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Krugman Finally Provides Some Oppo for Obama

September 20, 2008 10:24 AM

Throughout the primaries, New York Times columnist Paul Krugman was Sen. Hillary Clinton's most oft-quoted columnist to assail Sen. Barack Obama in her flyers and mailers. A supporter of her health care plan -- and an opponent of Obama's -- Krugman provided Clinton will a seemingly never-ending stream of quotes in which the Princeton economist eviscerated Obama's various policy proposals.

In a blog entry last night, however, Krugman finally kicked in with an assist by digging up a quote of McCain's that will assuredly become a part of the Obama stump speech tout de suite.

It comes from the Sept./Oct. issue of Contingencies, the magazine of the American Academy of Actuaries, in an article by McCain titled "Better Health Care at Lower Cost for Every American."

The graph in question -- with the key part bolded here:

"I would also allow individuals to choose to purchase health insurance across state lines, when they can find more affordable and attractive products elsewhere that they prefer. Opening up the health insurance market to more vigorous nationwide competition, as we have done over the last decade in banking, would provide more choices of innovative products less burdened by the worst excesses of state-based regulation. Consumer-friendly insurance policies will be more available and affordable when there is greater competition among insurers on a level playing field. You should be able to buy your insurance from any willing provider—the state bureaucracies are no better than national ones. Nationwide insurance markets that ensure broad and vigorous competition will wring out excess costs, overhead, and bloated executive compensation."

Writes Krugman: "So McCain, who now poses as the scourge of Wall Street, was praising financial deregulation like 10 seconds ago — and promising that if we marketize health care, it will perform as well as the financial industry!"

I would be shocked if Obama isn't saying within the next 24 hours that McCain pledged to de-regulate the health care industry as he and the GOP has done with the banking industry.

UPDATE: I see in Obama's prepared remarks, just sent to me by his campaign, that he will in fact be quoting from this "Contingencies" article in Daytona, Florida, today.

UPDATE 2: The McCain-Palin campaign says that the Obama/Krugman interpretation of McCain's comments is wrong, that he was talking about "giving American families greater access to health care and the ability to buy it across state lines – which would be in the same spirit of the updated regulation that allows Americans to do their consumer banking across state lines."

From McCain-Palin campaign senior economic advisor Douglas Holtz-Eakin: "This is absurd.  If Barack Obama thinks that today’s financial troubles were caused by policies which allowed Americans to use an ATM anywhere in this country, then it is better that he continue to be silent about solutions to the crisis on Wall Street.  That crisis arose from corruption and regulators asleep at the switch.  It's also possible Senator Obama is simply a dishonest politician who will say anything to get himself elected and just isn't ready to be President."

-- jpt

September 20, 2008 | Permalink | Share | User Comments (88)

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I wouldn't be shocked if government's next bailout is health insurance companies (besides auto makers and air industries, obviously).

We don't have free health insurance market. What we have is the government regulated, employer based health industry.

Posted by: magda | Sep 20, 2008 3:37:26 PM

Obama is a FRAUD - his entire campaign is one big staged show. Corrupt Chicago gang style politics - with Axelrod as the producer.

McCain/Palin - BEST choice for our country.

Posted by: Abby | Sep 20, 2008 3:34:55 PM

Ok let's start a pool. How long do you think it is going to take for a similar quote to surface concerning McCain's support for privatizing social security? Now that is one the Obama campaign could really uses as seniors are a tough demographic for them.

Posted by: DMR | Sep 20, 2008 3:17:13 PM

Gee, Krugman's quotes sure did help Hillary in her bid for the White House.

Posted by: Jim | Sep 20, 2008 3:13:22 PM

"Obama is so far left and marxist ... "
-----
The CHANGEling's TACTICS are STALINIST. His actual policies are Republican-lite -- and Obama, unlike McCain/Palin, has supported the big Bush "bailout" of corporations that amounts to the establishment of full-tilt corporatism/fascism . . . just in time for the election.

Anybody who doesn't want the mob in charge had better vote for McCain/Palin.

Posted by: Belle Starr | Sep 20, 2008 3:07:04 PM

I see a 30 second ad coming. :) It is a choice find. :)

Posted by: DMR | Sep 20, 2008 3:05:09 PM

hmmm chucky rangel ,that is just SO wrong...i think i meant chucky hagel but perhaps the two are so alike i was confused ,ergo the freudian post!

Posted by: bah | Sep 20, 2008 2:44:13 PM

Fact Check thinks Obama is scaring seniors on this topic.

The truth about Republican John McCain's mess of a health care plan is doing it all without Obama's help.

Posted by: kravitz | Sep 20, 2008 2:34:35 PM

btw , i didnt need chucky rangel to tell me palin wasnt qualified.

honestly ,really ...anyone that would SERIOUSLY consider voting for someone like sarah palin to be 2nd in line for arguably the hardest ,most important most demanding job on the planet should have their hollow heads examined.

i already can see how seriously the russians and the chinese ,n.koreans ,iranians etc etc...will be taking her when she makes an official trip internationally to chastise (haha) them for whatever bit of international mischief they are up to that week.

/insert eye-roll/

yeah , i recall vp (shotgun)cheneys' recent visit to georgia just after the ossetia incident.(lucky for them all he didnt have any bird hunting on his agenda while he was there, mightve started ww3!)

anyway, i can see sarah palin now... well sort of , i am trying hard to imagine her there in front of the georgian parliment , bashing those invading russkies (i bet she still calls them that in her top secret high level foreign policy meetings with gates ,rice etc etc lol!) and stumping for nato membership for georgia and all the baltic states etc etc...

well, i am trying to imagine that but its really hard to hold that mental image for long without busting out laughing...

Posted by: bah | Sep 20, 2008 2:18:56 PM

There is oil in those areas opened for drilling and that House resolution also REQUIRED oil companies to drill on lands they have already leased, which are currently idle. It also (and this is wny they don't like it) required them to pay the required royalties to the American taxpayer who owns those lands, and that is something they have gotten away without doing for 8 years because the Bush adminstration "forgot" to write that into the contract. Isn't that a convenient coincidence. I am sure it had nothing to do with the sex and the drugs and the money the oil companies were giving their Republican friends.

Posted by: Dee Dee Lynn | Sep 20, 2008 2:14:07 PM

Actually Kitty, there was much talk on the democratic side of reinstituting the draft. However, at this juncture, very few people are willing to send their kids off to die in Iraq. I personally would like to see mandatory military service instituted once this war ends with no exceptions for the children of the wealthy. I have no doubt that we would not be in this war if most people in America had had to risk themselves or their children in supporting it.

Posted by: Dee Dee Lynn | Sep 20, 2008 2:11:05 PM

Nancy Pelosi, Speaker of the House, just perpetrated an unbelievable deception on the American people. On Monday, she submitted H.R. Bill 6899 to Congress and demanded a vote take place within 24 hours. On Tuesday evening, 221 Democrats and 15 Republicans passed this bill “the Comprehensive American Energy Security and Consumer Protection Act”. This allows drilling in those areas where there is NO oil and extends the moratorium on domestic drilling where there is oil.

I don’t know about you but I’ve had it with Democratic Nancy Pelosi and Barack Obama. They are trying to perpetuate “changes” that will hurt Americans without the approval of the people of this country. Obama took huge amounts of money from Fannie Mae, Obama’s close friend Jim Johnson, CEO, of Fannie May was selected as his advisor to determine the next Vice President of the US. Obama has received 9.9 million from securities and investment firms. Obama has looked the other way at the entire sub-prime mortgage lending problem all the while taking money, and more money, money and money. Now Obama expresses grief to home owners---maybe he just didn’t know what was going on. Maybe his judgment is blind when it comes to truthfulness.

Posted by: Mike | Sep 20, 2008 2:10:47 PM

Kitty, you misunderstand me. I don't have any objection to private schools or the Ivy League or a university education. On the contrary, I would like everyone who wants to go to college to be able to do so without having to work 3 jobs like I did to pay for it. If parents want to save and send their children to private schools, that's their choice but they should do it out of choice, not because those in power have gutted the public schools. What I object to is the culture of privilege in this country in which many of the wealthiest enjoy many advantages, but work very hard to keep others from enjoying any such advantages. What I object to is those who send their children to private school and then work very hard to undermine the quality of the public schools, because in reality, they don't "believe in them" because they are "socialist." What I object to is that most of the places at the elite universities are awarded, not on the basis of merit, but on the basis of how weatlthy and powerful the parents of the student are. This is a system that defends wealth and privilege and tends to insure that access to wealth and privilege is largely hereditary. I have always believed that to whom much is given, much is expected. Republicans seem to believe that to whom much is given, nothing is expected, not even a fair share of the tax burden. It is absolutely true that what we have seen on Wall Street this week is the socialization of risk and the privatization of wealth, and that's the Republican way. Make the average American funds the wars and subsidize the businesses of the wealthy, but refuse to pay a decent wage to them or guarantee them even the basic privileges such as health care or education for their children. That was how aristocracy worked, and there were revolutions to try to put an end to it, but the same aristocratic system is essentially still there, and that's what I object to.

Posted by: Dee Dee Lynn | Sep 20, 2008 2:04:44 PM

ENOUGH OF REPUBLICAN CORRUPTION AND LIES.

ENOUGH OF REPUBLICAN MONARCHY.

8 YEARS IS MORE THAN ENOUGH MISTAKES:

BOMBED ON 9/11
IRAQ WAR
LOSS OF JOBS
KATRINA
HOUSE CRISIS AND LOSS OF HOMES
ECONOMIC MELTDOWN

WHAT ELSE TO UNDERSTAND THAT GOD IS NOT SUPPORTING REPUBLICANS?

WE NEED A CHANGE IN GOVERNMENT.

WE NEED DEMOCRATS BACK!!

Posted by: Al | Sep 20, 2008 2:02:45 PM

ricky, I am not against education from books. My library card is alive and well. I'd encourage those of you who haven't been in a public library since you were a child to please go to one. What I am against is people who have never created a job in their life making comments about grades. Read the book, "sway". I just did, and it makes a very good argument for why traditional job interviews and looking at college grades rarely accomplishes hiring the best person for the job. Now, go take a hike. I'm going to go do it right now.

Posted by: Kitty | Sep 20, 2008 1:44:45 PM

Obama is so confused that he claimed he was on the senate banking committee.

Obama called the senate banking committee my committee.

The only problem is Obama has never been on the senate banking committee.

Obama is the confused one.


Obama is the one who voted for a homeowner to have a felony for protecting his family against a robber because he used a handgun.


Obama is the one who calls ICE agents terrorists for arresting illegals.


Obama is so far left and marxist if we elect him Cuba will have a more moderate leader.

Posted by: Jeff | Sep 20, 2008 1:42:26 PM

McCain was concerned the GI bill would encourage an all volunteer military to complete the minimum requirement and then vacate. It's not surprising to me that Obama supporters would bash him on this given that Obama himself chose not to enlist because there was no war going on at the time. Please forgive me for not being able to post the link to that, but "they" get very bothered by links. You can go find it yourself if you want. Both the comment from Obama and McCain's position on the bill. As always, the law of unintended consequences kicks in on this one.

Posted by: Kitty | Sep 20, 2008 1:40:34 PM

Just a couple reasons why Barack Obama is better for the middle class than John McCain.


Reason 1. McCain's plan to end employer sponsored health insurance may work: stripping people of the health insurance they have today, imposing new taxes on those who keep their insurance.

Reason 2. When people LOSE their employer health insurance, they will have to negotiate with the insurance companies as individuals, where lack the bargaining power of companies. People with preexisting conditions (say, you have cancer!) can forgetaboutit!

Reason 3. McCain's plan to deregulate health insurance will give these companies to choose what rules THEY WANT to live with by simply reincorporating in a state friendly to THEIR NEEDS.

Reason 4. Obama and Biden are proposing that the government offer a plan like that enjoyed by John McCain and everyone else in Congress, at a discount price for people who need the help. Then YOU can choose if this plan is better for your family or one you buy yourself or one provided by your employer.

Reason 5. We are basically a Judea-Christian nation. And anyone who defends a system where people can't get insurance because they are already sick, or are denied LIFE SAVING treatment for CANCER or HEART disease or diabetes is despicable. That is the Republican way, not the American way.

Reason 6. John McCain believes in trickle down economics. It is the wealthy in this nation that matter. The rest of you are just workers. This is why he offers a huge tax cut for those who make over $250,000 a year and virtually nothing for the middle class.

Obama, by way of contrast, wants to have a tax cut for Americans making less than $250,000. The wealthiest Americans are definitely better off than they were 8 years ago. The middle class? Not.

Posted by: John McCain's conscience | Sep 20, 2008 1:35:56 PM

Kitty keeps ranting aginst education from books. Maybe that's why she is for the ex-Mayor who asked the town librarian how to remove books from the library.

Posted by: ricky | Sep 20, 2008 1:26:24 PM

So Litty, how come John McCain fought the extended GI benefits bill Senator Webb sponsored and passed over Bush's veto threat? You know, the one Bush gave McCain credit for when he caved in and signed it? How come McCain said Americans wouldn't pick lettuce for $100 an hour so we needed all the Mexicans to come and pick it for $5?

Posted by: ricky | Sep 20, 2008 1:23:36 PM

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