The Start of Something Big: Obamacare May Renew Faith in Government

Jun 29, 2012Jeff Madrick

The Supreme Court ruling on the Affordable Care Act yesterday can be a pivotal point in the restoration of faith in government. 

With the affirmation of Obamacare, it is now up to the president to make clear to Americans how much help it will provide them. There are even bigger stakes than health care; this can be the pivot point around which faith in government can be restored. It is the main theme of our Rediscovering Government initiative.

The Supreme Court ruling on the Affordable Care Act yesterday can be a pivotal point in the restoration of faith in government. 

With the affirmation of Obamacare, it is now up to the president to make clear to Americans how much help it will provide them. There are even bigger stakes than health care; this can be the pivot point around which faith in government can be restored. It is the main theme of our Rediscovering Government initiative.

One can only hope the president won’t back off. Of course, the intense concern about the deficit can be hobbling, and it's a concern the president has too readily bought into. But it is now time to rejoice. Obamacare is full of what I’d call minimal decency, which is a big step up from the insensitive health care system the nation built—a cruel system because it left so many out. 

The law is complex but has so many good points, from closing the senior drug doughnut hole, to requiring insurance companies to take all comers regardless of pre-existing conditions, to ending lifetime caps on insurance payments, to providing understandable insurance plans for all managed by state exchanges, that it would take an hour or so if the president were to make a speech explaining them.

It also has faults, but not the ones the Republicans and extreme right are likely to point out, which will revolve around denying freedom in some way or other. Let's remind the anti-government right that healthy people are far freer than unhealthy ones.

Costs are an issue. Sadly, the Supreme Court majority voted to allow states to deny Medicaid coverage in the new bill. But perhaps this will be a rallying point for political activity in state capitals. Obamacare does have some mechanisms to reduce general costs, but we will need more effective ones to deal with rising health care costs in the 2020s. Let’s remember that an affordable public option—an alternative to private insurance—could eventually be added if the public starts to support Obamacare and elects congressional representatives willing to vote for such an option. This could do a lot to keep costs down.   

Here’s a link to a piece I did on Obamacare for the New York Review of Books that may be of some help. 

Again, however, Obama should use his health care victory as a message that government is necessary, can work, and will make America a far better place. The purpose of government is the issue of the age.

See the article from today’s New York Times, by Mark Landler, which repeats many of our own themes about government. Let’s try to make this a new beginning. As the economist Annette Bernhardt just said to me, “the president now has a second chance.”

Roosevelt Institute Senior Fellow Jeff Madrick is the Director of the Roosevelt Institute’s Rediscovering Government initiative and author of Age of Greed.

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President Obama and FDR: Rumors of Political Demise at the Hands of the Supreme Court Greatly Exaggerated

Jun 28, 2012David Woolner

Despite the handwringing, neither president suffered a huge political blow at the hands of the Supreme Court.

Despite the handwringing, neither president suffered a huge political blow at the hands of the Supreme Court.

There is no question that the Supreme Court’s decision to uphold the Patient Protection and Affordable Health Care Act represents a major victory for Barak Obama’s presidency. Struggling in the polls thanks to the continued sluggish performance of the economy, a defeat on the constitutionality of this signature piece of legislation had led many analysts to predict that, had the decision gone the other way, President Obama’s ability to effect further change would be finished. Others argued that a ruling striking down the health care law would have meant the end of President Obama’s political career. But if history is any guide, these dire predictions may have been too severe.

Roughly 75 years ago, when Franklin Roosevelt was engaged in his own struggle with the Supreme Court, it appeared for a time as if the fate of his presidency—and the New Deal—also hung in the balance. In May of 1935, for example, the Court struck down the National Industrial Recovery Act and the Agricultural Adjustment Act, two key provisions of the New Deal. FDR was livid and, fearing for the fate of such landmark pieces of legislation as the 1935 National Labor Relations Act and Social Security Act, he eventually decided to take on the Supreme Court by unleashing his famous “Court Packing Plan” in February 1937. The plan argued that the president should be allowed to add up to six new judges to the bench in cases where a sitting justice who had served at least ten years on the bench refused to retire after reaching his seventieth birthday.

The president was perfectly within his legal bounds to request a change in the make-up of the Court, and he certainly was not alone in his call for judicial reform. But given the widespread support for the make-up at the time and the means by which the president unveiled his proposal—it was launched without warning and without any effort to secure congressional support before it was put forward—the plan soon ran into fierce opposition, even from some members of Roosevelt’s own party. As time went on, what congressional support there was for the plan eroded, and after some months the bill was quietly allowed to die in the Senate before it ever came to a vote.

Most historians agree that the launch and demise of FDR’s court packing scheme was a major political blow which, when coupled with the Roosevelt recession of 1937, resulted in the strengthening of the anti-New Deal coalition in Congress in the midterm elections of 1938. This certainly made it harder for FDR to push further New Deal reforms in the coming years, but it did not bring about the judicial reversals that FDR feared. On the contrary, from that moment forward the Court upheld every New Deal statute that came before it, launching a new era of jurisprudence that fundamentally altered its character and the nature of its decisions.

The setbacks that President Roosevelt experienced at the hands of the Court in the mid 1930s, then, did not result in the undermining of the New Deal. Thanks to a shift in attitude in the Court about the role of government in the maintenance of the social and economic health of the nation, we still enjoy Social Security, unemployment insurance, a federal minimum wage, and a host of other New Deal provisions. Nor did the Court’s action’s result in the political demise of Franklin Roosevelt, who would go on to win reelection to an unprecedented third and fourth terms.

In the decades since Roosevelt’s showdown with the Supreme Court, a debate has raged about how much his decision to confront the Court may have led to the change in attitude among the justices regarding the constitutionality of the New Deal. A number of historians—and Roosevelt himself—have claimed that the president may have lost the battle but won the war. In other words, it was the pressure from the president that led to the shift in the Court’s outlook.

But more recent scholarship tends to support the idea that the Court’s about-face reflects the slow evolution of 20th century constitutional law that predates the New Deal. The court, in essence, was heading toward supporting greater federal intervention in the economy, but had not quite reached this point when FDR launched his flurry of programs and reforms. One strong argument in favor of this view stems from the fact that in early 1937—before FDR announced his court reform proposal—the court reversed itself and ruled in favor of two other New Deal provisions that had been brought before it. Ironically, one of the justices who changed his position was Owen Roberts, a conservative Hoover appointee who would continue to serve on the court until 1945. Given his change in attitude, it is Associate Justice Owen Roberts—a man whom the current chief Justice John G. Roberts (no relation) apparently admires—who is most often credited with saving the New Deal or, as was said at the time, carrying out “the switch in time that saved nine.” Today, it appears that it was Chief Justice Roberts, who cast the decisive vote in favor of the Patient Protection and Affordable Health Care Act, who will make it possible for millions of uninsured Americans to finally gain access to what many consider a fundamental human right: affordable health care. 

David Woolner is a Senior Fellow and Hyde Park Resident Historian for the Roosevelt Institute. He is currently writing a book entitled Cordell Hull, Anthony Eden and the Search for Anglo-American Cooperation, 1933-1938.

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Hooray for Health Care Reform! Now About That Election...

Jun 28, 2012Richard Kirsch

The Affordable Care Act survived the Supreme Court, but its true fate -- and the fate of the millions it will insure -- will be decided in November.

The Affordable Care Act survived the Supreme Court, but its true fate -- and the fate of the millions it will insure -- will be decided in November.

That was a shout of joy followed by an enormous sigh of relief you just heard. And a tear you can’t see in my eye. Today the Supreme Court refused to sign the death warrant for tens of thousands of people. And tomorrow a Koch brothers-funded group called Americans for Prosperity will put up $9 million in TV ads in swing states attacking the law.

When I sat in Nancy Pelosi’s box on March 21, 2010, watching the House enact the Patient Protection and Affordable Care Act, I felt an enormous sense of peace. After 100 years of failing, and after a quarter-century of organizing in my own life, the United States had finally made a government guarantee to health care the law of the land. At the time, the last thing I was going to do was look ahead to the roadblocks that would be encountered between then and 2014, when the sections of the law that would make that guarantee real kicked in. I simply wanted to celebrate and believe that, as I’d been telling people all around the country for the two years since we launched Health Care for America Now, the moral arc of the universe can be bent towards justice if we pull hard enough.

But it turns out the ACA had to get around more than roadblocks -- more like two big landmines. The first was the Supreme Court, where the right mounted a challenge that surprised constitutional scholars in its vigor. What had seemed like a frivolous lawsuit gained enormous momentum, powered by the right-wing and corporate media, political ads, and relentless messaging. Even after two very conservative appellate judges upheld the law, questioning at the Supreme Court oral arguments made it look like the first landmine would be triggered. But by one huge and surprising vote, Justice Roberts took us around that deadly obstacle.

Let’s not kid ourselves; the biggest danger remains on November 6th, and the right will do everything it can to make these elections a mandate to kill ObamaCare and with it, legislation that will demonstrate to Americans that government can be a powerful force for security and opportunity. Since the president signed the law, opponents have spent $235 million attacking it, while a fraction of that, $69 million, has been spent on its defense. Remarkably, Mitt Romney – who by passing RomneyCare paved the way for ObamaCare – has the chutzpah to now be championing his opposition.

But the law's near-death experience at the Supreme Court can be a huge opportunity to change the debate and convince the American public that ObamaCare is a vital solution to the crushing of the middle class in today’s economy. There is only one state in the country in which people don’t have to worry that losing your job will mean losing your health care, or about taking a job that doesn’t have health care benefits, or that you won’t be able to find affordable health coverage if you have a pre-existing condition. That state is Massachusetts, and the great irony is that if the governor who signed the law that created that system gets elected president, it will remain the only state where Americans will have the security of affordable health coverage that’s always there.

President Obama and Democrats must embrace ObamaCare as part of the story they are telling voters about the economy. They cannot continue to be silent in the face of the relentless attack that will only accelerate.  Yes, the issue that will decide the election among swing voters is jobs and the economy. Which is why it's time that Obama made clear – in the new economy where so many jobs don’t come with health coverage, with so many people juggling two or three part-time jobs, so many others worried they will lose their jobs, and so many still without work – that ObamaCare will end those worries. But only if he is reelected.

An election is a choice, and the choice between Obama and Romney on health care is crystal clear and compelling if voters hear their options over and over again.

So unlike March 21st, 2010, I’m not feeling peaceful today. We’ve got one more very big landmine to get around. Make no mistake about it -- I’m very happy. Like Fred Flintstone, I’ll add a jig to my yabbadabbadoo! But I want to be sure that we use this victory today as a springboard over that mine to a victory on November 6th -- an Election Day triumph that will secure health care as a right in these United States.

Richard Kirsch is a Senior Fellow at the Roosevelt Institute, a Senior Adviser to USAction, and the author of Fighting for Our Health. He was National Campaign Manager of Health Care for America Now during the legislative battle to pass reform.

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Health Care Reform and the Supreme Court: Politics Over Constitutionality

Jun 26, 2012Richard Kirsch

The Obama administration's neglect did not cause this constitutional challenge to the individual mandate. Republican strategy did.

The Obama administration's neglect did not cause this constitutional challenge to the individual mandate. Republican strategy did.

On the eve of the Supreme Court's decision, after numerous lower court opinions and treacherous questioning by conservative justices, the overwhelming consensus in the legal community remains that the requirement in the Affordable Care Act to buy health insurance is unquestionably constitutional. As recently as mid-June, Bloomberg News asked law professors at the nation's top law schools whether they thought there was any question that the Affordable Care Act’s individual mandate requiring the purchase of health insurance was constitutional; 19 of the 21 who responded replied that it was. They were only confirming the opinions of two very conservative appeals court judges, who upheld the provision last year.

But the widespread view that the only reason we have a question before the Supreme Court is their receptivity to right-wing political manipulation of the law was not the story told by the New York Times on Sunday, under the headline, "Supporters Slow to Grasp Health Law's Legal Risks." The Times's Peter Baker faulted the Obama administration and Congressional Democrats for being unprepared for the legal challenge.

Some would view the fact that the Court is seriously debating a question that is so far out of the political mainstream, even among the most respected conservative jurists, as a testament to the groundbreaking work of a small set of conservative lawyers to change jurisprudence. They would compare their work to the careful strategy that led to decisions like the Warren Court's Brown v. Board of Education. I am not so generous. The legal arguments against the individual mandate remain flimsy and there is no comparable history of carefully plotted legal strategy. What has become more solid is the ground that the arguments are being made on, a Supreme Court majority whose magnet is not the Constitution or precedents, but the U.S. Chamber of Commerce.

In drafting what became The Patient Protection and Affordable Care Act, Democrats in Congress and the White House had myriad complex policy and political factors to juggle. The implication that they should have added in the minuscule chance that the mandate would be successfully challenged on its constitutionality is as silly as the opponents' legal arguments.

What might have given the law's drafters pause was the ruling on Citizens United, in which the Court majority dynamited a century of precedent to overturn the ban on corporate campaign contributions. But that decision was handed down in January of 2010, three days after Scott Brown won election to the Senate from Massachusetts, in a seeming repudiation of health care reform, which deprived Democrats of their filibuster-proof majority. At that point, there was neither the time nor the legislative maneuverability to consider changing the structure of the mandate, even if someone had raised their head and said that this Court is capable of doing anything it wants to further the corporate agenda.

In contrast with the Times article, Ezra Klein has a piece in The New Yorker titled "Unpopular Mandate: Why Do Politicians Reverse Their Positions?" Klein points out that the question of the mandate's constitutionality on the right changed when conservative politicians jettisoned their own idea, the mandate, after Obama accepted it. He describes how the Republican message machine legitimized the constitutional challenge once Republican politicians did an about-face.

Two days from now the Court will weigh in. Many of those same law professors surveyed by Bloomberg predict the Court majority will ignore precedent and overturn the mandate. The have reached the same conclusion as many Americans that the Court is driven by politics, not the Constitution. I'm hoping they will be proven wrong, and that the Court will put our founding document and two centuries of precedent before the partisan, corporate agenda. But whatever they decide, I won't blame the fact that the case has gotten this far on Democrats in the White House or Congress.

Richard Kirsch is a Senior Fellow at the Roosevelt Institute, a Senior Adviser to USAction, and the author of Fighting for Our Health. He was National Campaign Manager of Health Care for America Now during the legislative battle to pass reform.

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Well, What the Hell’s the Presidency For? From LBJ and Civil Rights to Obama and Health Care

Jun 20, 2012Richard Kirsch

Like LBJ, Obama has struggled with two competing goals but in the end pushed through historic legislation.

Reading Caro's biographies of LBJ has become a multi-generational experience in our family. At 15, my son, who had never read anything more than Harry Potter, became enthralled with them, devouring the first three. This year, he bought the newest volume as my birthday present, I got my dad the book for Father’s Day, and my dad gave the book to my son for his birthday.

Like LBJ, Obama has struggled with two competing goals but in the end pushed through historic legislation.

Reading Caro's biographies of LBJ has become a multi-generational experience in our family. At 15, my son, who had never read anything more than Harry Potter, became enthralled with them, devouring the first three. This year, he bought the newest volume as my birthday present, I got my dad the book for Father’s Day, and my dad gave the book to my son for his birthday.

Much of our great fascination with Lyndon Johnson is the duality of his character: willing to lie and cheat, devoid of any principles on his path to power, and then as president, using that power to achieve lofty, principled goals that transformed our nation forever.

As Caro describes in the latest volume, The Passage of Power, as LBJ was preparing to address Congress just after assuming the presidency, “a fierce debate” between his advisors “erupted – over the emphasis to be given in the speech to civil rights.” As the discussion went on until 2:30 in the morning, one advisor concluded with the argument, “The presidency has only a certain amount of coinage to expend, and you oughtn’t to expend it on this.”

LBJ replied, “Well, what the hell’s the presidency for?”

As I read the words of the good Johnson – and all it has meant for America – it reminded me of the ongoing controversy over whether Barak Obama made a colossal blunder by pressing ahead for health care reform in 2009 in the face of the growing economic crisis. I’m not interested here in weighing in on whether this was a political mistake or whether it had any impact on the economy. What matters to me is that, like LBJ, Obama overruled his advisors multiple times and made a courageous moral decision, without regard to short-term politics.

Barack Obama is not a great incarnation of good and evil like Lyndon Johnson, but he too is torn between two sides of his nature. As I recount in Fighting for Our Health, there is the Obama that is looking to conciliate, to avoid appearing partisan or strident, to be so committed to finding common ground that he’ll give up half the farm with little or nothing in return. When it came to health care, this Obama surrendered without much of a fight on numerous important provisions that would have made health care more affordable and most famously refused to push for, let alone fight for, the public option.

And then there’s the Obama who not once but four times went against the advice of his staff and insisted on pushing for health reform that would aim to cover everyone. The Obama who, when his back was to the wall, took off the kid gloves and won.

In the summer of 2008, Obama’s campaign staff advised him not to make health care a big issue in the election. He overruled them, and in the month before the election, 86 percent of his campaign ads included health care.

In February of 2009, as the depth of the great recession became apparent, most of Obama’s top team told him to give up on health care and focus just on the economy. Instead, he told the nation in his first joint address to Congress, "health care reform cannot wait, it must not wait, and it will not wait another year.”

In July of 2009, before the tea party eruption, White House Chief of Staff Rahm Emanuel said it was time to retreat to “kiddycare,” legislation that would aim at covering all children and pregnant mothers. The president refused, and after the August tea party demonstrations he appeared before Congress and declared, “I am not the first President to take up this cause, but I am determined to be the last…. We are the only democracy — the only advanced democracy on Earth — the only wealthy nation — that allows such hardship for millions of its people.”

The last and biggest test was after Scott Brown took Ted Kennedy’s seat in January of 2010, a refutation at the polls that led Emanuel to press for kiddycare again. Instead, the president went to a retreat for Republican members of the House and made them look foolish. He unleashed his administration to finally go after the health insurance industry, using a big California rate increase as a pretext. And he worked closely with House Speaker Nancy Pelosi and Majority Leader Harry Reid to design complex legislative maneuvers – along lines that LBJ would have been proud of – to get a strengthened bill to his desk.

What accounts for Obama’s deep commitment to passing a health care law that would finally make affordable health care a right? As with LBJ’s commitment to civil rights, there was clearly a personal side. Obama’s repeated telling of the story of his mother fighting with health insurance companies while dying of cancer was not just a good political anecdote; it was seared into his memory. His own story was reinforced by the letters he read every night in the White House from Americans recounting their own health care horror stories. At his core, Obama understood, as did LBJ, that he had the opportunity to use the presidency to bend the moral arc of the universe toward justice. As Jonathan Alter recounts in The Promise, on the night of his election, before addressing the gleeful crowd in Chicago’s Grant Park, he asked himself what was the one thing he could do that would most help the average American. His answer was health care.

While today we cannot imagine going back to an America before the passage of the major civil rights legislation in 1964 and 1965, both laws met with great resistance in the South after their enactment. Even today, governors and legislatures in the South are trying to undermine voting rights legislation. It is no surprise, then, that the right and its wholly owned political party are intent today on killing a government right to affordable health coverage. But if ObamaCare survives the Supreme Court and the next election – and it is likely to do both – history will reward President Obama for his courage when it mattered.

Dr. King said, “Of all the forms of inequality, injustice in health care is the most shocking and inhumane.” Looking back, ObamaCare will be seen as a fundamental turning point in America’s health care system, toward both greater equity and a focus on the quality of care more than the quantity of care. The historic law will be viewed as a significant measure to deal with a new economy in which jobs do not come with health care benefits. As it grows and evolves, the Affordable Care Act will take its place alongside Medicare and Social Security as foundational elements of the United States government providing security to its citizens. It will be a point of pride to call it ObamaCare.

Well, what the hell’s the presidency for?

Richard Kirsch is a Senior Fellow at the Roosevelt Institute, a Senior Adviser to USAction, and the author of Fighting for Our Health. He was National Campaign Manager of Health Care for America Now during the legislative battle to pass reform.

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The House's Latest Health Care Vote Puts Campaign Cash Ahead of People

Jun 12, 2012Richard Kirsch

Congress shouldn't make working- and middle-class families pay for the repeal of a sales tax on one of America's most profitable industries.

Congress shouldn't make working- and middle-class families pay for the repeal of a sales tax on one of America's most profitable industries.

Last week the House voted to increase health care costs on middle-class families in order to protect one of the most profitable industries in the country. And almost nobody noticed. More than three dozen Democrats, oiled by campaign contributions, joined all 233 voting Republicans in voting for a repeal of a 2.3 percent sales tax on the medical device industry included in the Affordable Care Act. They voted to pay for the lost revenues by making families who are fortunate enough to get back on their feet pay more for health coverage.

The vote last week symbolizes most everything that is wrong about our politics, and in particular the politics around the Affordable Care Act, with one very welcome exception. The White House – not known for standing up tall – promised a veto of the legislation.  

One way that the Affordable Care Act will be paid for is by new taxes and reduced Medicare revenues from major segments of the health care industry. In return, health care providers will reap greater revenues from tens of millions newly insured people and improved health coverage for tens of millions more. Medical device manufacturers got off easy with the 2.3 percent sales tax considering that, according to Forbes, the industry is one of most profitable in the country (number one on return on assets, number four on return on sales, and number nine on return on equity).

That did not stop the medical device industry from fighting the tax with the usual cry wolf tactics, saying it will cost jobs and hurt small business. An editorial from, of all places, Bloomberg News takes the industry's arguments apart, one by one. The most glaring example is the charge by the industry’s trade association, AdvaMed, that the tax would cost 43,000 U.S. jobs as manufacturers moved offshore. But since the tax applies to all medical devices sold in the U.S., there is absolutely no advantage in moving jobs offshore. Doing so won’t reduce the tax by a nickel (or a yuan).

The members of Congress who are backing repeal of the tax, led by Minnesota Republican Erik Paulson, come from states where the medical device industry is big -- and so are its campaign contributions. Paulson raked in the third most contributions from the medical supply industry of any candidate for Congress ($64,100) this election cycle. He was topped by two senators from other states with big medical device industries: Utah’s Orin Hatch ($88,399) and Massachusetts’s Scott Brown ($82,150). But it’s not just Republicans. Democratic Minnesota Senator Amy Klobuchar ($63,650) ranks just after Paulson and she opposes the tax too. All together, the industry has contributed $2.9 million to congressional candidates this year. On top of that, the industry reported $31.7 million in lobbying in 2011.

So far, this is a pretty typical story of money and politics. What makes it more reprehensible – and increasingly typical – is that in the bill the House passed last week, the industry tax break would be directly paid for by struggling working- and middle-class families.

Starting in 2014, the Affordable Care Act will provide subsidies to these families to buy health coverage if they don’t get coverage at work. The financial help, in the form of a tax credit given up front, will limit the amount of a family’s income it must pay for health insurance premiums. Under the House bill, if a family’s economic status improved, they would have to pay back the full portion of the subsidy that reflects their increased income.

Think of what this means for a family that has been struggling financially, maybe out of work or working at low-wage, part-time jobs. They’ve been barely getting by and using up their savings, but finally they get back to work or find a job that pays a decent wage. And promptly the government demands a payback of some of the money given to the family to pay for health insurance.

The payback requirement will mean that some 350,000 people – mostly women, whose income fluctuates the most – will decide against applying for subsidies and remain uninsured because of the fear of having to pay the health insurance premium credits back when their income changes.

Because the new system of subsidies does not start until 2014, it is tough to make them seem real and politically salient now. If Congress voted to penalize people when millions of newly insured families were getting subsidies, the harsh impact on people’s lives would be easy to see and understand. But since nobody is affected right now, it is much harder to make a powerful argument.

That is true for all of the core elements of the ACA and the provisions that will extend coverage to some 32 million uninsured people. If the law survives the Supreme Court and the presidential election and is implemented in 2014, Americans will find out that they will no longer have to worry that losing theirs jobs means losing their health care or fret about being turned down for coverage due to a pre-existing condition. Then ObamaCare will be both understandable and popular. 

The Republican move to make families pay back the subsidies is not the first of its kind. When the ACA was enacted, there was no provision to pay any of the money back. But since then, Democrats have twice agreed to some payback provisions as a way to raise money for other purposes. Of course, that’s not enough for Republicans. They want to force families to pay every dime back in the medical device bill. This shows the folly of Democrats ever agreeing to anti-consumer provisions to placate Republicans; it simply emboldens them to ask for more.

President Obama seems to have learned that lesson. On June 6th, the Office of Management and Budget released a statement harshly criticizing the House bill, saying that it would “raise taxes on middle-income and low-income families, in many cases totaling thousands of dollars, not withstanding that they followed the rules.” That’s the kind of language that fits in with the president’s campaign themes and the message he needs to continue to trumpet throughout the country if both he and the ACA are to survive past November.

Richard Kirsch is a Senior Fellow at the Roosevelt Institute, a Senior Adviser to USAction, and the author of Fighting for Our Health. He was National Campaign Manager of Health Care for America Now during the legislative battle to pass reform.

 

Flag image via Shutterstock.

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Mike Konczal on “Fireside Chats”: Tough Times make Liberal Reform Tougher

Jun 5, 2012Danielle Bella Ellison

In the latest episode of “Fireside Chats,” Roosevelt Institute Fellow Mike Konczal talks with David Frum, Daily Beast writer and author of the new novel Patriots. In the clip below, they take on why Democrats have had trouble gathering support for stimulus programs during the current recession. “We’ve gone from Speaker Pelosi and the new Obama presidency and the idea of this wave of progressive energy to really trying to fight between the center and the center right,” Konczal notes.

In the latest episode of “Fireside Chats,” Roosevelt Institute Fellow Mike Konczal talks with David Frum, Daily Beast writer and author of the new novel Patriots. In the clip below, they take on why Democrats have had trouble gathering support for stimulus programs during the current recession. “We’ve gone from Speaker Pelosi and the new Obama presidency and the idea of this wave of progressive energy to really trying to fight between the center and the center right,” Konczal notes.

As Konczal explains, “The real New Deal that we think of – the core economic security and managing the business cycle and so on – occurred in ’35,” when the economy was expanding. Meanwhile, “the conservative agenda to roll back the Great Society and the New Deal” unfortunately becomes more feasible in tough economic times like ours. The public becomes more risk averse and prefers austerity policies to big and potentially risky spending programs. Major liberal reforms, however necessary and beneficial they may be, are just very hard to pass during bad economic times.

The current grim economic condition, as well as the increase in media culture and accelerating ethnic change, have caused a transformation of American politics. Watch the full conversation below in which Konczal and Frum discuss this transition, what a Romney budget would look like, and the future of Obamacare.

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ObamaCare Isn't Just About Health Care – It's a Winning Jobs Issue

May 31, 2012Richard Kirsch

Voters won't have to worry about losing their health insurance when they lose their jobs if Barack Obama is still president in 2014.

Massachusetts is the only state in the country where you don’t have to worry about losing your health insurance if you lose your job, and it will remain that way if Mitt Romney, the man who signed that Massachusetts bill into law, gets elected president. But if President Obama beats him, every state in the Union will join Massachusetts in 2014.

Voters won't have to worry about losing their health insurance when they lose their jobs if Barack Obama is still president in 2014.

Massachusetts is the only state in the country where you don’t have to worry about losing your health insurance if you lose your job, and it will remain that way if Mitt Romney, the man who signed that Massachusetts bill into law, gets elected president. But if President Obama beats him, every state in the Union will join Massachusetts in 2014.

The number one issue in the election, the issue that will decide who will be living at 1600 Pennsylvania Avenue next January 20th, is jobs. President Obama’s reelection prospects will be determined by how many of the small percentage of voters who are up for grabs decide that they might as well give Romney a chance, since their economic prospects are just as shaky now as when President Obama took office. It might help if they could see ObamaCare as a jobs issue, which it clearly is.

Many of the independent voters who will determine the presidential election are confused by the Affordable Care Act, as its passage has offered no relief for a major worry in their lives: if they lose their job, they’ll lose their health insurance. Or maybe they’ve already been forced to take a job without health insurance, or are self-employed or out of work. In that case, they may well be among the 51 million uninsured Americans who are worried that one major illness will wipe out whatever financial security they have left. Other swing voters might like to leave their jobs and start a small business, but they are locked into their current jobs until they reach 65 and qualify for Medicare. All that will change in 2014 if they vote for President Obama – which they might be more likely to do if they knew that.

Starting in 2014, health insurance will be affordable for the great majority of people who don’t get coverage at work. Most will qualify for heavily subsidized private health insurance through the new health insurance marketplaces (exchanges) that will be set up in each state. Many others in low-wage jobs will be eligible for coverage under Medicaid, which will be expanded to cover families up to 133 percent of the poverty level, around $30,600 for a family of four.

ObamaCare is more than a health care bill; it is a major step toward addressing the gaping inequities in our economy, where incomes and wealth for the richest 1 percent keep rising while most Americans are treading water or drowning. Three decades ago, a job came with good health care, along with rising wages and a pension. Now only 56 percent of the workforce gets health care on the job. With the implementation of the Affordable Care Act’s coverage expansions in 2014, almost all workers will have access to affordable health coverage, even if they don’t get the insurance at work.

President Obama and Mitt Romney are both working hard to appeal to the hard-pressed middle class. For Democrats, ObamaCare should be a core part of this appeal and the most powerful rebuttal to attacks on the legislation. The president and Democratic candidates for Congress around the county can reach swing voters on health care if they make the stakes in the election very clear: a vote for Romney and Republicans in Congress is a vote to leave Massachusetts as the only state in the nation in which you don’t have to worry that losing your job will mean losing your health care. A vote for Obama and Democrats will mean that, come 2014, Americans will finally have the security that – job or not – they will have health coverage for themselves and their families.

Richard Kirsch is a Senior Fellow at the Roosevelt Institute, a Senior Adviser to USAction, and the author of Fighting for Our Health. He was National Campaign Manager of Health Care for America Now during the legislative battle to pass reform.

 

Medical bills image via Shutterstock.

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Mark Schmitt: Are Romney and the GOP All Talk on Spending Cuts?

May 21, 2012

In the latest episode of our weekly Bloggingheads series, "Fireside Chats", Roosevelt Institute Senior Fellow Mark Schmitt and Jamelle Bouie, writing fellow at The American Prospect, discuss whether Mitt Romney is conservative enough to actually go through with the cuts to social welfare programs that Republicans have long demanded. In the clip below, Mark points out that Republicans love talking about spending cuts, but they're not so big on implementing them.

In the latest episode of our weekly Bloggingheads series, "Fireside Chats", Roosevelt Institute Senior Fellow Mark Schmitt and Jamelle Bouie, writing fellow at The American Prospect, discuss whether Mitt Romney is conservative enough to actually go through with the cuts to social welfare programs that Republicans have long demanded. In the clip below, Mark points out that Republicans love talking about spending cuts, but they're not so big on implementing them. In the clip below, he notes, "We’ve all the seen the game where the Republicans talk of budgets and cuts, but in fact they don’t really want to pay the price of having those things becoming a reality" and that "actually making the cuts and particularly making the cuts that affect the middle class is a huge political risk."

While there are a lot of Tea Party conservatives who have been successful in moving the Republican Party farther to the right in the past few years, Mark and Jamelle argue that there is a difference between them and more mainstream conservatives, like John Boehner, who just want to have their tax cuts. Referring to the latter group, Mark says that "if they have the low taxes they don’t really care about the rest." However, he argues that there are now a significant number of conservatives in power who adamantly believe that there is a difference between Social Security and Medicare, which people have paid into, and other programs, which are "just giveaways."  If Romney is elected, Jamelle believes that these members of the GOP will seize the opportunity to push for cuts.

Mark also points out that the rhetoric from the Republican Party and Mitt Romney keeps changing, so it's hard to know exactly what they will ultimately do. Regardless, Mark notes that Republicans are focusing on a limited group of people. He says "we’ve never really seen a party that actually draws such a sharp generational line." Since older folks are more affected by Medicare and Social Security, "It also puts yourself on the side of people who are less likely to be around in the future." He concludes that "it’s a big gamble politically."

Check out the rest of the video to listen to Mark and Jamelle talk about the changing rhetoric of the Republican Party, the demise of Americans Elect, and a crazy new Republican Super PAC.

 

Romney image via Shutterstock.

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Social Security: It’s for Young People, Too

May 9, 2012Elisa Walker

Social Security is not just for the elderly, it's an important investment for everyone. 

I’m a young American; I value Social Security; and this week in particular, I’m feeling reassured that Social Security is on solid footing and will be there for me when I need it. In fact, I see it as a great investment. 

Social Security is not just for the elderly, it's an important investment for everyone. 

I’m a young American; I value Social Security; and this week in particular, I’m feeling reassured that Social Security is on solid footing and will be there for me when I need it. In fact, I see it as a great investment. 

To some, these statements might seem unrealistic, especially given all the negative media coverage that followed the release of the 2012 Social Security Trustees Report last week. But despite the doomsday responses, the reality is actually reassuring–especially for today’s young people, who are used to hearing misleading accounts to the contrary.

Social Security is fully financed until 2033–in other words, its ongoing income plus accumulated savings can cover all of the benefits due until then. And over the next 75 years (through 2086, the end of the trustees’ estimates), it’s 85% solvent, or able to pay 85% of its obligations without any changes. That’s a pretty solid base to build on.

There’s much to celebrate: 

  • Social Security is one of the most successful government programs in history. Since 1935, it has collected $15.5 trillion and spent $12.8 trillion, leaving a balance of $2.7 trillion in its reserves.
  • The reserves will continue to grow to about $3.1 trillion by 2020. If Congress acts by then, there may be no need to spend them down.
  • Social Security has responded to the recession and the slow recovery by performing exactly as it was designed to do. In fact, Social Security is an unsung hero of the recession: by pumping out benefits on time and in full, it has helped keep the national economy–not to mention the personal finances of the 56 million people who receive benefits–in better shape. The Center for Rural Strategies has documented that Social Security benefits provide a crucial chunk of total personal income at the local level, especially in rural counties. This makes a real difference to the small businesses and local economies in America’s towns and cities.

Everyone knows that Social Security is critical to today’s seniors, but in fact it’s critical to all generations. It’s the largest federal benefit program for children, with nearly 7 million children receiving part of their family income from Social Security, mostly after the death or disability of a working parent. And if it weren’t for Social Security, how many more of the elderly would have to move in with their adult children? How many disabled workers or surviving widows would face even greater difficulties feeding their families?

Although it may come as a surprise to many of today’s young workers, Social Security is critical for us too. Besides supporting our parents when they retire, it will provide an essential foundation for our own retirement, as far down the road as that seems. Of course we all hope to do well, but think: today, to buy insurance paying a lifelong annuity (a fixed annual amount) at age 65 that would match the average Social Security retirement benefit ($1,230), plus partially keep up with inflation and continue to pay a widowed spouse, you’d have to pay about $430,000 up front in a lump sum. That’s an inconceivable amount for most people. Plus, other sources of retirement income, like pensions, savings, and housing values, are increasingly uncertain–so there’s a good chance that by the time today’s young adults are ready to retire, reliance on Social Security will be even greater than it is today.

For young workers and their families, Social Security also provides critical life and disability insurance. Consider a sample young family: a 30-year-old worker earning around $30,000 a year, with a spouse and two young children. For that family, Social Security disability and life insurance protection are each valued at close to $475,000. And it’s an unfortunate fact that a 20-year-old worker has a 3 in 10 chance of becoming disabled before reaching full retirement age. Again, Social Security is there, especially for those life-changing tragedies we can’t plan for.

That’s the crux of why Social Security is a worthy investment for young people, and indeed for everyone. It’s insurance, on a national scale: you pay in over your working career, in exchange for monthly income if you face work-ending retirement, disability, or death. Plus, it has everything you’d want from an ideal pension plan, including the fact that it pays benefits as long as you live, and those benefits keep up with inflation.

So let’s not let today’s young people, or workers of any age, be misled about this vital program. The truth is that we can be confident in Social Security’s future. Social Security is sound, facing only a fixable long-term revenue shortfall, not insolvency. And it will be there in the future for our generation, and for the generations that follow us. In the words of one blogger, “Social Security has had its ups and downs, but it’s in better financial shape now than it was a generation ago, and unless its enemies prevail, it will be there for you when you need it.”

Politicians who want to cut Social Security benefits always stress that current seniors should be held harmless, unaffected by any cuts. (They’re not dumb; they know seniors vote.) Instead, they talk about cutting benefits “out in the future.” While that may sound innocuous, it’s not. Young people, take note: it’s our benefits (not their own) that they propose to cut.

Instead of talking about benefit cuts, how about benefit improvements? Minor changes to Social Security–such as lifting the cap on taxable earnings, or gradually increasing the contribution rate–could more than cover the program’s long-term shortfall, with money left over to improve benefits (PDF). Now that’s the kind of future that we as young people should be investing in.

Elisa Walker is an Income Security Policy Associate at the National Academy of Social Insurance, where she has co-authored several briefs and fact sheets on Social Security policy.

This piece was originally posted in the National Academy of Social Insurance blog, on May 3, 2012.

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