Todays wsj reports that obama is proposing a healthcare plan funded by increased taxes on the rich. This is consistent with his book where he argues that the rich need to start paying their fair share of taxes.
While I’m in agreement that the wealthy can afford to pay more, I worry about this line of thinking from an economics point of view. Taken to an extreme we reach a state of socialism or communism. Even marginal shifts in that direction have proven over time to hurt the economy.
Reagan proved in the 90’s that ‘supply side’ economics works. the us govt, now the world’s single largest employer, is the least efficient organization on the planet. I would guess that for every additional dollar we give in taxes 30 cents makes it to an intended purpose.
Its great that obama wants the country to unite and address real problems like healthcare. I just wish he had a better understanding for economics. He could attack the same problem by leveraging free markets. He could offer tac breaks and incentives for businesses that provide better healthcare. If he can figure out how to incent walmart to cover its 1m workers that would be a great start and possibly a repeatable model.
Why do we always have to choose between social lunacy and economic stupidity?
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