AUSTAN GOOLSBEE: I think the world vests too much power, certainly in the president, probably in Washington in general for its influence on the economy, because most all of the economy has nothing to do with the government.
Interesting read on all the "special" perks the AARP got for supporting this bill: Rove: ObamaCare Rewards Friends, Punishes Enemies - WSJ.comThe AARP is also exempt from the new law's $500,000 cap on executive compensation for insurance executives. (The nonprofit's last CEO received over $1.5 million in compensation in his last full year, 2009.) It won't pay any of the estimated $14 billion in new taxes on insurance companies, though according to its 2008 consolidated financial statement, it gets more money from its insurance offerings than it does from dues, grants and private contributions combined. Nor will it have to spend at least 85% of its Medigap premium dollars on medical claims, as Medicare Advantage plans must do; the AARP will be held to a far less restrictive 65%.
You can't cut operating capital, increase operating costs and expect anything other than an increase in premiums. To think that volume is going to displace the increase in operating costs in this situation is the dumbest thing that anyone could ever think of.But, again, with more people paying, then more are likely to be younger and healthier, therefore it adds to capital, and thus the market would provide enough to cover additional costs.
At some point common sense has to take over.