William Galston has provided on his New Republic blog a searing critique of the Obama administration’s economic policies. He bases it on a close reading of Congressional Budget Office Director Douglas Elmendorf’s testimony last week. The headline story from Elmendorf’s appearance was his response to Senate Budget Committee Chairman Kent Conrad’s question on whether any of the Democrats’ health care bills will “bend the long-term cost curve” on health care: a big no. But Galston drills down farther into Elmendorf’s analysis and concludes that the long-term fiscal problem goes beyond health care. His conclusion:
“But let’s assume that the Congress eventually passes health reform that constrains costs and expands coverage. Even so, that reform, while necessary for a sustainable fiscal policy, would by no means be sufficient. If the president and his team are serious about regaining fiscal equilibrium once the current crisis passes, they will have to consider cost restraint in every category of federal outlays, as well as fundamental tax reform that increases revenues while diversifying their sources.”
Keep in mind that both Galston and Elmendorf are Democrats, very smart Democrats who want some expanded government role in health care and other areas, but are also thinking hard about the costs.
While you’re at it, you might want to read Galston’s thoughts on the future of our economy.
