Category: Congress

The Huge Healthcare Subsidy Hiding in Plain Sight

EDWARD D. KLEINBARD, professor of law, USC Gould School of Law.

This op-ed originally appeared in the Washington Post on Oct. 15.

The political right has paralyzed government over the implementation of the Affordable Care Act, on the grounds that the ACA represents an unacceptable government intrusion into what today is the province of private markets. But the premise is fundamentally untrue.

Government’s hand has long shaped and subsidized health-care markets, for example, in Medicare and Medicaid (which dominate how medical care is organized and delivered in America, even for care that falls outside their reach), or the requirement that hospitals treat urgent care needs of indigents.

Deconstructing the Sandy Relief Numbers

LARRY HARRIS, professor of finance, USC’s Marshall School of Business.

This op-ed originally appeared in the Wall Street Journal on Jan. 11.

President Obama asked Congress for $61 billion for various relief programs following Hurricane Sandy. The Senate approved the full request late last month, but so far the House has approved just $9.7 billion, for flood-insurance claims. The House will soon vote on the remaining $51 billion in proposed aid.

Sandy was an unusually large storm that did substantial damage to the Eastern Seaboard. More than eight million people lost power and perhaps as many as 100,000 were left homeless. Thousands of buildings were destroyed or damaged along the coastline from Maryland to Maine.

Many people don’t appreciate how large these numbers are, in particular the size of the proposed relief. Consider some simple comparisons. The $61 billion aid package represents:

A Ramp Away From the Fiscal Cliff

EDWARD D. KLEINBARD, professor of law, USC’s Gould School of Law.

This op-ed originally appeared at CNN on Nov. 30.

America’s fiscal policy faces an apparent Hobson’s choice. On the one hand, we need to tame federal deficit spending by imposing new across-the-board spending cuts and higher taxes. We are told that if we do not act on this soon, the debt markets will choke on the overabundance of government debt issued to fund those deficits, causing interest rates to climb. As a result, businesses and homeowners will be unable to borrow on reasonable terms, which will lead to a slowdown of the economy.

The Self-Loathing Congress

DAN SCHNUR, director of USC’s Jesse Unruh Institute of Politics.

This op-ed originally appeared at Politico.

We’ve become accustomed to the fact that the American people don’t like Congress. But what happens when even Congress doesn’t like Congress anymore?

Answer: They go home. Members of Congress are so fed up with gridlock, they are leaving the body in droves. In the past four years alone, almost two dozen incumbents have thrown up their hands and decided not to seek reelection, a number that is unprecedented in modern political history. Over the past three decades, this rate of departure is almost double that which we have seen over any other four-year period.