Friday, August 24, 2012

Can't Read Or Won't Read

Those appear to the be the only options left for Paul Krugman. 

Newsweek recently published a piece by Niall Ferguson in which Mr. Ferguson makes the case that Mr. Obama has not earned consideration for re-election this November.  It is an interesting piece.

The NYTimes resident out-of-this-world economist cum opinionator, Paul Krugman took a few moments out of his day to suggest that Mr. Ferguson was factually challenged.  Mr. Krugman asserted that the ACA would provide a net reduction in the deficit.

Mr. Ferguson had the temerity to respond with facts and...gasp...math!  The bottom line for my valued readers is that the CBO report on the impact of the ACA indicates that the net effect of that law will be to increase the deficit by over $1 trillion over the next decade.

The only way that the ACA might have a less deleterious effect on the budget would be if it somehow managed to reduce the rate of inflation for Medicare expenditures from the 4% that is typical of the last 20 years to something much closer to 2%.  How it might do so at a time when the baby boomers are swelling the ranks of our nation's seasoned citizens is a bit of a mystery.

One option might include the use of magic wands.

Others include rationing of care or tax increases that are as fantastic as Mr. Krugman.  His fabulist inability to have an adult conversation using commonly known facts is one prime reason why I avoid Mr. Krugman's work.

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