Tag: Barack Obama

The Biggest Check Ever Signed

The Obama Administration has banked a lot of political capital on the economic “stimulus” package signed into law today, and is hailing the measure as a sound-minded reaction to a dreary economic climate.  In truth, many of the programs in the bill are not only wasteful and inefficient, but have the potential to do some real long-term harm to U.S. policy.

Among them:

The economic stimulus bill is merely a nearsighted return to government spending policies which have been discredited over and over again [PDF].

For more on the package, check out Cato’s Fiscal Reality page.

Obama Truth Check

President Obama may have preempted the first hour of prime time Monday night, but he certainly did not fail to entertain with several pronouncements that require suspension of disbelief.

Here are four Obama statements that deserve closer scrutiny:

1.      “[I]f you delay acting on an economy of this severity, then you potentially create a negative spiral that becomes much more difficult for us to get out of. We saw this happen in Japan in the 1990s, where they did not act boldly and swiftly enough…”

The fact is that numerous presidents, including Obama’s immediate predecessor, have used desperation and fear to sell some of the truly awful policies to come out of the U.S. government in the last 50 years – the Gulf of Tonkin resolution and the Iraq War resolution, to name two.

2.      “What it does not contain, however, is a single pet project, not a single earmark, and it has been stripped of the projects members of both parties found most objectionable.”

This one severely strains credulity.  The president is right about one thing: many of the bill’s projects are online for all to see.  But could any reasonable person agree that these projects are stimulative and not aimed at special political interests?

3.      “Most economists, almost unanimously, recognize that…when you have the kind of problem we have right now…that government is an important element of introducing some additional demand into the economy.”

We’ve been over this, Mr. President.  The truth is that a huge and still-growing number of respected economists think that a massive government spending effort in our present circumstances is wasteful and foolhardy.

4.      “What I won’t do is return to the failed theories of the last eight years that got us into this fix in the first place…”

OK, so we actually agree with the president on that one.  But then why is he bound and determined to repeat the reckless spending habits of George W. Bush?  We thought the November campaign was all about “change.”

A New Tone toward the Muslim World

After his first major interview with an Arab TV network, it is clear President Obama is striking a decidedly different tone in talking about terrorism. In today’s Cato Daily Podcast, legal policy analyst David H. Rittgers discusses the new direction Obama will take in the fight against terrorism.

“This is a serious departure from some of the message that the Bush Administration put forth,” says Rittgers, who served three tours of duty in Afghanistan as an officer in the Army. “Using ‘you are with us or against us’ is appropriate in certain circumstances, but as a blanket approach that is not the message we need to be sending.”

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How Will Barack Obama Reform Social Security?

Barack Obama says he will make entitlement reform a central part of his attempt to control government spending. Just how serious is President Obama about entitlement reform? Are private accounts for Social Security on the table? In today’s Cato Daily Podcast, senior fellow Michael D. Tanner weighs in on Obama’s plan for the future of entitlement programs.

“The fact is, of course, private investment would still be a better deal than Social Security, but you have to face the fact that people are scared of the market right now,” Tanner says. “But I think you’ve got to give Barack Obama points for political courage. In addressing the need for entitlement reform he is taking on one of the mainstays of his party.”

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The Guantanamo Bubble Pops

Within a day of Barack Obama’s inauguration, he has asked the military commissions judges to halt all trials in Guantanamo.  All indications point toward detainees being tried in federal courts.  This is a good decision for a couple of reasons.

First, the military commissions play into the propaganda game that terrorists thrive on.  It confirms their message that normal courts can’t address the threat that they pose.  In fact, the opposite is true.  When you convict a terrorist and lock him up with murderers and rapists, you take away his freedom fighter mystique.

Second, the trial of Omar Khadr was about to start.  Khadr fought alongside a band of Al Qaeda-affiliated terrorists and allegedly killed Special Forces medic Christopher Speer with a hand grenade.  Khadr deserves to be locked up, and letting his military commission trial start would create a Double Jeopardy issue if we interrupt the proceedings somewhere down the road and move him to federal court.

President Obama is also circulating a draft order for the closing of detainee operations at Guantanamo.  The memo sets a 12 month deadline for deciding whether to try, release, or continue holding each detainee.  Good move.

The Obamacare to Come…

In Barack Obama’s inaugural address, he once again made it clear that he intends to fix our “too costly” health care system in order to “raise health care’s quality and lower its cost.” This is to be expected. Then-candidate Obama made health care reform a major issue during the campaign, and his actions sincesuch as naming former South Dakota Senator Tom Daschle as both Secretary of Health and Human Services and White house “health czar”—suggest that health care reform remains at the top of his agenda.

But what will Obamacare look like? The president has not yet released a plan, but from his campaign statements, the plan outlined by Senate finance committee chairman Max Baucus, a bill introduced by Sen. Ron Wyden (D-OR), and Secretary Daschle’s book, it’s possible to glimpse at the basic components.

Mandates: Almost certainly President Obama will propose a mandate on businesses to provide health insurance to their workers. There may or may not be an exemption for small business or some type of tax credit to offset costs. And, while President Obama opposed an individual mandate during the campaign, all the other Democratic plans embrace such a requirement, and the logic of President Obama’s plan leads inexorably toward an individual mandate.

Minimum Benefits Package: Both President Obama and congressional Democrats have long supported a requirement that all insurance plans offer a standard minimum package of benefits.

Regulation: All the Democratic plans call for a host of new regulation on insurers, including insurers to accept all applicants regardless of their health (guaranteed issue) and would forbid insurers from basing insurance premiums on risk factors such as health or age (community rating). There may also be a requirement that insurers pay out a minimum amount of premiums in benefits.

Subsidies: Low- and likely middle-income Americans will be subsidized. The changes in the SCHIP program passed by the House earlier this week, allowing states to subsidize children from families earning up to 400 percent of the poverty level, suggests the direction that any reform bill will take.

Imposed Cost-Effectiveness: Secretary Daschle, in particular, has called for a government panel to study the comparative effectiveness of various treatments and establish standards of practice for providers. A key battle will be over whether these standards become mandatory, effectively denying patients a full choice of treatments.

A Government-Plan: Both the president and leading Democratic health reformers embrace the concept of a government health care program similar to Medicare operating in competition with private health insurance.

The net result of a plan based on these concepts will be a system in which, while privately-owned health insurance will continue to exist, the government makes all the important decisions. As my colleague Michael Cannon has pointed out, that’s “socialized medicine” no matter how it is disguised.  And, it is bad news for American patients, health care providers, and taxpayers.