Tyler Cowen is my favorite conservative.  Sometimes I 
actually agree with -- not very much, but sometimes I 
do.  Today in his New York Times article he advocates 
means testing for Medicare.  He acknowledges the 
possibility that means testing will make Medicare a 
welfare program, causing it to lose support -- but he 
suggests that things are so dire we do not have 
another choice he does not seem to take seriously Mark 
Thoma's suggestion that single-payer could create 
substantial cost savings.

I am not sure how big a threat Medicare really is.  
Any sane political system would find massive savings 
in the defense budget, but sanity is a scarce 
commodity.  Taxes on the very rich and taxes on purely 
speculative activities could go a long way to 
supplement Medicare.  Unfortunately, such policies 
will not be discussed outside of third-party politics.

http://www.nytimes.com/2008/07/20/business/economy/20view.html?em&ex=1216699200&en=79692570ab41cad4&ei=5087%0A
 
-- Michael Perelman 
Economics Department California State University
Chico, CA 95929

Tel. 530-898-5321
E-Mail michael at ecst.csuchico.edu
michaelperelman.wordpress.com
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