isabel Sawhill, Benjamin D. Sommers, Lawrence Summers, Katherine Swartz, Paul N. Van de Water, Justin Wolfers

Should-Read: Lane Kenworthy and Ive Marx: In-Work Poverty in the United States

Should-Read: Lane Kenworthy and Ive Marx: In-Work Poverty in the United States: “In-work poverty became a prominent policy issue in the United States… http://ftp.iza.org/dp10638.pdf

…long before the term itself acquired any meaning and relevance in other industrialized countries. With America’s embrace of an employment-centered antipoverty strategy, the working poor have become even more of an issue. This paper reviews some key trends, drivers and policy issues. How much in-work poverty is there in the United States? How does the US compare to other rich democracies? Has America’s in-work poverty rate changed over time? Who are the in-work poor? What are the main drivers of levels and changes in in-work poverty? Finally, what are the prospects for America’s working poor going forward?…