Unbiased Analysis of Today's Healthcare Issues

Do we need less democracy?

In The New Republic, Peter Orzag argues that to fix our budget mess, we need less democracy.  Specifically, he argues that implementing the following four recommendations more consistently would improve the budget situation. Progressive tax code Permanently link taxes to the unemployment rate Backstop rules Independent institutions I have my doubts…

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Much Ado about Nothing

The government will shut down…the government won’t shut down…Compromise!  Finally, the Federal government has came to a compromise to reduce our swelling national debt.  Or have they?  The chart below shows that cutting the deficit has a lot about rhetoric and little about substance. Congress did save $78.5 billion in their latest agreement. Since the […]

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Japan: Bigger deficit problems than the U.S.

The cover of The Economist this week looked at America’s budget deficit.  According to their estimates, “America’s budget deficit in the fiscal year that ended on September 30th stood at $1.3 trillion; at 9% of GDP, the second-largest since the second world war.”  The short run cause of this deficit is the recent severe recession, […]

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Half a billion: UC Budget Gap

The state of California is in serious fiscal trouble.  Those troubles extend the state’s flagship university system.   “The scenario that assumes failure of the May 19 state ballot propositions would leave the UC system with a net budget reduction of $322 million, or 10 percent, in the 2009-10 year. Taken together with the state’s […]

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Medicare trust fund to be tapped out by 2017

Bond Markets seem to be concerned over the escalating level of U.S. Government debt.  Yields rose during the latest $14 billion auction of U.S. 30-year Treasury Bonds.  This graph shows an ominous budget deficit trend as well.  There seems to be good reason for this.   American’s stimulus plan and entitlement programs are putting an […]

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