These are the types of taxes on the wealthiest Americans and corporations where President Obama should have started the discussion. It he had taken this approach and seriously cut the military budget he would surpass the deficit cutting goals of even the most extreme Republican and provide enough money to build a clean energy economy that would be sustainable for the 21st Century.
That brings me to my final point, health care. Rep. Paul Ryan has made destruction of Medicare the centerpiece of his deficit cutting plan. Medicare is the most cost-efficient part of U.S. health care that covers everyone over 65 years old. Ryan is seeking to give it to the insurance industry and funnel trillions of dollars to them. Sadly, this builds on the mistake of President Obama's health care bill. Rather than building on a successful public health program, Medicare, Obama and the corporate Democrats decided to further entrench the insurance industry. The hundreds of millions in annual tax subsidies they will get from ObamaCare are not enough. Their appetite for profits is unquenchable, now they want trillions by privatizing Medicare and Rep. Ryan is trying to sell it for them. On its face the proposal is absurd: how do you save money by putting in place a middleman who takes 15% to 20% of the funding of health care for its profits, executive salaries, advertising and investments in property and other profit centers? Ryan would leave seniors with insufficient funds to pay for health care.
On health care another Democratic loyalist got it right in reaction to the budget debate. Robert Reich wrote pointedly: Mr. President: Why Medicare Isn't the Problem, It's the Solution. He points out facts that every American paying attention should know. The U.S spends "more on health care per person than any other advanced nation and get less for our money. Yearly public and private healthcare spending is $7,538 per person. That's almost two and a half times the average of other advanced nations." He points out a few more nuggets about the failed American health care system:
- America spends $30 billion a year fixing medical errors - the worst rate among advanced countries.
- Administrative costs eat up 15 to 30% of all healthcare spending in the United States. That's twice the rate of most other advanced nations.
- A third of nursing hours are devoted to documenting what's happened so insurers have proof.
And, how is Medicare the solution? Well first off, many economists correctly point out that health care is the driver of deficits at the state and national levels of government for the foreseeable future. Cutting Medicare funding does not deal with any of the underlying problems in the U.S. health care system it just results in seniors having less health care. Reich points out: "Estimates of how much would be saved by extending Medicare to cover the entire population range from $58 billion to $400 billion a year. More Americans would get quality health care, and the long-term budget crisis would be sharply reduced." Improved Medicare, expanded to cover everyone is the solution to the U.S. health care crisis it results in lower costs, better coverage and better health outcomes for everyone in the United States.
Once again President Obama has missed an opportunity to get the country on the right track. And, if his previous negotiations with the Republicans are a measure of the likely outcome, his already weak proposal is going to get worse -- worse for the middle class, working class and poor. The military, security state and wealthy -- they will be fine.
Kevin Zeese directs Its Our Economy, www.ItsOurEconomy.US. Join us on April 15th in New York City for a concert and protest, Sounds of Resistance, in Union Square Park at 11:00 AM.
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