I just got around to reading that CBS News article and have a couple
responses to it. Note, I also did not watch Obama's tv spot last
night.

First off, I agree with Wyatt that Obama isn't laying out a balanced
budget or anything. He's talking about all the things he wants to do
and, yeah, they cost a lot of money, more than Obama is likely to have
available to him.

Robert is wrong about the extra $1 trillion per year though. The
article notes that health care (the biggest chunk looked at) is
estimated to cost 1.2 trillion over the next 10 years. However, even
that figure isn't cut and dried. Much like the bailout plan, the
upfront costs are going to depend on how it is implemented and the
long term net costs are going to depend on what returns we get out of
the program.

In the bailout, the net cost is going to depend heavily on how much we
get back from the sale of stocks when and if those companies and the
economy recover. In terms of healthcare spending, the long term cost
is going to depend on how successful we are in improving the cost
effectiveness of healthcare through preventative medicine and how much
a healthier workforce  contributes to a more productive economy and
how much companies save from greater certainty over healthcare costs.
In both the bailout and healthcare, neither the short term investment
nor the long term outcome are guaranteed. I'd argue that both are
things that we have to do for the good of the country and our long
term competitiveness.

Overall, I thought that Wyatt's article was pretty decent. The only
thing I felt was really missing was an acknowledgment of Obama's plans
for revenue increases. He talks some about Obama's claims of savings
within the federal government (like getting out of Iraq) but doesn't
note that Obama is also looking to repeal certain existing tax cuts.

You can agree or disagree with Obama's tax-related plans. That's an
honest argument. What really disgusts me are the people that think we
can cut everyone's taxes and increase spending for everything. We've
had 8 years of that and McCain seems to think that we can keep doing
it. I know he talks about "across the board freezes" for federal
spending except for the military, but then he keeps talking about
healthcare plans and more tax cuts, etc. It just seems dishonest to me
in a way that Obama isn't. Obama may not be laying it out as cut and
dried as I like, but he at least talks about increasing taxes when he
talks about spending.

Judah

On Thu, Oct 30, 2008 at 9:51 AM, Robert Munn <[EMAIL PROTECTED]> wrote:
> The layout for the bailout is somewhere around $1 trillion, not quite that
> high. A lot of that money will come back to the Treasury when stocks
> recover.
>
> Obama's spending plans are an extra $1 trillion *per year* - forever!
>
> Doh!
>
> On Thu, Oct 30, 2008 at 7:59 AM, Scott  wrote:
>
>> I share your concern about the trillion here, trillion there.
>>
>> However, you used an example of poor spending (the bailout) which Obama
>> called for and supported (with a lot of support from Democrats) and then
>> use
>> that to say you don't think McCain will get to the root cause. I fail to
>> see
>> how one could conclude Obama would get to the root cause since he called
>> for
>> and Democrats supported the example of poor spending you use against
>> McCain.
>>
>
>
> 

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